A pragmatic innovation strategy
Digital transformation in Small to Medium Entreprises is somewhat similar to what a startups encounter. There’s a time constraint: in order to survive, a startup has to be successful rapidly. It evolves in an environment where everything is changing fast and risk is constantly present. It therefore has to deliver results on tight deadlines.
Alongside with this, there’s always limited budget: before succeeding in reaching the first milestones its financial means are often scarce. In order to succeed it has to prove it can innovate quasi spontaneously with limited ressources. Finally, there’s technical challenges to overcome: startups often aim to answer existing problems with still experimental or even yet to discover technical means.
In all regards, unpredictable risks management is a routine for startups. Businesses undergoing digital transformations put themselves in very similar situations and face common problems. They are however rarely equipped for change and therefore often fail in doing so. Accordingly, the risk to change is often perceived as too dangerous and is even often postponed for this reason. In our eyes however, digital transformation provides a multitude of opportunities and can even be vital to the survival of your business.
In this context, the Startup as a Service approach enables to smoothly implement digital transformation with clear methods, incremental improvements, all based on results and reduced risks. This enables business owners to embrace what we call product-led digital transformation.
Iterative methods & approaches.
Within a Lean and agile approach, small iterations enable us to limit risks as well as drastically augment the chances to succeed. This also enables us to concentrate on one solution at a time and to efficiently learn from our experiences as a path forward to innovation: we can therefore verify if the solutions we aim for are adjusted to your business’s reality.
In compliance with Design thinking and with an integration of tools likes the Design Sprint, the Value Proposition Canvas, or even the Business Model Canvas, the startup as a Service approach can be segmented in different steps:
We identify the potential service’s value by outlining the user and the client profiles. Then, we ideate to find solutions which would address their tensions or even facilitate their daily tasks. This step is called the Market Fit.
Once the Market Fit is confirmed, we improve our Value Proposition in order to build a viable business. In order to successfully do this we define the right partners, client acquisition mechanisms, revenue streams, hosting costs and so on. This step is called the Business Fit.
These first two phases constitute whats commonly referred to as a Business Model. Starting from here, we are then ready to create a first version of the application which will be monetized while optimizing initial development costs. In order to create this digital product, we need to concentrate on what’s essentially marketable: once this milestone is reached, it is labeled the Minimum Viable Product (often abbreviated MVP).
Once launched, the project doesn’t stop here: we need to observe user behaviours and understand what underlying opportunities represent the most value for further developments. Metrics are set, and tools are configured to stay close to the users in order to correctly interpret the gathered feedbacks. This phase is characterized by the continuous measurement and incremental evolutions delivered to improve the product, we then refer to the term: continuous improvement.
Benefits & results
In every iterative approach a result is rationally predictable. Failures and successes early on enable us to confirm key scenarios. We can therefore easily assess the overall success of our digital transformation. If problems are identified early on, it is easy to control their repercussions before they become bigger.
The Startup as a Service approach for digital transformation brings the following benefits: rapid results, risk diminution, success augmentation, controlled and moderate investment, early returns on investments, agility and flexibility.
Rationally speaking, it is the best approach for your business’s technological innovation and digital transformation.