| name | stelow-product-business-models |
| description | Business model creativity triggers for reducing costs and generating revenue. Based on Jobs to Be Done frameworks from Strategyn to adapt and experiment with new models. |
| metadata | {"frequency":"rare","category":"research","context-cost":"low","author":"calionauta","author-url":"https://github.com/calionauta"} |
| disable-model-invocation | true |
Business Models
Creativity triggers from Strategyn (Outcome-Driven Innovation / Jobs to Be Done) to adapt and experiment with new business models.
To Reduce Variable Costs
- Pass a cost entirely to the customer (self-serve, assemble, install, maintain the product, etc.)
- Pass an expense to suppliers (inventory tracking sensors, customization of supplies/packaging, etc.)
- Pass an expense to distributors (acquire and install optional features, maintain the product, store inventory, etc.)
- Turn a cost into revenue (charge for a sales call, etc.)
- Turn waste into revenue (sell as byproduct, repurpose, reuse, etc.)
- Get free supplies and materials (use someone else's waste as raw material, etc.)
- Use free labor (volunteers, interns, non-profit organizations, academics, etc.)
- Eliminate an essential business activity or process and reinvest the savings to gain competitive advantage.
- Incorporate costs when they are at their lowest level (specific period of the year, surplus or liquidation sale, etc.)
- Decrease a variable cost that forces a reduction in other variable costs.
- Make costs more variable (hiring methods to suit costs to market conditions, etc.)
- Reduce costs using existing infrastructure for multiple purposes.
- Outsource non-essential activities performed inefficiently.
- Acquire essential activities performed efficiently.
- Own the infrastructure, not the content.
- Incorporate more expenses in one area to cut even more expenses in another (bundles instead of tracking multiple packages, etc.)
- Eliminate a cost through barter.
- Make a charity contribution in exchange for necessary services.
- Make a variable cost fixed.
To Reduce Fixed Costs
- Use existing resources wisely to eliminate capital investments (facilities, equipment, tools, etc.)
- Reduce fixed costs by incurring them when they are lowest (when subsidized, when financial incentives are in place, etc.)
- Use other people's money to pay for capital investments.
- Own the content, not the infrastructure.
- Leverage a capital investment made by someone else (intermediary, third party, etc.)
- Pass a fixed cost to the community (regulatory fees, taxes, etc.)
- Make a fixed cost variable.
For Revenue Generation
- Divert a revenue source from someone elsewhere in the value chain (supplier, distributor, installer, maintainer, etc.)
- Identify resources inherent to the value delivery platform and sell/use them (information, energy, etc.)
- Collect revenue that will coerce future revenue generation.
- Accept a non-cash form of payment (credit card, subscription, royalties, etc.)
- Accept a non-traditional form of ownership (share, earn, repeat, etc.)
- Add a revenue source related to the product (optional features, different product line, replacement parts, etc.)
- Add a revenue source related to the time of purchase (help the customer make the purchase, finance the product, etc.)
- Add a revenue source related to support (maintenance, installation, training, storage, after-sales service, disposal, etc.)
- Collect revenue from a different payer (insurer, distributor, advertiser, government, etc.)
- Generate revenue from operational operations (charge admission for facilities/tours, sell training content to third parties, etc.)
- Sell a consumable to collect revenue.
- Increase revenue from charity sources (fundraising organization, non-profit organization.)
- Collect revenue at a different point in time or at a different frequency.
- Collect revenue during downtime.
- Own the content and the infrastructure.