Business Model Innovation and Risk Management

The video tutorial explains Business Model Innovation (BMI), highlighting its distinction from traditional innovation, which often involves new technology or markets. BMI focuses on changing the way a product is delivered to the market through new revenue, cost, or risk models. Effective risk management is emphasized as a strategic advantage. The tutorial uses Uber as a case study to illustrate how BMI can lower risk and differentiate a company from traditional models, offering superior services.

What does BMI stand for in the context of innovation?

• Business Management Initiative

• Business Model Innovation

• Basic Market Integration

• Body Mass Index

How does business model innovation differ from traditional innovation?

• It emphasizes new business models.

• It involves creating new products.

• It targets new consumer needs.

• It focuses on new technologies.

Which of the following is NOT a type of business model mentioned?

• Supply model

• Revenue model

• Cost model

• Risk model

What is a key benefit of managing risk in business model innovation?

• It guarantees higher profits.

• It reduces the need for new technologies.

• It provides a competitive advantage.

• It eliminates all business risks.

Which company is used as an example of business model innovation in the transportation industry?

• Lyft

• Uber

• Airbnb

• Tesla

How does Uber's business model manage demand risk?

• By scaling costs and revenue together.

• By offering discounts to customers.

• By hiring drivers on a fixed salary.

• By owning a large fleet of cars.

What is a significant risk for traditional taxi service providers?

• Limited geographic reach

• Low customer satisfaction

• Heavy asset investment

• High demand fluctuations

What advantage does Uber's business model offer to consumers?

• Faster travel times

• Lower prices

• Guaranteed car availability

• More luxury options

In the context of BMI, how is risk viewed?

• As something to be completely avoided

• As a factor to be managed strategically

• As a financial burden

• As a minor concern

What is the ultimate goal of using risk as a differentiator in business models?

• To reduce operational costs

• To offer superior services

• To increase market share

• To eliminate competition