Enactment of Technological Innovation Strategy Flashcards
What is a Business Model?
Encapsulates the rationale of how an organization generates, delivers and captures value. Emerges from a viable business strategy
What are the four characteristics of successful business models?
Effective, Efficient, Differentiated and Inimitable
What does ‘Effective’ as a characteristic of successful Business Model mean?
Extent to which conversion from value creation to firm-specific returns is optimized
What does ‘Efficient’ as a characteristic of successful Business Model mean?
Extent to which cost of conversion from value creation to firm-specific returns is low
What does ‘Differentiated’ as a characteristic of successful Business Model mean?
Extent to which value system differs from those of immediate rivals
What does ‘Inimitable’ as a characteristic of successful Business Model mean?
Extent to which value system is hard to replicate
What is a ecosystem?
Dynamic structure comprising interconnected and mutually supportive parties which influence the system
What are the 3 elements in Formulating an Ecosystem Strategy?
Assessing Initiative Risks, Interdependence Risks and Integration Risk
What is ‘Initiative Risks’ ?
Extent to which innovations are delivered on budget, on time and according to specifications -> Is there sufficient value for money?
What is ‘Interdependence Risks’ ?
Extent to which complementary innovations have been developed and deployed in the marketplace.
Whose projects must succeed before yours can?
What is ‘Integration Risks’ ?
Who has to adopt the solution before the customer can?
What are Platforms?
Technology enabling the derivation of products, services and processes that augment present or future innovation
What 3 categories of Platforms exists?
Internal Platforms, Supply Chain Platforms and External Platforms
What is ‘Internal Platforms’ ?
A firm, either working by itself or with suppliers, can build a family of related products or sets of new features, thus ultimately seeking to lower costs of production.
What is ‘Supply Chain Platforms’ ?
A set of firms follow specific guidelines to supply intermediate products or components to the platform owner or the final product assembler
What is ‘External Platforms’ ?
Products, services, or technologies developed by one or more firms, and which serve as foundations upon which a larger number of firms can build further complementary innovations and potentially generate network effects
What 5 types of Platforms exists?
Product, Process, Customer, Brand and Global platforms
What is a ‘Product Platform’ ?
Common and evolving structural elements from which a series of derivative products or services can be innovated, developed and deployed.
What is a ‘Process Platform’ ?
Specific arrangements of business processes to deliver value-adding products or services routines or systems
What is a ‘Customer Platform’ ?
Customer segment from which to establish a point of entry to an untapped market bundling, cross-selling, upselling and co-branding.
What is a ‘Brand Platform’ ?
Conveys the central value proposition of products or services to achieve coherence and clarity in positioning
What is a ‘Global Platform’ ?
Core standardized offering of a product or service globally
What is Servitization?
To augment core products and services with supplementary services to generate alternate revenue streams
What 4 types of Service Innovations exist?
Flexible Solutions, Controllable Convenience, Comfortable Gains and Respectful Access
