L1: Digital Business Models & Innovation

Question 1

Explain the Business Innovation Radar

Answer 1

The Innovation Radar is a guidance tool for how a business can innovate and develop

Question 2

What are the 4 main dimensions and the 8 other dimensions in the innovation radar?

(Draw the wheel)

Answer 2

The 4 main dimensions:
- Offerings (what)
- Customers (Who)
- Processes (How)
- Presence (Where)

The 8 other dimensions:
- Platform
- Solutions
- CX
- Value capture
- Organisation
- Supply chain
- Networking
- Brand

Question 3

Provide an example of a business that has innovated (use the radar)

Answer 3

Apple. When they released the IPod they came with a new offering and platform. Created a new CX, extended the brand, created networking between IPod and Mac/Windows. Value capture through ITunes

Question 4

Explain the business model framework (4 dimensions)

Answer 4

Priorities:
- Value proposition (The job to be done)
- Profit formula (Assets and fixed costs)

Capabilities:
- Resources (Technologies, people, facilities)
- Processes (How do we do things - ways of working)

All dimensions are interrelated and thereby influence each other

Question 5

What are the 3 stages of business model development?

Answer 5

1) Creation
Create value proposition with the use of resources

2) Sustaining innovation
Innovate on ways of working (processes). Can be done by collecting customer data

3) Efficiency
Focus on profit formula (how to make money) and make investors happy. Collecting cost and efficiency data are valuable here

Question 6

What are the trends in innovating BM’s?

Answer 6

AI, IoT, Cloud, CDP, customer-centricity, analytics etc.

Question 7

Provide examples of different types of platform models

Answer 7

• Social (FB, Linkedin)
• Communication (Whatsapp, messenger)
• Media (Youtube)
• Service (Airbnb, Wolt, Uber)
• Transaction (Paypal, Visa, mobilepay)
• Search (Google)

Question 8

What is required to create value in todays BM’s?

Answer 8

Creating a product/service that the customer is willing to pay for

Question 9

Explain the razor and blade BM

Answer 9

Where two products are linked together. The main product is relatively cheap while the attached product is sold with high margins (Nespresso, printers, Gilette)

Question 10

Explain the Freemium BM

Answer 10

Users get the service/product for free but then to utilize it fully users have to pay to unlock additional features (Spotify, LinkedIn, Google Photos)

Question 11

Explain the peer-to-peer BM

Answer 11

A platform that mediates users. Connecting people with other people (DBA, Trendsales, e-bay)