#43 Operating System Thinking in Business Model Selection

When you think of an operating system (OS), it’s the core foundation that drives a computer or smartphone, connecting software and hardware while creating an ecosystem where all components work seamlessly. What if we applied this same framework—Operating System Thinking—to businesses? Imagine focusing not just on products and services but on creating foundational systems that power entire value chains.

For entrepreneurs, startups, and investors, adopting Operating System Thinking can reshape how you approach business model selection and create value that grows exponentially. At Cornerstone Ventures, this strategy forms the backbone of our investment thesis. It’s why we prioritize companies that act as enablers of core workflows in their industry, integrating stakeholders and driving efficiency.

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Let’s explore how applying an OS mindset to business model selection can unlock massive opportunities. We’ll also look at examples from our portfolio and how we’re doubling down on this approach with Fund-II.

What is Operating System Thinking?

Operating System Thinking extends beyond traditional business strategies by building systems that organizations within a value chain rely on for their core operations. Businesses following this philosophy go beyond individual products; instead, they develop end-to-end solutions that weave connectivity, scalability, and adaptability into the DNA of an entire ecosystem.

This approach often transforms these businesses into indispensable players, gaining “stickiness” (high retention) and unparalleled influence over stakeholders. Much like how operating systems like Windows or iOS are essential to the tech industry, businesses with OS Thinking function as the foundational structure many others rely upon.

For example, in Cornerstone Ventures’ portfolio:

• Blubirch creates efficiency in supply chains by enabling stakeholders to manage surplus inventory seamlessly

• Mystifly serves as the operating system for global aviation ticketing, connecting airlines, travel agents, including non-travel sellers, and travelers

• Credilio integrates financial workflows, empowering financial advisors to seamlessly connect with loan providers and other stakeholders

• ManageArtworks powers the artwork and design workflow for companies, simplifying compliance issues in packaging design across industries

These companies don't merely serve their clients—they establish systems that other businesses need to thrive, placing themselves at the heart of the value chain's workflows.

Why Entrepreneurs Should Think OS

For entrepreneurs, adopting OS Thinking can mean positioning your startup as a pillar in your industry. Instead of focusing only on selling a single product or service, you shift your lens to understand and solve the critical operational pain points of a value chain.

Here’s why that pays off:

1. Long-Term Value Creation

Companies that function as an operating system often become indispensable. By embedding themselves into the workflows of multiple stakeholders, they generate sustainable, recurring revenue streams

2. Network Effects

When your platform gets adopted by one stakeholder, it attracts others in the value chain. This creates a network effect where your influence and value grow exponentially

3. Resilience against Competition

Businesses relying on OS Thinking integrate deeply into their customers’ operations, making it harder for competitors to disrupt these relationships

4. Control & Influence

Such businesses often gain unparalleled control over information and value exchange across stakeholders, leading to greater bargaining power and operational influence

Elements of Successful Operating System Business Models

What separates businesses that succeed with an OS approach? Here are the critical elements to look for when choosing or developing an OS-inspired model:

1. Centralization of Core Workflows
2. A successful OS business model brings efficiency to the most critical pain points of a value chain. It centralizes operations that are traditionally scattered, inefficient, or siloed.
3. Example in Action
4. Credilio centralizes the fragmented process of financial advisors accessing financial products for their clients. With its system, advisors no longer need to juggle multiple platforms—they get a unified interface that streamlines the process entirely.
5. Seamless Integration
6. Operating systems rely on their ability to integrate with a wide variety of users, tools, and partners. Businesses that take an OS approach must ensure seamless compatibility and foster collaboration across stakeholders.
7. Example in Action
8. Mystifly integrates effortlessly within the global airline ticketing ecosystem by connecting airlines, travel businesses, with multisource architecture integrations. This integration improves efficiency and reduces silos.
9. Scalability Across the Value Chain
10. To act as an OS, a business model must scale effortlessly with the value chain it supports. Whether that chain grows vertically (more operations per stakeholder) or horizontally (more stakeholders), scalability is a non-negotiable.
11. Example in Action
12. Blubirch scales its inventory management system across various industries, offering tools and workflows adaptable to different supply chain needs.
13. Ongoing Data Insights
14. The best OS businesses are not just tools but also data engines. They collect, process, and analyze vast amounts of data, providing actionable insights that benefit all stakeholders.
15. Example in Action
16. ManageArtworks integrates compliance, packaging, and design workflows including multilingual support and flagging off regulatory compliance across geographies. It prevents costly mistakes for businesses (like the one Bira91 had to go through a few days ago)

Cornerstone Ventures’ Fund-II Vision

At Cornerstone Ventures, Operating System Thinking is more than just a strategy—it shapes how we identify game-changing startups. Fund-I focused on companies like Blubirch, Mystifly, and Credilio, and their success validates this approach.

With Fund-II, we’re enhancing this thesis even further. Our goal is to invest in innovations that don’t just participate in value chains—they power them. We believe the greatest value accrues to companies that place themselves at the center of essential workflows, leveraging that position to gain influence and scale.

Future investments will continue to prioritize industries where this approach has the potential for transformational change. Our belief is simple yet powerful—solutions that operate as the underlying system in their domain will drive the next wave of business growth.

‍Building for the Future‍

Enterprise success often comes down to two things—addressing critical problems and embedding yourself so deeply into your customers' operations that you're indispensable. By applying Operating System Thinking to your business model strategy, you can achieve both.

For entrepreneurs, this mindset demands a shift from thinking in terms of standalone products to envisioning systemic solutions. For startups, it provides the opportunity to scale exponentially while becoming essential to stakeholders across a value chain. For investors, it signals the chance to back businesses built to dominate markets by operating as the foundation others rely upon.

At Cornerstone Ventures, we’re excited to be part of this evolution. Whether you’re a startup with world-changing ambitions or an investor looking to make an impact, we invite you to join us in shaping the future of business.

Take the Next Step

If you’re building a business poised to become the operating system for your industry, we’d love to hear from you, contact us at contact@csvpfund.com

~ Nanika

Learn more about: CSVP Fund | CGES Index | Enterprise SaaS

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