Solution Development — Defining the Product, Model, and Viability

At this stage, you have a small number of validated problem opportunities and a working understanding of the customers, their pain points, and how they perceive value. Now the task is to define a solution that can solve, reduce, or eliminate that pain—or create measurable new value. The objective is not to design a perfect product. It is to define something simple, testable, and economically viable.

Do Not Overfit to Technology

Do not anchor on a specific technology or preconceived solution. Your expertise and technical foundation define the feasible space—but they should not dictate the answer. A common failure mode is over-engineering:

  • Complex solutions driven by internal capability
  • Features that do not map to customer value
  • Cost structures that cannot be supported by pricing

The goal is not to showcase technology. The goal is to deliver value in the simplest possible way. Example: many “drone solutions” are actually data and analytics problems. In many cases, a fixed camera or simpler system delivers equivalent value at lower cost and complexity.

Example: Clever Technology to Practical Solution

An initial solution might focus on technical novelty
A kinetically charged baton that recharges through the motion of the ground crew, eliminating the need for battery replacement

At first glance, this is appealing—it removes the failure mode and feels innovative. However, it introduces complexity:

  • New hardware development
  • Reliability risk
  • Certification and durability challenges
  • Higher cost and longer time to deploy

Define the Minimum Viable Solution

You are aiming for a Minimum Viable Product (MVP: Minimum Viable Product) that:

  • Directly addresses a specific, validated problem
  • Can be explained in a few sentences
  • Can be deployed quickly and affordably
  • Has a credible path to scaled production

If the solution requires a long explanation, it is not ready. A useful constraint:

  • Could this be built and deployed for ~$1M (order of magnitude)?

If not, you are likely solving too broad a problem or overbuilding the solution.

Example: Simplification

What is the simplest solution we could build and deploy for ~$1M that still delivers meaningful value?

A simpler approach:

  • A rechargeable baton paired with a ruggedized charging base
  • Charging stations mounted at gates or on tugs
  • Minimal change to existing operations

 

Reality Check — Is This a Good Opportunity?

Before proceeding, pressure-test the opportunity. This is where you kill weak ideas. A practical lens is Porter’s Five Forces:

Barriers to Entry
  • Are there structural barriers (regulation, certification, incumbency)?
  • Do incumbents have entrenched relationships or advantages?
Supplier Power
  • Are you dependent on a critical supplier?
  • Can suppliers capture disproportionate value?
Buyer Power
  • Are there few buyers with strong negotiating leverage?
  • Will pricing be compressed?
Competitive Landscape
  • Are others already solving this problem?
  • Are substitutes improving fast enough to make your solution irrelevant?
Internal Capability
  • Do you have the skills, access, and credibility to execute?
  • What is missing, and how hard is it to close the gap?

Business Model — How Do You Actually Make Money?

With a defined solution, you must define how value is captured, not just created. Key options include:

  • Direct product sales (one-time revenue)
  • Subscription (software, data, services)
  • Leasing / usage-based models
  • Services and support contracts
  • Licensing

In most cases:

  • Recurring revenue models are structurally more attractive
  • They provide predictability, margin expansion, and customer retention

However, the model must align with market expectations.

Ground the Model in Reality

Use your customer discovery work:

  • How are similar products bought today?
  • What are customers accustomed to (CapEx vs OpEx)?
  • Who owns the budget?
  • How is value measured and justified?

Example: Reality Check 

Before proceeding, pressure-test the opportunity against basic market forces.

Barriers to Entry
The incumbent baton manufacturer has existing relationships with airlines and understands regulatory requirements (e.g., FAA constraints). Competing directly on hardware would require overcoming both certification familiarity and entrenched vendor relationships.

Supplier Power
Low. The underlying components (batteries, housings, LEDs) are largely commoditized, limiting supplier leverage.

Buyer Power
Moderate. While there are multiple airline customers, each is relatively sophisticated and cost-conscious. Pricing pressure is likely, particularly for a hardware-only solution.

Internal Capability
The problem is technically solvable, but domain knowledge gaps exist (current specifications, certification requirements, operational constraints). These would need to be closed early.

Competitive / Substitute Solutions
Existing batons are improving (longer battery life, rechargeable designs), reducing the urgency of a purely product-based improvement.

Evaluate Business Model Options

For each opportunity, answer:

  • What is the default model in this market?
  • What is a potentially disruptive model?
  • Which model best aligns with customer incentives and buying behavior?
  • What are the implications for scaling manufacturing, delivery, or service?

Sometimes the innovation is not the product—it is the business model.

Output of This Phase

You should now have:

  • A clear, simple solution definition
  • A credible MVP scope
  • An initial business model hypothesis
  • A screened opportunity (with obvious risks identified)

If any of these are unclear, the opportunity is not ready to advance.

Guiding Principle

  • Simplify the solution until it is undeniable
  • Align the model with how the customer actually buys
  • Kill weak opportunities early

Transition

With a defined solution and initial business model, the next step is to refine the value proposition and validate that customers will engage—and pay—under real conditions.