Paper 2

Question 1

What are two problems with new growth that bring business model innovation?

Answer 1

• Lack of definition: very little formal study has been done
• Few companies understand their existing business model well enough

Question 2

What is the roadmap to business model innovation according to paper 2?

Answer 2

1. Realize that succes starts by not thinking about business models at all, start with thinking about an opportunity to satisfy a real customer who needs a job done
2. Construct a blueprint laying out how your company will fulfill that need at a profit

3 Compare the model to your existing model and see how much you have to change

Question 3

What is a customer job?

Answer 3

Fundamental problem in each situation that needs a solution

Question 4

What are the 4 elements of the profit formula of a company (value capturing)

Answer 4

• Revenue Model (Price x Volume)
• Cost Structure (Direct, indirect, economies of scale)
• Marign Model
• Resource velocity

Question 5

What are key resources?

Answer 5

• People
• Technology
• Products
• Facilities
• Equipment
• Channels

Question 6

What are key processes?

Answer 6

• Training
• Development
• Manufacturing
• Budgeting
• Planning
• Sales
• Service

ALSO: Rules, metrics and norms

Question 7

What do key resources and processes decribe

Answer 7

The way that value will be delivered to both the customer and the company.

Question 8

What are five strategic circumstances that often require business model change?

Answer 8

• The opportunity of disruptive innovation because large groups of potential customers are currently shut of of the market
• The opportunity to capatilize on a brand-new technolgy
• The opportunity to bring a job-to-be-done focus where on does not exist
• The need to fend of low-end distributors
• The need to respond to a shifting bias of competitors