Eight strategic decisions

CPO IMPACT PROJECT – Assignment 3. – Make strategic decisions.
See the full eight decision flow chart.

What is the strategic intent behind your platform?

The primary strategic intent of our platform is to generate revenue by entering new markets and launching new products. As we introduce these new revenue streams, flexibility, scalability, and rapid innovation are essential to ensure we can quickly adapt to market demands. To achieve this, the platform is designed as a modular, adaptable system that supports diverse product experimentation, fast iterations, and seamless market entry. This approach allows us to cater to evolving customer needs while maintaining the agility needed to innovate continuously.

While cost-saving strategies are also important, these will come into play later in the product lifecycle. Initially, our focus is on capturing revenue by quickly deploying products tailored to new market segments. Over time, however, cost-saving goals will become relevant as we scale. At that point, our strategy will shift toward efficiency, standardization, and optimization. By streamlining operations, reducing inefficiencies, and lowering long-term maintenance costs through automation and system integration, the platform will serve dual purposes: driving revenue in the short term and achieving cost savings in the long term.

Additionally, each product decision we make must align with the broader platform strategy, even if it slightly slows down time to market for the initial version. The platform approach allows us to balance between customization for various customer segments (individuals and companies) and shared efficiencies. By focusing on a modular system, we ensure that while different market segments may have varying needs, we can offer tailored experiences without compromising on the core benefits of scalability and shared infrastructure.

This strategic intent to build a flexible, revenue-generating platform ensures that we are not only ready for the demands of new markets but also equipped to sustain long-term growth through innovation and efficiency.

Which market segments is your platform targeting?

Luna’s Market Segments

As detailed in the Problem Framing of the Impact project, the primary customers being focused on include vulnerable groups such as:

  • Elderly Users
    • The elderly are often disproportionately affected by scams due to cognitive decline and unfamiliarity with digital tools. In Europe, particularly in the Netherlands, 34% of scam victims were aged 65 and above in 2022, according to cybersecurity reports.
  • Immigrants
    • Immigrants, particularly those with limited language proficiency and lower familiarity with local technology platforms, are also prime targets for scammers. A study revealed that 25% of phishing attack victims were non-native speakers or immigrants, as they may struggle with identifying fraudulent communications in a language that is not their first.
  • Non-tech-savvy individuals
    • A significant portion of scam victims includes those who are not technologically proficient. 45% of all scam victims in the Netherlands in 2023 were categorized as non-tech-savvy individuals. These individuals are vulnerable because they are less equipped to identify suspicious messages, fraudulent links, or calls, and often lack knowledge of security practices like multi-factor authentication or secure browsing.
  • Young people
    • While the young generation is often seen as technologically savvy, they may not always be aware of security risks. Research shows that 42% of millennials and Gen Z fall victim to phishing attacks because they are overly confident in their ability to detect scams, making them a growing target.
  • Small businesses / Professionals
    • Additionally for covering whole market we include the Business segment as further research shows that in 2023, businesses accounted for nearly 76% of phishing-related financial losses, with scammers frequently posing as trusted partners, clients, or vendors to infiltrate company systems. Reports:
      • FBI IC3 2022 Internet Crime Report – Abnormal Security
      • RH-ISAC Summary of 2022 IC3 Report​

Segments:

Segment of focus are going to be Elderly Users (segment 4), Young&Teenagers (segment 1) due to commonality of the needs, similarity of the behavior and easiness of the access. The platform will be developed and tested mainly for these segments but will be considering also other during the development.

For more information on end user examples from within our market segments see: End user risk assessment.

Will your product platform benefit from common parts and code? Will you own one or multiple variants? Will the commonality be “hidden” from the customer?

Luna’s platform benefits significantly from leveraging common parts and code through its modular architecture. Core systems such as the AI-powered scam detection engine, GDPR-compliant data storage, and essential microservices (e.g., number lookup and IP lookup) streamline development and maintenance across all product variants. This modular approach ensures cost efficiency, scalability, and operational consistency while supporting innovation and customization.

The strategy of Luna involves managing multiple product variants designed to meet the diverse needs of distinct market segments, such as Luna Home for families, Luna Travel for travelers, and Luna Business for organizations. While these variants address unique user requirements, they share a unified backend infrastructure. 

The below matrix highlights the shared software modules across the Luna product suite, including service router load balancing, user authentication, number lookup microservice, IP lookup microservice, and a white/blacklist microservice with a centralized database. These shared components ensure that updates or improvements applied to the core modules benefit all users, regardless of the product variant, enhancing reliability and efficiency.
Y-axis: Luna Product lines
X-axis: Software moduled within the Luna Product suite.

More information on Luna product lines see: https://www.impactprojectluna.com/luna-products/.

For internal stakeholders, eg: administrators and service teams (primary operators), this commonality simplifies training requirements, reduces operational costs, and ensures consistent functionality across all variants. This approach facilitates faster onboarding and improved cross-team efficiency, as administrators manage a unified system. For end users/ external stakeholders (secondary operators), the commonality is hidden but ensures seamless performance improvements, quicker updates, and a consistent user experience across the entire product line.

Adopting multiple variants with hidden commonalities allows Luna to achieve a strategic balance between customization and operational efficiency. Customization ensures that each product variant can cater to specific market demands, such as scam detection tailored for travelers or advanced analytics for business users. Meanwhile, the shared core infrastructure reduces redundancy, minimizes development costs, and accelerates time-to-market for new features and updates. For example, region-specific scam patterns for Luna Travel can be added as a niche module without disrupting the overall architecture.

This modular and scalable approach positions Luna for sustainable growth by enabling rapid adaptation to new markets and regulatory environments. Commonality across shared systems ensures consistent alignment with compliance requirements such as GDPR, while scalability supports simultaneous expansion across multiple segments. In summary, by leveraging shared components and code strategically, Luna maximizes operational efficiency, user satisfaction, and reliability while delivering robust, adaptable solutions for diverse market sectors.

What customization might be expected by the customer?

Luna’s customers expect solutions that address their unique needs while maintaining simplicity, scalability, and privacy. Differentiation stems from Luna’s modular design, proactive scam detection, and GDPR-compliant infrastructure, which cater to diverse segments such as elderly users, small businesses, tech-savvy individuals, travelers, and immigrants.

Customization Expectations by Segment

  1. Elderly users, Young and teenagers (Product line: Luna Voice)
    • Customization Needs:
      1. Simplified interfaces, voice-activated controls, and large, high-contrast text for usability.
      2. Automated scam detection and blocking with minimal user interaction.
      3. Notifications for family members or caregivers to provide reassurance and oversight.
    • Differentiation:
      1. Luna Voice offers an intuitive, stress-free solution, fostering trust among elderly users and their families.
  1. Small businesses / Professionals (Product Line: Luna Business)
    • Customization Needs:
      1. Centralized scam management for employees’ devices.
      2. Advanced reporting and analytics tools aligned with GDPR compliance.
      3. Customizable role-based access to scam detection and prevention systems.
    • Differentiation:
      1. Luna Business positions itself as a cost-effective, regulatory-compliant security tool for SMEs, supporting productivity and compliance audits.
  1. Tech-Savvy Individuals (Product Line: Luna Business)
    • Customization Needs:
      1. High configurability to adjust detection settings, sensitivity, and notification preferences.
      2. Integration with third-party cybersecurity tools like VPNs and password managers.
      3. Dashboards for advanced threat visualization and user-defined control.
    • Differentiation:
      1. Luna Business appeals to security enthusiasts, providing unparalleled control and customization.
  2. Immigrants and Non-Native Speakers (Product Line: Luna Home)
    • Customization Needs:
      1. Multilingual interfaces and scam alerts in users’ preferred languages.
      2. Basic scam detection at an affordable price.
    • Differentiation:
      1. Luna Home prioritizes inclusivity, serving under served demographics with simple, accessible features.

Differentiation Through Features

  1. Proactive Scam Prevention:
    • AI-powered detection that evolves with scam trends.
    • Real-time, multi-channel notifications for rapid response.
  1. Privacy and GDPR Compliance:
    • Built-in compliance across all variants ensures user data protection and transparency.
    • Customizable privacy controls allow users to decide how their data is shared.
  1. Flexible Modularity:
    • Shared infrastructure for consistency and cost efficiency.
    • Segment-specific customizations like caregiver alerts for elderly users or detailed reporting for businesses.
  1. Educational Features:
    • Built-in scam recognition tutorials and user guidance tailored to each segment’s needs.
    • Interactive dashboards and alerts to empower users.

Consumer Insights from the Netherlands Scam Survey 2024 and Luna’s Alignment

The Netherlands Scam Survey 2024 reveals crucial insights into consumer expectations and behaviors, which directly inform Luna’s strategy:

High Awareness of Scams 

Finding: 73% of Dutch consumers report having experienced scam-related calls or messages.
How Luna Aligns: Luna addresses this heightened awareness by offering proactive AI-powered scam detection and user-centric notifications to mitigate risks effectively.

Demand for Proactive Protection

Finding: 38% of consumers prioritize fraud detection systems as a key feature for personal security.
How Luna Aligns: Luna meets this demand with real-time scam alerts delivered across multiple channels, providing consumers with immediate protection and fostering trust in its solutions.

Preference for Trustworthy Technology 

Finding: 44% of respondents prefer app-based alerts over other methods, emphasizing the need for trusted, user-friendly solutions.
How Luna Aligns: Luna’s multi-channel approach, including app-based alerts, enhances trust by integrating seamlessly with institutional scam prevention efforts.”

Challenges and Mitigation

  1. Risk of Over-Customization:
    • Challenge: Excessive customization may increase development costs and operational complexity, potentially delaying product launches in new markets.
    • Mitigation: Focus on impactful front-end customizations tailored to user needs while maintaining standardized back-end processes. This approach balances user satisfaction with operational efficiency.
  2. Balancing Commonality and Differentiation:
    • Challenge: Overemphasizing shared components might dilute the product’s appeal for niche users, reducing its effectiveness in addressing market-specific needs.
    • Mitigation: Introduce premium add-ons and segment-specific modules to cater to diverse user requirements while leveraging common infrastructure to maintain scalability and consistency.

Conclusion

Luna’s modular approach enables tailored solutions for diverse user groups, ensuring high usability, proactive protection, and regulatory compliance.

What will the cost structure look like?

Ensuring long-term success

To align our strategy perfectly with Luna’s modular platform we strive for flexibility and scalability that supports rapid market adaptation and long-term efficiency. To support this strategy the platform’s design is focused on 2 new-revenue focused goals, as answered in decision 1:

  • Rapid market entry: a shared platform and cloud infrastructure to deploy modular solutions tailored to high-priority segments (elderly users, young people) for immediate revenue capture.
  • Customer-centric customization: focused on specific needs of elderly users and young people we strive for commonalities to be able to offer simplicity and proactive scam protection.

The balance of rapid innovation with sustainable growth should lead to the following cost structure and efficiencies:

Development dominates initial costs, focus on building a solid foundation

Non-recurring costs and savings:
The non-recurring development costs are heavy, because of our investment in creating a full suite of tools and features for multiple segments. Because of our platform strategy, we centralize development efforts. It makes organizing development much more efficient. All engineers develop in the same code, within the same platform makes it easy to cross function between all core features in the platform. And all basic functions or modules can be developed once and are applicable on multiple applications and segments.

The cost savings mainly result from economies of scale, as the platform strategy allows centralized development. Developing common modules and features (like AI tools, cloud storage, GDPR-compliance) once and reusing them for multiple segments reduces duplication of effort. This centralization lowers marginal development costs for each additional product or segment.

However, quick learning cycles also play a role. Engineers working within this platform benefit from shared knowledge, faster iteration resulting in higher productivity and reducing costs over time. Both economies of scale and quick learning cycles contribute to overall cost savings. Because of the common back-end infrastructure across all product variants and cloud-based set up, we can effortlessly customize UI elements to meet the specific needs of different user segments (e.g., elderly users, businesses) while ensuring rapid prototyping and testing.

Recurring costs and savings:
Recurring costs are our cloud operations (hosting and server infrastructure), data analytics and continuous AI learning to protect for scamming and cybersecurity, customer support, and subscription management. Our platform strategy gives Luna the opportunity to optimize cloud storage, network and customer service infrastructure. In the platform we will streamline the infrastructure. It results in cost savings because of stronger purchasing power (f.e. server capacity). So shared infrastructure leads to recurring cost saving. And all market segments benefit from it. We expect that high-end customer segments benefits most because they require most integrated toolsets.

How many and what product variants do you expect under this platform?

The scope of LUNA platform is in line with research and segmentation done previously. For the market penetration we are selecting segment 4 and 1 mainly due to accessibility of the market, its customers and also due to easiness of future multiplication of LUNAs variants. Graphs show product differentiation by colors and naming. Colors represent the different interfaces where blue ones are either self-functioning or communicating via voice and the Yellow can be used through Voice & mobile interface. 

Names represent individual variants of the Platform matching the segments. Our core product is Luna Home which can be then reduced to Luna Voice and part of the platform can be used for Luna eSIM. More about individual products shall be seen on: https://www.impactprojectluna.com/luna-products/

Further research for pricing is needed but shows the possibility for this acceptable proposal:

  1. Subscription Complete Model:
    • Luna Home – 10 EUR / month:
      • Basic scam detection for individuals.
      • Expansion: Regional scam intelligence updates.
      • Expansion: Premium Caregiver Features for Emergency connect.
    • Luna Travel – 10 EUR / month:
      • Advanced analytics, multi-device support, and customizable settings.
      • Expansion: Regional scam intelligence updates.
      • Expansion: Integration with third-party tools (e.g., VPNs, password managers).
    • Luna Business – 25 EUR / month per user:
      • Centralized scam management for SMEs.
      • Integration with third-party tools (e.g., VPNs, password managers).
      • Expansion: GDPR-compliant reporting tools and premium support.
      • Expansion: Role-based access and employee training resources.
  1. Expansion / Add-On Modules:
    • Regional scam intelligence updates – 5 EUR / month
    • Premium Caregiver Features for Emergency connect – 10 EUR / month
    • Integration with third-party tools (e.g., VPNs, password managers) – 15 EUR / Month
  1. Enterprise Add-on Modules:
    • Expansion: GDPR-compliant reporting tools and premium support.
      • Pricing:
        • Target Audience: Large organizations or institutions.
        • Custom pricing based on user volume and additional requirements.
    • Expansion: Role-based access and employee training resources.
      • Pricing:
        • Target Audience: Large organizations or institutions.
        • Custom pricing based on user volume and additional requirements.
  1. Subscription Voice Models
    • Luna Voice – 13 EUR/Month
      • Basic scam detection for individuals.
      • Regional scam intelligence updates.
      • Premium Caregiver Features for Emergency connect.
    • Luna eSIM (will be implemented at later stage) – activation 3 EUR & 0,1 EUR daily
      • Basic scam detection for individuals.
      • Premium Caregiver Features for Emergency connect.

Estimated Volumes are currently evaluated on base of:
https://www.worldometers.info/world-population/netherlands-population
According to Worldometers there are maximum of 18 millions potential users of LUNA variants.
https://www.statista.com/statistics/276710/age-distribution-in-the-netherlands
Addressable market for Luna Voice are people 8-14 and 65+ which is approximately 36% of Netherlands population. https://www.cbs.nl/en-gb/visualisations/dashboard-population/households/households-today
Luna Home could be addressed to almost 6.1 million households according to the statistics.

Year 1 Revenue Projection

ProductAddressable marketPenetrationPrice (on avg)Turnover
Luna Home6.1 mil1%10 EUR610k EUR monthly
Luna Voice6,48 mil1%13 EUR842k EUR monthly

Year 2 Revenue Projection (Assumption: No new variants introduced)

ProductAddressable marketPenetrationPrice (on avg)Turnover
Luna Home6.1 mil8%10 EUR4,88 mil EUR monthly
Luna Voice6,48 mil10%13 EUR8,42 mil EUR monthly

Luna Home could be addressed to almost 6.1 million households according to the statistics.

How many years can you confidently plan ahead, and how many product variants will launch to market within that time frame? When do you expect to start seeing financial benefits from the platform?

Initial Market Penetration Approach

  1. Short-Term (0–12 Months)
    • Launch in the Netherlands with core variants: Luna Voice, Luna Home, and Luna Business.
    • Establish partnerships with local organizations (e.g., banks, senior advocacy groups).
    • Build trust with freemium and introductory plans.
  1. Medium-Term (1–3 Years)
    • Expand to the EU, leveraging GDPR as a common compliance framework.
    • Introduce regional modules (e.g., scam patterns in different EU countries).
    • Launch Luna Business and Luna Travel, targeting tech-savvy users and travelers.
  1. Long-Term (3–5 Years)
    • Scale globally, focusing on North America, Asia, and other high-risk regions.
    • Integrate Luna with broader cybersecurity tools (e.g., VPNs, password managers).
    • Expand enterprise offerings with Luna Insights and Luna eSIM.

Luna´s Product Lifecycle Plan

  1. Introduction Stage
    • Focus on simplicity for elderly users (Luna Voice) to build trust.
    • Launch with basic, scalable features to test market readiness.
  1. Growth Stage
    • Expand customization for tech-savvy users and businesses (Luna Business).
    • Roll out advanced analytics and reporting modules.
  1. Maturity Stage
    • Diversify offerings with global scaling and region-specific customizations (Luna Travel).
    • Retain users through loyalty programs and premium features.
  1. Decline or Renewal Stage
    • Introduce a next-generation AI engine or pivot to new scam prevention trends.

Architectural Stability and Lifecycle for Luna’s AWS Microservices Platform

Using AWS and microservices offers scalability, flexibility, and resilience but requires proactive lifecycle management to maintain stability. Here’s an overview:

Benefits of AWS and Microservices

  1. Scalability: Easily scale services as adoption grows, leveraging AWS’s global infrastructure for low latency and high availability.
  2. Flexibility: Modular architecture allows new features (e.g., Luna Travel) without disrupting existing services.
  3. Resilience: Isolated microservices ensure failures don’t cascade; AWS features (e.g., Multi-AZ, auto-scaling) bolster reliability.

Lifecycle recommendations

  1. Governance: Establish an Architectural Review Board to standardize APIs and manage service sprawl.
  2. Monitoring: Use tools like AWS X-Ray for distributed tracing and observability.
  3. Cost Management: Continuously optimize with AWS Cost Explorer and align workloads with serverless or containerized services.
  4. Future-Proofing: Keep the architecture modular to integrate emerging technologies seamlessly.

By leveraging AWS and microservices thoughtfully, Luna can ensure architectural stability across all stages of growth.

Timeline for Financial Benefits

  1. Short-Term (Year 1)
    • Expectation: Minimal financial benefits in this phase.
    • Reasoning: Initial investments in development, marketing, and partnerships will outweigh revenue from freemium models and early adopters.
    • Focus: Building trust and market validation rather than profitability.
  2. Medium-Term (Year 2–3)
    • Expectation: Financial benefits start to materialize.
    • Key Milestones:
      • Expansion across the EU leveraging GDPR compliance.
      • Premium subscriptions for tech-savvy users and businesses (Luna Business).
      • Revenue from regional modules and customization features.
    • Break-even Point: Expected by the end of Year 3 as recurring subscription revenue stabilizes and offsets early costs.
  3. Long-Term (Year 4–5)
    • Expectation: Substantial financial growth.
    • Key Milestones:
      • Global scaling into high-potential markets (North America, Asia-Pacific).
      • Enterprise adoption of premium offerings like Luna Insights and eSIM.
      • Integration with broader cybersecurity tools for diversified revenue streams.

Key Milestones

  • Late Year 2 (2025): Early adopters begin upgrading to premium plans, generating steady income.
  • Year 3 (2026): Financial break-even, driven by EU-wide adoption and upselling advanced features.
  • Years 4–5 (2027–2028): Significant revenue growth as Luna matures into a global brand and enterprise solution.

For some more product go-to market consideration please see: https://www.impactprojectluna.com/product-timeline-questions/

What parts will be shared?

The sharing strategy of Luna is designed to support rapid expansion by reusing critical components across product variants, such as Luna Voice, Luna Home, Luna Travel, and Luna Business. By leveraging shared infrastructure and modular design, Luna ensures flexibility for customization while maintaining consistency in core functionalities. Shared components reduce the need to recreate foundational systems, allowing Luna to focus on tailoring solutions for specific market needs and accelerating entry into new regions.

Sharing occurs at multiple technical levels.

  • Core Infrastructure Level: Foundational systems like the AI scam detection engine, GDPR-compliant data handling framework, and cloud-based architecture are shared across all products. These components ensure seamless scalability and compliance in new markets.
  • Component Level: Microservices such as service router load balancing, user authentication, and number/IP lookup services are shared across products, supporting operational efficiency and enabling rapid integration of new features.
  • Front-End Customization Level: While back-end systems remain consistent, front-end interfaces are tailored for specific user groups. For example:
    • Luna Voice offers a simplified, voice-controlled interface for elderly users.
    • Luna Business provides advanced dashboards and analytics for professional users.

Segment-specific features, such as caregiver notifications for Luna Voice or regional scam intelligence for Luna Travel, are not shared to allow maximum flexibility for market-specific requirements.

Key shared modules include:

  • Service Router Load Balancing: Ensures efficient traffic management, critical for scalability in new markets.
  • User Authentication Service: Provides seamless access management for all variants, enhancing user experience.
  • Number/IP Lookup Microservices: Supports scam detection and fraud prevention across diverse markets.
  • White/Blacklist Database: Offers a centralized repository for scammer profiles, ensuring consistency and reliability across regions.
  • Core AI Engine: Serves as the backbone for scam detection, with modular add-ons tailored to specific geographies or user segments.

Luna’s sharing strategy aligns with its intent to grow and expand into new markets by ensuring scalability, rapid deployment, and adaptability. Shared infrastructure accelerates the launch of new variants while maintaining consistency in core functionalities. By combining shared components with targeted customizations, Luna can efficiently address diverse market needs, deliver user-centric solutions, and position itself as a leader in scam prevention and protection across global markets.

References

  1. https://sverigesradio.se/artikel/over-50-million-scam-calls-blocked-by-swedish-networks-this-year
  2. https://news.vumc.org/2024/07/23/phishing-vishing-and-smishing-understanding-the-latest-phone-scams-including-ai-generated-voices/
  3. https://www.security.org/digital-safety/scams/smishing/
  4. https://techreport.com/statistics/cybersecurity/smishing-statistics/
  5. https://www.techopedia.com/phishing-statistics
  6. https://www.hiya.com/
  7. https://www.nomorobo.com/
  8. https://assets.website-files.com/61f9a8793a878d7f71c5505d/64ca6ccf1f5e962fae3e55e3_Robokiller%20Mid-Year%20Report%202023.pdf
  9. https://www.robokiller.com/
  10. https://www.nakivo.com/blog/microsoft-office-365-advanced-threat-protection-overview/#:~:text=Office%20365%20Advanced%20Threat%20Protection%20(ATP)%20is%20a%20cloud%2D,disseminated%20via%20Office%20365%20services.
  11. https://www.truecaller.com/
  12. https://support.google.com/phoneapp/answer/9094888#zippy=%2Chow-call-screen-works
  13. https://www.etisalat.ae/en/smb/dncr.html#:~:text=Website%3A%20Click%20here%20to%20add,be%20added%20to%20the%20DNCR.
  14. https://www.comreg.ie/media/2023/06/ComReg-2352a.pdf
  15. Estimated Volumes are currently evaluated on base of:
    https://www.worldometers.info/world-population/netherlands-population
  16. According to Worldometers there is maximum of 18 millions potential users of LUNA variants.
    https://www.statista.com/statistics/276710/age-distribution-in-the-netherlands
  17. Addressable market for Luna Voice are people 8-14 and 65+ which is approximately 36% of Netherlands population.
    https://www.cbs.nl/en-gb/visualisations/dashboard-population/households/households-today