Technology innovation is a key factor in retaining the gains produced by business model innovation.Īs a tech guy, I always hoped tech will cover poor business model and sales. Ideally, you design your business model innovation before you start your company. Business Model InnovationĪt Google, Larry Page and Sergey Brin built great search algorithms, but it was their innovations to the search engine business model - specifically, considering relevance and performance when displaying advertisements rather than simply renting space to the highest bidder - that drove their massive success.

If you have a 10-year plan of how to get, you should ask: Why can’t you do this in 6 months? How to Blitzscale? 1. It also reminds me famous Peter Thiel’s quote:

Let’s be fair with ourselves - we will never get FB numbers. Now compare your most optimistic scenario of getting the revenue or users number and plan when you may get these type of numbers. The year-over-year revenue growth during its first few years of existence were 2,150 percent, 433 percent, and 219 percent, going from zero to $153 million in revenue in 2007. …Facebook began as a classic blitzscaling story. The canonical sequence that companies like Google and Facebook have gone through begins with classic start-up growth while establishing product/market fit, then shifts into blitzscaling to achieve critical mass and/or market dominance ahead of the competition, then relaxes down to fastscaling as the business matures, and finally downshifts to classic scale-up growth when the company is an established industry leader.

Stanford blitzscaling