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Monetizing Innovation: How Smart Companies Design the Product Around the Price

4.20  ·  Rating details ·  560 ratings  ·  61 reviews

Surprising rules for successful monetization

Innovation is the most important driver of growth. Today, more than ever, companies need to innovate to survive. But successful innovation—measured in dollars and cents—is a very hard target to hit. 

Companies obsess over being creative and innovative and spend significant time and expense in designing and building products,

...more
Kindle Edition, 256 pages
Published May 2nd 2016 by Wiley (first published April 18th 2016)
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Average rating 4.20  · 
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 ·  560 ratings  ·  61 reviews


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Santhosh Guru
Dec 06, 2016 rated it liked it
Work related read. Most books should be articles, most articles should be blog posts, most blog posts should be tweets, most tweets should be retweets. This book should have been just a long-form essay. This essay (http://firstround.com/review/its-pric...) does fairly a good job. I would recommend pairing this essay with Steve Blank's Customer Development to get more value for this topic. ...more
Jacek Bartczak
Feb 14, 2021 rated it it was amazing
The title of the book (or just my perception) of that book suggests "Monetizing innovation" will be helpful once you build a new product or a new company. That's only partially true. That book will help you audit the current market offer as well. From how much it matches customers' needs to how clearly you present the benefits of your products and services. 

From "Monetizing innovation" you will learn:
- how to validate whether your product idea is needed,
- how to check what parts of your product
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Jesse
Dec 05, 2018 rated it liked it
pretty disappointing overall. starts off with authors spending way too much time establishing their credentials. and then they introduce their systems and rules for monetization, the cornerstone of which is flawed. they build their methodology around having willingness to pay conversations with prospective customers. asking someone what they would be willing to pay, and what they actually end up willing to pay are not equivalent, but that is never acknowledged. it would have strengthened their p ...more
Maciek Wilczyński
Nov 21, 2017 rated it it was amazing
Great piece of read. It is well-written, easy-to-digest and actionable from day 1. In my opinion it should go along with: "Lean startup" and "Business Model Generation" as most basic start-up books. The book explains the concept of value-pricing alongside with interesting case studies of succesful companies, like: Michelin, Porsche, Boeing, Rolls Royce, Optimizely. Basic concept is to start building a product from the price and willingness-to-pay and then go with adding features. Oh and btw, tha ...more
Matthew
Jan 30, 2017 rated it really liked it  ·  review of another edition
Some useful insights and case studies that make it a 4-star. But, not nearly as good as Secrets of the Pricing Man.
Outdoors Nerd
Mar 23, 2018 rated it really liked it
If you know the Lean Start tenets then this is the Pricing Strategy version.

Clear concise rules and steps.
Oana
Feb 07, 2021 rated it liked it
3.5*

Some good insight on innovation failures, monetization models (+importance of setting the price in the early stages etc etc), also was nice to see the info on product configuration, market segmentation etc etc structured so nicely

At times the book felt a bit self-promoting and repetitive plus it occasionally ping-ponged with very trivial concepts. Not a bad book by any means, just felt it was more time consuming than it should have been (maybe not the case of a blog article, but cutting and
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Martin Jancík
Jan 10, 2021 rated it it was amazing
It’s been a while since I encountered such a pleasant design book surprise. Although this book doesn’t seem to be marketed for product designers it fully describes how to design think about pricing new innovation.
Ferhat Culfaz
Jul 03, 2020 rated it really liked it  ·  review of another edition
Nice book for people of non product development or marketing background.
Laura Matevosyan
Jun 16, 2021 rated it it was amazing
Shelves: entrepreneurship
All the case studies, tactics, methodologies and theories in the book have one important commonality: They cultivate "outside-in" instead of "outside" thinking. ...more
Joel Harms
Jun 06, 2016 rated it it was amazing
Recommends it for: Everyone
I started reading Monetizing Innovation a few weeks back - just after it came out because I pre-ordered it on Amazon. I'm a pricing dork and a Madhavan fan-boy.

I had to stop reading and go get a pen about 1/3rd of the way down page 4 because I had to underline something. WTF? I haven't underlined anything since 1993. It happened two more times on page 4 and once on page 5. Page 8. Page 9. Page 10 and 11, 12 and 13. Then I read Chapter 1 again.

The underlining and rereading continued through Chapt
...more
Boni Aditya
Jun 14, 2019 rated it liked it
This book is made of four basic tenets i.e. the four ways in which a new product innovation fails at the market and nine different solutions that one can adopt to prevent it from failing at the market.

That pretty much sums up the book and the first chapter or the second is more or less quite sufficient to mark the book as read. Never the less, I completed the book for good measure. The writing style of the authors sucks, very very hard. Except one chapter with all the case studies about various
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Jose Papo
May 23, 2016 rated it really liked it
A great read about the importance of designing the product around his price and value for the customer. The book is very good and gives 9 rules for successful monetization. The only issue I had with the book is that it is very brief(it's on chapter 4) on how to actually have talks about pricing and a deep dive on techniques related to successful customer research and interviewing around pricing. But overall the book is a great reminder to executives to have the customer conversation around value ...more
Meg
Mar 25, 2019 rated it liked it  ·  review of another edition
A useful and largely actionable book on customer centered design and pricing, with lots of examples from the real world. This book is aimed at CEOs rather than team leads, but still provides value into thinking about price. Cheaper than business school.
gadhadar
Jan 24, 2017 rated it it was amazing
It's a must read for any entrepreneur. Teaches how to build a viable business. ...more
Anu
Oct 07, 2019 rated it liked it
Tidy primer for the basics of monetization from SKP
Alejandro Sanoja
Apr 01, 2019 rated it really liked it
This book will give you a step-by-step methodology on how to go about collecting and analyzing data to create a flywheel of innovation.

Most people think that if you create/innovate with the goal of making money, then you are "selling out", if you do so you don't have "soul in the game". Yet, if you don't think about how to make money and if you don't factor in the cost/sustainability of your creations/innovations, then your probability of success will likely be close to zero.

The book has a gre
...more
Aviva Rosman
Nov 29, 2020 rated it really liked it
Monetizing Innovation is a super boring title for an essential idea - namely, integrating product design with product monetization.

In this way, it's a good follow up to The Lean Startup - both books try to prevent companies and people from wasting time on things no one wants buy building customer discovery into the process. Ramanujam takes this a step further by providing a process for creating products that will accomplish a company's goals, whether they're revenue, profit, market penetration,
...more
Dave Kozisek
Jan 14, 2021 rated it liked it
The first few chapters are incredibly insightful, detailed, and practical. It really set me up with high expectations for the book as a whole, however the chapters became less focused and more vague as they went on. The case studies vary from myopic to insightful with no predictable pattern, but a recurring flaw in that there is no consideration of external, or even internal, variables that may have contributed to the success stories.

I am now convinced that the willingness to pay concept is a v
...more
Diego
Feb 09, 2019 rated it it was amazing
A must read

Whether you build physical products, digital product and/or services your business growth by generating revenue. In order to do that you need to “price” your products. Most of us have, as this book clearly point out in the beginning, always left pricing to the very end, and lets be honest, mostly to chance.

This book will flip your mental model of how you build and price products.

Whether you are a Product Manager, in Sales, Marketing or the CEO of a company, this book is a MUST READ!
Marina Gurevich
May 21, 2019 rated it liked it
A very basic book. A combination of micro economics 101 and pricing basics. Too theoretical at times. The biggest question on WTP, to me at least, is not how to use it but how to assess it. Once you get it, the maths is trivial. There is also a practical trade off between getting insights from the customer vs educating. It’s not that easy that you just ask the customer “how much are you willing to pay for this?”. The books approach kind of works for old boring companies but this is not where inn ...more
Scott Wozniak
Nov 18, 2018 rated it it was amazing
This is one of the very best books on customer insight that I've read. It's not just deep insight, it's very practical. As one of the smartest thinkers I know says, it's not innovation theater, it's applied innovation. If you are in any way involved in creating new products or services, then this is a must read. It's not written for non-profits at all, but it's so good that I'd recommend that for anyone who starts new things for them, too. ...more
Austin Haukinz
Feb 03, 2020 rated it really liked it
Monetizing Innovation is the how, who, what, where, when, and why of pricing. This book makes a strong case to figure out your pricing strategy well before you even develop your product. Totally makes sense. Product market fit ultimately matters much more than good features. Although most of this content is probably introductory in the pricing world, I found everything here wildly helpful. Over all a good read!
Oscar Martinez
Oct 30, 2018 rated it really liked it
This book does not contain the recipe to solve or improve your monetization matters; what you will find is a series of ingredients that might help you charge better for your product or service.

Also, this may open your eyes on the reason behind the prices you see every day.

A must for every entrepreneur.

https://firstround.com/review/its-pri...
...more
David
Mar 17, 2019 rated it really liked it
Useful way of thinking about products and services offerings in business. While the focus is on teams developing products in larger environments than my small business, the general ideas seem like they would translate well. While I'm not sure how practical the advice will be immediately, it's definitely powerful food for thought around positioning and pricing in today's marketplace. ...more
Sean Rich
May 27, 2020 rated it it was amazing
This was a fantastic read and I will definitely consult again before I do any work with the product development lifecycle in the future. My only gripe is the advice seems more pertinent to late stage startups/large companies than very young ventures. However, the principles persist for companies of any size: namely, have the willingness to pay (WTP) conversation early.
Nikhil Gadre
Jun 03, 2020 rated it liked it
A mediocre score not because the ideas outlined are as such, but mostly because they are almost “basic” principles that every firm should apply (and perhaps already does — especially in the Pharma industry). The examples of each ‘monetizing principle’ are very well sourced and highlight the breath of their application across industries.
Barbara
Mar 02, 2021 rated it liked it
Easy to read book with good high level information and interesting case studies. It's definitely on the shorter side though and I wish there was a little more content.

Content (Message / Usefulness / Examples): 3/5
Writing (Prose / Dialogue / Style): 3/5
Other (Enjoyment / Read Pace / Etc): 4/5
...more
Teja
Apr 22, 2021 rated it it was amazing
Though the title might suggest that the book is about pricing, the book is really about building an airtight business case for a new innovation by thinking outside-in to build products aligned with customer needs, values and WTP.
Does a really good job at it by clearly laying out the steps involved in the process with real life case studies show casing the advantages and perils of it all.
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