Offer a new usage Value

But how can we differentiate ourselves?

The Baker understands that he won't be able to make a niche for himself without originality.

He will have to find another way of Distributing recipes.

The Baker offers a live video presentation of his recipes. The customers can follow the recipe in their kitchen and prepare it at the same time, not only discovering the ingredients but also the Baker's knack. It's the same recipe but the way it is Distributed is different.

  1. What is a usage Value?

    The Value of an offer has been described in the "Product Model".

    Taxonomy of Offer Value

    Digital can impact Offers on different levels:

    • New, more comfortable usability: we do not change the basic Value, but we make using it easier
      • e.g., music is easily accessible from one's smartphone
      • e.g., Wikipedia versus a paper Encyclopedia
      • e.g., video conference versus a in-person meeting, without have to go anywhere
    • But also a new Distribution Model: we enable an easier mode of distribution for the Customer
      • e.g., download a book onto his/her tablet
      • e.g., order on the Internet
    • And lastly, new basic Values
      • e.g., find the best route thanks to GPS navigation
      • e.g., smart shoes that inform the wearer of the efforts made
      • e.g., Bitcoin as a new currency

    These examples show that all sectors of activity are impacted: whether it be Goods, Information or Services. Not only are the established positions called into question but major change is extremely quick.

  2. How do we imagine new usages?

    This is obviously the question that we would like to know how to answer: we could introduce innovative Offers on the market before anyone else and quickly build a new Google, Facebook, SalesForce or Amazon... Unfortunately, we have not found a miracle recipe. As much as we can rationalize optimizing the Operational Processes, it is difficult to image these new usages.

    At the most, we can apply certain principles such as:
    • Ensure that the innovation provides a real Value
    • Think "Global": it is a global Market
    • Start by prototyping the new idea on a sample to verify its success
    • As always, most innovations will will not be very convincing: do not give up at the first sign of failure
    • Try to protect the innovation by patents
    • As soon as an idea has been validated, quickly ramp up the volume to take market share
    • Only seek profitability when the volume is there
    • Always keep control of the Model, which will not stop you from subcontracting all or part of the Operations
    • Listen to the competition who will try to copy and perfect the innovation
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The story of George the Baker is made available under the terms of the
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