Business Model Innovation for Entreprenuers Flashcards
What is business model innovation?
It’s a process that involves making significant changes or creating entirely new approaches to how a company creates, delivers, and captures value
Areas that can be changed in business model innovation
Partnerships
Target audience
Revenue streams
Distribution channels
Cost structure
What is a value proposition?
A clear statement that outlines the unique benefit a product or service provides to customers . What does this product offer that similar one’s don’t?
Combines product features, benefits and selling proposition.
What is value creation?
The process of generating value for customers, stakeholders and the business itself.
Strategies and innovations that improve the overall worth of the product or service.
What are the 3 key aspects of value creation?
Innovation
Efficiency
Customer Experience
Brand reputation
Sustainability
What entails the introduction of new features, technologies or services that enhance a product or service?
Innovation
What is efficiency?
Streamlining processes to reduce costs and improve the quality of products or services.
What are the necessary conditions for building a good brand reputation?
Trust
Reliability
Consistent delivery of value
What are the key components of business model innovation?
Value proposition
Customer segments
Channels
Customer relationship
Revenue streams
Key resources
Key activities
Key partnerships
Cost structure
Importance of a business model in the dynamic business landscape
Adaptability
Comparative advantage
Revenue generation
Customer centric
Resource optimization
Innovation driver
Risk management
Strategic alignment
Amazon’s innovation example
Focus on customer experienc
Netflix’s innovation example
From traditional cable to online streaming
Google’s innovation example
continuous innovation in search algorithms, online advertising (Google AdWords), and cloud services. Products like Google Maps and Gmail also reflect the company’s commitment to exploring new markets and technologies.
Uber’s innovation example
Traditional taxi to tech drive, on demand transportation service
Airbnb
Online renting
Challenges faced by entrepreneurs in BMI
Rapid market changes
Technological disruptions
Financial pressures
Regulatory compliance
Scalability issues
Talent acquisition and retention
Customer retention
Global economic reforms
Innovation fatigue
Supply chain disruptions
Brand reputation
Adapting to e-commerce trends
Companies that have mani trained good BMI in Nigeria
GTB
Jumia
Flutter wave
Interswitch
Konga
