Lecture 4 - Business Model Analysis Flashcards
What are the 3 types of business networks in IoT references?
- Shared business logic: To have the sensor communicate, to provide the data sensors to gateways to the service provider
- Smart network: Providers provide goods, services or data to other companies. This can, in some way, use the data provided by the service provider
The arrow on the left should be between data network (from TTN service) and platform - Difference ecosystem and business network: Ecosystem is much broader (an industry based on the gathering of climate/health data and using this data to enhance climate or the health of a population. In this ecosystem, you can have specific sets of firms that work together as a group to provide services to the ecosystem
What is smart business networking about? (3 things)
- How can a business network outperform competing networks?
- How can firms in a network cooperate to outperform competing networks?
- Smart business networks often use (new) intermediaries
What is a business model? (Al-debei & Avison, 2010)
- “an abstract representation of an organization, be it conceptual (building blocks), textual, and/or graphical,
- of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future,
- as well all core products and/or services the organization offers, or will offer, based on these arrangements
- that are needed to achieve its strategic goals and objectives”
This definition focuses on 1 firm
What is a business model? (Alt & Zimmermann, 2014)
An architecture for the product. service and information flows, including a description of the various business actors and their roles; and a description of the sources of revenues
This definition focuses on multiple firms working together (business network)
What is the position of the business model vs the business strategy (Alt & Zimmermann, 2014)
- BM is important for constructing an organization’s strategic positioning and offerings in the market.
- BM is interface between ‘business strategy’ and the ‘business process layers’ coping with the high dynamics in the digital business world
What are the business model building blocks? (Alt & Zimmermann, 2014)
- Mission, structure, processes, revenunes, legal issues and technology
- Enablers (technologies, channels, network/partners), structure elements: (value chain, processes) and results (value proposition, revenues)
- IT itself is not a necessary ingredient of business models. (but: many business models are highly dependent on how IT is used to enhance the other business model elements)
What are the 9 elements of the business model canvas? (Osterwalder, 2004)
- Customer segments
- Value proposition
- Revenue streams
- Channels
- Customer relationships
- Key activities
- Key resources
- Key partners
- Cost structure
What are the 6 business model elements? (BCG, 2009)
Value proposition: What do we offer to whom? It reflects explicit choices along the following three dimensions:
- Target segment(s): Which customers do we choose to serve? Which of their needs do we seek to address?
- Product of service offering: What are we offering the customers to satisfy their needs?
- Revenue model: How are we compensated for our offering?
Operating model: How do we profitably deliver? It captures the business’s choices in the following three critical areas:
- Value chain: How are we configured to deliver on customer demand? What do we do in-house? What do we outsource?
- Cost model: How do we configure our assets and costs to deliver on our value proposition profitably?
- Organization: How do we deploy and develop our people to sustain and enhance our competitive advantage?
How can IT affect/innovate a business model? (2 ways)
- By changing the value proposition and/ or the operating model
- By enhancing the (quality and speed of) managerial decision making on business modeling
o e.g. by using a business model tool or
o by developing Business Modeling capabilities or
o By developing Enterprise Architecting capabilities (to become more able to enhance the business model)
Only effective Business Model Innovation may lead to outperforming other networks and Smart Business Networks
What are the 3 supper-patterns for Industry 4.0? (Weking et al, 2020)
- Integration innovates a business model with new processes and integrates parts of the supply chain
- New combined products and services are the basis for servitization
- Expertization is a hybrid of product- and process-focused business models, which includes consulting services and multi-sided platforms
