Digital Business Model Design

Why should businesses innovate their business models?

Because DISRUPTION forces push business to innovate as the environment changes (it's about staying ahead), while DIGITALIZATION pulls businesses to innovate as new technologies allows them to grow (it's about embracing new opportunities).

Give examples of companies that were affected by disruption forces (Push factor).

-Kodak disrupted by digital cameras/smartphones
-Nokia disrupted by Apple

-Blockbuster disrupted by streaming services

Give examples of companies that were affected by digitalisation (Pull factor).

-Amazon which is constantly "digitalising" it's business model

Why should businessess look for continuous innovation/improvement?

To avoid disruption and avoid missing out on new opportunities, not only at the level of products/services or processes but also at the level of the business as whole.

What is a business model canvas?

It's the blueprint of the components of a company, which shows how a company creates and captures value.

What are the components of a business model? (Infrastructer, Offer, Customers, and Viability)

Infrastructer- Key Partners and Key Activities
Offer- Value Proposition, Customer Relationships, and Channels
Customers- Customer Segments
Viability- Cost Structure and Revenue Streams

What question is answerd by the Infrastructure part of the business model?

How?

What question is answerd by the Offer part of the business model?

What?

What question is answerd by the Viability part of the business model?

Why?

What question is answerd by the Customers part of the business model?

For Who?

Complete the sentence a)____ a company b) _ and c)_ d)____

a) How
b) creates
c) captures
d) value

In which part does the "Value Proposition" component belong? What question helps adress this? What it consists of?

Value Proposition belongs to the OFFER component.
Question: "What do you do?"
It's about the products/services you are offering, what is the value being delivered by them and what need/problem of the consumer is this value helping solve.

In which part does the "Customer Segments" component belong? What question helps adress this? What it consists of?

Customer Segments belongs to the Customers component.

Question: "Who do you help?"
It's about who are you creating value for, which are the most important customer (segments), and which provide the most revenue.

What are customer segments? What are the main bases of segmentation? And which type of segmentations can businesses choose?

Customer segments are ways to distinct groups of customers who share similar characteristics, needs, or behaviors.
The main bases are: Geographic, Demographic, Behavioral, and Phychographic.

Businesses can choose between:
-Zero segments: no segmentation

-One segment: Small, thightly defined target market

-Two or more segments: 2 or more small, thightly defined target market

-Thousands: Personalised offers

In which part does the "Channels" component belong? What question helps adress this? What it consists of?

Channels belongs to OFFER part.

Question: "How do you reach them?"

It's about how you communicate your value to your customers, how do you deliver yout product/service, how many channels do you use.

In which part does the "Customer Relationship" component belong? What question helps adress this? What it consists of?

Customer Relationship belongs to the OFFER part.

Question: "How do you interact?"

It's about the type of relationship your customers segments expect you to have with them, and how costly they are.

In which part does the "Key Resources" component belong? What question helps adress this? What it consists of?

Key Resources belongs to the STRUCTURE part.

Question: "What do you need?"

It's about what you need to create and offer a value proposition, how you reach your customer segments, and how you maintain relationships with them.

In which part does the "Key Activities" component belong? What question helps adress this? What it consists of?

Key Activities belongs to the STRUCTURE part.

Question: "How do you do it?"

It's about what you do to perform successfully. These can be through production, problem solving, through a platform or networking.

In which part does the "Key Partners" component belong? What question helps adress this? What it consists of?

Key Partners belongs to the STRUCTURE part.

Question: "Who will help you?"

It's about who are they, which resources do you acquire from them, which activities do they perform for us.

In which part does the "Revenue Streams" component belong? What question helps adress this? What it consists of?

Revenue Streams belongs to the Viability part.

Question: "How much will you make?"

It's about how much your cutomers sgments are willing to pay for your value proposition, and how do they prefer to pay.

In which part does the "Cost Structure" component belong? What question helps adress this? What it consists of?

Cost Structure belongs to the Viability part.

Question: "What will it cost?"

It's about what are the most important costs you have when you operate your business, and what key resources and activities are the most expensive.

Where is the first step to build a business model canva?

Is to beggin by the Value Proposition step.

What is a Revenue Model? Give an example.

It´s a framework for generating finacial income from the value created.

Example: Rental model: payment is amde for the temporary use of a product (car rentals)

What is the best way to find a business model? What is name of the metod used? Why?

FOLOW THE MONEY.

Reverse engeneering!

It's easier to build a BMC through the financial information on an annual report as details are often classified,