TECHNOPREUNERSHIP MIDTERM QUIZ 1( MODULE4)
defined as the process of creating, modifying, or defining the fundamental structure and components of a business model to create new value proposition.
BUSINESS MODEL INNOVATION
it involves developing innovative ways to generate revenue, deliver products or services and create and capture customer value.
BUSINESS MODEL INNOVATION
APPROACH TO BUSINESS MODEL INNOVATION
reinventor approach.
adapter approach.
maverick approach.
adventurer approach.
this is deployed in light of a fundamental industry challenge, such as commoditization or new regulation.
Reinventor approach
in which a business model is deteriorating slowly, and growth prospect are uncertain.
Reinventor approach
used when the current core business, even if reinvented, is unlikely to combat fundamental disruption.
adapter approach
deploys business model innovation to scale up a potentially more successful core business
maverick approach
aggressively expands the footprint of a business by exploring or venturing into new adjacent territories.
adventurer approach
PURSUING INNOVATION IN BUSINESS
product innovation
process innovation
this describes the development of a new product, as well as an improvement in the performance or features of an existing product.
Product Innovation
this is implementation of new or improved production and delivery methods in an effort to increase a company's production levels and reduce costs.
Process Innovation
this component defines the unique value that a business offers to its customers.
Value proposition
it encompasses the products, services, features and benefits that address customer needs, solve their problems or fulfill their desires.
Value proposition
identifying and understanding the target. it's crucial for effective business model innovation
Customer Segments
Types of customer segments
MASS MARKET
SEGMENTED MARKET
DIVERSIFIED MARKET
MULTI - SIDED MARKET
Broad, general customer groups with similar needs
Mass market
divided into smaller groups based on unique preferences
segmented market
different segments with distinct needs served by the same business
diversified market
two or more interdependent customer segments
multi - sided market
COMPONENTS OF BUSINESS MODEL INNOVATION
revenue streams
channels
key activities
key resources
innovation drivers
partnership and ecosystem
cost structure
value proposition
customer segments
this component focuses on how the business generates revenue from its value proposition
revenue streams
represent the distribution and communication, used to reach and engage customers
channels
encompasses the core processes, operations, and actions required to deliver the value proposition effectively
key activities
refer to the essential assets, capabilities, and infrastructure needed to operate the business model
key resources
the external and internal factors that push a company to reconsider and evolve it's business model to remain competitive, relevant and adaptable in the ever changing business landscape
innovation drivers
this components involves identifying and leveraging strategic partnership or building ecosystem that complement the business model
partnership and ecosystem
defines the expenses associated with the operating the business model
cost structure
examples of business model
netflix
spotify
uber
airbnb
apple
tesla
alibaba
amazon
start deeply understanding customer needs, pain points, and behaviors
customer centric approach
foster a culture of continuous innovation like learning and experimentation. Encouraging employees to challenge assumptions, take calculated risks, and learn from failures.
Embrace growth mindset
involves diverse perspectives from different teams and departments within the organization
Collaborative and Cross Functional Approach
leverage data and analytics to inform decision making processes. Gather insights on customer behavior, market trends, and industry dynamics to support business model innovation efforts
data driven decision making
its a business model innovation start with small experiments, test, assumptions, gather feedback, and iterate based on the results
Iterative and Agile approach
look beyond internak resources for inspiration and insights
External insights and Open innovation
develop prototypes or MVPs to quickly test and validate different aspects of the business model
prototyping and minimum viable products (MVPs)
its an aspects of the business model to protect any unique innovations or competitive advantages
Intellectual property protection
it's consider when designing the business model
Scalability and long term viability
business model innovation is an ongoing process
Continuos monitoring and adaption