E2 - 1. Business Models

Question 1

What are the 6 elements of the PESTEL framework?

Answer 1

Political
Economic
Social
Technological
Ecological
Legal

Question 2

What are Porter’s 5 forces?

Answer 2

1. Bargaining power of suppliers
2. Bargaining power of customers
3. Threat of entrants
4. Threat of substitutes
5. Competitive rivalry

Question 3

What are Porter’s 3 generic strategies?

Answer 3

1. Cost leader
2. Differentiation
3. Niche/focus

Question 4

What is a business ecosystem?

Answer 4

An economic community supported by a foundation of interacting organisations and individuals

Question 5

What are the 4 key attributes of an ecosystem?

Answer 5

1. Mutuality
2. Orchestration
3. Evolution
4. Leadership roles

Question 6

What are the 3 key drivers of the evolution of ecosystems?

Answer 6

1. The internet and extent of its access
2. Wealth of data
3. Customer empowerment

Question 7

What are the 4 types of business model?

Answer 7

1. Asset builder
2. Network orchestrator
3. Service provider
4. Technology creator

Question 8

What are network orchestrators?

Answer 8

Companies that deliver value through connectivity (mutuality), creating a platform that participants use to interact with other members

Question 9

What are 5 key capabilities of network orchestrators?

Answer 9

1. Create digital capabilities
2. Invest in intangible assets
3. Lead through co-creation
4. Integrate big data
5. Focus on subscriptions, not transactions

Question 10

What is mutuality?

Answer 10

The concept of working together and building a community

Question 11

What are 4 key technology enablers in ecosystems?

Answer 11

1. Cloud computing
2. Social media
3. Mobile technology
4. Data analytics

Question 12

What are the 2 key factors in business ecosystems?

Answer 12

Participants (Roles, Reach and Capabilities)
and
Interactions (Rules, Connections, Course)

Question 13

What are the elements of ‘complexity’ in a business ecosystem?

Answer 13

1. Number/diversity of participants
2. Sophistication of activities
3. Range/nature of relationships

Question 14

What are the elements of ‘orchestration’ in a business ecosystem?

Answer 14

1. Strength/extent of influence
2. Formality of interactions
3. Degree of enforceability

Question 15

What is the term used for a business with high complexity and loose orchestration?

Answer 15

Hornets nest

Question 16

What is the term used for a business with high complexity and tight orchestration?

Answer 16

Lion’s pride

Question 17

What is the term used for a business with low complexity and loose orchestration?

Answer 17

Shark’s tank

Question 18

What is the term used for a business with low complexity and tight orchestration?

Answer 18

Wolf pack

Question 19

What are the 4 main advantages of outsourcing?

Answer 19

1. Concentrate on core competencies
2. Cost certainty
3. Access to expert knowledge
4. Cheaper (economies of scale of provider)

Question 20

What are the 3 main disadvantages of outsourcing?

Answer 20

1. Confidentiality concerns
2. Difficulty in finding reliable partner
3. Loss of control

Question 21

What are the 5 main options for alternative business organisations?

Answer 21

1. Outsourcing
2. Offshoring
3. Outsourced service centre
4. Strategic alliances
5. Joint venture

Question 22

What are the 2 main benefits of a strategic alliance?

Answer 22

1. Expanded network

2. Maintaining autonomy

Question 23

What are the 3 main risks of the shift to business ecosystems?

Answer 23

1. Being left behind (disruptive technologies)
2. Investing in the wrong tech
3. Failing to harness the power of big data

Question 24

What are the 2 main opportunities that have come from the shift to business ecosystems?

Answer 24

1. New products/services on the market

2. New platforms and partnerships