Business Model Disruptions

Question 1

What are the 4 places to reframe/innovate?

Answer 1

Innovating in customer relationships: from loyalty to empowerment (right)
Innovating in activities: from efficient to intelligent (left)
Innovating in resources: from ownership to access (left)
Innovating in costs: from low cost to no cost (left)

Question 2

What are the patterns of business model disruption about the incumbent?

Answer 2

1) Incumbent capabilities that historically created value become less relevant
2) Legacy assets become less relevant but no less expensive

Question 3

What are the patterns of business model disruption about the activities of the innovator?

Answer 3

1) An information aggregator consolidates power by becoming an information hub or a transaction facilitator
2) A new entrant changes customer expectations of cost and service
3) An incumbent from a different arena extends into an adjacent arena with similar value functions
4) A new entrant changes product structure and to better match customer needs
5) A new entrant removes a significant number of activities from the value chain

Question 4

What are the Right Hand side disruptions?

Answer 4

1) Does my product configuration match customer preferences and expectations of value?
- Bundle or unbundle
- Own or on-demand
- “app based” or integrated offering
2) Do I have the right value chain relationships?
- get closer or farther from the customer
- skip intermediaries either forward or backward

Question 5

What are the left hand side disruptions?

Answer 5

• Change the way supplier relationships are managed
• Change the locations used to deliver the product or service
• Change processes in the value delivery change
• Change how info and tech are managed
• Change how the work is organized and managed