Many people think pivot means to change, but it is a special kind of change designed to test a new fundamental hypothesis about the product, business model and engine of the growth.
Various types of pivots:
In this pivot what we used previously a single feature in product becomes the whole product.
Unlike previous pivot single feature become whole product, here whole product become a single feature of a much larger product.
Customer segment pivot
In this pivots company realizes that the product solves a real problem for real customers but they are not the type of customers it is originally planned to serve.
Customer need pivot
In this we know what the product we build is serving the real customers, but because of the need of other product what customer want we jump into another product according to customer needs.
In this we make a single platform where we try to sell our product and after the success of this platform we give permission to third party to sell their product on this platform to make profit.
Business architecture pivot
This pivot borrows a concept from Geoffrey Morre, who observed that company use one of two business architecture
High margin, low volume (complex systems model) or low margin, high volume (volume operations model). The former one related to B2B (business to business) and the later with consumer products. According to needs company changes these architectures. For example, Google search appliance change from high margin, low volume by going mass market.
Value capture pivot
The methods to capture value is known as monetization or revenue model. In this we add separate feature of product we add or delete according to customer feedback. It improves our growth hypothesis.
Engine of growth pivot
There are three engines of growth that power startups the viral, sticky and paid growth models. According to needs company have to use these pivot to get customer more attentions.
There are various distributions channel company used to sell the products, but when our previously channels are not providing the result what we want then we have to make decision to change the channels to check our leap of faith assumptions.
As we know after decade new technology will come, so we have not to stick on one technology and think about success, but we have to always aware about which technology is coming in new era, by this according to our needs we can change features of product to make sustainable products.