This article argues that powerful ideas, even if imperfectly measured, are more useful for business decision-making than perfect measures for less impactful ideas. It discusses the importance of focusing on high-leverage metrics and acknowledging the limitations of data, rather than getting overly bogged down in pursuit of perfect measurement.
business-models
6 resources tagged with business-models
Methodologies for calculating and understanding the lifetime value of customers, including retention curves, discount rates, cohort LTV, and using LTV to evaluate the efficiency of customer acquisition.
This article presents a framework for understanding and visualizing unit economics (UE) for a variety of businesses. It covers key concepts around contribution margin, fixed-cost leverage, break-even volume, and scaling effects to help analysts and founders assess the profitability and scalability of their business models.
Develop a deep understanding of how a company creates, delivers, and captures value through its core business model. Explore the key components such as the value proposition, target segments, distribution channels, key resources & activities, partner ecosystem, and profit formula.
Understand key SaaS metrics that influence profitability, such as recurring revenue, churn, and the 'triangle of despair' - the balance between customer acquisition, retention, and revenue growth.
AI's Middle Layer: Where the Real Money's Made (or Lost) in the Wrapper Economy
Business UnderstandingThis blog post reveals the untapped potential in the "wrapper economy" – the lucrative middle layer where AI-powered tools and services are packaged and sold. Analytics professionals can uncover hidden revenue streams and gain a competitive edge by understanding the dynamics of this rapidly evolving market, leveraging insights on successful monetization strategies and identifying critical points where AI-powered "wrappers" can make or break a business's bottom line.