Strategyn

Product Strategy and Innovation Blog

The Profit Share Strategy, Part 2: Profit Share Examples

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In Part 1 I discussed how the profit share strategy works and why it puts companies in a very attractive financial position. In Part 2, I’d like to show how some of today’s leading companies have earned their reputations by successfully executing the profit share strategy. Let’s first take the most obvious of the profit share examples: Apple. In the fourth quarter of 2011, Apple had just 11.7 percent of unit sales (market share) while securing a whopping 68% of the profits in the handheld market. In … Read on

Profit Share Strategy – Part 1

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profit share What strategy enables a company to enter an existing market, win over and keep customers, take the lion’s share of profits, turn the screws on the competition – and then eliminate it – thereby setting the stage for long-term growth? The answer is the profit share strategy. The profit share strategy works in markets that are highly underserved. It’s quite literally the opposite of the low-end disruption strategy made popular by Harvard Business School professor Clayton Christensen. Low-end disruption opened … Read on

Escaping the Commodity Trap Using Jobs-To-Be-Done Thinking, Part 3: The Building and Construction Industry

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Avoiding Commodity Trap Building and construction has become a commodity For many years, producers of machinery like wheel loaders or excavators used in the building and construction industry have been trying to optimize their products by listening to the voice of the customer. But still the price of the product is the main purchasing criteria, forcing the producers to lower the prices again and again to compete in their markets. Jobs-to-be-done thinking helps to escape the commodity trap. Product Management is challenged … Read on

Two Prerequisites for a Successful Innovation Management Strategy

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innovation management strategyInnovation happens. In fact, it happens frequently enough to have resulted in the creation of tens of thousands of successful businesses. The problem is that most innovation management strategy happens randomly. It’s unpredictable. This is a problem especially for large, public companies that have an obligation to their stockholders to grow each year at a respectable and predictable rate. A company that is able to make innovation predictable would be able to promise stockholders reliable growth, … Read on

Tony Ulwick Presents at OpenCo

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Strategyn recently participated in a new type of business conference called OpenCo. OpenCo is a mix between a business conference and an artist’s open studio with the vibe of a music festival. The event offers investors, marketers, job seekers, and curious neighbors direct access to the leaders of the most innovative companies across the globe and in their natural habitat. Host cities have been New York, London, and Detroit. San Francisco held the most recent conference in early October. Over 3600 attendees visited 135 different companies, making it … Read on

Escaping The Commodity Trap Using Jobs-To-Be-Done Thinking, Part 2: The Financial Services Industry

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financial-services-commodity-trapFinancial services has become a commodity In our recent blog we highlighted profit and growth challenges in the healthcare industry. This time we will focus on financial services. Like the healthcare industry, financial services companies face the challenges of profitability and growth while trying to cut cost and risk. From the customer perspective, financial products and services have become increasingly non-transparent, making it almost impossible for customers to find out if an offering is going to fit their … Read on

Escaping The Commodity Trap Using Jobs-To-Be-Done Thinking, Part 1: The iKnife

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  Healthcare has become a commodity medical instruments Medical Device companies face the challenges of profitability and growth in today’s healthcare markets. Health insurance companies are asking for substantial reductions in healthcare costs, which puts many providers under pressure. As many products are more or less comparable, there is limited room for further differentiation and improvement, so the competition increasingly focuses on price. But when the price is a significant purchasing criterion, companies are forced to lower the price of their products, again and again, … Read on

Hyperloop: Putting Jobs-To-Be-Done Innovation Theory Into Action

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 Jobs-to-be-done in action

There has been much talk about Elon Musk’s Hyperloop announcement. Musk claims he will be able to transport you to New York from Los Angeles in just 45 minutes with the use of pneumatic tubes. Certainly the idea of faster transportation or even the technology of pneumatic tubes is not new. In fact, a prototype of such a system has already been created by the company ET3 (Evacuated Tube Transport Technology). But making … Read on

Emerging Markets: Are You Fishing In The Right Place?

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emerging marketsOver the last two months there has been a significant movement of capital from emerging market funds back to the US. As CNN Money’s Ben Rooney suggests, the sell off is not necessarily a reflection of the economic health of those markets, but rather an indication of the higher yields available on ‘risk free’ US treasuries. However, Barron’s Reshma Kapadia suggests there is still concern that falling commodity prices and inexperienced leadership may result … Read on

Could Saving Newspapers Start With The Culture Section?

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Newspapers are struggling. Their readership is declining, their business model is outdated, and their rearguard attempts to generate revenue in the digital age—for example, through subscriptions to digital editions, or through sales of individual articles—are not working. This should be no surprise: news is available online at no cost, and the new models do not improve on what a newspaper has been for centuries: a one way source of information.

newspapers

By analyzing the problem through the jobs-to-be-done lens, … Read on
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