Business Model - Pt. 2 Flashcards
- What are the business model V4 dimensions according to Al Debei & Avison (2011)? Name
and explain them briefly.
V4 Dimensions
- Value Proposition:
Creating value for customers and/or to each party involved through offering products and services that satisfy the needs of their target segments.
- Value Network
A way in which an organisation enables transactions through coordination and collaboration among parties and multiple companies.
- Value architecture
An architecture for the organization including its technological architecture and organizational
infrastructure that allows the provisioning of products and services.
- Value finance
A way in which organizations manage issues
related to costing, pricing, and revenue
breakdown to sustain and improve its creation of
revenue.
- What is a Pivot according to Ries (2011)? Give an example and explain shortly.
A pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy and engine of growth.
- What are the six stages of validated learning according to Ries (2011)?
- ideas
- build
- product
- measure
- data
- learn
- What is a Start-Up & what is a Lean Start-Up according to Ries (2011)?
▪ A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.
▪ Lean Startup is a method to systematically reduce the risk of projects with high uncertainty.
- Name the nine building blocks and fill out the Business Model Canvas on the next page for
Volocopter – with at least two aspects in each block (for more information see appendix below).
Q12 answered
- Name the ten rules for good Business Design according to Teece (2018).
- depends as much on art and intuition as it does on science
and analysis. - design requires deep knowledge of customer needs and the technological and organizational resources that might meet those needs.
- require an understanding of current business models at work in the market. Most new business model designs involve the hybridizations of others.
- Alignment and coherence is desirable so that the business model elements will be
mutually reinforcing. - Strategic analysis must be tied to business model design and vice versa. Strategy guides
business model design and is also to some extent shaped by it. - strategies and assets that make imitation difficult. Imitation will occur sooner or later, and pioneers must be fast learners.
- Identifying the customer segment(s) to focus on first in order to learn and achieve proof-of-concept and business model viability is a critical capability.
- When n-sided markets are involved, getting started early and effectively seeding the
n sides is critical. - Good business model reengineering skills are an important component of strong
dynamic capabilities. They enable proficient seizing. - The introduction of new business models into an existing organization is always
difficult and may require a separate organizational unit.
- What are the Business Models Functions according to Al Debei & Avison (2011)?
.
- Name the building blocks of the Business Model Canvas.
- Key Partners
- Key Activities
- Key Resources
- Cost Structure
- Customer Segments
- Channels
- Customer Relationships
- Channels
- Revenue Streams
- What is a model according to Stachoviak (1973)?
There are three factors in a model:
- Mapping; A model is representation of something.
- Idealisation; A model is based on a justified abstraction and simplification. Not all elements of reality are mapped.
- Pragmatism; Models are used in concrete, pragmatic contexts.
- Name the limitations of the Business Model Canvas
- The purpose of the firm is not mentioned.
- Market structure and competitors are not mentioned.
- There is no explicit mentioning of the ‘value network’.
- Implication about the capital needs (e.g. need for
working capital) are not mapped.
