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Weeks 5-7 Content Flashcards

1
Q

what is a circular economy?

A

this is a term for an economic model that stands in direct contrast to the linear model of our current industrial economy

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2
Q

what does the circular economy rely on?

A

mass production and consumption

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3
Q

what does mass production and consumption require?

A

constant delivery of raw materials and energy

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4
Q

according to WRAP, what is a circular economy?

A

“A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life.”

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5
Q

what supports the rationale and prospects for a circular economy?

A

macroeconomic reports

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6
Q

what have the EU and China signed?

A

a memorandum of understanding on circular economy cooperation

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7
Q

What is China investing in?

A

renewable energy, digital technologies, and asset-sharing platforms

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8
Q

what is china transitioning to?

A

from a giant of manufacturing to the world’s largest consumer market

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9
Q

who is having the biggest organisational impact on the circular economy?

A

Ellen MacArthur Foundation (EMF)

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10
Q

what is them Ellen MacArthur Foundation?

A

a leading charity supporting the transition to a circular economy

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11
Q

what does the Ellen MacArthur Foundation do?

A

“works with business, government and academia to build a framework for an economy that is restorative and regenerative by design.”

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12
Q

what does the circular economy rely on?

A

business model innovations that redefine products and services to minimise negative impacts

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13
Q

what are feedback loops enabled by?

A

current and emerging technologies which can change the relationships between people, energy, consumption and use

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14
Q

how can systems be optimised?

A

by creating more effective flows and useful feedback mechanisms

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15
Q

what are the enablers of circular economy initiatives?

A

digital technologies and internet-connected devices

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16
Q

what new business opportunities do digital technologies provide?

A

Improving the user experience. Mobile technology, for example, simplifies and improves user experience by making remote interactions possible across customers, suppliers and the goods themselves.

Monitoring performance of assets. Mobile apps combined with other digital technologies like machine-to-machine (M2M) connectivity and big data analytics can enable remote control, predictive maintenance, mobile payments and automated monitoring.

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17
Q

what is the sharing economy?

A

the exchange of surplus assets for some form of payment

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18
Q

what has made the sharing economy grow?

A

the growth of mobile digital platforms has made this type of transaction possible at an unprecedented scale

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19
Q

what does the sharing economy focus on?

A

the sharing of underutilised assets, monetised or not, in ways that improve efficiency, sustainability and community

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20
Q

what does the collaborative economy focus on?

A

collaborative forms of consumption, production, finance and learning

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21
Q

what does the on-demand economy focus on?

A

“on-demand” (i.e. immediate and access-based) provision of goods and services

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22
Q

what does the gig economy focus on?

A

workforce participation and income generation 3 via “gigs”, single projects or tasks for which a worker is hired

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23
Q

what does the crowd economy focus on?

A

economic models powered by “the crowd”, including but not limited to crowdsourcing and crowdfunding.

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24
Q

what gives the sharing economy a bad name?

A

fake reviews, uncertain quality and lack of accountability

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25
what is a critical success factor in the sharing economy?
trust
26
what is the danger of focusing on the success stories of the sharing economy?
Confirmation bias - it's easy to confirm preconceived opinions and conclude that any new venture adopting the same principles will be equally successful
27
what are the six causes of failure of the sharing economy?
low customer lock in low control over service quality high competition for idle resources low transaction frequency high cost of developing both market sides unexpected changes in the legal environment
28
what is low customer lock in?
The transaction-centered nature of sharing economy business models generally creates low switching costs between platforms. Hence, sharing economy firms can rapidly lose their entire network of participants.
29
what is low control over service quality?
Sharing economy business models inherently lead to lower control of the customer experience because it is delivered by independent participants.
30
what is high competition for idle resources?
New entrants can threaten the business model of the dominant platform by aggressively competing for its supply-side participants.
31
what is low transaction frequency?
Business models face difficult economics if they address a market in which product or service transactions occur infrequently
32
what is high cost of developing both market sides?
Pioneering firms need to invest heavily in legitimizing sharing business models if they enter entirely new markets.
33
what are some unexpected changes in the legal environment?
Regulatory changes threaten the firm’s business model or impose expensive lawsuits.
34
what is a business model?
this describes the rationale for how an organisation creates and delivers value to its customers in order to make a sustainable profit
35
what does a business model require?
a business plan (how/when it will all happen)
36
what does an e-business model offer
this offers great potential for innovation through the lowering of transaction costs
37
what does the dot.com serve as?
a useful reminder of early boom and bust with its depictions of the rise and fall of businesses such as clickmango and boo.com
38
what is required for a successful business model?
it needs the identification of an opportunity and optimum alignment of the appropriate skills within the business or its networks and the right timing
39
what does a business model need to survive
something distinctive about its capabilities
40
what are the standard business models?
digitising products and services digital platforms crowdsourcing monetisation
41
what are digitising products and services?
this is a physical product adding value by having digital services included as a package
42
what are digital platforms?
platforms that provide a market place bringing together buyers and sellers of digital or physical products eg eBay, AirBnB
43
what is crowdsourcing?
this enables large scale testing and feedback by users on a specific product design or application
44
what is monetisation?
different ways in which digital technologies can facilitate the generation of revenue
45
what are the different methods of monetisation?
free - facebook/google where users gain full access to services but pay with their data freemium - basic service is free but customers pay for extras or access to premium content eg spotify/linkedin subscription - customers pay a regular fee to access content rent - rather than owning
46
what can the building blocks of digital transformation in recent years can be summarised as?
SMAC
47
what does SMAC stand for
social. mobile, analytics and cloud
48
how is SMAC driving digital innovation?
social media platforms offer new ways to reach, engage and acquire customers mobile technologies have fundamentally changed the way we communicate, they offer opportunities around real time data and wearable devices analytics provide businesses with a detailed understanding of customer behaviour and powerful tools for predicting future demand Cloud based technology services offer flexibility, reduced costs and the capacity to store and analyse large quantities of data
49
who produced the hype cycle?
Gartner
50
what is the hype cycle used for?
as a general indicator of trends and also with versions customised for specific industry sectors
51
what does the hype cycle show?
how new technologies go through initial excitement that they will change the world until they reach the peak of inflated expectations
52
how can new business models be broken down?
into: automation, extension and transformation
53
what is automation?
when a business uses digital technologies to automate or enhance its existing operations
54
what is extension?
when a business uses digital technologies to support new activate in addition to its existing operations
55
what is transformation?
when digital technologies enable entirely new ways of conducting business that replace the established models
56
what are the seven patterns of digital business models?
subscription, on demand, peer to peery, ecosystem, hidden revenue through data, e-commerce/marketplace, freemium
57
how has technology evolved over the past 50 years?
growth of personal computing (1980-1989) emergence of world wide web (1990-1999) growth of digital business (early 2000s) social and mobile (2010s)
58
What did Marshall McLuhan anticipate?
the idea of online networks, virtual reality, multiple interfaces, social media and how new technologies continually transform our identities and out communities
59
What did McLuhan warn 50 years ago?
warned that our traditional notions of privacy and selfg would be lost within an unforgiving electronic global village
60
what does a sustaining strategy rely on?
incremental improvements in the performance of an established product
61
what is a disruptive strategy?
provides a radical, low cost but good enough alternative starting at the bottom of the market
62
what is the productivity paradox?
discrepancy observed between the investment in new technologies and other national level of productive output
63
what is productive output?
as investment goes up, productiviuty actually falls
64
what are the reasons for organisational reluctance to change?
establishes businesses are often tied into complex and bespoke legacy IT systems and traditional organisational structures creativity is limited by walled garden IT policies in case trade secrets are given away cultural mindset is still about broadcast rather than conversation change is regarded as threatening and disruptive to status quo, if its not broke why fix it
65
what are the five strategic imperatives from Jim Hemerling’s TedTalk
In order to motivate staff to believe in the change, the transformation needs to articulate a clear sense of purpose Leaders need to look beyond cutting costs and focus on medium term by aiming to drive growth change the way the business works and invest in developing people Make use of appropriate capabilities needed throughout the change processes as different skills will be required at different times Instil a culture of continuous learning Adopt an inclusive leadership style that incorporates a vision, a clear road map and accountability
66
what is the change monster?
technological disruption within large organisaitons is compromised by their inability to change
67
what are the issues of change monster
leaders have little experience of disrupotive technology risk averse behaviour and inertia reward is given for results today rather than premise of results tomorrow many businesses will fail, many of tomorrow's leading businesses have not even started yet

Digital Business Models (2 decks)

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