Alex Osterwalder on Product Innovation at Lean Product Meetup

Business Model Innovation and Diversification 📈 Tesla's revenue streams are diversified, with income coming from subscriptions and unlocking features, unlike traditional car companies that rely on transactional sales. 🚗 Tesla is not just an electric vehicle company, but the kernel of an energy company, learning about what works and what people care about with solar panels and batteries. 🧠 Focusing on the product alone is not enough, you need to create value for customers and capture value with your business model. 🔄 Adding switching costs to the product can increase customer lifetime value and lock in customers, as seen with the example of Apple and the iPod. 🔒 Apple's strategy with the iPod was to lock customers in by making it annoying to switch to a different digital music player. 🔑 "It's not enough to think product, product is key but you want to embed it in an amazing business model." 🎵 Spotify is actually a victim of the record labels, not the musicians, and has among the highest conversion rates from free to paid users in the industry. 📉 Too often people build something to learn, but the focus should be on reducing risk through cheap experiments. Industry Disruption and Resilience 🌍 Transcending industry boundaries is key to resilience and success in the future of business. 🔍 "The real competition is happening today in transformative innovation, moving from products to services."