A working technology is not yet an applicable innovation
A sensor, robot or data model can perform well in a test setup, while the step towards the farm, greenhouse, barn or supply chain can still be difficult. This is also about costs, returns, customer needs, partners and sustainability value. Economic Business Model Validation helps to ask these questions earlier and in a more structured way. Within NXTGEN Hightech Agrifood, the method is used to assess agrifood innovations more clearly on what is needed for application, adoption and wider use.
Broad knowledge question
The question is not only whether it works, but whether it fits
Many agrifood innovations start from a clear solution to a practical challenge. Yet it often only becomes clear later whether users recognise the value, whether the revenue model makes sense and whether sustainability is sufficiently supported. The broader knowledge question behind this method is how to systematically assess agrifood innovations on economic feasibility, customer value and sustainability aspects. This allows companies to decide earlier whether to continue, adjust, carry out additional customer validation or involve another partner.
Approach
Three perspectives make assumptions testable
The method looks at one innovation from three perspectives. What does the innovation offer the user and why would they pay for it? What does it cost to make, deliver and maintain the solution? And what does the innovation mean for material use, production, distribution, use and end of life?
To do this, the method combines the economic and environmental layers of the Triple Layered Business Model Canvas with the Empathy Map. This brings the value proposition, cost structure, revenue model, partners, customer needs, motivation, behaviour and adoption barriers together in one assessment.
Goal
Choosing the next step earlier
The goal is to provide a reproducible and practice-oriented method that helps companies sharpen their business model. Not by only making a financial calculation, but by looking at market position, customer insight and sustainability in connection with each other. The outcome is an action-oriented advisory report with insights, guidance on what to do and what not to do in the next phase, and a concrete step-by-step plan. This creates a stronger basis for application, investment, collaboration or market introduction.
Result and reflection
A shared view of what needs to become stronger
The method shows which customer group benefits most, which costs and returns carry the most weight and which assumptions need to be validated first. Through interactive validation, a shared view is created of the value an innovation offers and of what is needed to deliver that value in the market or in practice.
Successful outcomes:
The method brings technical, economic, environmental and customer-focused questions together in one assessment.
Results are presented visually and practically, making them useful for strategic decisions, investment preparation and communication.
Companies gain earlier insight into assumptions that may slow down application or wider use.
Lessons learned:
A strong technical concept also needs a clear value proposition and insight into adoption barriers.
Sustainability value becomes stronger when material use, production, distribution, the use phase and end of life are included early on.
Business model validation works best when technology developers, companies and involved partners look at the same questions together.