ISOM 351 Midterm
—Who the customers are
—What they value
—The economic logic of the firm
—How the firm delivers value to customers - Answer-A business model explains
—Value propositions
—Customer relationships
—Channels
—Customer segments - Answer-Right side of BMC (customers)
Value propositions - Answer-Statements of the benefits that a customer will get for buying your product
or service. Said differently, what is the problem that your customer is trying to solve.
Customer relationships - Answer-types include transactional, long-term, personal assistance, self-
service, and automated services
Channels - Answer-how a business gets access to their customers
Customer segments - Answer-define the groups of customers that we hope to attract. At Home Depot,
they talk about DIY, Pro and DIFM as their segments. DIY is the do-it-yourself consumer, Pro is anybody
that does construction or repair for a living, and DIFM is the do-it-for-me consumer.
—Cost structure
, —Revenue streams - Answer-Bottom of BMC (economic logic)
—Key partners
—Key activities
—Key resources
—Value propositions
(Main focus of this course) - Answer-Left side of the BMC/Operating model (delivering value)
Operating model - Answer-—Left side of BMC is also called this.
—Provides detailed information about suppliers and other partners; where the organization will have
some sort of physical presence; the specific processes that will be used to deliver value; organizational
issues like metrics and reporting lines, and the information needed to deliver value.
Process-Oriented Operating Models - Answer-—This type of operating model invokes the idea of "what
activities does the company undertake?" Or, "what do they do?"
—As an example, if someone were to describe Delta Air Lines, they would probably start off with a
description of what they do. They fly planes. Of course Delta uses technology and data, but technology
and data are in support of the primary activity of flying planes. q
Technology-Oriented Operating Models - Answer-—This type of operating model couldn't exist without
technology, usually digital technology.
—A few companies that fit into this category are Amazon, Uber and Alibaba.
—In a way, what makes them unique from their IRL competitors is that their entire approach is digitally
enabled.
Data-Oriented Operating Models - Answer-—This type of operating model is associated with firms that
make their money primarily through the data that they collect.
—The two most common of these are Facebook, including their apps like Instagram and WhatsApp, and
Google.
—Who the customers are
—What they value
—The economic logic of the firm
—How the firm delivers value to customers - Answer-A business model explains
—Value propositions
—Customer relationships
—Channels
—Customer segments - Answer-Right side of BMC (customers)
Value propositions - Answer-Statements of the benefits that a customer will get for buying your product
or service. Said differently, what is the problem that your customer is trying to solve.
Customer relationships - Answer-types include transactional, long-term, personal assistance, self-
service, and automated services
Channels - Answer-how a business gets access to their customers
Customer segments - Answer-define the groups of customers that we hope to attract. At Home Depot,
they talk about DIY, Pro and DIFM as their segments. DIY is the do-it-yourself consumer, Pro is anybody
that does construction or repair for a living, and DIFM is the do-it-for-me consumer.
—Cost structure
, —Revenue streams - Answer-Bottom of BMC (economic logic)
—Key partners
—Key activities
—Key resources
—Value propositions
(Main focus of this course) - Answer-Left side of the BMC/Operating model (delivering value)
Operating model - Answer-—Left side of BMC is also called this.
—Provides detailed information about suppliers and other partners; where the organization will have
some sort of physical presence; the specific processes that will be used to deliver value; organizational
issues like metrics and reporting lines, and the information needed to deliver value.
Process-Oriented Operating Models - Answer-—This type of operating model invokes the idea of "what
activities does the company undertake?" Or, "what do they do?"
—As an example, if someone were to describe Delta Air Lines, they would probably start off with a
description of what they do. They fly planes. Of course Delta uses technology and data, but technology
and data are in support of the primary activity of flying planes. q
Technology-Oriented Operating Models - Answer-—This type of operating model couldn't exist without
technology, usually digital technology.
—A few companies that fit into this category are Amazon, Uber and Alibaba.
—In a way, what makes them unique from their IRL competitors is that their entire approach is digitally
enabled.
Data-Oriented Operating Models - Answer-—This type of operating model is associated with firms that
make their money primarily through the data that they collect.
—The two most common of these are Facebook, including their apps like Instagram and WhatsApp, and
Google.
