So a business model is the interface between the innovation and the customer.
So all those points of contact the cash flow, the, the, the training,
the delivery of the value, the the feedback from the customer.
These are all the elements that make up a business model.
And, the way that you can think of describing your business model is
really about looking at all these points
of contact, which include, you know, price.
Which include revenue flow, which include whether there's training necessary or not.
And whether it's sort of, what's the
periodicity, or the temporal nature of the engagement?
Is it a one sale and then you continue use, or is
there lots of points of contact of disposable that keeps on getting used.
Those are the the fundamental elements of a business model.
And, and you can describe and really categorize business
models by looking at that interface margin structure, etc.
Yeah, its, its very important for the, the business model to fit the innovation.
And for that business model to be sustainable in that mode.
There are many great inventions that really do
solve an important problem, but the cost of
bringing some, those technologies to the customer, which
could include development, but it could also include just.
Informing the customer of the innovation, are
so prohibitively expensive and the value or the
attributed to the innovation is so small there's just no way to make it work.
So, one really does need to think about
business model early on in the innovation process.
And make sure that they have a business model for their envision that makes sense.
And make sure that the business model is not the driver, but the business
model that is appropriate for that type
of innovation results in a sustainable business.
Well you know, saying that a business model is just about how do you make money.
Is sort of something that's true and not true.
When I think that perspective that one has to
have if you're going to be an innovator,
is that your innovation is desirably going to be sustainable.
To deliver that innovation requires some cost.
You have to be able to recoup that cost, to
even just pay for the organization to deliver that one innovation.
If you'd like to innovate and continue
to provide new innovations, then there must be
incrementally greater cash flow back to
the business to invest in those activities.
And in almost all cases there are investors who've
invested their dollars into these companies that are expecting returns.
And that is the third place where these cash flows go.
Investors like a company, they, there's
more access to capital, which means there's
more access to growth, which means that if the business is well run there’s
more opportunity to innovate, more opportunity to grow and, and really build
value, both for the customers as well as the shareholders and the employees.
So this is sort of the ecosystem that
That is fundamental
process of a sustainable thriving business, a sustainable thriving investment
and a technology that can durably deliver its value to its customers over time