“Once a company is doing well and their product is successful, there seems to be no need for innovation because the product is working,” says Dementjev, pointing out the banking sector as a genuine example of this kind of mindset.
Smart phones dominate people’s lives, but banks were unable to catch the moment and turn the rapidly developing digital economy to their own advantage. That’s how large banks gave way to the rapidly developing fintech services that displaced the banks’ own outdated products.
This is a syndrome that goes far beyond the banking sector, says Dementjev. “Have a look at large players like Google – yes, their product portfolio is immense, but advertising still accounts for 90% of their total sales,” he adds, explaining that such a share of advertising in sales is disproportionate and makes the company dependent on a single source of income.
Fortumo has gone through four or five business renewals during its history, both in terms of customers and products. In his presentation, Dementjev speaks about Fortumo’s experience and the principles of redefining its growth strategy.
According to Dementjev, it is important to also ask the right questions of yourself when designing new lines of business. “What is the core value we offer our customers through our product? In what other areas can we apply this solution and do we have the competence to do that?” Dementjev gives examples of the basic questions that should guide development activities.
According to Dementjev, you should not be discouraged if someone already offers a solution to an issue. “Even if a customer already uses another product, we can always think of ways to offer a better solution.”
The Estonian mobile payments company Fortumo has Google, Facebook, Spotify, Sony, Alibaba and Electronic Arts among its customers. Fortumo employs 70 people in Tallinn, Tartu, San Francisco, Beijing, Delhi, Singapore and Hanoi.
|Analysis Disruption is a conference born of the initiative of analysts at the Nortal software and business consultations company as a platform for analysts to share their knowledge and experience. The event began in the form of morning seminars in 2014 and was extended to a conference in 2016. The conference is organized by Nortal in cooperation with Brand Manual, Fortumo, PwC and Testlio.|