PART $2$

Question $5$: Product Metrics and Unit Economics

$1.$ What is churn and describe what insights it reveals about a company$$s value proposition $(2$ marks$)$

$2.$ Unit economics

a$.$ Describe unit economics $(1$ mark$)$

b$.$ Why is understanding unit economics important to early stage investors? $(1$ mark$)$

c$.$ Give two ways that a business can improve the lifetime value and retention of its customers? $(2$ marks$)$

d$.$ Identify the most effective way to reduce your customer acquisition cost? $(1$ mark$)$

$(7$ marks$).$

Question $6$: Innovation in Established Organizations $($corporate$,$ government or nonprofit$)$

$1.$ Steve Blank says that startups search for a business model while established organizations execute a business model. Why do established organizations have difficulty with this search process? $(1$ mark$)$

$2.$ What is meant by $$Innovation Theatre$?$ Why can it damage the innovative capacity of the enterprise? $(1$ mark$)$

$3.$ How can leadership in established organizations keep and satisfy its entrepreneurs? $(2$ marks$).$

$4.$ Your organization has staged a series of Innovation Ideation events and a significant new opportunity has emerged. It is also an area where the organization is open to a potentially disruptive threat if not addressed. Your leadership is extremely enthusiastic and wants to $$get on with it$.$ You believe that this is a Horizon Three idea. How would you advise leadership to proceed? Your answer needs to be a comprehensive roadmap that covers the venture$$s organization, funding, stage$-$gating and operating.

Note: In order to answer this question fully you will need to refer to the in$-$class presentation and read O$$Reilly and Tushman$$s The Ambidextrous Organization, HBR April $2004.(8$ marks$)$