Think in order of magnitudes

This has been a topic for some times: Google wants its employees to think in order of magnitude, not in percentages. They want people to grow the business/product by 10x, not 10%.

The calculations and business model behind this theme are irrelevant to my mind: The concept is all about mental attitude rather than money. People need to think big to build big things. So I have to agree.

Price Increases Made Properly

Patrick Campbell wrote a nice text on how to properly increase software prices. He boils it all down to linking the prices to the value of the product, but that’s only the price model. Four ways of increases the product’s prices are then elaborated on:

  • Grandfathering
  • Grandfather Discounts
  • Clockwork Price Increases
  • Communicated Increases

Please read the article to find out more.


Book Review: Business Model Generation

A while ago I read a book that is different from any other book I read before: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. This book brilliantly explains how to create new business models. This is, obviously, interesting to product managers.

The book is laid out with few words and many pictures and photographs. The centre of the book is the canvas, plotting the following areas:

  • Customer Segments
  • Value Proposition
  • Channels
  • Customer Relationships
  • Revenue Streams
  • Key Resources
  • Key Activities
  • Key Partnerships
  • Cost Structure

Each of the nine blocks is explained in good detail, and after defining each of the blocks, the user is supposed to have a complete business model ready for evaluation.

I highly recommend this book. It is fun to read and makes you not forget any of the important aspects of a new business idea. If you start from scratch with a new idea, this book will definitely help you.