Lecture 6(Innovation Strategy and Ecosystems)

Question 1

What is a business model ?

Answer 1

how an organisation delivers and captures value

Question 2

4 characteristics of successful business model:

Answer 2

effective: covert value creation to firm specific returns is optimised
efficient: covert value creation to firm specific return is low
differentiated: value systems differs from those of immediate rivals
inimitable: value systems is hard to replicate

Question 3

how to design a business model?

Answer 3

• select innovative features
• find benefits for the user
• select market segmentations
• confirm viable revenue streams
• develop value capturing mechanisms

Question 4

How to achieve competitively sustainable business model ?

Answer 4

1. Segment the market
2. Create a value proposition fo each segment
3. Design and implement mechanisms to campture value from each segment
4. Enact barriers to hinder imitation by competitors and disintermediation by customers and suppliers

Question 5

What is an ecosystem?

Answer 5

Dynamic structure comprising interconnected and mutually supportive parties which influence the systems

Functioning ecosystems are systems, that creates value beyond the organisation and product

Question 6

Formulating and ecosystem strategy:

Answer 6

• predict risk, is there enough value of money(initiative risk)
• is the product developed fast enough side by side with the ecosystem( interdependence risk)
• predict integration risk: dont forget trendsetters.