“If you do not innovate, not only do you not grow, but you run a great risk in being displaced from your market and your customers by another company or product.”
Says Carlos Domingo, Digital Transformation Chief and innovation officer of the Emirates Integrated Telecommunications Company, prologue of the book The Way to Innovate, by Miguel Macías, expert in designing business models and applying agile methodologies of innovation, founding CEO of Advenio and Bevator and advisor in Geographica.
The objective of this work is to help organizations make decisions and apply innovation in any process of launching a product or service to the market. To do this, Macías relies on his EDV method, which consists in broad strokes in understanding the opportunity, defining the idea and validating the model.
In this method, Macías combines tools for strategic analysis, design thinking, lean startup and customer development with which it configures a roadmap with which to move from the idea to the business model, while creating value for customers. .
Macías argues that, depending on the moment of maturity of a business idea, that is, “how many times have you made contact with the market, you will have some or other tools to follow the path to the goal, which is nothing more than achieving of your idea a viable business model, economically and emotionally, and sustainable “.
Within your EDV model, as if it were a map where you can find the necessary coordinates to make decisions that lead you to innovate and differentiate yourself in the market, Macias says that to understand the necessary opportunities that you raise questions such as what is the Why your business model? With what values do you identify yourself? What is the essence and what makes you unique?
“You must analyze the environment, trends and competition, essential information if you want to be aware of what is happening in your context. You must determine who is who in your business model to start building your network of contacts, alliances and possible partners. You must focus on a segment of clients to explore in search of unresolved problems or problems or poorly treated by alternative solutions to yours. You must also understand better what the client profile thinks and feels you want to address. In addition, you must create a profile and design a day in the life of your potential client and user. And you must validate all the information that you have of your client with the objective of verifying that you are in front of a business opportunity, that is to say, fits client-problem.”
WHAT RESOURCES DO YOU HAVE TO GIVE PRIORITY?
Regarding defining the idea, Macías proposes to define the value proposition of your business model and differentiate it from the rest of the alternatives that exist in the market.
“Find out how to prioritize your resources to create your product or service based on the demand and interest of your customers and users. Build the minimum version of your product as well as establish cycles of iterative development of that product, to increase the value you offer to your customers and users always considering the technical and economic resources available to you. And it validates all the designed information of your product or service in order to verify that you offer value, report utility, functionality, reliability and experience of use to your clients and users, that is, fit problem-solution”.
And as for the third leg of its EDV method, to validate the model, Macías recommends that the product or service be positioned in the market and define the main communication and marketing channels to access customers and users. To do this, “design conversion funnels, both content and marketing and sales. And define the metrics that you will have to control and evaluate to know the health status of your model. Establish the revenue model and the pricing system of your business model.”
Macías also remembers to define the plan of marketing and sales “with which you will be able to make the growth engine of your model acquire cruising speed and that you can even increase your revolutions to climb. Feel the foundations of the economic and financial plan of your business model along with the main metrics associated with it. ” The ultimate goal is to validate first the income model and the marketing model, fundamental assumptions to achieve the product-market fit.