I had an excellent lunch today with Antti Akonniemi, the CEO and founder of Kisko Labs and Ville Vesterinen. Among other things, we discussed business models and how stuck up companies are in their methods of innovation. I mean think about it, at least we’ve come across a ton of different companies with a ton of consumer internet applications for all sorts of needs. But when we discuss what their business model is – it is usually limited to advertising, freemium, subscription, premium or some sort of mix of these.
However, I had a talk with an anonymous for now, but very successful entrepreneur earlier on this week and we discussed his new business idea about a service concept where the innovation was in the business model for the consumer. The service concept usually would cost around 1500e and nobody in their right mind would pay such money – looking at the current market and the way things are done. However, when you package it with a financial company and a monthly payment plan of 49e the whole scheme is beginning to look a lot more appealing, extremely appealing actually. The beauty of the idea is that my friend’s company does not have to take any of the financial risk as it’s “sold” to the financial organisation partnering in the business plan. I’m sorry I can’t disclose more here, but what I wanted to tell with this example is that with a simple business innovation you can create a lot more value for the consumer and thus create a lot better chance for the concept to fly.
Nevertheless, back to Kisko Labs – they’ve come up with an interesting concept for enabling new innovation in the Nordics. What Kisko Labs is trying is that they’re taking a pro active approach to web development for start-ups. They’re willing to do an equity swap in return for web development for start-ups with a great business idea. Kisko Labs has of course a healthy consulting and development business to support this cash flow-less venture. I believe this could prove a killer approach for startups with great ideas in a time when venture money is tight.
If you look at this from a larger scale – the last great business innovation (that flew big time in the consumer market) I saw, was the iTunes 0,99 USD/EUR for a track. You take the existing business and package it differently, economically. But seriously speaking – where are all the business innovations? Shouldn’t times like these be good drivers for new packaging of existing and already proven business cases?
Disclosure: We have some small scale innovation going on with Kisko Labs, which we will disclose just before Le Web.
Image by Vermin Inc. (CC: by-nc-sa)