Information Management

• mass market
• niche market
• segmented
• diversified
• multi-sided platforms

Bundle of products or services that create value for specific customer segment.

• newness
• performance
• customization
• "getting the job done" 
• design
• brand/status
• price
• cost reduction
• risk reduction
• accessibility
• convenience / usability

Windowing: selling the same product through different channels at different times. E.g. movie -> video -> pay-TV -> free TV

Versioning: selling different versions of the same product. E.g. selling full version, reduced version of a program

How does the company communicate and reach its customers to deliver the value proposition? 

Which channels do customers want to be reached?
How are channels integrated?
Which channels work best / are most cost-efficient?

Awareness -> Evaluation -> Purchase -> Delivery -> After sales

• Personal assistance
• 1:1 assistance, dedicated
• self-service
• automated services
• communities
• co-creation

How does a company generate income from each customer segment?

• asset sale
• usage fee
• subscription
• licencing
• lending / leasing
• brokerage fee
• advertising

Most important assets to make the business model work and deliver the value proposition.

• physical
• intellectual
• financial
• human

most important things to do to make business model work and deliver value proposition.

• production
• problem solving
• platform/network

network of suppliers & partners that make the business model work

• partners / suppliers
• what do they do? resources?

1. strategic alliances
2. coopetition -> strategic partnership between competitors
3. joint ventures -> develop new business
4. buyer-supplier relationship

most important costs in the business model, how are costs composed?

• cost-driven -> cheap airline
• value-driven -> luxury goods
• characteristics of cost structures?
  • fixed
  • variable
  • economies of scale
  • economies of scope

Customer relationship business --> specialise on acquiring customers and developing relationships with them (right side of business model canvas)

Product innovation business --> develop new and good products and services (central part of business model canvas)

Infrastructure business --> develop platforms for repeating high-volume offers and maintain them (left side of business model canvas)

1. Automation

• cost reduction -> more efficient

2. Control

• real-time monitoring

3. Empowerment

• more data, information & knowledge --> better decision making

4. Interaction

• humans/digitalized solutions engage timely/meaningful --> complex / problematic / innovative activities handled better and quicker

1. Operational

• enhanced task effectiveness / efficiency

2. Analytical

• enhanced decision effectiveness / efficiency

3. Collaborative

• enhanced collaboration --> more effective, efficient

Agility = detect potentially disruptive threats and opportunities --> manage resources to subdue threats and exploit opportunities

Agility achieves:

• stability --> to withstand disruptions by maintaining operational reliability
• dynamism --> to innovate, transform by being strategically adaptable, quick

Adaptive agility = ability to aggressively introduce incremental enhancements to current business model

Entrepreneurial agility = ability to aggressively introduce radical enhancement to current business model or to introduce new business models

Value proposition = value unit?  <--> customer?

Profit model = how is revenue generated? cost structure? --> profit

Dynamic capabilities = resources, activities to maintain competitive position within market and to enter new markets

Core capabilities = resources, activities to providing value unit to customer profitably

1. Operational excellence --> quality, low cost value-unit, reliable, convenient delivery

2. Customer intimacy --> tailored value-unit, delivery process

3. Product leadership --> state-of-the-art, stylish, trendy value-unit / delivery process

1. Experimentation at the edge:

• explore areas potentially disruptive for current business models; often technology driven (e.g. Blockchain)

2. Collision at the core:

• renovate industry ecosystem / business models by establishing relationships with digital giants / tech entrepreneurs

3. Reinvention at the root:

• cannibalize traditional capabilities, scale up significantly with digitalization capabilities (retail market/amazon)

1. IT principles --> business role of IT
2. IT architecture --> integration and standardization requirements
3. IT infrastructure --> shared and enabling services
4. Business application needs --> specifying business need for purchased or developed IT applications
5. IT investment and prioritization --> which initiatives get funding and how much to spend 

Framework for helping IT organisations to achieve overall IT strategy goals

• define & clarify roles and responsibilities
• optimize current performance with flexibility for future changes
• optimize current processes to enhance performance and efficiency
• ensure handoffs between groups are seamless --> clearly defined accountability