Some work is very clearly product work. It’s work on things where the success and failure is dependent on the users of the thing. Your users pay you. Their satisfaction matters above all else. Optimizing for the satisfaction of end users is a distinct activity. Hypotheses have to be assessed and then tested – because it’s very likely that you’re going to be wrong. There’s technology that has to be set up such that it’s reliable and robust for the intermediate to long run. It’s designed to be effective and persistent, with all of the instrumentation that goes along with that. That might include manual A/B testing, user-focused analytics, and extra special attention on the optimization objective. Clear product work is[…]
Tag: business
Consider the chart below: There are two series – the total number of cumulative customers (top curve) and the number of new customers added each month (bottom curve). The top curve is shaped like an ‘s’ and the bottom one is shaped like a bell. Each month that goes by, the rate of new customer acquisitions increases up to a point, and then declines. You can see the impact that the bottom curve has on the top, because adding up all the incremental customers yields a cumulative penetration curve. Pop-literature (Moore, Crossing The Chasm) focused on the bell shape of the new customers added curve. Strictly speaking, it’s not a distribution, but the shape causes a degree of comfort with[…]
In this post: Data Driven Cultures in startups should discover product-solution-market fit more reliably than Ego Driven Cultures Data Driven Cultures Carl Anderson, 2015 (Data Scientist at Warby Parker) defines a data driven culture as: Is continuously testing; Has a continuous improvement mindset; Is involved in predictive modeling and model improvement; Chooses among actions using a suite of weighted variables; Has a culture where decision makers take notice of key findings, trust them, and act upon them; Uses data to help inform and influence strategy. Startups A startup is defined as an experiment looking for a problem-solution-market fit. The goal of a startup is to become a business. To do that, it must discover a market, a subset of people[…]
This WSJ piece “Has the world lost faith in Capitalism” had this infographic: And prompted Marc Andreessen @pmarca to remark on Twitter: “The inevitable result of 15 years of slow economic growth.” His tweet prompted me to think about the relationship between economic growth and the gini coefficient (a measure of income inequality). And there’s a lot to it. I don’t think it’s a straight line causal model between economic growth and inequality. (And I’m not suggesting that Marc thinks it is, it is, after all, Twitter). The core representation of a causal model is depicted below: In very short terms, when we decided in 80’s that we were going to go for a service based economy, the linkage between wage growth and productivity[…]
Let’s start with a story. Daan did a traditional fast follow. He calls it Netherflix. His story was: “It’s like Netflix…for The Netherlands!”. At first, he buys rights on the cheap, pays for digital subtitling, and has a successful kickoff. He gets through to 10% household penetration, or roughly 700,000 subscribers, with an annualized gross revenue of about 60 million Euros. The strength of the Euro lets him raid the Anglosphere and he can stock 10,000 hours of content reliably [1]. He gets through the struggle of getting his stack to deliver content and minimize churn. He’s able to host and deliver 10,000 hours reliably, in spite of supporting video players across 11 different front end platforms, and the costs associated with hosting,[…]
A score serves as an ultimate abstraction or summary. That’s especially true in sport. “Who won?” “The Blue Jays. 11 to 5.” The Blue Jays won because they moved men more often across one specific plate more often than the other team. This is all very American. A brief period of action. Collect statistics about that brief period. ???. Profit. And it’s easy. Baseball is nice for the 1 to 1 correspondence of points to a single event. American football and basketball are spicier. Cricket, with all due respect to my antipodean friends, is ridiculous. There’s so much more to the performance of The Blue Jays or the Australian National Cricket Team. But the score is the ultimate summary. There’s[…]
Reddit had a bruising week. If you’re out of the loop, you can read about it here. It highlights the untapped opportunities in how our collective experiences are managed and lists of recommended reading/viewing are assembled. Large areas of opportunity include regression shaving, state-management, and dog-whistle cancelling headphones. Regression Shaving In general, the bigger the audience, the smaller the media. In Regression to the Meme, I argued that a lot of redditors want high jolts per minute with easy to consume content. Why read a three paragraph joke when you can get the same amount of dopamine almost immediately with a six word image macro? Larger audiences congregate around easy-to-consume content. Go wide. Go LCD. Accept that younger people have[…]
Somebody, get this, created a fitbit…but for dogs. This is a real design pattern. Take any service that is starting to gain traction and just add “for dogs!” at the end of it. Tinder…for dogs. Airbnb…for dogs. It’s a laugh line. Facebook…for dogs. Those are all real things. Dogs do love to chase tail lights. That’s just taking the taillight/fast-follow strategy a little bit too far. Entrepreneurs are trying to reinvent things by making them smarter. This is well beyond the you know, “the data!”, style pitches you may have been subjected to. I’m really optimistic, and excited, for the 2.5% of companies that will thrive, not by slapping a dashboard on an product or attacking a niche market, but by[…]
Ask some what’s the key factor for success and they’ll say team. Ask others what’s the key factor for success and they’ll say code. In many circumstances, many problems can be solved by shipping code. Revenue down? Ship! Morale down? Ship. Customer sat down? Ship. Ship. An orientation to ship and Get Shhhhhhhet Done (TM) is valued in many cultures. An orientation towards team is valued in many others. It’s not pretty when the two cultures clash. To those that want to ship, meetings with others, talk, policy, and process is viewed as communication overhead that adds little value at best, and is catastrophic at worst. They have a deadline to hit. Stop talking about your feelings and your preferred[…]