Treat the Profit Formula as a Design Choice
Identify when a value proposition requires a different profit formula and operating model.
Do not let a new value proposition ride on an old profit formula by accident. The teach Business model reinvention looks at four parts together: customer value proposition, profit formula, key resources, and key processes. The framework is a guardrail against a common growth mistake: selling a new promise with an old operating model. When the segment changes, the model usually changes. Enterprise customers may need procurement support, integrations, security reviews, account management, and uptime guarantees. Those are not just sales details. They are cost structure, cash cycle, resource, and process decisions. Common trap Teams price by analogy: "Our base…
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