strategy

  • Treat a startup as an optimization problem in which performance is measured by number of users. As anyone who has tried to optimize software knows, the key is measurement. When you try to guess where your program is slow, and what would make it faster, you almost always guess wrong.

    Number of users may not be the perfect test, but it will be very close. It’s what acquirers care about. It’s what revenues depend on. It’s what makes competitors unhappy. It’s what impresses reporters, and potential new users. Certainly it’s a better test than your a priori notions of what problems are important to solve, no matter how technically adept you are.

    — Hackers & Painters: Big Ideas from the Computer Age by Paul Graham

  • Visionaries take a greater interest in technology than in their industry. Visionaries are defining the future. You meet them at technology conferences and other futurist forums where people gather to forecast trends and seek out new market opportunities. They are easy to strike up a conversation with, and they understand and appreciate what high-tech companies and high-tech products are trying to do.

    They want to talk ideas with bright people. They are bored with the mundane details of their own industries. They like to talk and think high tech.

    — Crossing the Chasm, 3rd Edition: Marketing and Selling Disruptive Products to Mainstream Customers by Geoffrey A. Moore

  • Don’t count on breakthroughs. Move ahead early and find the market for the current attributes of the technology. You will find it outside the current mainstream market. You will also find that the attributes that make disruptive technologies unattractive to mainstream markets are the attributes on which the new markets will be built.

    — The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change) by Clayton M. Christensen

  • Because a new service can provide people with an experience they have never had before, it is important to make it real and tangible. If you ask people to imagine a new service, they tend to become analytical and problem-oriented.

    On the other hand, when people are allowed to experience a working prototype—something tangible that contains the key elements of the touchpoints and flow of the service interactions—they may react to the performance rather than the abstract concept.

    — Service Design: From Insight to Implementation by Andy Polaine, Lavrans Løvlie, et al.

  • If a company launches a sequence of growth businesses, if its leaders repeatedly use the litmus tests for shaping ideas or acquiring nascent disruptions, and if they repeatedly use sound theories to make the other key business-building decisions well, we believe that a predictable, repeatable process for identifying, shaping, and launching successful growth can coalesce.

    A company that embeds the ability to do this in a process will own a valuable growth engine.

    — The Innovator’s Solution: Creating and Sustaining Successful Growth by Clayton M. Christensen, et al.

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