part 1

Question 1

why do companies suddenly lose their competitive advantage?

Answer 1

because they fail to adjust their business models to the changing environment

Question 2

what does a company’s long-term competitive success depend upon these days?

Answer 2

their ability to create an innovative business model

Question 3

why are product or process innovations no longer sufficient for success?

Answer 3

because new technologies, blurred industry boundaries, changing markets, new competitive players and changing regulations all combine to make product and processes obsolete.

Question 4

what are the four dimensions the overall business model consists of?

Answer 4

the customer, the value proposition, the value chain, the profit mechanism
who, what, how, why

Question 5

why is the who-what-how-why called the ‘magic triangle’?

Answer 5

because an adjustment at one corner automatically necessitates tweaking the other two corners.

Question 6

which of the who-what-how-why address the external and which the internal aspects?

Answer 6

external: who and what
internal: how and why

Question 7

what is a requirement for innovation of a business model, concerning the Who-what-how-why?

Answer 7

modifying at least two of the four dimensions significantly, this is what differs it from product or process innovation.

Question 8

what are the three core challenges that make it difficult for companies to tackle the issues of business model innovation?

Answer 8

1. thinking outside of one’s own dominant industry logic is no simple matter
2. the difficulty of thinking in terms of business models rather than of technologies and products
3. the lack of systematic tools, in fact innovation is a discipline that needs to be managed like any other

Question 9

what are the 7 myths about business model innovation that continue to be quite pervasive?

Answer 9

1. the initial ascent myth
2. the think big myth
3. the technology myth
4. the luck myth
5. the einstein myth
6. the size myth
7. the R&D myth

Question 10

the business model navigator =

Answer 10

an action-oriented methodology that permits any company to break with its dominant industry logic and innovate its business model

Question 11

what is meant by creative imitation and recombination?

Answer 11

creatively imitating business models from other industries can empower your business to become an innovative leader. the innovation lies in the understanding, translation, recombination, and transfer of the successful patterns to one’s own industry.

Question 12

what are three strategies for new business ideas?

Answer 12

1. transfer - existing business model to new industry (easiest)
2. combine - transfer and combine 2 business models (harder)
3. leverage - company uses successful business model for different product range (hardest)

Question 13

between what two phases does the navigator differentiate?

Answer 13

• design - the analytical and creative part

- execution - the implementation

Question 14

the whole navigator consists of the following four steps:

Answer 14

1. initiation - analyzing your ecosystem
2. ideation - adapting patterns
3. integration - shaping your business model
4. implementation