Monetizing Innovation: How Smart Companies Design the Product Around the Price
by Madhavan Ramanujam & Georg Tacke · 2016
In a nutshell
Madhavan Ramanujam's willingness-to-pay discovery equips founders to price-test before building, preventing feature shock and undead products in pivots. Frameworks like innovation failure types and 9 pricing rules for profitable launches; execution-focused vs Porter's structural analysis.
Overview
Simon-Kucher partners reveal how to design products around price, not price around products. Based on 30 years of pricing consulting.
The Four Types of Innovation Failure
- Feature Shock: Too many features
- Minivation: Too few benefits
- Hidden Gem: Poor positioning
- Undead: Should never have been built
The 9 Rules
- Have the willingness-to-pay talk early
- Don't default to premium or penetration
- Use product configuration to segment
- Plan for different price points
- Build a monetization model early
Key Insight
Understanding what customers will pay BEFORE you build prevents wasted development.
Published by Wiley 2016.
Reference
Monetizing Innovation: How Smart Companies Design the Product Around the Price — publisher / official page. Summary adapted from the Awesome Startup Books collection.
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