Testing business model innovation: A startup technology company about to introduce a new product
A Danish company with a series of sensor- and IoT systems for contractors within the construction domain, was investigating a new product idea, which was inspired by talks with a major customer.
Through our value proposition and business model modelling we discovered, that the customers for the new product might not be contractors – but their insurance companies. Modelling this new business and value proposition, gave rise to a lot of assumptions about how insurance companies work, what they value – and how they would see this product. For the company, the most important assumptions without evidence where thus in the viability and desirability domains, the company being experience within their field and the main parts of the new product essentially a rebranded version of an existing one.
After the prioritisation exercise, we were left with a quite operational validation plan, with essential desirability investigations amongst the intended customer group. The process thus help uncover assumptions, that we might have left unchecked. As it turns out, the ideas we had about insurance companies turned out to be pretty much wrong, leading to some of our assumptions to be refuted – and a new business modelling session.