E2 - 1. Business Models Flashcards
What are the 6 elements of the PESTEL framework?
Political Economic Social Technological Ecological Legal
What are Porter’s 5 forces?
- Bargaining power of suppliers
- Bargaining power of customers
- Threat of entrants
- Threat of substitutes
- Competitive rivalry
What are Porter’s 3 generic strategies?
- Cost leader
- Differentiation
- Niche/focus
What is a business ecosystem?
An economic community supported by a foundation of interacting organisations and individuals
What are the 4 key attributes of an ecosystem?
- Mutuality
- Orchestration
- Evolution
- Leadership roles
What are the 3 key drivers of the evolution of ecosystems?
- The internet and extent of its access
- Wealth of data
- Customer empowerment
What are the 4 types of business model?
- Asset builder
- Network orchestrator
- Service provider
- Technology creator
What are network orchestrators?
Companies that deliver value through connectivity (mutuality), creating a platform that participants use to interact with other members
What are 5 key capabilities of network orchestrators?
- Create digital capabilities
- Invest in intangible assets
- Lead through co-creation
- Integrate big data
- Focus on subscriptions, not transactions
What is mutuality?
The concept of working together and building a community
What are 4 key technology enablers in ecosystems?
- Cloud computing
- Social media
- Mobile technology
- Data analytics
What are the 2 key factors in business ecosystems?
Participants (Roles, Reach and Capabilities)
and
Interactions (Rules, Connections, Course)
What are the elements of ‘complexity’ in a business ecosystem?
- Number/diversity of participants
- Sophistication of activities
- Range/nature of relationships
What are the elements of ‘orchestration’ in a business ecosystem?
- Strength/extent of influence
- Formality of interactions
- Degree of enforceability
What is the term used for a business with high complexity and loose orchestration?
Hornets nest
