HyperScale and MicroCare
- The Digital Business Cook Book
A digital business is different
Software is a Commodity
HyperScale & MicroCare
The true valuation of a digital service
Thanks to open source, the Cloud and API's, it is easier than ever before to build software. As a result, competition is tough, prices are under pressure. Stop developing software and start delivering service.
Stop building software, start building a service.
To make the most out of a digital service, you'll want to service a large customer base with a limited team, yet offer each customer an experience that is as personal as possible
Why is there such a large gap between the book value of digital companies, and their valuation? Digital services build up new types of assets one does not (yet) find in their balance sheet. A strong online presence is one such asset, a loyal customer base is another.
The “Pool Chair” Curve and the venture lifecycle stages: at the early stage the Microcare Tactic prevails, at a further stage the Hyperscale Tactic becomes dominant and finall in the scaling stage both tactics should be combined simultaneously.
Excellent work. A must read for entrepreneurs and managers interested in digitalisation applied to business.
- Antimo Fiorillo
A tale of paradoxes
3 paradoxes to understand the business of digital services.
The Software Paradox and the Digital Commodity - Software has never been more important in people's lives, yet, customers are less likely to pay for software. (when was the last time that you paid a significant amount of money for an app?). We'll discuss how to escape the commodity trap, not by trying to add more features to our software, but by focusing on building a digital service, instead of focusing on building software
The Strategy Paradox and the Digital Métier - In this section, we'll introduce the idea of designing customer intimacy at scale: a digital service combines large, potentially global scale - hyperscale - with a personalized touch - microcare - to cater to the needs of a large customer base. We'll discuss how you should leverage pay as you go subscription models, the API economy and clever analytics to build an intimate relationship with hundreds, if not thousands of customers. We'll discuss the core metrics and competences needed to master the digital métier.
The Valuation Paradox and the Digital Assets - Ever wondered why some startups receiving such high valuations? It's hard to correlate this valuation with the numbers in their books. In the 3rd section of our book, we discuss this valuation paradox, and we'll introduce 3 new digital assets you'll need to build up.
Peter Verhasselt coaches technology companies in optimizing their Product Management, Business Plan and Go-to-Market strategy. Before joining Sirris, Peter worked for industrial companies in Sales and Product Management, Field Service and R&D. Peter has degrees in Engineering, Law, Economics and Management.
Nick is a mentor, coach and regular speaker on topics like Cloud, SaaS, data driven product management and software engineering. He's an interim CTO for a number of startups. Prior to working at Sirris, Nick was a software engineer at LMS international and EMC.
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