Session12 Flashcards
What are business models?
Business models refer to the logic of the company – how it operates and creates and captures value for stakeholders in a competitive marketplace.
What is the difference between business models and strategy?
Business models: how a company operates and captures value.
Strategy: a plan to create a unique and valuable position involving a distinctive set of activities.
How are business models described according to Teece (2010)?
Business models are management’s hypothesis about:
- What customers want
- How they want it
- How an enterprise can best meet those needs and get paid for doing so.
What are examples of business models?
Examples include:
- Charge the user, or others for users’ presence.
- Selling a service vs. selling a product (e.g., jet engines, mobility).
What is a General Purpose Technology (GPT) market?
A GPT market involves:
- Making a general-purpose technology.
- Focusing on basic R&D.
- Licensing to many downstream integrators.
What are the risks of General Purpose Technology Markets?
Downstream: Lose innovation as a valuable resource.
Upstream: Less control over the success of the solution.
What is required for GPT models to succeed?
Success depends on:
- Modularity of downstream products
- Market size
- Appropriability regime (e.g., patents, unique value-added).
What are the effects of platform-based business models?
Effects include:
- Impact on competition.
- Changes in quality of services.
- Redistribution of power among actors.
Who benefits from platform structures?
Users: Access to competitive products/services.
Platform leaders: Leverage ecosystems but face competition.
Complementors: Access to customers but risk platform dependence.
What are Srnicek’s questions on platform sustainability?
- Are platforms sustainable, or do they rely on:
- Staying ahead of regulations.
- Being fueled by venture capital?
- Future landscape: monopolies or a convergent industry?
What is Zuboff’s ‘logic of accumulation’?
Zuboff questions:
- Who has access, learns, decides?
- Is this driven by technology or governance rules?
What is surveillance capitalism?
Surveillance capitalism: Value is generated from personal data, improving performance through data accumulation.
What is Zuboff’s ‘Big Other’?
‘Big Other’ refers to the mining of all sources of data where individuals cannot opt-out of behavior being recorded and modified.
What concerns does Zuboff highlight?
Key concerns include:
- Redistribution of privacy rights.
- Platforms accumulating decision power and lacking legitimate authority.
