August 30th, 2008
Start Your Innovations with the Business Model Tests That Have the Highest Potential and Least Risk
Business model innovation is most likely to succeed with small, low-cost, low-risk tests precede choosing a new direction.
Starting with tests of business model innovation is always a better idea than simply implementing a new idea. Specify that each test must reasonably provide reliable information about:
(1) how much ultimate consumption and intermediate demand changed as a result of the test
(2) whether these changes in consumption and demand are likely to be permanent to the same degree
(3) operational problems that the test created along with suggested solutions
(4) effects on costs due to the test