Book Summary: Lesson 3 From Disrupting Digital Business – Sell The Smallest Unit You Can

Published on May 17, 2015 by R "Ray" Wang


Get All 10 Lessons Learned From Disrupting Digital Business

As with the beginning of every revolution, those in the midst of it can feel it, sense it, and realize that something big is happening. Yet it’s hard to quantify the shift. The data isn’t clear. It’s hard to measure. Pace of change is accelerating. Old rules seem not to apply.
Sometimes when you are in the thick of it, it’s hard to describe what’s happening.  In the case of digital business, these models have progressed over the past 20 years.  However, non-traditional competitors have each exploited a few patterns with massive success. However, as the models evolved, winners realize there are more than a handful of patterns.

Lesson 1 – Transform Business Models And Engagement
Lesson 2 – Keep The Brand Promise
Lesson 3 – Sell The Smallest Unit You Can
Lesson 4 – Know That Data Is The Foundation Of Digital Business
Lesson 5 – Build For Insight Streams
Lesson 6 – Win With Network Economies
Lesson 7 – Humanize Digital With Digital Artisans
Lesson 8 – Democratize Distribution With P2P Networks
Lesson 9 – Deliver Intention Driven, Mass Personalization At Scale
Lesson 10 – Segment by Digital Proficiency Not Age

In fact, the impact is significant and now quantifiable with 52% of the Fortune 500 gone since 2000 and the average age of the S&P 500 company in 1960 is down from 60 years to a little more than 12 projected in 2020.  That is a 500% compression that has changed the market landscape forever in almost every industry.
Over the course of the next 10 weeks, I’ll be sharing one lesson per week.  For traditional businesses to succeed, they will have to apply all 10 lessons from Disrupting Digital Business in order to not only survive, but also relearn how to thrive.

Unit Cost Pricing Models Transform What You Sell

Lesson 3 - Unit Cost Pricing Models

The digital age requires brands and organizations to figure out what the smallest increment of a product or service can be sold.  The traditional adage of not selling the razor but selling the blade holds true as we disrupt digital business models.  We just have to take that model to the smallest increment.
For example, instead of selling large volumes such as a case of coke, we shift to selling you smaller and smaller units.  So let’s go from selling you a 2-liter of coke, to a can of coke, to ultimately a sip of coke.  It may sound absurd but, how much would you pay for a sip of coke?  For the services industry, let’s take professional services.  As an analyst, what’s the smallest unit I could sell you of a service.  Can I go from selling you a day of consulting, to an hour of advisory, to a minute of inquiry?
Once you can imagine this smallest increment of a product or service sold, you now have the ability to deliver new experiences and outcomes to create new brand promises.  This is the key to deconstructing your existing unit cost pricing models and breaking free to the digital level.


Time to break out your pricing models.  Take your top personas and re think what’s the smallest unit of a product and/or service that can be delivered.  Once you can imagine that smallest unit cost of delivery, think of how you can create new bundles that deliver on that promise

The Complete 10 Lessons Learned From Disrupting Digital Business

For those attending the full keynotes and book tours, you’ll get the complete session and in many cases a copied of a signed booked.   For those following virtually, I’ve provided the slimmed down slide share deck for your use.
You now have the 10 lessons learned to disrupt digital business in your hands. You can take this information and change the world in front of you or choose to sit on the knowledge as the world passes you by and digital darwinism consumes your organization.
I trust you will do the right thing. And when you want some company, come join us as a client at Constellation Research where we’re not afraid of the future and the art of the possible.

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Your POV.

Are you ready to disrupt digital business?  Have you ordered the book?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Please let us know if you need help with your Digital Business transformation efforts. Here’s how we can assist:

  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
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