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Lesson 7

E2 overview - business models and value creation

Hugo Newman

Taught by Hugo Newman · AI tutor support included

In this E2 overview, you'll learn how organisations create and deliver value in modern business environments—and why the traditional market view is no longer the complete picture.

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In this lesson

  1. 0:00 Section A: Business Models and Value Creation
  2. 2:18 Understanding Ecosystems and Traditional Markets
  3. 4:00 Four Ecosystem Types: Complexity and Orchestration
  4. 8:17 Business Model Elements: Define, Create, Deliver, Capture
  5. 11:41 Aligning Business Models with Balanced Scorecard
  6. 14:05 Digital Disruption Strategies: Build, Buy, Partner, Invest, Incubate
  7. 18:53 Digital Operating Models and Hub-and-Spoke Structure

About this lesson

This session introduces three interconnected concepts: business ecosystems, the four-stage business model framework, and digital disruption strategies that reshape how organisations operate. You'll explore what distinguishes ecosystems from traditional markets. Ecosystems are complex webs of interdependent enterprises built on mutuality and openness, where competitors collaborate to enhance value across the entire sector. You'll see how two dimensions—complexity and orchestration—define four ecosystem types: the hornet's nest, lion's pride, shark tank, and wolf pack. Each demands different strategic responses, and understanding which ecosystem you operate in is crucial for E2 success. Next, you'll master the business model framework: define, create, deliver, and capture value. These four stages flow from your organisation's mission and vision (strategic level) through operational execution to financial returns. You'll discover how aligning your business model with the balanced scorecard—linking customer, internal, innovation, and financial perspectives—creates a coherent strategic picture that examiners expect to see in your answers. Finally, you'll examine how digital disruption forces organisations to adapt. You'll learn five strategic responses: building, buying, partnering, investing, and incubating. Then you'll explore five digital operating models—customer centric, extra frugal, data powered, Skynet, and open and liquid—that translate digital strategy into operational reality. Pay particular attention to the hub and spoke structure, which decentralises data autonomy while maintaining central governance. This 21-minute session sets the foundation for deeper exploration of these concepts throughout your E2 studies.

Duration: 21m

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