Lars Lecture Flashcards
Learing models
(Customer Value Pyramid)
What are the four levels of value in the Customer Value Pyramid?
Functional, Emotional, Life-Changing, and Social Impact
(Customer Value Pyramid)
How is the Customer Value Pyramid different from Maslow’s hierarchy of needs?
Unlike Maslow’s hierarchy, which requires sequential fulfillment, the Customer Value Pyramid allows companies to provide value at any level based on customer priorities.
(Customer Value Pyramid)
Why is ensuring foundational quality important in the Customer Value Pyramid?
Foundational quality supports customer loyalty and enhances the effectiveness of delivering value at higher levels.
(Customer Value Pyramid)
How does the Customer Value Pyramid influence pricing strategies in businesses?
Addressing higher-level value elements can increase perceived value, enabling businesses to raise Willingness to Pay (WTP) and improve customer delight or margins.
(Customer Value Pyramid)
Describe how a company could strategically combine elements from different levels of the pyramid to create a unique value proposition.
A company could combine functional benefits (e.g., cost savings) with emotional value (e.g., reduced anxiety) and life-changing elements (e.g., helping achieve personal goals) to differentiate its offering and appeal to a broad range of customer priorities.
(Customer Value Pyramid)
What challenges might a company face when attempting to deliver value at the “Social Impact” level, and how could these challenges be addressed?
Challenges include aligning social impact efforts with brand identity, ensuring authenticity, and measuring outcomes. These can be addressed by embedding social initiatives into the core business model, engaging stakeholders, and transparently communicating impact.
(Business Value Model? (Gregor et al 2006)
What are the four key areas of value creation in the Business Value Model? (Gregor et al 2006)
Informational, Transactional, Strategic, and Transformational.
(Business Value Model? (Gregor et al 2006)
What is the primary purpose of the Business Value Model?
To help businesses understand how activities and innovations contribute to operational efficiency, competitive advantage, and growth
(Business Value Model? (Gregor et al 2006)
How can businesses transition from achieving transactional value to transformational value?
By leveraging technology or innovation to fundamentally alter business models, focusing on new revenue streams, and adopting disruptive practices that redefine traditional processes.
(Business Value Model? (Gregor et al 2006)
What are some limitations of focusing solely on informational or transactional value?
It limits long-term growth potential and competitive advantage, as these areas focus on operational efficiency rather than strategic or transformational innovation.
(Value Stick (Oberholtzer-Gee, 2024)
What are the four main components of the Value Stick (Oberholtzer-Gee, 2024)
Willingness to Pay (WTP), Customer Price, Compensation/Supplier Price, and Willingness to Sell (WTS)
(Value Stick (Oberholtzer-Gee, 2024)
What is “Customer Delight” in the Value Stick model?
It is the difference between the customer’s WTP and the actual price they pay.
(Value Stick (Oberholtzer-Gee, 2024)
How can lowering the WTS contribute to both employee satisfaction and firm profitability
By improving working conditions, offering better relationships, or enhancing reputation, companies can lower WTS, reduce costs, and increase employee satisfaction simultaneously.
(Value Stick (Oberholtzer-Gee, 2024)
Explain how the Value Stick can guide a company in balancing stakeholder value.
By adjusting components like WTP and WTS strategically, the model ensures equitable value distribution among customers, suppliers, employees, and the firm, thus aligning profitability with stakeholder satisfaction.
(Business Value Model? (Gregor et al 2006)
How does the “Strategic” area differ from the “Transactional” area in value creation? (Value Creation (Gregor et al., 2006) -> )
The “Strategic” area focuses on competitive advantage and market differentiation, while the “Transactional” area is about streamlining processes for efficiency and cost reduction.
(Business Value Model? (Gregor et al 2006)
Provide an example of how a company could transition from focusing on informational value to transformational value.
A retail company might begin by analyzing purchase trends (informational) and then leverage this data to develop a new subscription model for personalized customer experiences (transformational).
(Business Value Model? (Gregor et al 2006)
Why is the transformational area considered the most challenging to achieve, and what capabilities does it require?
It requires fundamental changes in business models, significant resource reallocation, and the ability to innovate and disrupt traditional processes, which demand strong dynamic capabilities and strategic foresight.
Building Blocks of Digital Transformation Process (Vial, 2019)
What are the eight building blocks of the digital transformation process described by Vial (2019)?
Use of digital technologies, Disruptions, Strategic responses, Changes in value creation paths, Structural changes, Organizational barriers, Negative impacts, and Positive impacts.
Building Blocks of Digital Transformation Process (Vial, 2019)
What does “Disruptions” refer to in the context of digital transformation?
It refers to the challenges that digital technologies pose to traditional business models and market dynamics
Building Blocks of Digital Transformation Process (Vial, 2019)
How can structural changes enable successful digital transformation?
By altering hierarchies, roles, and communication channels, organizations can create a more agile and adaptable environment that supports new digital initiatives and strategies.
Building Blocks of Digital Transformation Process (Vial, 2019)
Explain the role of overcoming organizational barriers in achieving successful digital transformation.
Overcoming resistance to change, addressing skill gaps, and fostering a culture of innovation are crucial for aligning employees and processes with digital transformation goals, ensuring long-term success.
Classic and Useful Business Cases (Nielsen & Persson, 2017)
What is the primary focus of a “classic” business case?
It focuses on financial metrics like ROI and NPV to justify a project.
Classic and Useful Business Cases (Nielsen & Persson, 2017)
How is a “useful” business case different from a “classic” business case?
A “useful” business case is dynamic, broader in value assessment (including strategic, operational, and social value), and revisited throughout the project lifecycle.
Classic and Useful Business Cases (Nielsen & Persson, 2017)
Why is it important to revisit a business case during and after a project?
Revisiting ensures alignment with evolving priorities, tracks progress, adjusts for unforeseen changes, and measures the realized benefits to inform future initiatives.
Classic and Useful Business Cases (Nielsen & Persson, 2017)
How can a shift from classic to useful business cases improve project outcomes in dynamic industries?
By adopting a more comprehensive and adaptive approach, organizations can address multiple dimensions of value, better manage risks, and ensure the project remains aligned with both short- and long-term goals
Three Dimensions of IS Value (Nielsen & Persson, 2017)
What are the three primary perspectives of IS value creation?
Monetary View, Social Manifestation, and Artefact Manifestation.
Three Dimensions of IS Value (Nielsen & Persson, 2017)
What is the focus of the Monetary View in IS value?
It focuses on financial outcomes and economic benefits, such as ROI and cost-benefit analysis
Three Dimensions of IS Value (Nielsen & Persson, 2017)
How does the Artefact Manifestation perspective ensure IS effectiveness?
By assessing technical and operational aspects, such as system performance, adherence to standards, and required updates, it ensures the IS functions effectively and meets organizational needs.
Three Dimensions of IS Value (Nielsen & Persson, 2017)
Why is the Pluralistic View essential for holistic IS evaluation, and how does it differ from the other dimensions?
The Pluralistic View integrates financial, social, and artefact dimensions to provide a comprehensive assessment. It ensures decisions consider user satisfaction, technical quality, and strategic alignment, beyond isolated metrics like ROI
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017)
What is the significance of the iterative development of business cases?
It ensures that business cases remain dynamic and relevant, adapting to new information and evolving priorities throughout a project.
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017)
What happens to the benefits curve during the early stages of a project?
Benefits often decrease initially due to implementation challenges, such as workflow disruptions or resistance to change.
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017)
Why is the steering committee critical in the iterative business case process?
The steering committee ensures alignment with organizational goals, oversees adjustments based on progress, and facilitates communication across stakeholders to address challenges effectively.
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017)
How does the time lag in benefits realization impact project planning and benefit management strategies?
It requires organizations to plan for an initial dip in performance, maintain stakeholder support, and implement robust benefit management to gradually realize long-term gains.
Business Case Development (Five-Step Process):
What is the first step in the five-step process for business case development?
Define motivation and objectives.
Business Case Development (Five-Step Process):
What is the primary focus of Step 3: Structure the Benefits?
Organizing benefits by linking them to required changes and providing valuations to ensure clarity and measurability.
Business Case Development (Five-Step Process):
Why is Step 5: Approve, essential in the business case process?
It formalizes the business case, aligning it with organizational strategy and obtaining necessary stakeholder approvals for implementation.
Business Case Development (Five-Step Process):
How does Step 2: Identify Benefits, Measures, and Owners, ensure accountability in the business case process?
By assigning specific owners to each benefit, it ensures there is a responsible party to influence and track the realization of benefits, promoting accountability and focus.
Business Case Development (Five-Step Process):
What risks might be identified in Step 4: Identify Costs and Risks, and how should they be mitigated?
Risks could include technological failure, resistance to change, or budget overruns. These can be mitigated by creating contingency plans, maintaining stakeholder engagement, and closely monitoring project progress.
Business Case Development (Five-Step Process):
How do the iterations of Step 1: Define Motivation and Objectives, influence the overall success of the business case?
By refining the purpose and aligning objectives with evolving organizational challenges and opportunities, this step ensures that the business case remains relevant and impactful throughout the project lifecycle.
Business Case Development (Five-Step Process):
Describe how all five steps of the business case development process are interconnected to ensure project success.
Each step builds on the previous one: Step 1 defines the objectives, Step 2 identifies measurable benefits and assigns accountability, Step 3 structures these benefits into actionable plans, Step 4 evaluates costs and risks to provide a realistic picture, and Step 5 formalizes the plan through approval and alignment with organizational strategies. This interconnected approach ensures a clear, comprehensive, and adaptable business case.
Benefit-Owner Framework (Nielsen and Persson, 2017 & Ward et al., 2008)
What are the three types of value identified in the benefit-owner framework?
Financial, Measurable and Observable
Benefit-Owner Framework (Nielsen and Persson, 2017 & Ward et al., 2008)
What is the role of a benefit owner in the framework?
To be accountable for realizing the asssigned benefit, ensuring actions like process changes, training, or monitoring are executed effectively.