Full summary of the box 2MEB. Adapted to the fact that it was an open book exam (important things brightly marked). This exam was VERY difficult! I hope this summary will help you.
1. Why (p2)
2. What + alle modellen (p3)
3. How (p7)
4. Disruptive innovation (p7)
5. Innovator’s dilemma / appropriation of innovation (p10)
6. Teece matrix (p14)
7. Complementary assets in media value network (p17)
8. Innovation myths (p18)
9. BMC – Four questions about current AND new model (p18)
1 Why business models?
1.1 iPhone market share
Market share = amount sold around the world. (de hoeveelheid dat iets wordt gekocht)
15% of all phones in the world are iPhones.
Why only 15%? Because technically iPhones are not the best phones. The other phones
are also cheaper. Than why does the 15% of all people have iPhones?
1.2 Profit share
Profit share = All the money made out of profits in the world. (winstaandeel)
iPhone its profit share is 63%. So 63% of all profits made with smartphones are iPhones
with only 15% market penetration. (Dus moest alle winst van smartphones (Samsung,
OnePlus, Nokia, Iphone, Huawei,…) een taart zijn, zou iPhone het grootste stuk hebben
met 63%)
How? Customer loyalty: They create brand value (very consistent and accessible). The
willingness to pay is higher.
Ecosystem of services which complement the technology (and what you pay for): The
money spend on apps (Appstore), itunes,… (Je betaalt dus ook voor de services die Apple
aanbiedt)
1.3 Value creation vs value capture
Value creation: Technical
2
,Value capture: Customer loyalty, services
➔ Je betaalt niet enkel voor het product maar ook voor de customer experience, de
services,…
2 What is a business model?
Business model is not the same as a business plan.
Business plan = Figures to back up the business model. Describe how the business works.
A business model shows how an organization:
• creates value (maakt value voor klanten)
• delivers value and (geeft value aan klanten)
• preserves value (bewaart) (zorgt ervoor dat het waardevol blijft voor de klanten)
➔ Successful business model canvas
• How can you make something that people want? ➔ product innovation
• How do you deliver it in a way that ensures that you get paid ... and continue to be
paid for it? ➔ service innovation
• How do you keep the cost to do it all under control? ➔ process innovation
Business modeling = Innovating products, services and processes to preserve the value.
We don’t want to break down right after we bring out our success. (Je moet ervoor zorgen
dat het success blijft bestaan.)
3 Business model components
• Technology and services
• Production, marketing and distribution channels
• Production and marketing partners
➔ Development cost model
➔ Operational cost model
➔ Marginal costs
➔ Economies of scale
➔ Critical mass
• Value proposition
3
, • Customer segments
• Payment channels
➔ Revenue model
➔ Audience development (user value, critical mass, community)
➔ Readiness to pay (direct and indirect)!
➔ Ease of payment
➔ Loyalty
3.1 Top side (Tech – critical mass)
= All the money
Marginal costs: The costs you make to serve one extra customer. (For example: Netflix, is
the cost higher than with old rental stores? It’s lower, because the cost per person is less.
You need less stocks, people in the shop,…). New media has lowered the marginal costs.
Traditional media is a lot higher. Compare news papers growing with Buzzfeed. This is with
every digital company.
Economy of scale: Cost per consumer is going down as you grow: The more you grow,
the less cost you have per consumer. (for example: Vlaamse Netflix: The economy of scale
that they want is anywhere near what the original Netflix has).
Critical mass: MP3 introduced: All of a sudden people downloaded illegally and nobody
bought real albums. If they would have an honest price, people wouldn’t steal anymore.
(De meerderheid volgt)
3.2 Bottom side (Value proposition - …)
= where you get the money from
Readiness to pay: Media is a double sided business model. You’re connecting two
customer groups with each other. (Music companies, distributers and listeners)
Advertisers = paying for exposure. Viewers = not paying.
Direct and indirect (een tussenpersoon bij indirect)
Loyalty: Have people to stick with you. It is a goal in every design of business models.
4
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