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Question 1

How do you create a business strategy?

Answer 1

1. Identify mission
   
   2. Swot
   3. Strategic alternatives
   4. Business model (strategy implementation)
   5. Budgeting

Question 2

Business model:

Answer 2

company’s architecture of value (how they generate value and how they can deliver value

infrastructure:
• Key partners, activities and resources upon which the value prop is built

Value propositions:
• Prod/serv which target group of customers and satisfies their needs

Interface:
• Cust rel, segm, channels - channels through which we offer value and types of rel we have w cust

Formula:
Revenue streams

Question 3

Value proposition canvas:

Answer 3

how you are creating value for customers. Helps to design prods your cust want

Question 4

Business strategy, it strategy and digital strategy

Answer 4

Business strategy:
integrated long term plan that includes consistent set of strategic dec and is aimed at creating competitive adv

It strategy:
Use of info tech adopted by org as tools to boost productivity or lower costs.
• It strat must be aligned with firms business strat
• Basically : “how will IT help the business win?”

Digital technology:
The combination of info, computing, communication and connectivity
• Its customer centric: they affect customers touchpoints and journey so much that they call for a true customer centricity in a companies strat

Question 5

Digital business strategy

Answer 5

“how should our business evolve to survive and thrive in an inc digital world?”

strategy formulated and executed by leveraging digital resources to create differential value.

Question 6

how is digital business strategy different to IT strategy?

Answer 6

Digital Business Strategy is more than IT strategy since it is the extent to which a firm engages in any category of IT activity to create value

Question 7

strategy palette

Answer 7

• Helps firms to evaluate 3 dimensions of the env where they operate:
  
  • Predictability (can you forecast it?)
  • Malleability (can you shape it?
  • Harshness (can you survive it?)

It has 5 approaches to strategy which help leaders match their approach to their business environment

• Classical: I can predict buy cant change - based on achieving sustainable comp adv by positioning a firm in an optimal place in the market
• Adaptive: cant predict cant change - relies on temporary comp adv
• Shaping: cant predict can change - reshapes an industry by influencing the development of a market in its favour through coordination with others
• Visionary: can predict can change - empowers a firm to create an industry with some predictability by seeing an opp and pursuing it
Renewal: recourses are very constrained - refreshes the competitiveness of a firm when its operating a harsh env

Question 8

Network effects:

Answer 8

product or service gains additional value as more people use it.

• Same side network effetcs
Affect the same cust group they come from

• Cross side network effects  Affect a different customer group from the one they originate from  They can be positive: the more readers a news website has, the more attractive it is to advertisers.  And they can be negative: the more adverts a news website shows, the less attractive it is to potential readers.

Question 9

Pricing and networks

Answer 9

The existence of network effects strongly affects the decision about pricing: bc they are serving multiple types of customers, multi-sided platforms have potentially multiple revenue sources.

In a two-sided market, a common situation implies a subsidy side and a money side:
○ The subsidy-side is charged less than it would be in an independent market, charged nothing or is given rewards to participate in order to reach high volumes and make more valuable the platform
for the other side;
○ The money side is charged more than it would be in an independent market.

So, the money side pays to have their stuff on the platform and the subsidy side pays very little to use the stuff on the platform

* the more price-sensitive side is subsidized, 
* the side that increases its demand as the other side's volume grows is charged. The objective is to attract enough participants on the money side in order to get huge revenues on the money side, which will be inclined to pay handsomely to access the high volumes on the subsidy side. 
* Charging the side that must supply quality, and not the side that demands quality as in traditional theories, allows the platform to exclude participants that bring low-quality products to the platform.

Question 10

Pipeline vs platform - differences

Answer 10

To go from a pipeline to a platform (pipeline is a normal company)
• Pipelines focus on resource control where as platforms focus on resource orchestration
• Pipelines focus on internal optimization where as platforms focus on external interactions
• Platforms focus on the maximization of customer value where as platforms focus on the value of the ecosystem

Question 11

why do Platforms need effective guidance?

Answer 11

because the sharing of ideas are fundamental for platforms to work
• governance which is limiting the negative network effects (rules which limit bad behaviour on networks)

Question 12

Open governance

Answer 12

the sharing of the possibility of shaping trade rules and rewards division.
• Because of this coordination between the architecture openness and a reward system is required to gain advantages.
○ If the platform has open architecture without sharing the rewards, then the participants have the ability to join the platform (due to the open arch) but not the rewards (due to the absence of reward sharing system).
○ If the platform has closed arch but open rewards then they have incentives to join but not the ability.

Question 13

Without permission innovation:

Answer 13

no approval is required for participants to invent things for the platform - but there is a guarantee that the value created will be shared in the platform

Question 14

downsides to opennes in governence

Answer 14

unlimited and unregulated access can destroy value.