Every innovative product needs an equally innovative business model behind it. Yet too many tech founders and executives focus solely on features while neglecting the underlying economic engine that determines whether their company will scale profitably—or stall.
In this first chapter of my Business Model Innovation series, I break down the four foundational pillars that separate thriving companies from those that struggle:
- Value Creation: It’s not about being “best-in-class”—it’s about solving a measurable problem for your customers.
- Value Capture: Even the most compelling solutions fail if pricing and monetization are misaligned. I explain why usage-based models work for some businesses but create forecasting headaches, and how to keep your revenue model simple.
- Cost Architecture: Scaling isn’t just about growth—it’s about how your costs grow with it. Learn why professional services cap margins, when to own infrastructure vs. use the cloud, and how to spot hidden scalability killers.
- Ecosystem Strategy: Your partners and integrations aren’t just nice-to-haves; they’re force multipliers (or risks). Discover how companies leverage ecosystems to reduce churn and R&D spend.
I’ve included a free Business Model X-Ray Template to help you diagnose weaknesses in your own model.
Watch the full video to dive deeper into these concepts. In Chapter 2, we’ll explore why selling “outcomes” (not features) transforms the way you’ll think about value proposition design.
