Or what makes a good business idea?
Did you notice that lately every single thing has an app?
There are currently 3,8 million apps on Google play, and 2 million on the Apple App store. You can store your loyalty cards, identify plants, track your habits, connect, disconnect, play, etc. There is an app for almost anything, and about anything.
From a small shop, to big companies, people are rushing to get on the app store. Everybody wants an app for themselves. But, from all the apps we have, how many did you download? How many did you actually use? How many did you download, used once and deleted? Do customer really need and value all these app?
So, when does an app (or truly any idea) increase your business value?
Find your sweet spot
Let's stop and think!
What are you trying to achieve with innovation?
You want it to be something that really adds customer value (whether that is your employees, customers, partners, etc. - see article customer centricity why and who). We know, that sustainable success comes from satisfying real customer needsYou want it to be something which is within your power- can you turn a pumpkin into a chariot? If yes, you are a fairy godmother, please DM me. Choose to do something that you actually can do, or you can find a way to do it in a realistic, timely and budget-friendly manner.You want it to be profitable for you- unless you are a charity, and making things out of selfless motives- you want it to be something that in the end adds value to you too.
To put it in a more professional manner, you are looking for the sweet intersection of feasibility, desirability and profitability to make a business idea work.
Applying this to the world of applications!
Do you know how to write an app? Does someone in your company know? Do you have money to hire a developer? In either case, you need to evaluate the time, and eventually money invested, and if you have this amount to invest. With some ideas a bit wilder than an app, you need to see if it is technologically possible to make it. (I would love to breed unicorn, but my idea is not feasible.)
How am I going to monetise on this app? Will this be a freemium or paid app? If the app is for free, how it is going to make more money for me, than not having an app? Is this going to make my overall product more desirable? See a clear way to make more money out of the app. Do your research. Make a business performance analysis, check ROI data for similar investments.
We arrive to the third point. What do my customers really need? Do they want to interact with me via an app? Is this going to increase the value in their eyes of my overall product, and induce purchase? What content will increase the value? Think about what your customers want, and if you can deliver this in an app. The app is a tool to fulfill customer needs with, not what customers need.
In the end...
How much extra revenue will be induced by the app, and will this cover the cost?
Don't get an app just to a have an app. You need to focus on your customers, and their needs not what everyone is doing around you. From all the apps out there, there is only a handful which are really something great. Technology is huge, diverse, ever-growing. Don't stop at the most obvious trend.
With each and every idea you have for a business please do think of these questions. You can replace the expression "app" with any case for innovation. Observe your idea from the trinity of
Put yourself in the customer's shoes. Get creative. Be critical.
So if you have any questions, comments or observations, yet again, do let me know!
Comment, mail, find me on social!
Go, set yourself for success!