Week Six Flashcards
What are the four epicenters of business model innovation?
Resource-driven, offer-driven, customer-driven, and finance-driven.
Describe the “connection economy” in business model innovation.
It creates value by connecting people and leveraging network effects, like platforms such as Airbnb and Uber.
What is a “razor and blade” model?
A business model where the initial product is sold at a low price or a loss, with profits coming from repeat purchases of consumables, like printers and ink cartridges.
How can businesses use “slice & dice” in innovation?
By reconfiguring their value chain, such as Dell’s direct-to-customer model, or changing revenue focus, like Warby Parker’s online glasses sales.
What does “peer-to-peer” mean in the connection economy?
It involves connecting individuals who have a surplus resource with those who need it, like Airbnb connecting homeowners with travelers.
What is the role of key partners in a business model?
They are crucial for providing resources, sharing risks, and enabling activities that are essential for executing the business model effectively.
Name the four unique characteristics of services.
Intangibility, heterogeneity, inseparability, and perishability.
What is business model innovation?
It is the process of redefining how an organization creates, delivers, and captures value, often through new strategic approaches.
What is servicization?
Turning a product into a service offering, such as pay-per-use (e.g., Rolls Royce’s “Power by the Hour”) or subscription models (e.g., Netflix, Spotify).
What is the Hotel California model?
A business model with low entry points but long-term customer tie-ins, often through maintenance fees or upselling.
What is the key idea behind the “Slice and Dice” business model?
It involves reconfiguring the supply chain or focusing on different parts of the value chain for profit generation (e.g., Dell’s direct sales).
Customer Segments
Your most important customers (e.g., seniors); consider the value of personas here.
Key Partners
The people who will help you fulfill the key activities, using the key resources.
Key Activities
Those vital actions that go into the everyday business to get things done; these are all the activities needed to realize and maintain the value proposition, and to power everything else involved.
Key Resources
The tools needed to get those things done, stretching across all areas the canvas covers to include, for example, customer retention.
