GLOSSARY
The glossary provides a list of terms used in this course with their definitions. The terms are sorted by topic. The different terms can be opened by clicking on the term. If you're looking for a certain term, try using keyboard shortcut 'ctrl+f' to use the find function on your browser.
Business model (BM)
A business model is a blueprint of how a firm or a network of cooperating organisations intends to create and capture value, from new, innovative services or products or from new ways of working.
BM dynamics
BM’s must cope with changing business environment, and are subject to change
BM feasibility
The long-term profitability and market adoption.
BM innovation
Core change in business logic.
BM pattern
A pattern expresses a relation between a context, a problem, and business model innovation
BM process
Realize business model innovation through phases, making use of tools.
BM robustness
BM that can cope with changes in business environment.
BM sustainability
Ability of BM to be maintained in a longer period of time.
BM viability
Business logic is sound to be operationalized.
BM Tools
Tools to visualize, create, design and change business models (or components of BMs)
BM CANVAS
Tool that visualizes an enterprise’s business model.
BM STOF
Tool that focuses on trade-offs between service (S), technology (T), organization (O) and finance (F). Focus on Information Technology
BM Qube
Tool that starts at value creation by networked organizations.
BM VISOR
Tool that evaluates the viability of a BM based on digital technologies.
BM Roadmap
Transition path from current to desired BM.
BM Stress test
Analyze if business model is future proof.
Target group selection
Focus on defububg entrepreneur’s group of customers.
Persona
Fictive description of user to determine customer profile.
Focus group
Group of potential customers to determine opinions of potential customers.
SWOT
Tool that focuses on strengths (S), weaknesses (W), opportunities (O) and threats (T).
Value Proposition Canvas
Describes value of product as created for customer.
Process journey
Tool that helps you to draw your workflow or business processes as a series of activities and get a clear picture.
PESTLE analysis
Tool that analyses environmental trends and developments (e.g. political, economic, societal, technology, laws and regulation).
Partner analysis
Analyses the complements with partners.
Marketing cards
Tool that helps to analyze how to reach the potential customers.
Profit calculator
Calculates revenue gained from a business activity.
Deadly wastes canvas
Activities that do not add value to business (e.g. defects, work in process, overproduction)
Five Forces
Tool that analyzes the position in the industry where a company is more profitable and less vulnerable to attack.
Competitor analysis
Assessment of strengths and weaknesses of competitors.
Partner value matrix
Tool that analyzes who the most important partners are.
Marketing mix (4P’s)
Tool to provide the product at the right place, moment, time and price.
Thinking hats
Tool for group discussion involving six colored hats.
ROI calculator
Calculates the Return On Investment.
trenDNA
Tool to consider new product areas.
Wheel of Skills
Tool to assess required entrepreneurial skills.
Business case(1), case study
Description of a specific problem as solved by a company that can serve as an example to others.
Business case(2)
Description that is needed by investors for initiating a project.
Business plan
Describes what a company wants to achieve.
Balanced scorecard
A strategic management tool that helps businesses to make decisinos concerning internal and external stakeholders.
Critical success factors
Critical factors that predict and leads to creation and capturing of value in business models.
Pricing strategy cards
Helps entrepreneurs find the best strategy for price setting.
Business actor
Organizational entity that is performing relevant behaviour.
Business logic
The way a single organization or a network of firm collaborates on a strategic and operational level (see also Operating model), in bringing products and/or service(bundle)s to the market by making use of technical platforms and architetures to create and capture value for both the (networked) organization as well as for the customer.
Business object
A passive element that has relevance from a business perspective.
Business processes
A behaviour element that groups activities to produce products/services.
Business service
A service that fulfils a customer or business need.
CANVAS
Template for developing new or documenting existing business models.
Channel
Describes how actor communicates and reaches customers.
Cost structure
Describes all costs incurred to operate BM.
Customer relation
Relation that actor establishes with customer segment (e.g. personal, self-service, community-based).
Customer Segment
Groups of customers that are similar to each other.
Key activities
Crucial activities to execute business model.
Key partners
The partners needed to perform key activities.
Key resources
Resources needed to create value for customer.
Revenue streams
Revenue earned from customer segments.
Value proposition
Summary of why customer should buy product/service.
Control issues
Issues critical to developing a BM (e.g. control over content, customer data, billing relation etc.)
Critical Design Issues
Issues that helps to distinguish a BM form other business models and on which tradeoffs have to be made during the BM design process.
Accessibility
Opportunities to access relevant resources for developing BM.
Branding
Reputation of a firm used for marketing of product.
Value elements
Aspects of value proposition that differentiates products.
Customer retention
Strategies aimed to keep customers loyal.
Division of costs and revenues
Relationship between costs and revenues of resources.
Division of investments
Division of financial investments involved in developing and introducing a new service or product.
Management of user profiles
Makes it possible to personalize the service (technology domain).
Network complexity
Number of actors business needs for in value network.
Network governance
The way a network of actors is managed and can be controlled.
Partner selection
Selection of partners to provide the product or service.
Pricing
Price attributed to a product or services.
Price discrimination
Charging different prices for different customers.
Quality of Service
Performance in delivering the technical functionalities.
Security (QoS)
Safety of data / privacy in technical architecture against outside threats.
System integration
New services enabled to integrate in existing platforms.
Targeting
The selection of profitable target group.
Valuation of contributions and benefits
Relationship between contribution and received revenues for each partner.
Acceptable division of roles
Distribution of roles that participate in business network.
Acceptable profitability
A positive financial result matching companies’ risk/return profile.
Acceptable QoS
Relates to performance of technological access and communication.
Acceptable risks
Risks with respect to market acceptance and technology choices
Clearly defined target group
Clearly described customer group to be served.
Compelling value proposition
Value proposition that is appealing to customers.
Sustainable network strategy
Securing access to (inimitable) resources and capabilities from key partners.
Unobtrusive customer retention
Unobstrusive ways to keep customers loyal to a service or product.
Design
BMI practice for designing/implementing ideas and strategies for BMI.
Drivers (internal, external)
Forces that initiate and motivate engagement in BMI (e.g. from organisation, network and/or external environment).
Envision platform
Self-service platform that helps SMEs access BM tooling.
Explore
Phase in BMI practice in which possible value creation is identified, analyzed and translated into alternative ideas and strategies for BMI.
External environment
Actors that externally influence BM.
Financial issues
Describes how benefits, investments, costs, pricing revenues and risks are generated.
Capital
Amount needed to invest in business model innovation.
Costs
The absolute magnitude of costs.
Cost sources
Source of costs can be related to different Business Model components (e.g. marketing, coordinatino or technology).
Investments
Actual paid money for developing (components) of BM.
Performance
Efficiency and effectiveness of organization to achieve objectives.
Performance indicators
Indicators used for evaluation and management of BM components.
Revenues
Income generated that is related to BM.
Revenue structure
Composition and sources of revenues in a BM.
Risk
The risks that exist inside and outside company with negative consequences.
Grow
Phase where BM is adapted and matures.
Implement
BM is translated into operational design
Innovation
Change in BM logic that’s new to organization.
Management teams
Decision makers that decide on a daily basis.
Market Performance
Company performance based on market indicators (e.g. market share, speed to market and market penetration rate).
Ontology
Describes domain, including relevant concepts and relationships.
Operating model
Foundation of how organization execute business.
Organization issues
Organizational management of a business needs to be able to make decisions and resolve issues in order to be both effective and beneficial.
Actors
Organizational entity that’s capable of performing behavior.
Ecosystems
Network of organisations that share a common vision, resources and capabilities.
Governance (meta model)
System of rules used to direct company.
Governance models
Description of participant’s roles and obligations.
Interactions
Communication and other exchanges of information and resources between actors
Relations
Between actors, they contribute to trust and commitment within network.
Resources
Assets required to make business model work.
Roles
Responsibility for tasks, to which an actor can be assigned.
Strategies and goals
Plan to reach objectives over long period of time.
Value activities
Executed to deliver proposed services.
Value networks
Represents actors, their interaction and what exchanges.
Service
Functionality that an organization provides to its environment.
Service issues
Defines the service offering, value proposition, service (co-)creation, and delivery for a specific target group.
Service bundling
Selling products in a package for special price.
Service unbundling
You have to pay for every product / service separately.
Servitization
Changing your BM from selling a product to selling a service.
Context
Services or innovation benefit within a specific context.
Customers
The person(s) who pays for the service.
End-user
The person(s) who is actually using service.
Market segment
The consumer and bunsiness markets distinguished based on specific criteria.
Previous experience
Consumers have an idea about what to expect for new product.
Tariff
Consumers pay a price for a service.
Service innovation
New concepts and aways of interacting with clients and new service delivery.
STOF method
Business model framework: Service (S), Technology (T), Organisation (O) and Finance (F).
Application
Software that allows users to perform tasks.
Design steps
STOF method consists of subsequent steps (e.g. Idea, Design, Implement, Grow).
Evaluation with CSFs (Critical Success Factors)
The CSFs are criteria used for evaluation of value creation.
Quick scan
First step of STOF, creating simple (minimal viable) business model.
Strategy
A combination of goals and ways to get there.
Technology issues
The technical functionality, embedded in platforms or architectures, required to realize the service offering.
Access networks
It is a technology design variable and refers to the access to the physical network infrastructure.
Applications
Technology design variable, refers to application running on technological system.
Architecture
Describes architecture of components of technology design.
Billing
A generic business function provided by a platform.
CPE (devices)
Refers to end-user devices providing access to services.
Data
Refers to data streams transferred over networks.
Layer
Offers infrastructure services needed to run business.
Platform
Provides generic business functions (e.g. authentication, billing, context information).
Functionality
Refers to functionality offered by technological system.
Value
Value can be (non)monetary and (in)tangible.
Activity
Tasks an actor must do to deliver service.
Customer value
What customers desire in product and what they believe they receive from the product.
Delivered value
Value that provider delivers to customers / end-users.
Expected value
Value that customer expects from experience with earlier service.
Intended value
Value intended to be offered by provider to customer / end-user.
Network value
Value created to key partners.
Perceived value
Value that customer perceives when they consume product.
Public value
Value that organization contributes to society.
Value proposition
Value description of generated product / service.