Business model matching is the ultimate big kill device of homogeneous product competition

Editor's note: The English version of this article is published by Kavi Guppta in Strategyzer, the Chinese version by the Heaven Zhuhai Sub-rudder compiled.

David Pierce recently wrote in the Wired magazine. Today's technology companies are creating the same products that are the same streaming service music. The same efficiency applications (Productivity apps), even the recent hot wearable devices, seem to have the same value proposition. Is the smoke of innovation ever annihilated? Not really

In this article. I will expand the Pierce's view to the point that, through the exploration and innovation of successful business models, winners will be able to swallow the bones of their businesses and draw a break from those highly homogenous companies.

Product homogeneity competition heralds the end of innovation?

Admittedly, David Pierece is right: Today's technology companies do seem to be building products or services around nearly identical value propositions. are trying to be the same group of users to Wink, try to get everyone's favor. Google, Apple. Microsoft, as well as other smaller players, claim that the product they are building is designed to make life easier for customers.
But is this homogeneity on behalf of innovation in the field of consumer technology stalled? I beg to differ.

The only loophole in Pierce's argument here is that he did not mention that clearly identifiable business models (exploration and innovation) would bring profits to these companies, which would allow their services to expand in these new areas. Keep in mind: Suppose there is no very good business model – no matter how great the value proposition is in the mirror of the flower water in the month.

So how is Google or Microsoft going to take advantage of the free efficiency app? Can Apple Music be a fresh break for Spotify's subscription-based streaming music model? Whatsapp,line, and Viber who will finally win the mobile message this war? So far, there is no way to see who can find a way to make enemies (because they have not finished the third phase of the business model match mentioned below).

The right "match" is the end of the solution

You might say, "So what?" Google. Apple. And Microsoft have a lot of money. What is there to call it? "Yes, these companies do have an existing business model that surrounds a known and effective" match "to earn stable revenue. But these business models are not always effective, and that is why the importance of the self-revolution of those companies when they are still successful, or they can only accept the fate of subversion. Apple's itunes has been subverted by Spotify's companies and the trend of streaming music to be a great example.

We should invest the money we have earned from our existing proven business model to explore the future growth engine of our business. And these future growth engines will have a different ' match '.

In our book value proposition design, one of the main concepts we mention is finding a corresponding "match." This "match" is the link between the products or services that your company can offer and the needs of your customers. In general, an enterprise needs to go through three stages when exploring their "match". Now, we are talking about these products of the homogeneity of the competitive technology enterprises in fact, only to complete the three stages of the first 22 stages.

More specific descriptive narratives of "matching". Check out an earlier article in Nabila Amarsy.

Phase 1: Problem solving method Matching

At this stage, you don't have enough evidence to prove that your client really cares about the value proposition of your product.

This writing idea is still in writing. It's just an armchair.
Example. Apple's "written" conviction that their Apple Music streaming services will be more valuable to customers than Spotify in terms of screening and personalization; Apple also believes they can reshape the entire wireless broadcasting industry through the BEATS1 channel. These "matches" are, in fact, uncertain before the user actually tries to use their product.

Phase 2: Product/Market Matching

The exploration and innovation of product/market matching will be a long and iterative process, not overnight. Your team will surround you with a constant test of your value proposition and try to guess right or wrong.

You may also someday find that the ideas you "write on paper" don't actually generate customer value as you would imagine. For example, as the next few weeks, the use of Apple Music has been tested for feedback. Apple will figure out whether its alleged "screening and personalization" really provides the way Spotify does not have to connect with users.

But is it possible to sell it? It's time to look at the next critical phase of the "match" quest.

Phase 3: Business model Matching

Business model matching is still a maze for these tech companies that doesn't come out. How these businesses can profit from the services they provide will determine their survival.

Designing a value proposition to create value for your customers and create a business model to create value for your company will be an anti-repetition dirty.

Here, let's take Apple for example.

After Apple Music's three-month trial is full, we'll be able to see. Would you like to register a monthly subscription account? Or are they going to stay in the arms of the original service providers like Spotify?
So far, you should see the competition for similar products and services described earlier. Today has been transformed into a sustainable and successful business model of exploration and innovation in competition. Google, Apple, Microsoft, and other companies must continue to explore and innovate on the right value proposition and viable business models.

Reminder : Many other articles please pay attention to the public number:Techgogogo or official website www.techgogogo.com.

Of course. You are also welcome toZhubaitian1directly.

This work uses [Creative Commons Attribution 3.0 China Edition license], welcome reprint, please keep the public number and other information when reproduced.

Business model matching is the ultimate big kill device of homogeneous product competition