fi dential Invention means the conception of a novelty. Instead innovation is defined by the introduction of the invention in the social environment. The market is a specific form of social organization. Joseph SCHUMPETER Dec, 2024 - SAFRAN - Con fi dential Changing the market
fi dential Main Business Leapfrog Bundle Unbundle Package your regular o ff ers together to create a one-stop-shop service, or isolate a speci fi c feature of your regular o ff er as a standalone product. Recreate your o ff er from fi rst principles with current technology, getting rid of all legacy thinking. Leapfrog Bundle Unbundle 1 2 3 PRODUCT
fi dential Bundle Package your regular o ff ers together to create a one- stop-shop service. Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Distributors _ 1. More value from a single o ff er. 2. More convenience. 3. More recurring business. 4. More expressed needs. (5. More partners.) • Increase sales volume while decreasing customer acquisition and shipping costs. • Enhance customer value perception. • Increased feedback loop with on what customers need. • Encourage adoption of new or underperforming products. • Smooth out margins across product categories. Regroup internal o ff ers with partner manufacturers to reach critical mass or be bundled through a strategic distribution partner. Become a central provider for your customer, increasing recurring sales and building some lock-down e ff ect. • Customers becoming more dependant on a wide range of products will make them much more demanding on your operational excellence. • Initial setup often requires rebranding. • Initial sales and supply chain recon fi guration. What could be 3 o ff ers you currently sell separatly that could be e ff i ciently packaged for some of your current customers? 1 PRODUCT
fi dential Isolate a speci fi c feature of your regular o ff er as a standalone product. 2003, ¢99 /song 2024, $10.99 /month Unbundle Unbundle Unbundle 2 Unbundle
fi dential Isolate a speci fi c feature of your regular o ff er as a standalone product. Unbundle Unbundle Unbundle 2 ⚠ Not all o ff ers can stand alone! Unbundle
fi dential Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Distributors _ 1. Lower barrier to entry for customers. 2. More sales entry points. 3. Expanded customer base. 4. Discover new unmet needs. 5. Create new targeted o ff ers. • Expand revenue streams from customers that can’t a ff ord the full package. • Maximize returns on previous R&D investments. • Leverage existing brand value. • Identify possible rebundling or even pivot opportunities. When risking con fl icting positioning with your premium o ff er go OEM / white label through distributors (or go direct if distributing your premium o ff er through dsitributors). Unlock new market opportunities by making part of an existing o ff er stand alone. • Might cheapen or cannibalize existing premium o ff er. • Might be misunderstood as a price war. • Will question the core value of more complex o ff er. What critical capability (or currently free service) could you o ff er to one of your close customer as a standalone service? Unbundle Isolate a speci fi c feature of your regular o ff er as a standalone product. Unbundle Unbundle Unbundle 2 PRODUCT
fi dential Leapfrog Recreate your o ff er from fi rst principles with current technology, getting rid of all legacy thinking. Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Distributors _ 1. Create undisputable competitive advantage. 2. Signi fi cantly increase your value o ff er. 3. Attract leading customers. 4. Discover new unmet needs. 5. Focus R&D roadmap and costs. • Create a 2-3 years barrier to entry for competitors. • Raise brand value and justify premium prices. • Attract and lock-in leading customers. • Getting rid of costly, inne fi cient legacy technology. Mostly a direct-to-market stratregy, possibly a spin-o ff (unless an industrial partner is instrumental in creating the next-gen o ff er and co-branding/dsitribution is necessary). Leap ahead competitors struggling with incremental innovation and capture the next market opportunity. • High barrier to entry costs (R&D / marketing). • Mistiming the market and losing cash cow revenues too soon. • Announcing too soon (Osborne e ff ect) • Confusing customer base on your brand. • Losing customers relying on your legacy technology. Find a canary in the coalmine (a speci fi c market or customer segment already ahead of the curve where/with whom testing a proof of concept would require lower barrier to entry). 3 PRODUCT
fi dential Main Business Simplify your o ff er to provide 80% of the value for 30% of the price. Enhance the value you create for the customer with a premium o ff er of your main activity. Upsell Down-Sell 4 5 VALUE
fi dential Upsell Enhance the value you create for the customer with a premium o ff er of your main activity. Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Value Chain _ 1. More value delivered at a higher price. 2. Attract higher customer. 3. Better understand the high end part of the market. 4. Develop higher core competencies. 5. Shift your product roadmap upward.. • Increases revenue per customer – Selling a premium product maximizes pro fi t. • Enhances customer experience – Higher-end products often provide better value. • Strengthens brand loyalty – Customers may stick with premium options once they experience them. • Encourages bundling with additional features – More sales opportunities arise. Usually di ffi cult through distribution as you need to have relentless control on minute details of the customer experiences, pre-sales, after sales, etc. Move upward, capturing the high-end part of your market competing on value pricing instead of cost pricing. • Overshoot and deliver more than what customers want to pay. • Overpromise and struggle to get where customers would want you to be for the price. • Have your brand value lagging beyond and preventing you from getting in a premium zone. Identify one of your top 5% customers (in price, not volume) and codesign a premium o ff er with them. 4 VALUE
fi dential Down-Sell Simplify your o ff er to provide 80% of the value for 30% of the price. Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Value Chain _ 1. Focus your core o ff er. 2. Attract new customers. 3. Increase volume of sales. (4. Possible cross- or upsell.) 5. Enhance operational excellence. • Access a hidden underlying market. • Increases customer lifetime value (LTV) • Prevent churn on current customer and keep them engaged. • Show fl exibility and build trust and satisfaction. • Destock potentially obsolete or untrendy products. Distribution can be critical in helping out spreading a new simpli fi ed o ff er, insulating your core brand from the low-end market. But if aiming for operational excellence, getting direct to market will be necessry. Move downward your usual market with lower barrier to entry and increase volume of sales. • Compromise brand value by racing to the bottom. • Not distinguinshing well enough cost-e ff ective vs. Premium o ff ers. • You might still need fi rst-time customers to upgrade later. Design a simpli fi ed o ff er around one of your blockbuster product with this key principle: 30-50% less cost + 10-30% less price + 50-80% of the value. Test as a limited edition operation. 5 VALUE
fi dential Main Business Enhance the way you solve customers’ problem by adding product and services to their initial demand. Use some of your core competencies to address a di ff erent problem in the market, or an entirely new market. Cross-Sell Pivot 7 6 PROBLEM
fi dential Enhance the way you solve customers’ problem by adding product and services to their initial demand. 6 NS (Nederlandse Spoorwegen) - OV-Fiets Cross-Sell
fi dential Enhance the way you solve customers’ problem by adding product and services to their initial demand. Cross-Sell 6 Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Value Chain _ 1. Better solutions to customers’ problem. 2. Increased average purchase value. 3. Decreased operation costs and price advantage. 4. More demand. 5. Better understanding of customers needs. • Directly leverage existing brand value and marketing. • Very low customer acquistion costs. • Possibly reduced operation and delivery costs. • Straightforward market insights from sales. • Can open up to bundling strategies. • Might signal pivot or bundling opportunities… Might easily fl ow in a current distribution portfolio but will require better understanding from fi nal customer through the distribution channel (or some direct-to-market sampling). Generate extra revenues from existing customers with minimal operational change. • Might distract from core value proposition and generate overextansion. Ask your sales rep and/or explore joint o ff er with key suppliers. PROBLEM
fi dential Use some of your core competencies to address a di ff erent problem in the market, or an entirely new market. Pivot 7 Upsides _ Downsides _ Flywheel _ Key Opportunity _ How To Test _ Value Chain _ 1. Identify market opportunity on core competency. 2. Redesign and reboot new o ff er. 3. Secure early adopters. 4. Mature and cash-in with core market. 5. Evolve core competencies. • Access a hidden underlying market. • Increases customer lifetime value (LTV) • Prevent churn on current customer and keep them engaged. • Show fl exibility and build trust and satisfaction. • Destock potentially obsolete or untrendy products. Mostly a direct-to-market strategy build away from your core market with low chances of antagonizing current distributors. Access an entirely new market by leveraging some of your core competencies in a whole di ff erent way. • Compromise brand value by racing to the bottom. • Not distinguinshing well enough cost-e ff ective vs. Premium o ff ers. Di ffi cult to test without real commitment. Ideally a small away team building a potential spin-o ff . PROBLEM
a New Strategic Direction in the Modular Partition Sector • An agile SME (<€20M, 50 employees, average to low margins) manufacturing and selling modular and decorative o ff i ce panels for trade and installers. • 70% of its revenue coming from internal group clients and large distribution channels. • Need to adpat a post-COVID landscape with growing new demands—remote work, fl exible o ffi ce solutions, and rising demands for enhanced comfort, aesthetics, acoustics, ease of installation, and sustainability. How could the company evolve organically to unlock new growth opportunities? Key questions 1. List 3 organic growth opportunities (product-, value-, or problem-driven) 2. How would you deal with the prevalent current distribution channels and the possible con fl ict of interst if going direct to market? 4. With signi fi cant internal realignment already underway, what additional changes or skills would be necessary to support a transition toward a new strategic model? Business Case #1
landscape Routes to market (for panels and frame): ➢Sales through distribution 20% ➢Direct sales to installers 40% ➢Sales to projects (supplies & installations) 40% + additional sales: glazing, acoustic, installation Competition: •Market leaders (#1-#3) are selling to projects (supply and installation) and to a lesser extent direct to installers ➢They are selling mostly to major projects •Then come the system owners selling direct to installer… ➢ They are selling mostly to mid-size projects •… and the distribution brands (amongst which Clipper Coramine) available only at building merchants ➢ We are selling mostly to small projects Business Case #1 Key questions 1. List 3 organic growth opportunities (product-, value-, or problem-driven) 2. How would you deal with the prevalent current distribution channels and the possible con fl ict of interst if going direct to market? 4. With signi fi cant internal realignment already underway, what additional changes or skills would be necessary to support a transition toward a new strategic model?
dential PRODUCT / Key Features What is the material or immaterial solution you deliver? What are its key features (« wow » factor) that delivers that create value? CUSTOMERS The parties that suffer from the problem and pay for the added value you deliver with your product. ACTIVATORS Whoever makes the problem more visible and urgent to solve for the customers. COMPETITORS Whoever solves the problem (even partially) and makes your product less critical for the customers. KEY ACTIVITIES The most strategic activities you need to sustain your competitive advantage. DISTRIBUTION The process that allow your customers to get your product. COSTS The 20/80 that constitutes your fixed and variable cost of goods sold. ADDED VALUE / Unique Benefits How do you excel at solving the customers problem while competitors can’t easily beat or reproduce you? What are the main unique bene fi ts involved (both tangibles and intangibles)? REVENUES How you monetize your added value and what are the revenues you generate. CONNECTORS Your direct and indirect strategies to help customers understand your added value and engage them. PARTNERS Any third-party that helps you build or deliver some of the unique benefits you need. PROBLEM / Pain Points What is the problem you solve for your customers? What are the main pain points involved?
dential We offer a top-quality product at a competitive price, and we've invested signi fi cant time in making them extremely simple to use, while respecting the best safety standards. Opposable, or opposability as a principle, means that you should be able to take a business claim and fi nd that its opposite claim still makes sense. If not, the initial claim is not opposable and as such, irrelevant. Creating opposability INITIAL BUSINESS CLAIM
dential We offer a top-quality product at a competitive price, and we've invested signi fi cant time in making them extremely simple to use, while respecting the best safety standards. We provide a low-quality product at a high price, with little effort put into making them easy to use, and trying to make rather dangerous to be honest… Opposable, or opposability as a principle, means that you should be able to take a business claim and fi nd that its opposite claim still makes sense. If not, the initial claim is not opposable and as such, irrelevant. Creating opposability INITIAL BUSINESS CLAIM OPPOSITE BUSINESS CLAIM 💩
dential Good value Simple Innovative Ef fi cient Safe Overpriced Complicated Outdated Subpar Dangerous INITIAL BUSINESS CLAIM OPPOSITE BUSINESS CLAIM 💩 Opposable, or opposability as a principle, means that you should be able to take a business claim and fi nd that its opposite claim still makes sense. If not, the initial claim is not opposable and as such, irrelevant. Creating opposability
dential Good value Simple Innovative Ef fi cient Safe Overpriced Complicated Outdated Subpar Dangerous 31% Average cost savings 62% Better IT management 3x More features delivered /year 69% Downtime reduction 43% Fewer security incidents /year INITIAL BUSINESS CLAIM OPPOSITE BUSINESS CLAIM 💩 OPPOSABLE CLAIM ✅ Opposable, or opposability as a principle, means that you should be able to take a business claim and fi nd that its opposite claim still makes sense. If not, the initial claim is not opposable and as such, irrelevant. Creating opposability
dential FINANCE PRODUCTIVITY [ Cost Structure - Asset Utilisation ] GROWTH [ Customer Value - Revenue Opportunities ] MEASURABLE UPSIDES We deliver ROI to your business by…
dential We save/generate X for you over T And on top of that… 2 2 MARKET [ Brand value ] CULTURE [ Autonomous org. ] 5 2 :) 2 3 1 3 4 5 FINANCE [ Cost structure ] MARKET [ Availability ] PROCESS [ Infrastructure management - R&D ] $ 1 2 3 4 You’ll get your ROI within T Value = Pricing
dential 30% €100K Value /month We save/generate X for you over T You’ll get your ROI within T FINANCE [ Cost structure ] MARKET [ Availability ] PROCESS [ Infrastructure management - R&D ] $ MEASURABLE UPSIDES €30K/month ➡ ➡ €
dential ➡ €38K /month €100K Value /month We save/generate X for you over T You’ll get your ROI within T MARKET [ Brand value ] CULTURE [ Autonomous org. ] :) FINANCE [ Cost structure ] MARKET [ Availability ] PROCESS [ Infrastructure management - R&D ] $ INTANGIBLE VALUES MEASURABLE UPSIDES €30K/month ➡ ➡ Increased perceived value ➡ 30% ➡ And on top of that… €
dential We can generate X for you over T Not to mention that… Expensive? You’ll get your ROI within T Trust us! Challenge us! •What are the features you want the most? •How much of your problem do ? •What are the key metrics you’d use to measure your ROI? •Could you provide some data to run a simulation for you? •What would be the best initial perimeter for a PoC? 30% €
you are not embarrassed by the fi rst version of your product, you’ve launched too late. Reid Hoffman, LinkedIn co-Founder Selling Value March, 2025 - SAINT GOBAIN - Con fi dential
dential We want to solve ( PROBLEM ) for ( CUSTOMERS ) by bringing ( ADDED VALUE ) in exchange of ( REVENUES ) by using ( PRODUCT ). Our key competitive advantage is ( ... ). mission statement 1 min pitch STRATEGY MARKETING price framing COMMUNICATION website
dential 1. Business Intelligence: Valuable insights into market trends, competitors positioning, customer preferences, technological possibilities are documented and inform future strategies for other business units. 2. Strategic Assets: A large volume of data (volume, quality, richness, frequency) or intellectual property is produced that builds a future edge in the market. 3. Network Expansion: Collaborations and partnerships developed during the project can expand the company’s network and open up new opportunities across different departments or with external partners. 4. Process Improvements: An internal key operation can be made more ef fi cient (speed, cost, uptime, carbon impact…) increasing overall ef fi ciency and productivity. 5. Skill Development: Team members acquire new skills and experiences, which can be transferred to other teams for critical applications beyond the initial project. 6. Brand Image and Reputation: Openly running a trial in a hot tech fi eld can increase the group visibility and legitimacy attracting new customers and potential employees. ❌ FAIL SCENARIO ADJACENT ROIs ? 50-250K€ Project Investment
dential Market Research Specific projects such as understanding patient pathways or detailed competitive analysis might range from €30.000 to €250.000 each. Focus Groups Typically cost between €5.000 and €20.000 per session. Competitive Intelligence Ongoing monitoring and deep-dive studies can range from €100.000 to €500.000 annually. Standard Development Organization (SDO) Engaging in the actual development or enhancement of standards can cost from €200.000 to €1 million, depending on the complexity and scope. Recruitment Agency Fees Typically 15-25% of the first-year salary, ranging from €15.000 to €80.000+. Technology Platforms and Databases: Subscription fees to PitchBook or CB Insights to track startups and emerging technologies can cost between €10.000 and €50.000 annually. Preliminary Due Diligence Initial evaluations and due diligence processes can cost between €20.000 and €50.000 per startup. 50-250K€ Project Investment INTERNAL ROIs
dential Internal Customers External Customers Cultural Fit 🟢 Solutions are developed within the context of the company’s culture, ensuring better alignment and acceptance. 🟠 Solutions must be adaptable to fi t various organizational cultures, requiring more fl exible and versatile design. Customer onboarding and feedback loop. 🟢 Direct involvement and feedback and easier access with team player spirit leading to ef fi cient iterative improvements (unless unfavourable internal politics is in play). 🔴 Less transparent and frequent feedback due to vendor - customer relationship with the need for formalized channels to communicate. Implementation Speed 🟢 Faster implementation due to internal trust and greater transparency regarding the real pain points to be solved unless unfavourable internal politics gets into play. 🔴 Slower implementation as it involves coordination with different entities within the customer, potentially dealing with early bidding or tender process. Scalability 🔴 Solutions might be designed to natively scale within the company’s existing ecosystem with the risk of being too speci fi c for implementing outside of the company. 🟠 Scalability can be challenging with different customers pushing to solve different pain points early on and few indications on how to push further on. Cost Structure 🟢 Budgeting and cost allocation can be more fl exible and integrated within internal fi nancial planning until a clear ROI is proven. 🟢 Pricing models need to be competitive and justi fi able to external clients, often requiring clear ROI demonstration as step one. Support and Maintenance 🟢 Support can be more immediate and integrated with existing IT and support teams. 🟠 Requires dedicated support teams and potentially more robust service level agreements (SLAs). Regulatory Compliance & Data Security 🟢 Well-known internal policies and compliance standards, while often some protocols can possibly be skipped as part of internal testing policies. 🟠 Must adhere to broader industry regulations and standards, possibly across different regions with strict data policies early on. vs. ☕ 💼
dential « ... Bezos and his lieutenants sketched their own virtuous cycle, which they believed powered their business. It went something like this: lower prices led to more customer visits. More customers increased the volume of sales and attracted more commission-paying third-party sellers to the site. That allowed Amazon to get more out of fi xed costs like the ful fi llment centers and the servers needed to run the website. This greater ef fi ciency then enabled it to lower prices further. Feed any part of this fl ywheel, they reasoned, and it should accelerate the loop. » ⚫ ⚫ ⚫ ⚫ ⚫
dential A fl ywheel is a self-reinforcing growth model where momentum builds over time, making it easier to sustain and accelerate success. Key Elements of a Business Flywheel: 1. Initial E ff ort: Like a physical fl ywheel, signi fi cant energy is needed at the start to get it moving. This e ff ort may come from investments, customer acquisition, or product development. 2. Reinforcing Loops: As momentum builds, each successful action strengthens the next. For example, delighted customers lead to referrals, which drive more sales, enabling more investments in better products, which further attract customers. 3. E ffi ciency Gains: Over time, the system requires less external force, as the fl ywheel sustains its own motion. Growth compounds with decreasing e ff ort. 4. Competitive Advantage: A well-designed fl ywheel creates a self-sustaining growth engine that is di ff i cult for competitors to replicate. David Sacks' Uber fl ywheel effect - 2014 ⚫ ⚫ ⚫ ⚫ ⚫
problem we solve… The possibilities we want to share… What if… Before / After us World 2.0 “Waiting list” The ROI we deliver… Simulation Customers cases Online quote “Freemium” CUSTOMER-Driven Sales Adaptability Short Term FUTURE-Driven R&D Design Long Term PROCESS-Driven Engineering Logistics On-Demand March, 2025 - SAINT GOBAIN - Con fi dential
FINANCE CEO INNOVATION R&D DESIGN FINANCE ? COO FINANCE SALES COO ENGINEERING / LOGISTICS SALES R&D FINANCE ! MARKETING INNOVATION Selling Value March, 2025 - SAINT GOBAIN - Con fi dential CUSTOMER-Driven Sales Adaptability Short Term FUTURE-Driven R&D Design Long Term PROCESS-Driven Engineering Logistics On-Demand
ef fi ciency "ABC" Recommendation Zero-default Strategically limited choices Top-down advising Price matches value delivered! Selling Value March, 2025 - SAINT GOBAIN - Con fi dential PROCESS-Driven
rapidly the business context and the problem at hand… Your Business Case List 3 possibles strategies… Analyze the key added values… and a pricing hypothesis. Draft a new business model.
fi dential Invention means the conception of a novelty. Instead innovation is defined by the introduction of the invention in the social environment. The market is a specific form of social organization. Joseph SCHUMPETER Dec, 2024 - SAFRAN - Con fi dential Changing the market
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