Classroom Companion: Business


 · Conclusions 302 19


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Introduction to Digital Economics

19.5 · Conclusions


302
19
 
v
Answers
1. MOOC (see Wikipedia article)
(a) Currently, MOOC looks more like a sustainable innovation than a disruptive 
innovation. This is because it has not changed the performance metrics or 
value chain in the education business. It is a sustainable innovation because 
it has added to the current selection of teaching methods that teachers may 
employ. However, MOOC has the potential to become a disruptive innova-
tion in the future. However, predicting such an event is speculative at best.
(b) A company offering an MOOC is a value network and an MSP. It connects 
two user groups: teachers and students. A key insight in the business model 
of an MOOC is that the teacher user group is producing the key resource 
of the MOOC—the teaching material. Another insight is related to the 
revenue stream. Should MOOC be free of charge or should there be a fee 
for the students? If there is a fee, how should this fee be distributed between 
the provider of the MOOC and the teachers? (
.
Fig. 
19.14
)
2. Popcorn Time and Netflix
(a) Popcorn Time and Netflix are both providers of online streaming media 
(e.g., video, series, and movies). The BMCs are as shown in 
.
Figs. 
19.15
and 
19.16
.
(b) The major business difference is that Popcorn Time is free and has a dis-
puted legality, as users uploading and distributing content in many cases 
(but not all) do not have the copyright owners’ permission. Netflix, how-
ever, is a paid service and legal, as Netflix has bought copyright content in 
addition to producing its own content.
Key partners
Key activities
Key resources 
Universities
Value proposition
Cost structure
Customer segments
Revenue streams 
Customer relationships
Channels
MOOC
website
Teachers
Teaching
material
Infrastructure
Personell
Student fee
Students
Online learning
platform
Fig. 19.14 MOOC modeled using the BMC

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