Time is not a renewable and very expensive resource for any person, especially for an entrepreneur. I appreciate the time that you invest in reading this article, so the goal is to make practical use of the information received. At the end of the post, there will be recommendations for getting a 1000% return on your temporary investment.
New ideas for development and innovation product design and development services
In this post, I want to review 12 innovative and disruptive business models for their time. The use of these models has given companies a lasting competitive edge and big profit growth. The material turned out to be voluminous, from a great desire to give as much benefit as possible, so you can read it in stages.
Relevance of business model innovation
Many success stories started with an innovative business model, not a great product. Of course, a quality product and processes play a big role, but they do not determine the future success or failure of a company. We have entered an era where the fate of a company depends on their ability to apply the appropriate innovation model to more effectively monetize the technology, as well as to differentiate themselves from mediocre competitors.
Stages and principles
Let’s take a look at the components of the business model innovation process. In the process of innovation, several main stages can be distinguished: analysis, creative reproduction and recombination of existing ideas and principles from other areas, implementation.
Key principles of innovative business modeling:
• Ignore the status quo (dominant industry logic)
• Forget about the past
• Stop looking back at competitors
• Challenge orthodoxy
• Generate as many ideas as possible
• Allow yourself to be wrong
The goal of any business model innovation is to break down the dominant industry logic in such a way that your customer gains even more value, and the company has a competitive advantage and more profit.
An effective template consists of two parts: Free – free and Premium – premium. The basic part of the product is provided free of charge, and the advanced and more valuable version for money. The key indicator of this template is the conversion of the transition from the free version to the paid version.
The basic version of the product is offered free of charge in the hope of convincing customers to purchase the premium version over time. The free offer attracts as many customers as possible for the company, while the revenue is driven by premium users (which tend to be fewer).
When and how to apply this pattern?
Think about whether it is possible in your value proposition to do something for free, but so that this part already benefits the client, and after he starts using the free product, offer him an improvement that will give even more value.
Think immediately about the costs of the free version of the product and whether it is possible to minimize them. As a guide, you can use the current cost per customer for a paid product, and if, as a result of using the Premium template, the cost of the customer decreases, this is a clear signal that the template is right for you.
This template is especially popular with Internet companies, the marginal production costs tend to zero. Also, this pattern is used by software developers to test their designs and acceptability for users.
More options can be found on the company’s pages.
Even if you are confident in the idea of the product, it is worth listening to the opinion of the developers. They will suggest not only harmonious models for your project, but also excellent services for implementation.