Page 391 - Value Proposition Design: How to Create Products and Services Customers Want - PDFDrive.com

In between: Extend

A common situation in the Improve-Invent spectrum is the need to find new
growth engines without investing in substantial changes to the existing business
model. This is often required to monetize investments in existing models and
platforms.

The objective is to search for new value propositions that substantially extend
the existing underlying business model, without modifying too many aspects of
it.

For example, with the introduction of the Kindle, Amazon created a new
channel to extend its digital offering to Amazon.com customers. Although this
presents a great new value proposition to its customers, it remains to a large
extent within the parameters of its successfully established and well-mastered e-
commerce business model.

Tip

Great companies manage a portfolio of value propositions and business models
that cover the entire invent-improve spectrum and make synergies and
competitive conflicts explicit. They are proactive and invent while they are still
successful, rather than wait for a crisis.