Business Models

Question 1

what are the various views of business models?

Answer 1

– The story that explains how an enterprise works
– Who the customer is, what the customer values, how one delivers value at an appropriate cost.
– A customer value proposition, a profit formula, key resources, and key processes
– A rationale of how business creates, delivers and captures value

Question 2

describe the difference between business models, strategy, and tactics

Answer 2

• Business models, strategy, and tactics are interrelated but different concepts
• Strategy: the plan to create a unique and valuable position
• Business model: the logic of the company, i.e. how it operates, and creates and captures value
• Tactics: the residual choices available to a company given its business model
• Every organization has a business model, but not all have a (planned, deliberate) strategy.

Question 3

business model of google

Answer 3

Provides a fantastic, no-cost, user experience that generates highly granular individual profiles which are then sold to advertisers.

• users are the product

Question 4

example of freemium business model

Answer 4

skype

Question 5

what is gillette’s business model

Answer 5

refill pattern

Question 6

lego’s business model

Answer 6

long tail pattern

-consumers are the designers

Question 7

apple’s business model

Answer 7

lock-in pattern

-ecosystem of products, tries to upsell you

Question 8

what is a sustainable business model

Answer 8

Rationale of how a business creates, delivers and captures

economic, social and environmental value

Question 9

describe the triple business model canvas

Answer 9

has economic, social stakeholder and environmental business model canvases

Question 10

simply, what is a business model

Answer 10

how an enterprise makes money

Question 11

holistically, what is a business model

Answer 11

– Describes how organizations viably create and capture value
• How key components and functions, or parts, are integrated to deliver value to the customers
• How those parts are interconnected within the organization and throughout its supply chain and stakeholder networks; and
• How the organization generates value, or creates profit through those interconnections.

Question 12

what are the key boxes in the environmental business model pattern for “the circular economy”

Answer 12

rematerialization
closed-loop production
remanufacturing

Question 13

how can you adapt your business model to the needs of tomorrow

Answer 13

• Deliver long-term value shaped by digitalization
• Push towards breakthrough outcomes and ultimate system change.
• Social contributions, direct and indirect;
• Effective (or “lean”) use of all forms of capital;
• Levels of integration, from fields, farms, fisheries and factories; through companies, industries and economies, right out to the atmosphere and biosphere;
• And contribution to shaping tomorrow’s increasingly closed-loop and circular value networks.

Question 14

how can you try to achieve adoption at scale (4 steps of aim and core discipline)

Answer 14

A core discipline for the new breed of innovators involves building platforms rather than just products)

• The aim is:

1. To identify a pain point experienced by a large number of potential consumers or users.
2. To develop a core value unit in any social interaction between a producer and consumer.
3. Design a way of facilitating that interaction, developing a prototype to test the proposition.
4. Determine how to build a network around that interaction—turning users into ambassadors for the platform.

Question 15

what are the three questions/considerations of whether your business model will be impactful?

Answer 15

1. Big Enough
2. Simple enough
3. cheap enough