module 1.2 Flashcards
What is in the Operating Model Canvas?
Suppliers, Location, Information, Organization
Define Suppliers
Who the most important ones are and how the company manages them
Define Locations
Where work happens and what gets done within them
Define Information
Data and technology
Define Organization
Organizational management of the company
What are the parts of value?
Input costs, total costs, price and willingness to pay
Define Input Costs
Costs associated with getting access to basic materials and equipment needed to create a service or product
Define Total Costs
Input costs and the costs of all activities
Define Price
Amount customer pays to acquire the service or product
Define Willingness to Pay
Amount of money customer would spend to solve their problem
In the BMC, where is WTP?
Right side
In the BMC, where is Price?
Revenue Streams
In the BMC, where is total cost?
Cost structure
In the BMC, where is Input Cost?
Operating model
Define Value Created
WTP-TC,
1) Customer out there who has a problem, willing to pay to solve it
2) Company out there who has a service that solves that problem
Define Value Captured
Price-TC, this is profit babyyyy
Define Consumer Surplus
Love!!! WTP- Price
1) The value a customer captures
Nuanced way to talk about Price and WTP
1) If business is transactional, price as close to WTP as possible to capture as much value as possible
2) Relational: let customers capture value to maintain a relationship so price below WTP
Value Delivered
TC-IC
All of activities undertaken to deliver service or product, organization cost or transformation cost
