I recently had a chance to read the book: “The Innovator’s Method” by Nathan Furr and Jeff Dyer. It is a great read, and I recommend it to anyone who is in the journey of launching a new business, product, or service. Below are my summations on some of the key points that the author makes:
What is the Innovator’s Method?
The author uses 5 steps to describe the innovator’s method:
- Business Model
- Scale It
What are three types of uncertainties that influences a firm’s ability to create a customer?
- Demand Uncertainty (will customers buy it)
- Technological Uncertainty (can we make a desirable solution)
- Environmental Uncertainty (macroenvironment, and government enablement)
Businesses with a high ratio of uncertainty should utilise the innovator’s method, or some lean start-up framework. Whereas, firms with a low uncertainity ratio should focus on classical and traditional management framework.
What are the six components of a business model snapshot?
- Value Proposition: what value are you giving to your target customer
- Pricing Strategy: what are you pricing your product to create profits; what are you customers reservation value (buyer reservation value: how much will they pay?); how do they prefer to pay (terms, method, etc.)
- Customer Acquisition – relationships: how will you communicate your value proposition, and how will you convince a purchase/action?
- Customer Acquisition – channels: how will you reach your customers?
- Cost Structure – Activities: what key activities do you need to perform
- Cost Structure – Resources: what key resources or assets do you need to perform
You can check the book out on Amazon: