Disruptive Innovation Strategy

We're moving away from charging for *access* to software and toward a model of charging for the *work delivered* by a combination of software and AI agents. Let’s dive into what’s happening and what it means for you ⤵️ 1. The rise of disruptive AI pricing models Tech companies are realizing they can't solely rely on seat-based subscriptions in an age of AI, automation and APIs where value is disconnected with how many people are logging in. Perhaps Salesforce going all-in on Agentforce (and charging $2 per conversation) was the push the industry needed. Each product category has its own flavor of disruptive pricing. - Legal AI products might charge for a demand package generated by AI or an AI-generated summary. - Creator AI products might charge for the content that gets produced such as a video generation or amount of video created. - GTM products might charge for specific tasks completed or workflows executed by the AI. 2. Selling work, not necessarily success As a customer, I wish I only had to pay for software when it delivered results. But the reality is that true success-based billing won’t work for the vast majority of today’s products. Most products should charge for work output instead. The issue is attribution. You want the customer to get a fantastic outcome — and you want them to recognize that your product powered that outcome. As soon as you start charging for success, the customer begins to rethink the results. 3. Goodbye ARR as we know it? Shifting to these newer value-based pricing models isn't a simple pricing change you can just announce in a press release. It's a business model evolution that looks a lot like the shift from on-prem to SaaS in the first place. These new AI pricing models might mean greater volatility in both usage and spend. Variable margin profiles across products and customers. Seasonal revenue fluctuations. The potential for project-based, non-recurring use cases. Put simply, annual recurring revenue (ARR) continues to get dethroned. — Full post in today’s Growth Unhinged newsletter: https://lnkd.in/ea5eTrVD Things are about to get interesting 🍿 #ai #pricing #saas

I have spent years in the highs and lows of the consumer goods industry but never seen a pricing climate quite like this. Manufacturers are getting squeezed from every direction-tariffs, skyrocketing raw material costs, and relentless supply chain disruptions. The old playbook of raising prices to cover costs? That’s dead. Why? Because consumers are feeling the pressure too. A 2024 Nielsen report makes it clear: today’s shoppers are scrutinizing every dollar they spend, and brands that aren’t strategic about pricing risk losing market share fast. Here’s what I’m seeing from top CPG brands that get it: 1️⃣ Walmart is investing heavily in AI-driven pricing models to keep costs competitive-e-commerce now makes up 18% of total revenue. 2️⃣ PepsiCo is doubling down on pack-size innovation, offering smaller, affordable options to maintain volume without excessive discounting. 3️⃣ Luxury brands are using price elasticity models, testing demand thresholds before rolling out increases-avoiding consumer pushback. 4️⃣ Supply chain resilience is non-negotiable. Companies are shifting manufacturing away from China, despite short-term cost spikes, to avoid future geopolitical risks. The smartest brands aren’t just reacting. They’re rethinking. They’re moving toward Revenue Growth Management (RGM) frameworks that help them: ✅ Optimize pricing and promotions (because blanket price hikes are a losing game) ✅ Focus on margin-smart growth, not just revenue ✅ Leverage data analytics to make smarter, faster pricing decisions Brands that don’t evolve risk eroding profitability or pricing themselves out of the market. CPG leaders who master strategic pricing, operational efficiency, and consumer-driven value creation will own the future of this industry. Are you adjusting your strategy, or just reacting to rising costs? Because in 2025, only the most adaptable brands will win. #CPG #FMCG #PricingStrategy #RevenueGrowth #ConsumerGoods

𝗬𝗼𝘂𝗿 𝗱𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗶𝘀 𝗱𝗲𝘀𝘁𝗿𝗼𝘆𝗶𝗻𝗴 𝘃𝗮𝗹𝘂𝗲. For some FMCG brands, no price cuts, no problem. The brands growing 3-5X faster than competitors have stopped competing on price entirely. This is the framework of how top CPGs win online. The data is clear; 1️⃣ Digital-first brands like L'Oréal, Nestlé and Procter & Gamble are achieving 3–5X higher unit growth 2️⃣ Their edge: Value communication, optimized digital shelf, and content that converts 3️⃣ They’re using pack strategy and personalization, not blanket discounts, to drive volume ++ 𝟰 𝗧𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝗺𝗼𝘃𝗲𝘀 𝗮 𝗹𝗼𝘁 𝗼𝗳 𝗖𝗣𝗚 𝗖𝗠𝗢𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗱𝗲𝗽𝗹𝗼𝘆 𝗶𝗻 𝗛𝟮 ++ 1. I strongly recommend, stop leading with "20% off" and start with "Here's why this matters to your life." This way you can master value communication over price communication. - Create content that educates, inspires, and justifies your price point - Use storytelling that connects product benefits to real consumer moments - Build trust through transparent ingredient stories and sustainability narratives 2. Your Amazon listing is your new Times Square storefront. Is your digital shelf better then your flagship store by the way? - Invest in premium product imagery and A+ content - Use data-driven SEO to dominate category searches - Leverage customer reviews as social proof, not just feedback 3. Create value through innovation, not desperation. And it happens faster when you deploy strategic assortment & smart pack architecture. - Develop premium formats and limited editions that command higher prices - Use pack sizes strategically to hit different price points without discounting - Test subscription models and bundles that increase customer lifetime value 4. Use technology to deliver the right message to the right consumer. Is there anybody left not leveraging AI for personalization at scale? I didn't think so. :) - Implement dynamic pricing based on demand signals, not competitor panic - Create personalized product recommendations across all digital touchpoints - Use predictive analytics to anticipate consumer needs before they discount-shop 𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: Brands that compete on value creation, not price destruction, are the ones dominating market share growth. If you’re still defaulting to promotions, this is your wake-up call. 𝗧𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗼𝗹𝗹𝗼𝘄 ecommert® 𝗮𝗻𝗱 𝗷𝗼𝗶𝗻 𝟭𝟰,𝟲𝟬𝟬+ 𝗖𝗣𝗚, 𝗿𝗲𝘁𝗮𝗶𝗹, 𝗮𝗻𝗱 𝗠𝗮𝗿𝗧𝗲𝗰𝗵 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝘄𝗵𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝘁𝗼 𝗲𝗰𝗼𝗺𝗺𝗲𝗿𝘁 : 𝗖𝗣𝗚 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿👇 About ecommert We partner with CPG businesses and leading technology companies of all sizes to accelerate growth through AI-driven digital commerce solutions. #CPG #FMCG #ecommerce #AI #retailmedia PepsiCo Mondelēz International Mars The HEINEKEN Company Colgate-Palmolive Reckitt Henkel Kenvue Unilever adidas Nike The Coca-Cola Company

🚀 AI-Driven Business Strategies: The 2025 Playbook Every Leader Needs The future of business isn’t just digital—it’s intelligent. By 2025, AI isn’t a “tool” in your strategy; it’s the foundation. Here’s how top companies are rewriting the rules: 🔑 Key Trends Shaping 2025 1. Hyper-Personalization at Scale       → AI deciphers customer behavior to deliver tailored experiences, boosting loyalty and revenue.     2. Decision Intelligence       → Predictive analytics + AI = automated, real-time decisions (supply chains, pricing, logistics).     3. Generative AI Revolution       → From marketing copy to synthetic data testing, GenAI slashes time-to-market by 70%+.     4. Operational Overdrive       → AI optimizes routes, inventory, and workflows—cutting costs while scaling efficiency.     5. Ethical AI & Cybersecurity       → Trust is non-negotiable. Leaders bake transparency into AI and deploy it to combat threats.     Why This Matters🌍 - $1.3T Market by 2032: Early adopters are already outpacing competitors. - Dynamic Pricing: AI shifts pricing from static to behavior-driven, maximizing margins. - Swarm Learning: Cross-department AI collaboration unlocks innovation silos.  🛠️ The Execution Gap Success isn’t about tech—it’s about strategy: ✅ Start small, iterate fast. ✅ Invest in AI fluency (teams and tools). ✅ Prioritize data quality like it’s oxygen. The Bottom Line: Companies that treat AI as a strategic partner—not a cost center—will dominate. The rest? Still debating ChatGPT prompts.

✨ Four in ten Americans are stockpiling items. Walmart is selling Gucci online. Consumers are boycotting major retailers. The top 10% of households by income account for 50% of all spending. Major CPG companies are signaling price hikes. Oh, and eggs. If that sounds like a disheartening list of recent headlines, it’s not. The list represents changes in consumer behavior that will shape the rest of the year. The fun part is to lean into the change to find opportunities. If consumers are stockpiling, maybe you should offer larger sizes (it’s more sustainable anyway). If consumers are focused on price, maybe you should build your products in a new, less costly way. If the luxury market is lurching, redefine it. Experiment! Experimentation is the pathway to opportunity. And I'm not talking about experimenting in focus groups and surveys--I'm talking real-life experiments (online or otherwise). Shifting behavior creates big questions. Opinions and preferences won't get to the heart of what's driving change--real-life experiments are a fast way to learn what’s going on. Some questions to generate hypotheses for experimentation: 1. What changes are creating new problems for target customers? Are there signs of behavioral shifts? (Like, um, boycotting big retailers) 2. Can you articulate a research question to describe the opportunity? (‘Does highlighting my brand’s support of small retailers increase our sales in those channels?’) 3. Can I define independent and dependent variables? What is my prediction about those variables? (‘If we offer ad support to selected small retailers, they (and we) will see sales increases at higher rates than at small retailers we don’t offer support for.’) Experimentation benefits? Validating opportunities. Avoiding pitfalls. Moving fast.

Most people think “innovation” only means inventing a new product. That’s a narrow view. Joe Tidd and John Bessant offer a much more powerful lens: the 4Ps of Innovation Space — a framework to spot, classify, and intentionally design innovation across your organisation. ☑ Product Innovation ↳ Changes in what the organisation offers. ↳ iPhone, Tesla’s EVs, and Telemedicine in hospitals. ☑ Process Innovation ↳ Changes in how things are made or delivered. ↳ Lean production at Toyota, Amazon's warehouse automation, and online banking. ☑ Position Innovation ↳ Changes in how products are perceived or positioned. ↳ Lucozade is pivoting to an energy drink and baking soda as a deodoriser. ☑ Paradigm Innovation ↳ Changes in the underlying business model or mental model. ↳ Netflix shifting to streaming, Airbnb’s platform model, and microfinance disrupting traditional banking. These 4 types of innovation unlock new possibilities. Here’s why this matters: ↳Most orgs focus only on products and miss other high-impact levers. ↳Operational or positioning changes can be cheaper, faster, and equally valuable. ↳Paradigm shifts are hard — but that’s where market leaders are made. You don’t need to reinvent the wheel. You need to innovate from multiple angles. Start with this question: Which of the 4Ps are we currently underutilising? P.S. If you like content like this, please follow me.

Orb 𝗷𝘂𝘀𝘁 𝗿𝗲𝗹𝗲𝗮𝘀𝗲𝗱 𝘁𝗵𝗲𝗶𝗿 “𝟮𝟬𝟮𝟱 𝗦𝘁𝗮𝘁𝗲 𝗼𝗳 𝗔𝗜 𝗔𝗴𝗲𝗻𝘁 𝗣𝗿𝗶𝗰𝗶𝗻𝗴” 𝗿𝗲𝗽𝗼𝗿𝘁 — 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗼𝘃𝗲𝗿𝘃𝗶𝗲𝘄 𝘆𝗲𝘁 𝗼𝗻 𝗛𝗢𝗪 𝘁𝗼 𝗱𝗲𝘀𝗶𝗴𝗻 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗳𝗼𝗿 𝗔𝗜 𝗮𝗴𝗲𝗻𝘁𝘀. ⬇️ The report analyzes the pricing strategies of 66 companies offering AI agent products. 𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝘁𝗵𝗲 𝗴𝘂𝗶𝗱𝗲 𝗰𝗼𝘃𝗲𝗿𝘀: ⬇️ 1. Orb identified 8 foundational pricing components → This are the pricing core models currently emerging in the market: • Subscription – Flat recurring fee for access, usually monthly or annually. • Per user or seat – Charged based on the number of individual users. • Usage-based – Scales with consumption (e.g. tokens, API calls, generations). • Outcome-based – Pricing tied to results (e.g. leads closed, tickets resolved). • Freemium or free trial – Free limited access to drive adoption and conversion. • Tiered – Pricing packages with increasing features or usage limits. • Add-ons – Paid upgrades for advanced features or premium support. • Hybrid – A mix of models to balance predictability, flexibility, and value capture. 2. Hybrid pricing is the default  → 92.4% of companies now combine multiple pricing components — most commonly subscription + usage + freemium + tiered access. Understanding these levers is now table stakes for anyone pricing agents. 3. SaaS-only pricing will kill your margins  → Flat rates break under AI’s compute load. 85% of SaaS-based offerings now layer in usage pricing to avoid margin collapse. 4. Outcome-based pricing is a wide open lane  → Only 4.5% of companies tie price to actual business results. But the strategic upside is enormous — especially for agents replacing human work. 5. Parallel pricing = segmentation superpower  → 12% of vendors now offer distinct models for different audiences (e.g., flat-rate for individuals, per-seat for teams). This flexibility fuels learning and market fit. 6. Billing infra is now a moat  → Hybrid pricing adds complexity fast. If your billing stack can’t handle dynamic usage, add-ons, or outcome tracking — you’re flying blind. Pricing isn’t a table in a Google Sheet. It’s your growth mechanic. It’s part of the product — and it’s one of your strongest levers for growth. Full report below. ⬇️ Enjoy. 𝗣.𝗦. 𝗜 𝗿𝗲𝗰𝗲𝗻𝘁𝗹𝘆 𝗹𝗮𝘂𝗻𝗰𝗵𝗲𝗱 𝗮 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿 𝘄𝗵𝗲𝗿𝗲 𝗜 𝘄𝗿𝗶𝘁𝗲 𝗮𝗯𝗼𝘂𝘁 𝗲𝘅𝗮𝗰𝘁𝗹𝘆 𝘁𝗵𝗲𝘀𝗲 𝘀𝗵𝗶𝗳𝘁𝘀 𝗲𝘃𝗲𝗿𝘆 𝘄𝗲𝗲𝗸 — 𝗔𝗜 𝗮𝗴𝗲𝗻𝘁𝘀, 𝗲𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝘄𝗼𝗿𝗸𝗳𝗹𝗼𝘄𝘀, 𝗮𝗻𝗱 𝗵𝗼𝘄 𝘁𝗼 𝘀𝘁𝗮𝘆 𝗮𝗵𝗲𝗮𝗱 𝘄𝗵𝗶𝗹𝗲 𝗼𝘁𝗵𝗲𝗿𝘀 𝘄𝗮𝘁𝗰𝗵 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝘀𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀. 𝗜𝘁’𝘀 𝗳𝗿𝗲𝗲, 𝗮𝗻𝗱 𝘆𝗼𝘂 𝗰𝗮𝗻 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝗵𝗲𝗿𝗲: https://lnkd.in/dbf74Y9E

𝐂𝐚𝐬𝐞 𝐒𝐭𝐮𝐝𝐲: Reliance’s Playbook of Disruption Now in Bottled Water Reliance Retail has just entered the bottled water industry with Campa Sure priced aggressively at ₹5, ₹8, ₹15, and ₹25 for different SKUs. This isn’t just about water. It’s about a strategy Reliance has mastered: • Low prices, high quality : win mass adoption quickly • Cluttered market entry : challenge incumbents directly (think Jio vs telecom, Campa vs colas) • Mass distribution muscle : reach every kirana, every corner of Bharat We’ve seen this play before: ✨️ In the internet sector, Jio reshaped telecom ✨️ In FMCG, Campa Cola shook up the soft drink shelf ✨️ Now, bottled water is the next battleground The aim? Capture volume, build habit, then dominate. If history is a teacher, Reliance is on its way to becoming a giant in yet another consumer sector. Question to you: Can incumbents like Bisleri, Kinley, and Aquafina hold their fort or will the Jio effect repeat in water? Disclaimer: This post is for educational and informational purposes only. The insights are based on publicly available data and analysis, not insider information.

Amazon is coming for your customers. And they’re not playing by your rules. Used cars. New cars. Full-stack retail. Most dealers shrug it off. Big mistake. Because Amazon’s real playbook isn’t about selling cars. It’s about owning the customer. Here’s what your dealership can steal from Jeff Bezos before he steals your market: The Empty Chair Strategy Amazon puts a chair in every meeting to represent the customer. When was the last time your store asked: “What would our customers want?” Data = Your Moat Amazon doesn’t guess. They predict. Dealers sit on CRM, DMS, and service history, and most of it collects dust. That’s not contact info. That’s an AI goldmine. Platform > Transaction Amazon didn’t just sell books. They built the infrastructure of commerce. Smart dealers will do the same: • Service + F&I bundles • Mobile-first experiences • Owning the hub for all things auto in their market Lifetime Value > Front-End Gross Bezos said: “We’re willing to be misunderstood for long periods of time.” Amazon plays the long game. Dealers rarely do. If you optimize per deal while Amazon optimizes per customer… who wins? The Playbook for 2025: Use AI to predict upgrades, service triggers, churn risk Build subscription-like relationships Stop renting from vendors and own your customer data asset Invest in tools that deepen relationships, not just close sales Bottom line: In 2025, the best inventory won’t win. The best customer intelligence will. Amazon’s already thinking like a dealer. Why are you still thinking like a vendor? #QoreAI #AutoRetail #DealershipStrategy #CustomerExperience #AutomotiveAI #PlatformThinking

Forget competition. The real winners are playing a different game. For decades, companies fought for dominance by competing head-to-head. But today, the biggest winners aren’t focused on the competition at all. They are building ecosystems, leveraging partnerships, platforms, and networks to scale faster and dominate entire industries. This isn’t the first time business strategy has evolved. Throughout history, companies have shifted how they approach growth. 📌 1920s: The focus was on predicting and controlling industry cycles 📌 1950s: Corporate strategy and SWOT analysis became the dominant framework 📌 1980s: Michael Porter introduced competitive advantage as the key to winning 📌 1990s: Disruption took over, as companies aimed to overthrow market leaders Now, we are in the early stages of another major shift. Companies like NVIDIA, Microsoft, and Tesla are using this approach to scale faster than ever before. 6 Strategies That Drive Exponential Growth 1. Borrow Someone’s Road Instead of building everything from scratch, companies use existing platforms to expand faster. NVIDIA partnered with ARM Holdings, leveraging its chip architecture to power smartphones, cars, and AI devices. 2. Partner with a Third Party Strategic partnerships expand capabilities, unlock new markets, and enhance offerings. Microsoft integrated Office 365 into Apple’s App Store, shifting focus from devices to cloud-based services. 3. Reveal Your Strategy Transparency builds trust, alignment, and innovation within organizations. John Deere publicly invested in precision agriculture, positioning itself as a leader in smart farming. 4. Be Good, Do Good Social impact drives brand reputation, customer loyalty, and long-term growth. Mastercard launched the "Kill Cash" initiative, later rebranded as "A World Beyond Cash," helping drive massive stock growth. 5. Forget the Competition Instead of competing for dominance, the best companies find gaps, differentiate, and take their time. Ferrari waited until 2022 to launch an SUV, learning from Porsche and Mercedes-Benz before releasing a $400K model that sold out until 2026. 6. Adopt Small-Scale Attacks Test, refine, and scale. Take incremental steps instead of massive risks. Tesla built its $5B battery factory in Nevada in phases, allowing for continuous improvement and faster production. The Takeaway High-performing companies don’t compete. They collaborate, adapt, and build ecosystems. Is your business applying these strategies? Drop your thoughts in the comments. ♻️ Follow César Solís and reshare to help others. 📌 Save this post for future reflection!