AFM433 Lecture Notes - Lecture 3: Disruptive Innovation, Value Proposition, Transact

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM433
• Professor: Mark Arnason

Document Summary

Reinventing the business model: reasons it is difficult to innovate the business model, lack of definition. Four barriers keeping people from getting jobs done. Insufficient wealth, access, skill or time: designing a profit formula. Identifying key resources and processes: people, training and development. Industries where customer focus on products or customer segments: need to fend off low-end disruptors, need to respond to a shifting basis of competition. Business model: how a company works, who is the customer and what do they value, how the business will make money. Free side: build a large base of users and monetize them to advertisers, key condition: 2-sided platform, must be engaged with the platform since everyone else is on it. Intellectual properties, brand, servers: key activities, what we need to be good at, marketing and sales, r&d, managing servers, key partners, cost structure, when to use, build and scale out operational model. Focus on areas most important to the business.