paper 1

Question 1

despite the fact that scholars do not agree on the definition of a business model, there is a widespread acknowledgement of the following aspects:

Answer 1

• bms are a new unit of analysis distinct from the product, firm, industry, or network
• bms emphasize a system-level, holistic approach to how firms ‘do business’
• firm activities play an important role in the various conceptualizations of business models that have been proposed
• they seek to explain both value is captured and how it is created

Question 2

bms have been employed mainly in trying to address these three phenomena:

Answer 2

1. e-business and the use of information technology in organizations
2. strategic issues (value creation, competitive advantage)
3. innovation and technology management

Question 3

research on e business can be organized around two complementary streams:

Answer 3

1. describing generic ebms and provide typologies

2, focus on the components of ebms

Question 4

media business model =

Answer 4

convergence of different media channels onto one digital platform

Question 5

main focus of bm:

Answer 5

• notion of value (value stream, customer value)
• financial aspects (revenue streams, cost structure)
• aspect related to architecture of network between firm and exchange partners (delivery channels, network of relationships)

Question 6

elements that together build up a bm

Answer 6

value proposition, revenue model, network of relationship

Question 7

four potential sources of value creation through bms:

Answer 7

1. novelty - innovation, renewal
2. lock-in - engaging customers in repeat transactions
3. complementaries - bundling to leverage value
4. efficiency - can be done in multiple ways, for example by reducing asymmetries

Question 8

three types of bmi

Answer 8

1. industry models - innovations in industry supply chain
2. revenue models - innovations in how companies generate value
3. enterprise models - innovation in the role structure of an enterprise in new or existing value chains

Question 9

strategic agility can be achieved by developing three meta capabilities:

(necessary to overcome the rigidity that accompanies bms)

Answer 9

1. strategic sensitivity
2. leadership unity
3. resource flexibility