Business Model Canvas Quiz

Study Notes

Business Model Canvas

A strategic management tool to visualize and assess business models
Divided into two halves: left brain (logic and efficiency) and right brain (emotion and value)

AS-IS and TO-BE Business Models

AS-IS Business Model:
- Represents the current state of a company's processes, activities, resources, capabilities, and strategies
- Used as a baseline for comparison
TO-BE Business Model:
- Reflects the desired future state of a company's business model
- Includes planned changes, improvements, or innovations to better address challenges and opportunities

Business Model Patterns

Definition: Models with similar characteristics, arrangements, or behaviors
Examples:
- Unbundled Business Models
- Long Tail Business Models
- Multi-Sided Platforms

Unbundled Business Models

Concept: Focus on a specific aspect of the value chain
Three types of businesses:
1. Customer Relationship Businesses:
  - Focus on building and maintaining customer relationships
  - Depend on creating a loyal customer base
  - Example: Banks focusing on customer advisory services
2. Product Innovation Businesses:
  - Focus on developing new and innovative products or services
  - Heavy investment in research and development
  - Example: Tech companies creating new gadgets
3. Infrastructure Businesses:
  - Provide underlying infrastructure supporting other businesses
  - Invest in physical or digital infrastructure
  - Example: Telecom companies providing network services

Implications of Unbundled Business Models

Focus on core competencies and outsource or partner for other aspects of the value chain
Align resources and capabilities with strategic goals

Examples of Unbundled Business Models

1. Swiss Private Banking:
- Traditional Model: Vertically integrated, handling wealth management, brokerage, and financial product design in-house
- Unbundled Example: Maerki Baumann separated its transaction-oriented platform (Incore Bank) and focused on customer relationships and advising clients
- Reason: Cost efficiency and confidentiality concerns
1. Mobile Telecom Companies:
- AS-IS Model: Current state of providing multiple services internally
- TO-BE Model: Future state focusing on core services and outsourcing other activities

Description

Test your knowledge of the Business Model Canvas, a strategic management tool used to visualize and assess business models. Learn about the left and right brain approach, AS-IS and TO-BE business models, and more.