CIMA E2 Syllabus A. Business models and value creation - Creating Disruptive Business Models - Notes ^{3 / 8}

Build - - Develop new products and services using internal R&D. Examples include developing a new software for the company’s own use and also selling it to others, or developing new business models which will lead to the development of products that will appeal to customers.

Buy - Buy other disrupting companies, preferable early disrupting companies.

Partner - Partner with other disruptive companies to learn and grow. For example, a sportswear manufacturer partnering with a music streaming service to develop an app that will match the user’s favourite music to the intensity of their workout.

Another example would be an already disruptive company that has developed an intuitive cloud based accountancy software, partnering with other companies that could provide services that would be useful additions to their software, for example payroll bureau software.

Invest-  - Invest in many start-ups and become a corporate venture capitalist. Each investment can be of a small number of shares in the start up, as each start up may appear to have high potential, but this does not guarantee success.

Incubate/accelerate -  Investing in start ups and having a closer relationship with the disruptive company that has been invested in, by providing them with resources and infrastructure. Examples of a closer relationship include providing consultancy, office space, web hosting, applications or providing them with small teams from their own infrastructure that will help to promote the start up.