Business Model Brain Snack: Open Innovation
In light of increasing complexity, decreasing product life cycles, and fast market change, what is one of the most cost-effective ways to innovate? Open innovation! Open innovation is a process business model pattern that enables cost reduction and accelerates time to market while creating novel…
Business Model Brain Snack: Dial down features
What is the best-kept secret to market disruption? Is innovation enough? Dial down features is one of the most common customer business model patterns, responsible for the success of industry leaders such as eBay, Uber, and Airbnb. How? Forget the classic engineering perspective. It is not about…
Business Model Brain Snack: Pay with data
What do you know about the $21B location data economy? Did you know that location data companies pay 0,5–2 cents per user per month? Pay with data is one of the most revolutionary digital revenue models. How? Apps are at the center of this new economy. The mobile location industry started as a way…
Business Model Brain Snacks: Pay-per-use
Welcome to the first edition of the Business Model Brain Snacks! In this series, we introduce new concepts around business modeling, such as novel business models, ways to transform your business model, and methods to scale your business. If you like this content, please follow us and share this…
Increasing the value of your disruptive innovation
If you have a disruptive innovation and a sound value proposition, why would your sales still not be as high as expected? This is what often happens to the most innovative solutions. Consider the example of electric vehicles (EVs). Car firms still seem to struggle to break into the mainstream…
Creating customer value
The value proposition is all about creating customer value. But how do you do this? A value proposition describes why a customer should buy a product or service. In fact, it should target a very well-defined customer segment and convince potential customers that the product or service will add…
Sizing your beachhead market
To estimate the size of your beachhead market you must consider the various subsets of a market and research into each one to understand the dimension of each subset: the Total Addressable Market (TAM), the Serviceable Available Market (SAM) and the Serviceable Obtainable Market (SOM). TAM, SAM,…
Who is your End User?
Once you have identified your beachhead market, you dive into it for a detailed analysis of your End User Profile. In the article “Know your customer” we already covered that you have to know which product or service your customer wants as well as who the Decision-Making Unit is. Now, using…
Your beachhead market
Beachhead strategies have proven their success since the Allies’ D-Day invasion of Normandy in 1944. The Allied forces established beachheads on the shores of Normandy as a key starting point for gradually conquering all Nazi-controlled territory. Similarly, selecting your beachhead market is…
Market segmentation
Market segmentation is the process of exploring the world of potential market opportunities before blindly diving into deep waters. It’s about taking a step back to the full view of every possible market (brainstorming), reflecting on which ones inspire and attract you the most (narrowing), and…