MIST Quiz 2

What are the three components of digital business models?

1. Content (what is consumed?) 2. Experience (how is it packaged?) 3. Platform (how is it delivered?)

What are the phases of the software development lifecycle?

1. Design and Development 2. Implement and Analyze 3. Goals and Requirements

Customer Segment:

A group of customers with common needs, common behaviors, or other attributes

What is a Two-Sided Market?

A market where neither group benefit, unless both groups profit Ex: Groupon-one side you have vendors (offering us prices), one side you have customers (we get deals)

What is Freemium?

When there is a free tier of software. You get a portion for free. Ex: Spotify-you have to buy the premium version to upgrade

Cost Structure:

Describes all costs incurred to operate a business model

True/False: To be able to discuss and communicate over the business model of an organization one needs to read and understand several pages of text description.

False

Value Proposition:

The benefit or bundle of benefits that a company offers customers

What is Bait & Hook?

The idea that we are going to bait you with something then hook you onto it. Ex: buy a razor, you have to keep buying razor heads

Key Resources:

The most important assets required to make a business model work.

True/False: It is possible for organizations partner up with others in a business model to acquire knowledge, licenses or access to customers.

True

What are the three components of every digital business model? a) Content, Experience, and Platform b) Data, Technology, and People c) Processes, Data, and Technology d) Products, Information, and Customers e) Customer Relationships, Value Propositions, and Revenue

a) Content, Experience, and Platform

What business model involves serving two or more interdependent market segments, and typically involves a platform to bring the two customers together? a) Multi-sided b) Diversified c) Mass market d) Niche Market e) Segmented

a) Multi-sided

Which of the following is NOT one of the phases of the System Development Life Cycle (SDLC)? a) Position the organization to generate value b) Design the potential solutions c) Identify the specific requirements of the system d) Analyze the existing situation e) Identify the goals of the organization

a) Position the organization to generate value

Which of the following is not one of the three trends that drive the importance of moving towards digital business models? a) Digitization b) Value Chain c) Digital Natives d) Customer Voice

b) Value Chain

Which of the following is NOT an example of an organization maintaining a customer relationship a) Amazon.com inviting customers to write reviews b) A company launching a private online community c) Netflix recommending movies and television shows to customers d) Airlines paying Rolls-Royce a fee for servicing airline engines e) All of the above are examples of organizations maintaining customer relationships

d) Airlines paying Rolls-Royce a fee for servicing airline engines

Which of the following is/are a true statement about the business model canvas? a) Customer groups identify describes who our value proposition targets. b) The channel component describes how we will deliver or reach our customers with the value proposition. c) The right side of the canvas is generally related to revenue generation, while the left side of the canvas is generally related to costs. d) All of the above statements are true. e) None of the above statements are true.

d) All of the above statements are true.

A business model canvas CANNOT be used to do which of the following a) Identify the costs associated with the variety of resources and activities undertaken by the organization to provide the value proposition b) Identify the different customer segments and the parts of the business model that are relevant to providing the value proposition to the customer segment c) Identify the portions of the business model that are relevant to generating revenue and profit to the organization d) Identify the sequence of primary and support activities within the organization used to generate value for the customer and margin to the organization.

d) Identify the sequence of primary and support activities within the organization used to generate value for the customer and margin to the organization.

What of the following best describes the "bait and hook" business model? a) Give a product away and then charge for the premium version. b) Find both buyers and sellers and bring them together on your platform. c) Integrate primary activities and support activities in the value chain. d) Provide products for low or no cost and then make up the profits on complementary products. e) All of the above describe elements of the "bait and hook" business model.

d) Provide products for low or no cost and then make up the profits on complementary products.