Test 2 5980
what is the essence of open business model
(collaborating with outside partners)
what is the essence of unbundling business model (specialization, focus, and avoid conflicts)
•Divide business into separate entities to focus and avoid conflicts. •Specialization •Divesting (or outsourcing) unwanted business•Avoid conflicts and reduce resource waste •Do what you are good at and divest the rest •Business entities can be -Product Innovation department (•Innovation and Employee centered) -Infrastructure Management (•Cost mentality) -Customer relationship management (•Customer comes first.)
how to make a good story
(actor, goal, barrier, and resolution) A time-tested structure, telling details, emotion, truth and meaning are the essential components.
What is the long-tail business model
"Offering large number of niche products which sells relatively infrequently"
What is MVP (minimum viable product)
Build a minimum feature set that brings your value proposition to life and allows testing it with customers and partners.
link business pattern with the canvas model
Business Model Pattern as generalized similar design of business model. A single business model can incorporate several of these patterns.
Outside-in:
Exploiting external ideas within the firm
Definition of Customer Relationship (unbundling business)
Marketing New customer acquisition Existing customer retention Service-orientated Customer-comes-first
Inside-out
Providing external partners with ideas or assets lying idle within the firm
what is the definition of business pattern
Similar characteristics, similar arrangements of business model building blocks, or similar (firm) behaviors
Students should be able to provide an example of multi-sided platform
•Apple - iTunes- Songs and album maker -Music listeners
Students should be able to provide an example of long-tail business model ....
•Long Tail business model aims at Selling Less of More. •Offering large number of niche products which sells relatively infrequently •Requires: -Low inventory cost -Strong platform Long Tail - Example 2: •Lego interlocking bricks -Variety of themes -Competitions becomes tough with new entries -Lego started user-generated content -Users can use Lego Digital designer to create their own theme.
what is multi-sided platform
•MSP facilitates interaction between different groups •If it grows rapidly it could form network effect •Creates value as intermediary connecting different interdependent groups together. •Bring two distinct customer groups together •Business has two segments A,B. The existence of one segment without the other makes no profit.• Both segments pay. -Google - AdSense •Website owners •Advertisers
Five types of business pattern
- Open - Long Tail -Multi-sided -Free -Unbundled
open business model - two types (outside-in and inside-out, and their meanings)
-Outside-in: Exploiting external ideas within the firm -Inside-out: Providing external partners with ideas or assets lying idle within the firm
basic rules in brainstorming
Defer judgment Encourage wild ideas Build on the ideas of others Go for quantity One conversation at a time Stay focused on the topic
Definition of Infrastructure (unbundling business)
High fixed cost Big capacity and volume Economy of Scale Cost-focused Efficiency
Explain why Lulu is a combination of long-tail and multi-sided
It provides large extent of niche content and content tools that sells relatively infrequently. At the same time, it brings two distinct customer groups together (niche authors and niche audiences)
Definition of Innovation (unbundling business)
New product development Early market entry Speed-orientated R&D staff Creativity-encouraged
What a Ad-Libs contain
OBJECTIVE: Quickly shape potential value proposition directions OUTCOME: Alternative prototypes in the form of "pitchable" sentences
For the business that is not "focused", what can you do (divest or outsource)
This is referring to the part of a business that they don't want to focus on. How does it get completed? They Divest (Outsource) the business portions that aren't part of their focus. This avoids unneeded conflicts and reduces resource waste.
what does the business model design mean
creative approaches to extend the boundaries of thought, to generate new options, and ultimately, to create values based upon the existing business model(s)
what is napkin sketch
drawing on a napkin that make your ideas more tangible and shareable
Three types of free business model (free offer, freemium, and razor and blade model)
free offer: (ex. Metro News Paper) freemium: which provides basic services free of charge and premium services for a fee (ex. LinkedIn) razor and blade model: Customers start as Free user and then encourage to make purchase (ex. Gillette)
Three types of unbundling business models
innovation, infrastructure customer relationship
Four segments (macro-economy, industry forces, key trends and market forces)
macro-economy - commodities, global market conditions industry forces - supply chain, competitors, substitute products/service, new entrants key trends- social/cultural factors, tech trends, regulations market forces - need/demand, market issues, switching cost
free business model - what is it (and how it can make money
one group of customers is lured with the free service, whereas the other segment(s) pay the service
T-diagram, Clustering, Venn diagram and tree diagram (what are they? , what is the function of each diagram)
t: Using a T shape, list a category that you want to compare or contrast about a specific topic or topics. Do this for a variety of categories. Cluster: Draw a bubble.And write the topic above it.; Now look for words that connect with each other. Circle the words and connect them with lines. Tree: This diagram has a central idea to which you add branches that focus on detail Venn: Draw two circles that connect. List two topics above the circles. Brainstorm about the topics - what do they have in common and what is unique about each one.