Navigator Chapter 1 Flashcards
What are the 4 dimensions ( who-what-how-why aka magic triangle)
The customer
The value proposition
The value chain
The profit mechanism
To which characteristics “ the customer” dimension respond?
Who are our target customer
To which characteristics “the value proposition” refers?
What do we offer to customers
?
To which characteristics does “the value chain” refers?
How do we produce our offerings? In order to put your
value proposition into effect you need to carry through various processes and
activities.
To which characteristics do “the profit mechanism” refers?
Why does it generates profit? This fourth dimension,
which includes aspects such as cost structures and revenue-generating
mechanisms, clarifies what it is that makes a business model financially
viable.
What is the aim of magic triangle?
To become clear about your customer segment, value proposition, value chain, and profit mechanism, while at the same time laying the foundation for future innovation.
What is Porter’s box ( Five forces)?
Framework for analyzing a company competitive environment. Five forces are
1) Power of company’s rival
2) Potential new market entrants
3) Suppliers
4) Customers
5) Substitute products
What are the 3 core challenges that make difficult for companies to deal with issue of business model innovation?
1) thinking outside of one’s own dominant industry. Mental blocks affect the development of fresh ideas
2) The difficulty of thinking in terms of business models rather than of technologies and products.
3) The lack of systematic tools.
What are orthodoxies?
Shared beliefs of a group that has a long history and isn’t open to change
What is the initial ascent myth?
Commercial success comes with ideas no one
has ever had before. The fact is that new business models frequently
borrow from other industries. This makes people think that idea was created from zero not taken
What is the “think big” myth?
‘Business model innovations are always radical
and new to the world’. Most people associate new business models with the
giant leaps taken by Internet companies. The fact is that business model
innovation, in the same way as product innovation, can be developed.
What is the technology myth?
‘Every business model innovation is based on a
fascinating new technology that inspires new products’. The fact is that
while new technologies can indeed drive new business models, they are
often generic in nature. Where creativity comes in is in applying them to
revolutionize a business.
What is the Luck myth?
‘Business model innovation is just a matter of luck and
cannot be undertaken systematically’. But the fact is that you will have to
put in as much hard work into creating new business models as into new
products, technologies, after-sales processes or logistics concepts. It requires persistency
What is the Einstein myth?
‘Only creative geniuses can come up with truly
innovative ideas’. Today, success depends less and less on the individual
masterminds. Innovation is no longer a matter of individual performance, it’s a team sport.
What is the Size myth?
‘Big breakthrough requires big resources’. Fact: small
start-ups are responsible for the most important business model revolutions. For example, the creator of Facebook also started as a start-up. Implementing
and diffusing these business models required huge investments, but most
successful Internet companies started off small and smart.
