BEM Test 1

Value Proposition

A clear statement that describes the unique products, services, and benefits a company offers explaining why customers should choose them

Customer Segment

Customers who we are creating value for. Examples: Mass market, niche market, multi-sided platform.

Computer Information System

a system composed of people and computers that processes or interprets information

Information Systems

is a multidisciplinary field of study that focuses on the effective and efficient use of technology, data, and information to support various business processes and decision-making within organizations

Examples of where IS it used

Organization Activities and Processes- New Product Development, Manufacturing, Marketing and Sales, Strategy & Finance

Self-Service, Cashier Transaction (POS Support), Personal, Dedicated Personal

Types of Customer Relationships

Revenue Streams

a particular means by which a company or individual generates money on an ongoing basis

Key Resources

Important assets required to make the business model work

Customer Value Proposition, Profit Formula, Key Resources, and Key Processes

Four Interlocking Elements of a Business Model

Channels

How you reach your customers

Pipelines

traditional business models where value is created linearly (e.g., supply chain)

Platforms

create value by facilitating interactions between external producers and consumers, often leveraging network effects

Network Effects

occur when a product or service becomes more valuable as more people use it, which is a key advantage of platform businesses

Scale faster because they rely on external participants for value creation (e.g., users, third-party developers), unlike pipelines, which depend on internal resources.

What is a key advantage of platforms over pipelines?

Lowering transaction costs, accessing new markets, and using data from user interactions to enhance services

How do Pipelines Disrupt Business

Key Activities

The important things the company completes to deliver the value proposition and make the company competitive

Key Partners

The important partners that are necessary to make the business operate

Cost Structure

Identifies all costs associated with operating a business, including direct costs, indirect costs, and economies of scale

Disruptive technology

an emerging technology that enables innovative companies to create new business models that alter their industry

Innovators, early adopters, early majority, late majority, and laggards

Categories of Adopters (Normal Distribution)

Capabilities Exchange

the parallel efforts (A and B) can share select resources without changing the mission or operations of either

Operational Resilience (A)

Improving and taking advantage of the strongest competitive advantage and core business of your current model and focusing on that

Strategic Resilience (B)

developing a new, separate business venture that could be more disruptive and innovative

Establish leadership, Identify the resources the two organizations can or need to share, Create exchange team, Protect boundaries, and Scale up and promote the new business

5 Steps to Establish Capabilities Exchange

Artificial Intelligence

the process of imparting data, information, and human intelligence to machines

Machine Learning

algorithms are designed to learn patterns and make data-based decisions rather than rely on predefined rules

Supervised and Unsupervised

Types of Machine Learning

Supervised Machine Learning

giving the technology labeled data and then the technology separate and make its own rules for classification - labeled data

Unsupervised Machine Learning

giving the technology just data and then make the technology comes up with labels and traits - unlabeled data

Deep Learning

subset of machine learning that deals with algorithms inspired by the structure and function of the human brain

Generative AI

type of machine learning/artificial intelligence technology that can produce various types of content

Limitations of Machine Learning

Marked as Blackboxes (don’t know how tech came up with answer) and require a lot of data

Rule Based Algorithmn

uses a set of explicit rules to make the classification.

Large Language Model

a type of generative AI that uses deep learning techniques and massively large data sets to understand, summarize, generate and predict new content - Chat GPT