Using the company Hoowaki as an example, David Summa shares an article that illustrates how business model innovations can drive new revenue streams.
In my last post, I wrote about business model innovations and how it can drive new revenue streams, especially in times of changing economic and cultural landscapes or declining performance. To help illustrate this point, I’d like to talk about a recent success with Hoowaki.
Hoowaki is a materials science company in South Carolina that for years has specialized in manipulating surface friction. They create novel surfaces that fall anywhere on the spectrum of slippery to grippy. Their business model generated revenue through paid R&D, followed by a promise of royalties once a product containing their technology reached market. However, many of their inventions, though remarkably better than what currently existed in the market, were not incorporated into a customer’s product. Only later did Hoowaki learn that they needed to help customers stand-up a supply chain in order to make their product, which may seem obvious today, but at the time wasn’t expected, nor did customers communicate this. As such, only half of the Hoowaki business model proved profitable.
In 2019, BMI began working with Ralph Hulseman and Hoowaki to upgrade its business model. We mined past work and identified application categories, mapped them on a value per square meter of material (high to low) and square meters per year (high to low). What emerged was an excellent roadmap for scaleup.
Key points in this article include:
- Incorporating inventions into a customer product
- Upgrading Hoowaki’s business model
- The success of flipping the business model
Read the full article, The Swab Opportunity: An Example of Business Model Innovation, on LinkedIn.