Flashcards on Business Model Innovation and Value Proposition
Business Model Innovation & Value Proposition: A Student Guide
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Business Model Platforms
22 cards
Card 1
Question: Give an example from the content that illustrates business model innovation (platform-related outcome).
Answer: WhatsApp allowing free phone calls anywhere in the world (a business model innovation that changes how value is delivered and monetized).
Card 2
Question: What key idea differentiates business model innovation from product or process innovation?
Answer: Business model innovation significantly affects at least two of the four components: Who, What, How, Why (customer, value proposition, value creation/
Card 3
Question: List the four components of the 'Magic Triangle' for business models.
Answer: What (value proposition), Who (customer/segment), How (value chain / how value is created and delivered), Why (profit mechanism / monetization).
Card 4
Question: According to the content, what indicates that business model innovation has been achieved in an industry?
Answer: When the dominant industry logic is disrupted (the business model changes how the industry operates).
Card 5
Question: Name three monetization options for a connected toothbrush mentioned in the content that resemble platform or ecosystem strategies.
Answer: Subscription for brush head renewal, SaaS dashboards with free/premium tiers (AI-powered analysis), and affiliate partnerships (recommend products and
Card 6
Question: What platform-like service option for the connected toothbrush turns it into a multi-sided offering involving professionals?
Answer: Integration with dentists where data is sent before appointments and users can book appointments through the app (platform).
Card 7
Question: Give an example from the content where customer-side innovation expanded the user base and could enable platform effects.
Answer: Nintendo Wii expanding gaming to everyone (ages 5 to 95), enabling new uses like rehabilitation and social/cognitive applications.
Card 8
Question: Why might product and process innovation alone not ensure long-term company success, according to the content?
Answer: Because business model innovation (how the company configures and monetizes offerings) can be decisive for long-term success beyond product/process im
Card 9
Question: What is the 'revenue-sharing' monetization mechanism on platforms?
Answer: A company proposes an innovation that enhances an existing offer and charges a fee to the party that provides the existing offer (i.e., shares revenue
Card 10
Question: How does the 'rent instead of buy' monetization model create value for customers?
Answer: Customers rent the product (e.g., by day, month, or year), making it more accessible and improving efficiency in product utilization by reducing non-u