Business Strategy

IndiGo (InterGlobe Aviation Ltd) CRISIS WASN’T IN THE SKIES. IT WAS IN THE LEADERSHIP CABIN. Three things stood out. One: Employees were left alone to face furious customers. No leader should ever let that happen. If you don’t stand by your people in a storm, don’t expect them to stand by your customers in the sun. Customer experience collapses the moment employees feel abandoned. Two: In any crisis, honesty is the only strategy that works. This time, the communication wasn’t transparent. When leaders hide the full picture, years of goodwill can disappear overnight. A crisis can earn trust, but only if you tell the truth. Three: The belief that “we are too big to be ignored” has ended more companies than competition ever has. Customers always have a choice. And if they don’t, they will create one. We shouldn’t watch the Indigo crisis like spectators. This is a reminder for every leader to build their own crisis blueprint. Because crises will come, when they do, your response becomes your reputation. There is more to business than profits. There are people, trust, and how you show up when it matters most.

The European Parliament has officially passed Extended Producer Responsibility (EPR) legislation that fundamentally shifts the responsibility for textile waste management to fashion brands and retailers – with far-reaching global implications. This new law requires all producers, including e-commerce platforms, to cover the full cost of collecting, sorting, and recycling textiles, regardless of whether they are based within or outside the EU. The financial burden of Europe's textile waste now falls squarely on the brands that create it. What are the critical business implications? UNIVERSAL SCOPE: The legislation applies to all producers selling in the EU market, including those of clothing, accessories, footwear, home textiles, and curtains. No company is exempt based on location. FAST FASHION PENALTY: Member states must specifically address ultra-fast and fast fashion practices when determining EPR financial contributions, creating cost penalties for unsustainable business models. GLOBAL SUPPLY CHAIN DISRUPTION: As the world's largest textile importer, the EU's new rules will ripple across global supply chains, particularly impacting exporters from Bangladesh, Vietnam, China, and India who supply much of Europe's fast fashion. TIMELINE PRESSURE: Officially adopted September 2025, this creates immediate operational and financial planning requirements. COMPETITIVE RESHAPING: Brands and retailers will inevitably pass increased costs down their supply chains, fundamentally altering supplier relationships and pricing structures globally. What are the implications for various stakeholders? For CEOs and board members: This represents more than regulatory compliance – it's a complete business model transformation. Companies must now integrate end-of-life costs into product pricing, rethink supplier partnerships, and accelerate circular design strategies. For sustainability and decarbonisation executives: This creates unprecedented opportunities for circular economy solutions, sustainable material innovation, and traceability system development across global supply chains. Link: https://lnkd.in/dTyHtHuD #sustainablefashion #circulareconomy #textilwaste #epr #fashionindustry #sustainability #supplychainmanagement #fastfashion #environmentalregulation #businessstrategy #decarbonisation #textilerecycling #fashionceos #boardgovernance #climateaction #wastemanagement #producerresponsibility #fashionsustainability #textileindustry #greenbusiness

Open Banking (OB) isn’t a feature - it’s the blueprint for banks to stay relevant in an APIsed economy. But exposing a few APIs is not innovation. Here's what really powers OB - and some myth busting. OB is reshaping how we access and interact with financial services. At its core, it’s about unlocking data and making it securely available through modern infrastructure rails called APIs. But the impact goes far beyond banking. OB is becoming the key enabler of today’s two most dominant business models: —   Platform economics —   Embedded finance Banks play a critical role in this shift - because they hold the data. Enter: 𝗢𝗽𝗲𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗔𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲 This is the invisible technical foundation that allows banks to expose data and services to fintechs and partners. Here’s a simplified breakdown of key components: 1. API Gateway – The secure front door that handles requests and and routes them properly. 2. Consent & Identity Management – Ensures only the right parties get access, with the customer’s permission. 3. Authentication Layer – Uses secure login methods to confirm the customer’s identity. 4. Developer Portal – A gateway where third parties discover, test, and onboard to the bank’s APIs. 5. Microservices Layer – Breaks banking functions into modular services for faster, flexible delivery. 6. Core System Integration – Connects modern APIs to banks’ legacy systems without needing to rebuild everything from scratch. This isn’t just about technology - it’s about designing trust at scale. 𝗛𝗼𝘄 𝗮𝗻 𝗢𝗽𝗲𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗿𝗲𝗾𝘂𝗲𝘀𝘁 𝘄𝗼𝗿𝗸𝘀: 1.     A licensed third-party provider (TPP) sends an API request to the bank to access account data or initiate a payment. 2.     The end-user is redirected to the bank’s interface to authenticate and provide consent. 3.     Once consent is verified, the bank issues a secure access token to the TPP. 4.     The TPP retrieves only the authorized data or completes the payment transaction. 5.    All actions are logged for traceability, audit, security and compliance purposes. 𝗪𝗵𝗮𝘁’𝘀 𝗵𝗼𝗹𝗱𝗶𝗻𝗴 𝗯𝗮𝗻𝗸𝘀 𝗯𝗮𝗰𝗸? 1. Legacy tech – Many core platforms were never built for external connectivity. 2. Security & compliance pressure – Exposing APIs while meeting regulatory requirements is complex. 3. Real-time readiness – Open Banking requires real-time availability and minimal downtime. 4. Governance and ecosystem management – Managing third-party access and maintaining oversight is operationally demanding. Banks should avoid treating OB as just a tech upgrade or a compliance checkbox. It’s a strategic opportunity to modernize infrastructure - something they would have to do anyway. In the era of AI and real-time digital ecosystems, not being able to communicate via APIs is like owning a smartphone without internet access. Opinions: my own, Graphic source: Blanc Labs 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

Consistency isn’t boring. It’s branding. This BIC pen has looked the same since 1955. Same design. Same transparent barrel. Same blue cap. Bic knew it didn’t need to evolve the design of the product. By sticking to what worked, it has become iconic. Most brands don’t have that kind of discipline. They get bored to easily and change too much. If you change too much, you lose consistency and lose recognition. Great branding isn’t about changing everything all the time. And knowing what not to change is equally as important. A solid brand strategy should do two things: 1. Tell you where to stay consistent. 2. Show you where to evolve to stay relevant. Every brand has core brand assets (or codes)… distinctive elements that drive recognition. KFC has the bucket, the Colonel, the colour red and chicken. the LEGO Group has the brick, the yellow minifigure, the red square logo, and imagination. Bic has this pen shape, the blue cap, the orange packaging and the Bic Boy. When you protect those core assets, show up consistently, and then find relevant, creative ways to show up in culture that’s how you win. Not everything needs to change. Know what to keep. That’s the work.

The shift from seats to agents pressures SaaS margins. At the same time, the longstanding practice of getting enterprise customers to pre-commit and also prepay for functionality they may never deploy will get harder as CIOs look to free budget for their own LLM costs. To weather the storm, some SaaS companies have increased prices. This boosts revenue and margins in the short-term but can't be done repeatedly and creates even greater scrutiny over shelfware as procurement teams right-size and shift contracts to "pay as you go." To achieve sustainable growth, SaaS companies need to become hyperefficient at sales and marketing. Here are common ways to do so and who's doing it well: 1. PLG. Shopify and Atlassian exemplify efficient go-to-market based on product-led growth with free trials, low-friction upgrades and upsells. Their sales teams only need to get involved in the biggest opportunities at the largest accounts; every other step in acquisition, commercial transaction, activation, onboarding, and growth is self-service and automated. 2. Vertical SaaS. Guidewire Software and Veeva Systems are laser-focused on insurance and life sciences, respectively. Rather than casting a wide net, they spear-fish with deep domain knowledge and purpose-built solutions for that industry's specific workflows and regulatory requirements. Guidewire doesn't need to buy Super Bowl ads– their annual customer conference is the Super Bowl for property & casualty insurance executives. Nearly zero GTM effort is wasted– unsurprisingly they're the two most efficient on the list. We modeled Hearsay Systems after both these companies, and this focus allowed us to win incredible market share among Fortune 500 banks & insurers despite only raising $60M in totality. 3. Relocate operations to lower-cost regions and AI. This is private equity's favorite playbook to take costs out of companies they buy. Field sales continues to shift more to Zoom, which means you can hire AEs anywhere. Inside sales contributes a greater % of revenue as PLG motions are established. AI handles top-of-funnel leads qualification and generating marketing content and campaigns. 4. Focus on gross revenue retention. Because of high customer acquisition costs in #SaaS, leaky buckets are margin killers. Use LLMs to help customer success teams analyze product usage, segment cohorts, and identify opportunities to increase value realization. Put in guardrails to prevent sales reps from overselling an account, as doing so only creates churn in the next renewal cycle. 5. Introduce another product line. This only works if your new product has the same buyer as your existing products. Many SaaS acquisition pro formas fail to actualize for this reason, as it's not actually feasible to have the same AE sell both old and new products. Every SaaS company right now needs to double down on one or more of these levers in the AI era.

I’ve had 5 different people ask me about their early stage startup offer and each time I have told them: DO NOT TAKE IT. Here’s why: These were strong, tenured candidates with at least 10+ years of experience at name-brand mid-stage startups. They were allured by the opportunity to “go earlier and have a bigger impact”. If that is your only motivation, go for it. However, most of the time, you’re also motivated by the equity. Let me tell you plainly: 95% of the time, the equity offered is built on a lie. It is based on the idea that all startups are created equal and they aren’t even close. You get the same equity offer for joining the next Stripe or Facebook as you do if you’re joining a random GovTech company, even though the exit potential is 1/100th in GovTech. This creates a serious issue. Most people just think “early stage startup” implies a $10B+ outcome opportunity. They don’t question it. They ask their friends what equity they got, and they assume the company can be the next Notion, Ramp, or Airbnb. In reality, the best case, home run scenario for your startup might be $1B or even $500M. The founders either delude themselves into thinking this isn’t true, or they know it but of course they won’t admit it. The founders / investors will never give you the equity that would actually be fair, because they structurally can’t. If you are an up-and-comer in your career, going early stage (pre-$1M ARR) can be a great deal. You get paid in learning, and you can easily jump to another more successful company in 3-5 years. But if you are in the prime of your career, with a decade of experience under your belt, beware. Don’t join unless the startup has multiple $10B comps in the public markets, or the founders have a philosophy of offering 2-5x the market standard in equity (to compensate for the lower potential exit value). Some founders are wise enough to do this, but most will just give you the standard offer and expect you to not ask too many questions. P.S. Some founders will just compensate for this by offering strong cash offers. That is totally fine too, as long as you are eyes wide open about it.

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

After spending three decades in the aerospace industry, I’ve seen firsthand how crucial it is for different sectors to learn from each other. We no longer can afford to stay stuck in our own bubbles. Take the aerospace industry, for example. They’ve been looking at how car manufacturers automate their factories to improve their own processes. And those racing teams? Their ability to prototype quickly and develop at a breakneck pace is something we can all learn from to speed up our product development. It’s all about breaking down those silos and embracing new ideas from wherever we can find them. When I was leading the Scorpion Jet program, our rapid development – less than two years to develop a new aircraft – caught the attention of a company known for razors and electric shavers. They reached out to us, intrigued by our ability to iterate so quickly, telling me "you developed a new jet faster than we can develop new razors..." They wanted to learn how we managed to streamline our processes. It was quite an unexpected and fascinating experience that underscored the value of looking beyond one’s own industry can lead to significant improvements and efficiencies, even in fields as seemingly unrelated as aerospace and consumer electronics. In today’s fast-paced world, it’s more important than ever for industries to break out of their silos and look to other sectors for fresh ideas and processes. This kind of cross-industry learning not only fosters innovation but also helps stay competitive in a rapidly changing market. For instance, the aerospace industry has been taking cues from car manufacturers to improve factory automation. And the automotive companies are adopting aerospace processes for systems engineering. Meanwhile, both sectors are picking up tips from tech giants like Apple and Google to boost their electronics and software development. And at Siemens, we partner with racing teams. Why? Because their knack for rapid prototyping and fast-paced development is something we can all learn from to speed up our product development cycles. This cross-pollination of ideas is crucial as industries evolve and integrate more advanced technologies. By exploring best practices from other industries, companies can find innovative new ways to improve their processes and products. After all, how can someone think outside the box, if they are only looking in the box? If you are interested in learning more, I suggest checking out this article by my colleagues Todd Tuthill and Nand Kochhar where they take a closer look at how cross-industry learning are key to developing advanced air mobility solutions. https://lnkd.in/dK3U6pJf

Should you try Google’s famous “20% time” experiment to encourage innovation? We tried this at Duolingo years ago. It didn’t work. It wasn’t enough time for people to start meaningful projects, and very few people took advantage of it because the framework was pretty vague. I knew there had to be other ways to drive innovation at the company. So, here are 3 other initiatives we’ve tried, what we’ve learned from each, and what we're going to try next. 💡 Innovation Awards: Annual recognition for those who move the needle with boundary-pushing projects. The upside: These awards make our commitment to innovation clear, and offer a well-deserved incentive to those who have done remarkable work. The downside: It’s given to individuals, but we want to incentivize team work. What’s more, it’s not necessarily a framework for coming up with the next big thing. 💻 Hackathon: This is a good framework, and lots of companies do it. Everyone (not just engineers) can take two days to collaborate on and present anything that excites them, as long as it advances our mission or addresses a key business need. The upside: Some of our biggest features grew out of hackathon projects, from the Duolingo English Test (born at our first hackathon in 2013) to our avatar builder. The downside: Other than the time/resource constraint, projects rarely align with our current priorities. The ones that take off hit the elusive combo of right time + a problem that no other team could tackle. 💥 Special Projects: Knowing that ideal equation, we started a new program for fostering innovation, playfully dubbed DARPA (Duolingo Advanced Research Project Agency). The idea: anyone can pitch an idea at any time. If they get consensus on it and if it’s not in the purview of another team, a cross-functional group is formed to bring the project to fruition. The most creative work tends to happen when a problem is not in the clear purview of a particular team; this program creates a path for bringing these kinds of interdisciplinary ideas to life. Our Duo and Lily mascot suits (featured often on our social accounts) came from this, as did our Duo plushie and the merch store. (And if this photo doesn't show why we needed to innovate for new suits, I don't know what will!) The biggest challenge: figuring out how to transition ownership of a successful project after the strike team’s work is done. 👀 What’s next? We’re working on a program that proactively identifies big picture, unassigned problems that we haven’t figured out yet and then incentivizes people to create proposals for solving them. How that will work is still to be determined, but we know there is a lot of fertile ground for it to take root. How does your company create an environment of creativity that encourages true innovation? I'm interested to hear what's worked for you, so please feel free to share in the comments! #duolingo #innovation #hackathon #creativity #bigideas

Risk is bad, isn’t it? Not always. Some risks are bad, but others you want to embrace. Why? Because they add value and allow you to serve your customers better. A little over a decade ago, in 2012, Robert S. Kaplan and Anette Mikes wrote a Harvard Business Review article “Managing Risks: A New Framework.” In this article they lay out a useful typology of three types of risk: Type 1: External Risk Definition: Risks outside your control, coming from external sources Examples: Climate change, recession, pandemic Mitigation: Reduce impact in case the event occurs  Tools: Scenario-planning, war games, stress-testing Type 2: Preventable Risk Definition: Risks arising from what happens within an organization Examples: accidents, mistakes, fraud Mitigation: Eliminate or prevent to minimize occurrence  Tools: Standard operating procedures, audits, norms and values Type 3: Strategic Risk Definition: Risks taken to create better strategic returns Examples: credit risk, R&D investments, location risk Mitigation: Reduce likelihood and impact in a cost-effective way Tools: Risk-maps, key risk indicators, Risk-based resource allocation In a nutshell: external risks you want to prepare for, preventable risks you want to avoid, and strategic risks you manage carefully. Of the three categories, I find Strategic Risk the most interesting type. Because, unlike the other two, it can add substantial value to a company and be an important part of its strategy. This means it comes with an interesting question: → Can we take on MORE risk to improve the performance of our organization? While seemingly unnatural from a risk management perspective, it’s more common than we might think. Because, taking over risk from your customers is a very common way of adding more value for them. Here’s some examples: - Any type of insurance - Any type of payment arrangement, especially no-cure-no-pay - Any type of leasing and renting model - Any type of X as a service approach To finalize, here’s a high-level risk approach based on the three types 1. List all the risks your organization faces 2. Categorize them in each of the three types 3. Reduce the possible impact of the external risks 4. Reduce the likelihood of the preventable risks 5. Investigate which strategic risks make sense to add 6. Manage likelihood and impact of strategic risks #riskassessment #forecasting #managementdevelopment