16 Questions
What is the essence of a business model?
Defining the manner by which the enterprise delivers value to customers
What is a business model supposed to articulate?
The logic and data that demonstrates how a business creates and delivers value to customers
What is the fundamental question asked by business strategists?
How does one build a sustainable competitive advantage and turn a super normal profit?
What is a product innovation?
The introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses
What does a process innovation involve?
The implementation of a new or significantly improved production or delivery method
What does a product innovation target?
Significant improvements in technical specifications, components and materials
What is the purpose of a business model?
To create and deliver value to customers
What is the outcome of a good business model design?
A sustainable competitive advantage and super normal profit
What is the primary focus of a business model?
Defining the manner by which the enterprise delivers value to customers
What does a business model reflect?
Management's hypothesis about what customers want
What is the outcome of a well-designed business model?
Sustainable competitive advantage and supernormal profit
What is the purpose of an innovation funnel?
To evaluate and refine business ideas
What is a characteristic of a product innovation?
Significant improvements in technical specifications
What is the focus of a process innovation?
Implements new production or delivery methods
What is the relationship between business model design and revenues, costs, and profits?
They are directly related
Why is a well-designed business model important?
To achieve sustainable competitive advantage
Study Notes
Business Models and Strategy
- A business model describes the design or architecture of value creation, delivery, and capture mechanisms employed by a business enterprise.
- The essence of a business model lies in defining how the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.
Key Components of a Business Model
- A business model articulates the logic and provides data and evidence to demonstrate how a business creates and delivers value to customers.
- It outlines the architecture of revenues, costs, and profits associated with delivering value to customers.
Business Model Design
- Good business model design is crucial to building a sustainable competitive advantage and achieving super normal profits.
- The key question in business model design is how to build a sustainable competitive advantage and turn a super normal profit.
Innovation
- A product innovation is the introduction of a new or significantly improved good or service with respect to its characteristics or intended uses.
- Examples of product innovations include improvements in technical specifications, components, materials, incorporated software, user friendliness, or other functional characteristics.
Types of Innovation
- A process innovation is the implementation of a new or significantly improved production or delivery method.
- Examples of process innovations include significant changes in techniques, equipment, and/or software.
Steps to Achieve Sustainable Business Models
- Questions to ask about a provisional business model are important to ensure its sustainability.
Business Models and Strategy
- A business model describes the design or architecture of value creation, delivery, and capture mechanisms employed by a business enterprise.
- The essence of a business model lies in defining how the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.
Key Components of a Business Model
- A business model articulates the logic and provides data and evidence to demonstrate how a business creates and delivers value to customers.
- It outlines the architecture of revenues, costs, and profits associated with delivering value to customers.
Business Model Design
- Good business model design is crucial to building a sustainable competitive advantage and achieving super normal profits.
- The key question in business model design is how to build a sustainable competitive advantage and turn a super normal profit.
Innovation
- A product innovation is the introduction of a new or significantly improved good or service with respect to its characteristics or intended uses.
- Examples of product innovations include improvements in technical specifications, components, materials, incorporated software, user friendliness, or other functional characteristics.
Types of Innovation
- A process innovation is the implementation of a new or significantly improved production or delivery method.
- Examples of process innovations include significant changes in techniques, equipment, and/or software.
Steps to Achieve Sustainable Business Models
- Questions to ask about a provisional business model are important to ensure its sustainability.
This quiz covers the fundamentals of business models, including the design of value creation and delivery, and the mechanisms employed to capture value. It also explores the importance of defining value for customers and enticing them to pay for it.
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