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This brings us to another challenge of designing digital products: the software, apps, and other things that users find on the Internet and use every day. As mentioned, a product needs to be valuable to customers to entice them use it. It also needs to be valuable to the business so that the business can sustain itself. However, the Internet is full of digital products for which the users don’t have to pay for the privilege of using them. If a business model is supposed to help a company achieve sustainability, how can you do that when the online marketplace is overrun with free products? [16] Value innovation is the key. In the book Blue Ocean Strategy, authors W. Chan Kim and Renée Mauborgne describe value innovation as “the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company.” What this means is that value innovation occurs when companies align newness with utility and price (see Figure 2-5). Companies pursue both differentiation and cost leadership to create high-value and low-cost products for the customers and stakeholders. Consider how Waze found a sustainable business model — sharing its crowd-sourced data made it lucrative to other companies such as Google. Yet, to get the data, it had to provide a new kind of value to customers for mass adoption, and that value was based entirely on taking advantage of a disruptive innovation through the UX and business model.

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