You won’t believe what I learned from the a16z podcast.
Everything is open for disruption:
Women in India sell their hair to buyers from China, who treat and package it, then sell it to primarily Korean distributors who sell to Korean-owned beauty supply shops in the U.S., who then sell it to primarily African American women.
- Enter the startup Mayvenn (Yiddish word meaning “trusted expert”) lead by Diishan Imira.
What industry has adopted mobile tools?
- Construction workers!
Technology vs. Globalization:
- 0 to 1 = Technology
- N+1 = Globalization
- noun - The art and science of reducing competition in your industry
On first mover:
- First mover is an advantage but being the last mover means you own the industry.
- Facebook (Social), Google (Search), Microsoft (PC).
- Read this book Hooked – Building habit forming applications
- What is a habit forming application? (Kodak, blowing out last b-day candles)
- T – trigger, A – action, R – reward, I - investment
Full Stack Startups
- Old companies can’t compete with new companies because they are scared to sacrifice current revenue for future potential revenue.
- New companies have nothing to sacrifice!
- Facebook is working to kill Facebook.
- If they don’t do it; someone else will.
- Successful startups are built on a secret. If your secret becomes valuable, then your startup will be successful.
- That does not mean that you need to keep your ideas a secret.
More about secrets:
- What valuable truth do you believe that other people disagree with you on?
- This is a great question for startup founders.
Let’s go viral!
- Virility can and needs to be planned
- Virility is created by creating actions that a user wants to take that pulls another user into the system.
Measure how viral your application is:
- K-Factor can be used to describe the growth rate.
- k=abc*d with the following definitions:
- a: the percentage of users who publish at least one share event per visit.
- b: the average share events per user per visit.
- c: the number of Users referred from social networks for each share event.
- d: the percentage of c that become authenticated users (i.e. in a state where they too can publish).
About the enterprise:
- Oracle, Microsoft, SAP and IBM control 82% of the market cap of software businesses
- Representing $800B in market cap.
- SaaS represents less than 10% of the legacy players’ revenue.
- $720B opportunity
- Facebook sends more traffic to the wall-street journal than the rest of the internet combined!
Facebook app advertising:
- There is over 1B dollars spend on app install advertising on Facebook each year.
- 80% of Facebook users use it on mobile
- Previous: how quickly you could install and keep up SAP
- Future: how you manage data in the gaps (connecting SaaS, data mining)
Google is pulling all apps into the cloud:
- Google play services are all the google core OS features that can be updated without updating the OS.
- Apple controls the hardware, they don’t care about your cloud experience, they focus on the seam between hardware and software
Your own facebook:
- Applications are engineered to be tailored to you in real-time.
Apple loses control:
- iCloud runs on Azure
- This is odd because unlike the entire hardware chain - including designing and manufacturing processors - the Apple software strategy gives “control” to 3rd parties.
On the maturity of mobile:
- Early in the area each PC looked and function the same.
- Everything was PC compatible.
- Then there was divergent.
- We are in the early area of mobile. now every mobile platform has copy-paste and other features.
- We will soon see more unique features coming to each mobile platform. (cyanogen)
- We need more then 2 companies building phones for this to happen.
- There are 500M iOS users
- There are 1B android users.
- 10B paid out to iOS developers
- 5B paid to android developers.
- iOS has half the users but is worth twice as much (to developers)
You are your phone:
- Why are iOS users so much more valuable then Android users? Simple.
- People that buy $600 devices have different purchasing habits then people that buy $200 devices.
Linux philosophy for software:
- Do one thing; it’s the next consumerization of apps.
- The next wave of app development is going to be “unbundling” of applications.
- Facebook messenger is an example
- Opportunity for new developers and applications
Competition comes in many forms:
- Who is twitters main competitors?
- The games on your phone
- Most competition comes from “things” that can solve the same problem, not same category
- If you like burgers you will try both, all, every burger place.
- This is why you see McDonalds next to BurgerKing
- Skype completes with business class travel.
- Indirect: McDonalds vs. Wholefoods,
- Direct, Indirect and secondary competitors
Change is hard:
- Most people overvalue where they are today (x3) and undervalue what you have to offer (x3)
4 forces of switching to products (if the top 2 are more powerful than the bottom 2; you win)
- What is wrong with current world? (what is wrong with outlook)
- What is attracting me to the new place
- What is keeping me from where I am today (I’ve got all my saved searches, my contacts)
- What is the fear of change (why is this tough)?
How to get someone to consider change:
- Tell them their current problems are shit
- Tell them how outdated their current products are,
- Tell them it’s easy to switch and switch back.
- Ex: I’m a mac, I’m a PC.
Google+ is a huge success:
- It’s not a social network; it’s a tool to index something that google was not indexing: People