Categories
Books

Defining Creativity: The Art and Science of Great Ideas

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Key Takeaways

  1. New innovations are unfamiliar combinations of current building blocks
  2. Master the rules so you can break them
  3. Taking ideas from different domains and applying them to your ideas is a great way to have break through insights
  4. Developing a flexible mind is key – aim to find inspiration from any field
  5. Prime yourself and then let the subconscious mind mull and dream
  6. When the world is ready for our idea, it tends to pop up at several places at the same time
  7. Being well-connected across social circles helps in spreading your creativity and having serendipity aid you in your journey
  8. Creativity = curiosity + imagination + action
  9. Gain technical and cultural rules, then add skills
  10. Productive thinking creates new knowledge structures
  11. Finding a problem comes down to identifying the right problem to solve and framing it in the right context. When you put problems in a different context, by questioning whether you are solving the right problem, the number and nature of possible solutions change along with the context
    1. Creativity finds problems by questioning the existing knowledge structure of a conceptual domain
  12. Creativity is a mental tool that solves problems by divergent thinking (finding as many solutions as possible) and convergent thinking (finding the best solution)
  13. The largest portion of the creative process consists of exploring a proverbial map that is still partly undiscovered. Because we often don’t know where we are heading, serendipity is important for finding our destination. In fact, the less detailed the map, the more important Darwinian trial and error becomes.
    1. Creativity is an evolutionary mechanism of trial and error that helps human beings and cultures to constantly adapt to changing environments
  14. Creativity builds rich knowledge structures and executes complex ideas through interaction between individuals
  15. We can expand the capacity of our brain by means of a notebok because it allows us to consciously play with ideas outside our brain. With the internet, we can also expand our knowledge and interact with others. Interaction between individuals catalyzes the creative process. Great ideas, however, are always built with a single-minded vision
  16. I never search, I find. – Pablo Picasso
    1. The paradox of finding an insight is that only when we stop consciously searching for it do we come across it
  17. Preparation to Incubation to Inspiration
  18. Sharing ideas is great but having an active conversation really catalyzes the creative process
  19. Collaborative Creativity, Distributed Cognition

What I got out of it

  1. Creativity is a process that consists of internalizing the rules that define a domain (preparation), of letting the acquired knowledge digest while we wait for an insight to appear (incubation), and of assessing and execution the insight (verification). Having a flexible, open, multidisciplinary minds that seeks out connections aids in creativity and reaching insights
Categories
Books

Where Good Ideas Come From

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Key Takeaways

  1. The quarter power law that power cities is in fact positive where in most organisms it is innovative. So, the bigger the city the more innovative it becomes. The patterns of innovation are fractal and reliable
  2. The most innovative environments cultures cities and companies are those that are open ended, those that don’t build walls and silos but those that allow ample connections to spark
  3. Evolution and innovation is more a process of tinkering with an engineering. It cost to gather already existing building blocks I want done in a productive and unfamiliar Manor it’s called a breakthrough an innovation
  4. Evolution and innovation is more a process of tinkering with an engineering. It cost to gather already existing building blocks I want done in a productive and unfamiliar Manor it’s called a breakthrough an innovation
  5. The adjacent possible – many ideas tend to pop up at around the same time and the findings indicate that this is because the building blocks to make them possible have appeared to allow for those connections and ideas to now become possible. The most innovative environments expose their constituents to the adjacent possible and help them make connections between these building blocks in novel and interesting ways
  6. The trick to having great ideas is not to sit around in isolation and trying to think them up, but rather exposing yourself to as many ideas as possible and putting them together in unique ways
  7. Ideas are simply a network of connections. Life is carbon based because of its versatility and connecting. That plus an environment which fostered collisions allowed life to emerge
  8. From buildings to how you spend time, you want to find a flow, a balance between order and chaos – sense, liquid networks that nurture connections and collision. Two incomplete hunches that collide can form a powerful, complete idea
  9. Slow hunches rather than eureka moments are the rule, not the exception. They can be quite fleeting since they’re not immediate and one way to keep track of them is to write everything down. Don’t impose too much structure as it is the interconnections that really matter
  10. Innovations are most likely when there is some noise chaos and error. A perfectly stable environment does not typically lead to breakthrough innovations
  11. Keep space to wander and make connections, avoid silos and read broadly to make connections between fields

What I got out of it

  1. A really compelling book and I resonated with the idea of a ‘slow hunch’ – keeping questions and ideas marinating in the back of your mind so that as you go about your life, serendipitous connections can more easily be made
Categories
Books

Creativity in Business

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Key Takeaways

  1. A response is judged as creative to the extent that it is a) it is both a novel and appropriate, useful, correct, or valuable response to the task at hand and b) the task is heuristic rather than algorithmic
  2. Art is basically the production of order out of chaos
  3. If at first you don’t succeed, surrender
    1. Drop mental striving
    2. Apply yourself to a task – full presence and devotion to the task at hand puts us in harmony with our creative source. We dedicate ourselves to the work itself, not to a false personality
    3. Maintain a spirit of inquiry
    4. Acknowledge that you don’t know how it’s going to turn out
  4. Ask yourself a clear question about a key issue before going to sleep
  5. Destroy judgement, create curiosity
    1. Less judgment leads to more curiosity and more creativity
    2. Lower judgment by paying attention to your thoughts, attacking the judgment, making the judgment look ridiculous
    3. Curiosity eliminates fear and creates confidence
  6. Pay attention –> penetrating observation –> seeing clearly
    1. Aim for thoughtfulness and mindfulness without thinking
    2. Avoid habits as they are unconscious acts
    3. Fine-tuned listening encourages healing
    4. High achievers can tell you in 3D terms what they learn from their failures and how they applied that. They think of failures in terms of learning experiences to be applied
  7. Ask dumb questions
    1. Creativity always starts with a question – the quality of your creativity is determined by the quality of your questions
    2. Questions are essential in finding joy in life
    3. Don’t jump to answers, keep the questions open
    4. By its very nature, a creative life must be a questioning one
  8. Do only what is effortless, easy, enjoyable (EEE)
    1. The test of a vocation is the love of the drudgery it involves. – Logan Pearsall Smith
    2. Surprisingly, EEE turns into a discipline for achieving a higher goal: the discovery of your true purpose in life
    3. Da Vinci’s response to his greatest accomplishment was “Da Vinci!”
    4. There can be no drudgery in work that is a matter of growing self-expression, and no boredom in days that are permeated with the knowledge of your own boundless base, demonstrated in each personal task
    5. When you live with EEE you find almost a spiritual purpose for your life. You know that you are practicing your true vocation when you love all the hard work, responsibility, and tedium that goes with it
    6. A life centered around a clear purpose is totally integrated
    7. When we love our work, then we don’t have to be managed by fear or force. We can build systems that facilitate creativity, rather than be preoccupied with checks and controls on people who are motivated to beat or exploit the system. I believe that everyone wants to find both quality and love in work.
    8. Do nothing without enthusiasm
    9. Rank tasks, break into small pieces, do 1 thing at a time
  9. Don’t think about it! – Beginner’s Mind
    1. Unstructured free time to wander, physical and mental relaxation
    2. Don’t focus on success or failure, simply learning

What I got out of it

  1. I felt calm and enthusiastic while reading this book. The parts about EEE (easy, effortless, enjoyable) resonated deeply and is the biggest thing I’ll remember from this book
Categories
Books

The Extended Mind: The Power of Thinking Outside the Brain

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Key Takeaways

  1. Interoception – learning to listen and pay heed to our bodies – helps us become better thinkers As it allows us to tap into our non conscious knowledge. It’s incredibly important to become sensitive to early signs of physiological stress. By becoming aware in the early stages of when you’re feeling stress you can deal with it quickly rather than letting in boil out of control
  2. Light movement like strolls is great for spurring thinking and serendipitous connections. Short, high intensity exercise is fantastic for both body and mind too. Don’t ignore the mind/body connection
  3. Movement is key to better remembering
  4. Gestures help thinking, speaking, and presenting
  5. Our environment plays a huge role in what and how we think. Empowered spaces that motivate us make a huge difference
  6. Large and expansive spaces aid our thinking. Having large displays (monitors, whiteboards, etc.) helps us keep track of large ideas and better manipulate them
  7. Thinking with your brain alone is suboptimal compared to thinking with brain, eyes, and hands
  8. 4 features of apprenticeship.
    1. Modeling – demonstrating task while explaining
    2. Scaffolding – opportunity for apprentice to try
    3. Fading – gradually withdrawing guidance
    4. Coaching – helping with difficulties along the way
  9. Mimicking a master helps with picking up the skill faster. In a separate example, you can build empathy for a user with Parkinson’s by imagining what using the product or service in their situation would look and feel like
  10. Imitating is a powerful way to learn and being a fast imitator in business can be a powerful strategy
  11. Novices tend to categorize what they see whereas experts what the deep function is
  12. Our brain evolved to think with other people – don’t neglect the power of brainstorming and getting feedback from others
  13. Group thinking and synchrony is possible with physical proximity and similar levels of arousal. This aids in productivity, innovation, and a stronger culture. People need to feel their personal identity is integrated into the groups. This helps with motivation, perseverance, and loyalty
  14. People should learn together and be together at the same time. Training together and sharing rituals (even just sharing a meal) is important to foster this group synchrony
  15. Transactive memory – if you trust your team or partner, you can offload certain tasks and memories to them, you simply have to remember to ask them when appropriate – not only who is doing what, but who knows what. This type of directory is invaluable and could even be a full time person’s role to help direct people to those who would best know how to help

What I got out of it

  1. Combining extensions helps us think much better – externalize info to free your mental resources and shift perspective, make information concrete and something you can interact with, model the external and internal state to what is inspiring to you
Categories
Books

Working Backwards by Colin Bryar, Bill Carr

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Summary

  1. The authors lay out the leadership principles of what it means to be “Amazonian.” Working backwards is all about starting with the customer perspective, working backwards step-by-step, questioning assumptions until you figure out exactly what you want to build and how you want to deliver it. It is all about seeking truth. This process takes more time on the front end, but it is much less expensive and difficult to course correct in the early innings rather than at the stage where you have an operating business

Key Takeaways

  1. Especially in the early days, one bad customer experience can influence hundreds if not thousands a future customers. That is why Jeff was so maniacal about customer service. What distinguishes Amazon is that it’s leadership principles are deeply integrated into every person process and function across the company.
  2. The 14 Amazon leadership principles
    1. Customer obsession
    2. Ownership
    3. Invent and simplify
    4. Leaders are right, a lot
    5. Learn and be curious
    6. Hire and develop the best
    7. Insist on the highest standards
    8. Think big
    9. Bias for action
    10. Frugality
    11. Earn trust
    12. Dive Deep
    13. Have backbone; disagree and commit
    14. Deliver results
  3. Tensions don’t work, mechanisms do.
    1. Three core mechanisms to help translate the principles into action include the annual goal setting, the S team goalsetting plan and annual compensation packages to tie customer service with rewards. These operating plans are meant to intertwine the individual and company goals so that everything is self reinforcing and mutually beneficial. This takes tremendous planning and effort but it helps align every one in the organization.
    2. Amazon is different in the sense that the senior team focuses relentlessly on execution and details, not just strategy. Compensation very much tied to long-term Equity performance which ties to how well the company is serving customers
  4. The bar raiser program is one of Amazon’s most successful and widespread applications. It is used as an efficient way to hire appropriate people in a way that is scalable, teachable, and that contains feedback loops for the team and the interviewee. This ensures a sustainable way to hire great people who always raise the bar for the company as a whole. The interview starts with a phone call. If likely to hire they will be brought in for a behavioral and bar raiser section. Four or five various people interview the candidate and there is a written segment that follows with their thoughts and takeaways. Then there is a group discussion for the feedback is collectively read and the candidate discussed. If the group decides to move forward they will do reference checks and then hire the candidate if they choose to do so
  5. One way Amazon has combated the friction that comes with becoming a large organization is what they call single threaded leadership. This person heads up on autonomous team who does nothing but focuses on this major initiative and they have complete responsibility and accountability for it. The best way to fail is to make that thing somebody’s part-time job
  6. what matters is not quite speed, but velocity (speed + vector)
    1. Velocity
  7. Be aware of where their exist dependencies – whether technical, organizational, or otherwise – that slow you and your progress down as you have to rely on others to accomplish what you need. Too many dependencies are said to be tightly coupled. Amazon had to shift to small, autonomous teams but are now famous two pizza rule. Micro services are offered by small independent teams that are able to move quickly and independently yet offer great service and features
  8. Amazon does not focus or spend time on morale boosting events. Instead, they focus on attracting world-class talent and empowering them to build things that scale. Focusing on controllable input methods rather than uncontrollable output methods leads to sustainable and meaningful growth. A high morale is an output and not an input
  9. Two pizza themes are most effective in product development and each team is given specific metrics that are agreed-upon which helps keep everyone aligned and on task. However, Amazon found out that it was not the size of the team which predicted predicted success Patty right leader who are the necessary skills experience authority and capacity to build a team and lead to success
  10. The highest salary but Amazon is $160,000. There are no bonuses or anything else any sort of extra compensation if you stock the thus between 18 and 24 months. This is difficult if you’re looking for a short term hip and satisfaction but very lucrative if you believe in Amazon and it’s long-term prospects
  11. Amazon was able to move into a completely tangential business with AWS through its single threaded leader ship principle that ruthlessly iterates and keeps customer service top of mind

What I got out of it

  1. A great, inside look into what makes Amazon, Amazon. Always start with what the customer wants and work backwards from there. 
Categories
Books

Diffusion of Innovations by Everett Rogers

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Summary

  1. This book is about social change, moving from information to innovation. “Information is a difference in matter-energy that affects uncertainty in a situation where a choice exists among a set of alternatives. One kind of uncertainty is generated by innovation, defined as an idea, practice, or object that is perceived as new by an individual or another unit of adoption. An innovation presents an individual or an organization with a new alternative or alternatives, as well as new means of solving problems. However, the probability that the new ideas is superior to previous practice is not initially known with certainty by individual problem solvers. Thus, individuals are motivated to seek further information about the innovation in order to cope with the uncertainty that it creates. Information about an innovation is often sought from peers, especially information about their subjective evaluations of the innovation. This information exchange about a new idea occurs through a convergence process involving interpersonal networks. The diffusion of innovations is essentially a social process in which subjectively perceived information about a new idea is communicated from person to person. The meaning of an innovation is thus gradually worked through a process of social construction.”

Key Takeaways

  1. Diffusion a social matter even more than a technical one – how potential adopters view a change agent affects their willingness to adopt new ideas
    1. Lateral Networks, Culture, Hierarchies, Galilean Relativity
  2. A technological innovation embodies information and thus reduces uncertainty about cause-effect relationships in problem solving
  3. Attributes that help speed diffusion 
    1. (Perceived) Relative advantage – the improvement one innovation vs. what precedes it, perceived > objective advantage 
      1. Many adopters want to participate actively in customizing an innovation to fit their unique situation. Innovation diffuses more rapidly when it can be reinvented and that its adoption is more likely to be sustained
      2. Taking into account people’s perception of an innovation cannot be overstressed
      3. Rationality = using most effective means to reach a goal
      4. Fastest routes to adoption come when felt needs are met
      5. Mass media has a short, spiky effect on adoption whereas interpersonal communication is more sustainable 
    2. Compatibility – degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters
      1. This dependence on the experience of near peers suggests that the heart of the diffusion process consists of the modeling and imitation by potential adopters of their network partners who have previously adopted. Diffusion is a very special process that involves interpersonal communication relationships 
      2. One of the most distinctive problems in the diffusion of innovations is that the participants are usually quite heterophilous. Homophilous situations slows the spread of the innovation as these groups tend to socialize “horizontally” and don’t break through to other groups/classes
        1. Strength of Weak Ties
      3. The structure of a social system can facilitate or impede the diffusion of innovations. The impact of the social structure on diffusion is of special interest to sociologists and social psychologists, and the way in which the communication structure of a system affects diffusion is a particularly interesting topic for communication scholars. Katz remarked, “It is as unthinkable to study diffusion without some knowledge of the social structures in which potential adopters are located as it is to study blood circulation without adequate knowledge of the veins and arteries.”
        1. Opinion leaders thus exemplify and express the system’s structure. These are incredibly powerful and valuable members to have on your side
        2. A communication network consists of interconnected individuals whoa re linked by patterned flows of information 
    3. Complexity – degree to which an innovation is perceived as difficult to understand and use
      1. There are 5 main steps in the innovation-decision process – knowledge, persuasion, decision, implementation, and confirmation
    4. Trialability – degree to which an innovation may be experimented with on a limited basis
    5. Observability – degree to which the results of an innovation are visible to others
      1. Salience = degree of importance to an individual, want more information and will tell others about it
  4. Social marketing – segmentation and formative research lead to effective messages, positioning, price, communication channels
  5. Tactics to reach critical mass 
    1. Highly-respected individuals in a system’s hierarchy for initial adoption of the interactive innovation should be targeted
    2. Individuals’ perceptions of the innovation can be shaped, for instance, by implying that adoption of it is inevitable, that it is very desirable, or that the critical mass has already occurred or will occur soon 
      1. Chicken and egg…
    3. Introduce to intact groups whose members are likely to be relatively more innovative
    4. Incentives for early adoption of the interactive innovation should be provided, at least until critical mass is reached 
  6. Look for change agents and innovation champions who stand behind your product and who throw their support behind you, thus overcoming the indifference or resistance that the new idea may provoke
    1. “One of the greatest pains to human nature is the pain of a new idea. It…makes you think that after all, your favorite motions may be wrong, your firmest beliefs ill-founded…Naturally, therefore, common men hate a new idea, and are disposed more or less to ill-treat the original man who brings it. – Walter Bagehot, Physics and Politics
  7. Routinization occurs when the innovation has become incorporated into the regular activities of the organization and loses its separate identity. Sustainability, a closely related concept to routinization, is defined by the degree to which an innovation continues to be used after the initial effort to secure adoption is completed. Sustainability is more likely if widespread participation has occurred in the innovation process, if reinvention took place, and if an innovation champion was involved. This fifth stage, routinization, marks the end of the innovation process in an organization
  8. As much as change is about adapting to the new, it is about detaching from the old – Ronald Burt
  9. Stages in the Innovation-Decision Process
    1. Knowledge, persuasion, decision, implementation, confirmation

What I got out of it

  1. Seems like the “godfather” to such books as Geoffrey Moore and others have written. Learning about the attributes that help speed innovation – perceived relative advantage, compatibility, complexity, trialability, and observability – were worth the price of admission
Categories
Books

Invisible Engines: How Software Platforms Drive Innovation and Transform Industries by David Evans

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Summary

  1. “By focusing on the software platform we hope to offer the reader a perspective on the business dynamics and strategies of industries, old and new, that have been powered by these invisible engines…All of us quickly recognized that software platform businesses have at least two sides. Software platforms consist of services that are often made available to developers through APIs. They are also made available to computer users, but those computer users typically avail themselves of API-based services by buying applications that in turn use APIs. It is only a slight exaggeration to say that all software platform makers all the time invest in getting both developers and users to use their platforms. The developers/users are like the men/women, cards/merchants, advertisers/eyeballs, and buyers/sellers that we mentioned above. In fact, software platforms sometimes appeal to more than two distinct groups—including hardware makers and content providers. The economics of two-sided platforms provides a number of insights into pricing, design, organization, and governance of platform-based businesses. We were interested in understanding how this new economic learning could help shed light on the strategies followed by software platforms. On the flip side, we were interested in understanding how a diverse set of industries based on software platforms could be probed to provide insights for students of this new economics. This book is the result. It blends economics, history, and business analysis. It is intended for anyone who wants to better understand the business strategies that have been followed in industries based on software platforms. We focus on pricing, product design, and integration into downstream or upstream suppliers.”

Key Takeaways

  1. Most successful software platforms have exploited positive feedbacks (or network effects) between applications and users: more applications attract more users, and more users attract more applications. Nurturing both sides of the market helped Microsoft garner thousands of applications and hundreds of millions of users for its Windows platform.
  2. The modular approach has numerous advantages. If a new program (or other complex system) can be specified as N modules, N teams can work in parallel. Moreover, individual modules can subsequently be improved without touching other parts of the overall program, and they can be used in other programs.
  3. Operating systems provide services to applications through Application Programming Interfaces (APIs). These services range from rudimentary hardware services, such as moving a cursor on a monitor, to sophisticated software services, such as drawing and rotating three-dimensional objects. The APIs serve as interfaces between these services and applications…It is easy to see why application developers find the ability to access system services through APIs appealing. Rather than every application developer writing hundreds of lines of code to allocate memory to an object, to take the example above, the operating system developer writes 116 lines of code and makes the system services this code provides available to all application developers through the API.
  4. Software platforms make services available through APIs. Developers benefit from these because they avoid having to write some of their own code. Users benefit from a greater variety of and lower prices for applications. The economics of multisided platforms provides a set of tools for understanding the past, present, and future of software platforms.
  5. Multisided businesses can generate profits for themselves and benefits for their customers if they can figure out ways to increase and then capture indirect network externalities. There are three major ways in which they do this. First, they serve as matchmakers. Second, they build audiences. Advertising-supported media do mainly that: they use content to attract eyeballs and then sell access to those eyeballs to advertisers. Third, they reduce costs by providing shared facilities for the customers on each side. That’s the shopping mall case with which we began.
  6. Businesses in multisided markets often subsidize one side of the market to get the other side on board—sometimes explicitly by charging low or negative prices. A dating club may charge men a higher price just because they have more inelastic demand and because it is easy to identify that group of consumers. But businesses in multisided markets have an additional reason to price discriminate: by charging one group a lower price the business can charge another group a higher price; and unless prices are low enough to attract sufficient numbers of the former group, the business cannot obtain any sales at all. In contrast, economic analyses of multisided platforms, along with the industry case studies discussed in the following chapters, show that successful multisided platform businesses must pay careful attention to all relevant groups, and typically must worry more about balance among them than about building share with one of them. Getting the balance right seems to be more important than building shares. Platform markets do not tip quickly because as a practical matter, it takes time to get things right. And the first entrant often does not win in the end: many other firms may come in and successfully tweak the pricing structure, product design, or business model. The businesses that participate in such industries have to figure out ways to get both sides on board. One way to do this is to obtain a critical mass of users on one side of the market by giving them the service for free or even paying them to take it. Especially at the entry phase of firms in multisided markets, it is not uncommon to see precisely this strategy. Another way to solve the problem of getting the two sides on board simultaneously is to invest to lower the costs of consumers on one side of the market. As we saw earlier, for instance, Microsoft invests in the creation of software tools that make it easier for application developers to write application software for Microsoft operating systems and provides other assistance that makes developers’ jobs easier. In some cases, firms may initially take over one side of the business in order to get the market going.
  7. The copyleft provision means that if people choose to distribute software that is based in part on other software covered by the GPL, they must distribute their new software under the GPL. GPL software thereby propagates itself.
  8. Bundling features into the software platform is often efficient for the platform producer and for end users, as it is for most information goods, because it lowers distribution costs and expands demand.
  9. Multisided platforms must consider marginal costs and price sensitivity in pricing, like single-sided businesses, but they must also consider which side values the other side more. Software platforms generally charge low prices on one side in order to attract customers who can then be made available to the other side. Getting the balance right among all sides is more important than building market share.
  10. Per-copy charges also helped Microsoft capitalize on its investment in programming languages in the face of great uncertainty as to which computer makers would succeed. A flat fee would have earned less from the top sellers and would have discouraged other makers from even trying. Microsoft retained this basic pricing model when it went into the operating system business.
  11. In retrospect, having multiple operating systems run on a hardware platform is a poor strategy. The idea, of course, was to ensure that the hardware, not the operating system, became the standard that defined the platform and determined its evolution. Indeed, IBM followed an important economic principle for traditional industries: all firms would like everyone else in the supply chain to be competitive. IBM didn’t seem to recognize that this was far from a traditional industry. If IBM’s strategy had worked, and if several operating systems had been installed on substantial numbers of IBM PCs, what would have happened? Most likely, having multiple operating systems would have made the hardware platform less popular than having a single operating system. Applications are generally written for software platforms, not the underlying hardware. The more fragmented the installed base of operating systems, the less attractive it is to write an application for any one of them.
  12. Four key strategies helped Microsoft obtain the leading position in personal computers: (1) offering lower prices to users than its competitors; (2) intensely promoting API-based software services to developers; (3) promoting the development of peripherals, sometimes through direct subsidies, in order to increase the value of the Windows platform to developers and users; and (4) continually developing software services that provide value to developers directly and to end users indirectly.
  13. Technically, this is a two-part tariff, consisting of an access fee (the price of the razor) plus a usage fee (the price of the blade). Here the blade can be thought of as having two related roles. It meters the use of the durable good, and it sorts customers into those who are willing to pay more and those who are willing to pay less. These metering devices tend to increase profits and help companies better recover their fixed costs of investment. Because it is particularly attractive to make money on the blades, it is especially attractive to reduce the price of the razor, perhaps to below cost, or perhaps even to zero in extreme cases. For video game console makers this razorblade strategy made a lot of sense. Getting the console into the hands of many people increased the demand for the games it could play. Moreover, it made buying a console less risky for households, who had no good way of knowing how valuable the console would be until they saw the games produced for it. The game-console company, which was in the best position to forecast the quality of those games, took the risk: it lost money if consumers didn’t buy many games, and it made money if they did. The people who ultimately bought a lot of games were those who valued the console the most, so making profits mainly or even entirely on games enabled the console makers to earn the most from those willing to pay the most for their system.
  14. When consumers value product differentiation and platforms can offer innovative and unique features, multiple platforms can coexist despite indirect network effects that make bigger better.
  15. The console video gaming industry operates a radically different business model from other software platform industries. Game manufacturers tightly integrate hardware and software systems; they offer consoles to consumers at less than manufacturing cost, and they earn profits by developing games and charging third-party game developers for access to their platforms.
  16. Palm, on the other hand, regrouped. It surveyed Zoomer buyers to find out what they liked and didn’t like, what they used and didn’t use: What these people said opened the company’s eyes. More than 90% of Zoomer owners also owned a PC. More than half of them bought Zoomer because of software (offered as an add-on) that transferred data to and from a PC. These were business users, not retail consumers. And they didn’t want to replace their PCs—they wanted to complement them. People weren’t asking for a PDA that was smart enough to compete with a computer. They wanted a PDA that was simple enough to compete with paper.
  17. When you’re playing Bobby Fischer—and you want to win—don’t play chess. Make sure whatever game you’re playing—be it network delivery of media vs. stand-alone PC, whatever you’re in—that you’re not playing a game someone else has mastered when you have an option to play another game. —Rob Glaser, Founder of RealNetworks, May 20011
  18. Interestingly, many are made by Microsoft, which integrated into mouse production in 1983 mainly to be sure that the sort of mouse specified by its nascent Windows system would be available in the marketplace. Microsoft developed and patented a mouse that could connect to a PC through an existing serial port rather than to a special card installed within the computer. This innovation reduced the cost of the mouse and thus of mouse-using computers running Windows. Apple as a vertically integrated hardware and software platform maker has always produced its own mice.
  19. What is the cure? From A’s point of view, one cure is to have many competing producers of good b. Competition will then hold the price of b close to cost (including a reasonable return on capital) regardless of A’s pricing, so that A both effectively determines the system price (via the price of a) and captures all the economic profit. Generally, it is more attractive to rely on others to supply a complement (instead of buying it or making it), all else equal, if there are many producers of that complement who compete intensely. Hence the common strategic advice, “Commoditize the complements.”
  20. In a famous 1951 paper, Nobel Laureate George Stigler argued that this proposition implies that “vertical disintegration is the typical development in growing industries, vertical integration in declining industries.”
  21. Interestingly, we are aware of no examples of software platforms that initially integrated into the applications/games/content that subsequently exited that business entirely. On the other hand, almost all such platforms have adopted a two-sided strategy and made significant investments in attracting third-party suppliers. Partial integration is the norm. The only exceptions are those successful software platform vendors that launched without integration; they have remained out of the applications business. The tendency of computer-based industries to disintegrate over time is even clearer—with interesting exceptions—when we consider integration with the supply of basic hardware and peripherals. The Microsoft strategy of having the hardware complement its operating system produced by a competitive, technologically dynamic industry has served to make its operating systems more valuable and to speed their market penetration. Microsoft is not above using integration on occasion to stimulate important markets for complements, as its entry into mouse production, discussed earlier, illustrates.
  22. In a rephrasing of Mr. Katz’s words, Michael Dell told Microsoft upon refusing the Xbox deal offered to him: When Sony cuts the prices on their PlayStations, their stock price goes up. Every time I cut prices, my stock price goes down. If you don’t understand why that happens, you don’t understand the console business. I understand why this is strategic to Microsoft. I don’t understand why this is strategic to Dell.
  23. “Oh, ‘tanstaafl.’ Means ‘There ain’t no such thing as a free lunch.’ And isn’t,” I added, pointing to a FREE LUNCH sign across room, “or these drinks would cost half as much. Was reminding her that anything free costs twice as much in the long run or turns out worthless.” —Robert Heinlein
  24. In practice, it generally does matter which side pays, because two key assumptions made in the textbook discussion don’t apply. First, there are often significant transactions costs that prevent the customers on the two sides of most markets from just “sorting it out” themselves. Take the payment card example. Although most card systems prohibit merchant surcharging because it degrades the value of their product to cardholders, several countries have barred card systems from imposing such a no-surcharge rule. In those countries, however, most merchants don’t surcharge. One reason is that it is costly to impose small charges on customers. Those merchants that do surcharge often charge more than they are charged by the card system—an indication that they are using the fact that a customer wants to use her card as a basis for groupwise price discrimination.
  25. When balance matters in a mature two-sided business, the pricing problem is much more complex than in a single-sided business. Marginal cost and price responsiveness on both sides matter for both prices, and so does the pattern of indirect network effects. In general, if side A cares more about side B than B cares about A, then, all else equal, A will contribute more total revenue. Thus, newspapers make their money from selling advertising, not from selling papers. The textbook pricing formula for a single-sided market gives the optimal markup over marginal cost as 1 over a measure of price responsiveness (the price elasticity of demand), so low price responsiveness implies high markups. The corresponding formula for a two-sided business involves marginal costs on both sides, price responsiveness on both sides, and measures of the strength of indirect network effects in both directions. In particular, balance may require charging a price below marginal cost to a group with low price responsiveness, something a singlesided business would never do, if it is critical to attract members of that group in order to get members of the other group on board.
  26. The idea is initially to subsidize one side (or, more generally, to do whatever it takes) in order to get it on board even though the other side is not yet on board, and to use the presence of the subsidized side to attract the other side.6 This differs from the single-sided penetration pricing strategy discussed above because the key here is to generate indirect network effects, to use the subsidized side as a magnet to attract the other side. After entry has been successfully effected and both sides are on board, of course, the rationale for the initial subsidy vanishes, and one would expect to see a corresponding shift in pricing policy. One of the regularities we discuss below, however, is that pricing structures—the relative amounts paid by the various sides—appear fairly robust over time; there are not many examples of pricing low to one side at first and then raising prices significantly later.
  27. A fundamental decision facing all multisided platform businesses is choice of a price structure: How much should the platform vendor charge each side relative to the others? Since transactions involving some sides may have significant associated variable costs (the production and distribution costs of video game consoles, for instance), the most illuminating way to analyze observed price structures is to look at the contributions of each side to gross margin or variable profits: revenue minus side-specific variable cost. Should a two-sided platform derive most of its gross margin from one side of the market, and if so, which side, or should it choose a more balanced structure, with both sides making significant contributions to gross margin?
  28. Like all multisided platforms, the pricing structures of the software platforms we have encountered in this book reflect the need to get all unintegrated sides on board: end users, application/game/content developers, and manufacturers of hardware and peripheral equipment. The structures we have examined have three remarkable features. First, all of them are extremely skewed: almost all earn a disproportionate share of their variable profits on only one side of the market, either end users or developers. Second, for all but video games, the platform earns the bulk of its net revenues from end users. The third remarkable feature, which we consider in the next section, is that these structures have been stable over time.
  29. Components selling occurs when the firm offers A and B separately (cars and bicycle racks). • Pure bundling occurs when the firm only offers A and B together as a single bundled product, AB (men’s laced shoes). • Mixed bundling occurs when the firm offers the bundle AB and either or both of its components, A and B (such as the Sunday New York Times and the New York Times Book Review).
  30. It is common to bundle together products that are complements, such as automobiles and tires, but firms may find that it pays to bundle products that aren’t complements. We already saw an example of this above. Bundling persuaded two consumers to buy a product even though each wanted only a single component. This saved the manufacturer costs. The idea that bundling of noncomplements can be used to enhance profits goes back to a classic paper by Nobel Prize winning economist George Stigler. Stigler tried to explain why movie distributors at one time required theaters to take bundles of pictures. Bundling can be used in a different way to facilitate price discrimination, which we discussed in the preceding chapter. That is, if different groups of consumers place different values on groups of components, bundles can be designed so that those with stronger demand pay more. The idea is possible to design bundles of components that cause consumers to sort themselves by the bundles they choose into groups with different willingness to pay. (Marketers call this “segmentation.”) In the case of autos, some will want the car with the sports package, while others will want only the basic package. The seller can then charge a premium to groups that have a particularly high demand for a particular package and offer an especially aggressive price to consumers that are very sensitive to price but are also willing to take the no-frills deal. For this to work, there must be a predictable correlation between combinations of components and demand (for example, price-sensitive consumers generally have a low demand for frills). A number of studies have found, for example, that automobile companies have much higher markups on luxury models than on base models. Bundling drives innovation and creates industries.
  31. The ability to select bundles of features to sell helps firms segment their customers, control costs, and enhance profits. Bundled products offer consumers convenience, lower costs, and products tailored to their needs and wants.
  32. Bundling decisions by multisided platforms, such as software platforms, are more complex since they must take into account the effect on all customer groups. Multisided businesses must consider both the additional customers they get on one side as a result of including a new feature and the additional customers they will get on the other side from having those additional customers. They may also include features that harm one side directly but benefit the platform overall by getting more customers on board on another side.
  33. Bundling makes sense for businesses whenever the cost of adding additional features is lower than the additional sales generated thereby—even if most purchasers do not value or use all the features in a product bundle.
  34. Creative destruction has been a hallmark of economic progress for millennia, but it has proceeded at a glacial pace for most of history. The Industrial Revolution sped this process up. Even so, it took decades for change to filter through the economy following innovations such as the spinning jenny, steam engine, and electric generator. The information technology revolution has quickened the pace of industrial change greatly. The plummeting costs of computer processing and storage make it possible to create products and industries that were not only infeasible but also unimaginable a few years earlier. Software platforms further accelerate the process of creative destruction, mainly because code is digital and malleable. Think how easy it is to add a new feature to a software platform and distribute that change electronically over the Internet to potentially billions of computing devices around the world.
  35. One is familiar: developers. TiVo is evangelizing its software platform by providing tools and offering prizes for the best applications in several categories, including games, music, and photos.
  36. History teaches us that it takes decades for technological changes to work their way through the economy, destroying, creating, and transforming industries. The third industrial revolution got off to a quick start. We suspect that it will continue through at least the first few decades of the twenty-first century and that our invisible engines will ultimately touch most aspects of our business and personal lives.

What I got out of it

  1. Some of the examples are a bit outdated but the principles are just as valuable as ever – how to think about multisided markets, pricing, positioning, and so much more
Categories
Books

The Innovator’s Solution: Creating and Sustaining Successful Growth by Clayton Christensen

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Summary

  1. The solution to the innovator’s dilemma is two-fold: first, get top-level commitment by framing an innovation as a threat during the resource allocation process; later, shift responsibility for the project to an autonomous organization that can frame it as an opportunity 

Key Takeaways

  1. Overview
    1. The structures and initial conditions that are required for successful growth are enumerated in the chapters in this book. They include starting with a cost structure in which attractive profits can be earned at low price points and which can then be carried up market; being in a disruptive position relative to competitors so that they are motivated to flee rather than fight; starting with a set of customers who had been nonconsumers so that they are pleased with modest products; targeting a job that customers are trying to get done; skating to where the money will be, not to where it was; assigning managers who have taken the right courses in the school of experience and putting them to work within processes and organizational values that are attuned to what needs to be done; having the flexibility to respond as a viable strategy emerges; and starting with capital that can be patient for growth. If you start in conditions such as these, you do not need to see deeply into the future. Attractive choices that lead to success will present themselves. It is when you start in conditions that are opposite to these that attractive options may not appear, and the right choices will be difficult to make
    2. Never copy others. One of the most valuable contributions you can make is to keep watching for changes in circumstances. If you do this, you can understand when and why changes need to be made long before the evidence is clear to those whose vision is not clarified by theory. 
    3. Never say yes to a strategy that targets customers and markets that look attractive to an established competitor. 
    4. If your team targets customers who already are using pretty good products, send them back to see if they can find a way to compete against nononsumption
    5. If there are no nonconsumers available, ask your team to explore whether a low-end disruption is feasible
    6. Never try to change the behavior or process of the customer
    7. Segment the market in ways that mirror the jobs that customers are trying to get done
    8. Look towards the low-end for the opportunity to change the basis of competition
    9. Develop competencies where money will be made in the future rather than where it was made in the past 
    10. Integration to modularity is a key cycle, competition forces modularity which leads to power which leads to integration (the rise and fall)
    11. Be impatient for profit and keep your company growing so that you can be patient for growth 
  2. Executives must answer 3 sets of questions to determine whether an idea has disruptive potential
    1. Is there a large population of people who have not had the money, equipment, or skill to do this thing for themselves, and as a result have gone without it altogether or have needed to pay someone with more expertise to do it for them?
    2. To use the product or service, do customers need to go to an inconvenient, centralized location?
    3. Are there customers at the low end of the market who would be happy to purchase a product with less (but good enough) performance if they could get it at a lower price?
    4. Can we create a business model that enables us to earn attractive profits at the discount prices required to win the business of these overserved customers as the low-end?
    5. Is the innovation disruptive to all of the significant incumbents in the industry? If it appears to be sustaining to one or more significant players in the industry, then the odds will be stacked in that firm’s favor, and the entrant is unlikely to win
  3. Other
    1. Need to develop products for the circumstance and not the customer, the chain needs to communicate the circumstance, and not necessarily to the customer
    2. Needs to by symmetry of motivation across the entire chain of entities that add value to the product on its way to the end customer. Win/win
    3. Disruption causes others to be disinterested in what you are doing. This is exactly what you want with competitors: you want them to ignore you. But offering something that is disruptively unattractive to your customers – which includes all of the downstream entities that compose your channel – spells disaster. Companies in your channel are customers with a job to get done, which is to grow profitably 
    4. To succeed with a nonintegrated, specialist strategy, you need to be certain you’re competing in a modular world. When the functionality and the reliability of a product are not good enough to meet customers’ needs, then the companies that will enjoy significant competitive advantage are those whose product architectures are proprietary and that are integrated across the performance-limiting interfaces in the value chain. 
    5. Core competence, as it is used by many managers, is a dangerously inward-looking notion. Competitiveness is far more about doing what customers value than doing what you think you’re good at. 
    6. The Law of conservation of attractive profits states that in the value chain there is a requisite juxtaposition of modular and interdependent architectures, and of reciprocal processes of commoditization and decommoditization, that exists in order to optimize the performance of what is not good enough. The law states that when modularity and commoditization cause attractive profits to disappear at one stage in the value chain, the opportunity to earn attractive profits with proprietary products will usually emerge at an adjacent stage. 
    7. Emergent processes should dominate in circumstances in which the future is hard to read and in which it is not clear what the right strategy should be. This is almost always the case during the early phases of a company’s life. However, the need for emergent strategy arises whenever a change in circumstances portends that the formula that worked in the past may not be as effective in the future. On the other hand, the deliberate strategy process should be dominant once a winning strategy has become clear, because in those circumstances effective execution often spells the difference between success and failure
    8. Senior executives have 3 jobs when it comes to disruptive growth: be the interface between disruptive and mainstream business and determine which of the corporation’s resources should go to the new business and which should not; shepherd the creation of a process we call the disruptive growth engine; and to sense when the circumstances are changing and to keep teaching others to recognize these signals – start before you need to, get a senior manager in charge, get an expert team of movers and shapers, train the troops 

What I got out of it

  1. Great to read these books alongside Moore’s books – so much to learn from the general progression and regression of entire industries, what to look out for, and how to take advantage of them
Categories
Books

The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail by Clayton Christensen

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Summary

  1. The research reported in this book supports his latter view: it shows that in the cases of well-managed firms, good management was the most powerful reason they failed to stay atop their industries. Precisely because these firms listened to their customers, invested heavily in new technologies that would provide their customers more and better products of the short they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership. What this implies at a deeper level is that many of what are now widely accepted principles of good management are, in fact, only situationally appropriate. There are time at which it is right not to listen to customers, right ot invest in developing lower-performance products that promise lower margins, and right to aggressively pursue small, rather than substantial markets. 

Key Takeaways

  1. One common theme to all of these failures, however, is that the decisions that led to failure were made when the leaders in question were widely regarded as among the best companies in the world
  2. The failure framework is built upon 3 findings. The first is that there is a strategically important distinction between what I call sustaining technologies and those that are disruptive. Second, the pace of technological progress can, and often does, outstrip what markets need. This means that the relevance and competitiveness of different technological approaches can change with respect to different markets over time. And third, customers and financial structures of successful companies color heavily the sorts of investments that appear to be attractive to them, relative to certain types of entering firms
  3. Case for investing in disruptive technologies can’t be made confidently until it is too late
  4. Established firms confronted with disruptive technology typically viewed their primary development challenge as a technological one: to improve the disruptive technology enough that it suits known markets. In contrast, the firms that were most successful in commercializing a disruptive technology were those framing their primary development challenge as a marketing one: to build or find a market where product competition occurred along dimensions that favored the disruptive attributes of the product. 
  5. It has almost always been the case that disruptive products redefine the dominant distribution channels, because dealers’ economics – their models for how to make money – are powerfully shaped by the mainstream value network, just s the manufacturer’s are. 
  6. Principles of disruptive innovation
    1. Companies depend on customers and investors for resources – difficult for companies tailored for high-end markets to compete in low-end markets as well. Creating an independent organization that can compete in these disruptive technologies is the only viable way for established firms to harness this principle. Promise of upmarket margins, simultaneous upmarket movement of customers, and the difficulty of cutting costs to move downmarket profitably create a powerful barrier to downward mobility. In fact, cultivating a systematic approach to weeding out new product development initiatives that would likely lower profits is one of the most important achievements of any well-managed company. Creates a vacuum in the low-end market that attracts competition
    2. Small markets don’t solve the growth needs of small companies – create small organizations that get excited about small opportunities and small wins
    3. Markets that don’t exist can’t be analyzed – those who need analysis and quantification before they invest become paralyzed when faced with disruptive technologies
    4. Technology supply may not equal market demand – sometimes “good enough” is competitive and established firms tend to overshoot what the market demands. Moves from functionality to reliability to convenience to price
    5. Not wise to always be a technological leader or a follower – need to take distinctly different postures depending on whether they are addressing a disruptive or sustaining technology. Disruptive technologies have a large first-mover advantage and leadership is important

What I got out of it

  1. Great way to think about how you could do all the right things and still lose. Helmer’s counterpositioning in action
Categories
Books

Inside the Tornado by Geoffrey Moore

The Rabbit Hole is written by Blas Moros. To support, sign up for the newsletter, become a patron, and/or join The Latticework. Original Design by Thilo Konzok.

Summary

  1. For those within the high tech sector, or who manage investments in these companies, this imperative translates into a series of deceptively simple questions: what can we do during a tornado to best capitalize on our opportunity? How can we tell when one is coming, and what we can do to prepare? How can we sense when it is ending, and what should we do then? Finally, going forward, how can we reframe our strategic management concepts to better accommodate tornado market dynamics in general?

Key Takeaways

  1. The winning strategy does not just change as we move from stage to stage, it actually reverses the prior strategy. This is why this is so difficult and counterintuitive – what made you successful at an earlier stage causes failure at later stages. Early stages you must not segment, in the chasm and bowling alley you must segment, in the tornado you must not segment, on main street you must segment
  2. Truly discontinuous innovations – paradigm shifts – are new products or services that require the end user and the marketplace to dramatically change their past behavior, with the promise of gaining equally dramatic new benefits. 
  3. The only way to cross the chasm is to put all your eggs in one basket. That is, key to a winning strategy is to identify a single beachhead of pragmatist customers in a mainstream market segment and to accelerate the formation of 100% of their whole product. The goal is to win a niche foothold in the mainstream as quickly as possible – that is what is meant by crossing the chasm. Then, once in the tornado, you need to quickly switch strategies and gain mass market share at any cost, positioning your products horizontally as global infrastructure
    1. Many leaders are not cut out to lead the company through each of these phases. That’s fine and to be expected, but know what stage you’re in, what type of CEO you have, and when they might need to be replaced 
  4. Once any infrastructure is substantially deployed, power shifts from teh builders – the professional services firms – to the operators, or what we have come to call the transaction services firms. The key to the transaction services model is that the requisite infrastructure has already been assimilated (keeping support costs down) and amortized (minimizing ongoing investment
  5. For every stage of the technology adoption life cycle, there is an optimal business model
    1. early market – professional services. 
    2. bowling alley – application products
    3. tornado – infrastructure products – a period of mass-market adoption when the general marketplace switches over to the new infrastructure paradigm
    4. main street – transaction services
  6. This sequence of events unleashes a vortex of market demand. Infrastructure, to be useful, must be standard and global, so once the market moves to switch out the old for the new, it wants to complete this transition as rapidly as possible. All the pent-up interest in the product is thus converted into a massive purchasing binge, causing demand to vastly outstrip supply. Companies grow at hypergrowth rates, with billions of dollars of revenue seeming to appear from out of nowhere.
  7. Overview of the tech adoption lifecyle
    1. The forces that operate in the bowling alley argue for a niche-based strategy that is highly customer-centric
    2. Those in the tornado push in the opposite direction toward a mass-market strategy for deploying a common standard infrastructure
    3. Then on Main St., market forces push back again toward a customer-centric approach, focusing on specific adaptations of this infrastructure for added value through mass customization
    4. Given these dramatic reversals in strategy, it is imperative that organizations be able to agree on where their markets are in the life cycle
    5. In the meantime, the economic cataclysm of the tornado deconstructs and reconstructs the power structure in the market so rapidly that simply understanding who is friend and who is foe becomes a challenge
    6. Within the newly emerging market structure, companies must compete for advantage based on their status within it
    7. Positioning in this context consists of a company taking its rightful place in the hierarchy of power and defending it against challengers
    8. And finally, moving fluidly from strategy to strategy is the ultimate challenge of any organization, demanding an extraordinarily flexible response from its management team
  8. Safe path is to overinvest when invading any new segment, seeking to accelerate market leadership, and then divert resources as soon as the position is achieved
  9. Post tornado market share by revenue tends to be 50% for the gorilla, 15% for chimp 1, 15% for chimp 2, and 30% for the monkeys 
  10. The lessons that Oracle taught – attack the competition ruthlessly, expand your distribution channel as fast as possible, ignore the customer
  11. The lessons that HP taught – just ship, extend distribution channels, drive to the next lower price point
  12. The lessons that Wintel taught – recruit partners to create a powerful whole product, instituitionalize this whole product as the market leader, commoditize the whole product by designing out your partners
  13. +1 opportunities – what do we have to offer at little or no incremental cost to ourselves that the market would pay us more money for? Compelling fantasy like Nike and Mont Blanc do this better than anyone
  14. Recap
    1. Bowling alley:  product leadership, customer intimacy
    2. Tornado: product leadership, operational excellency 
    3. Main St: operational excellent, customer intimacy 
  15. Trust, it turns out, is a complicated and challenging relationship, as much so in business as in parenting or marriage. Like everything else we have been discussing in recent chapters, it is ultimately about power. The paradox of trust is that by intelligently relinquishing power, one gains it back many times over. Once you reach your persona limits, this is the only economy of scale that can help. And because hypergrowth markets will push you to your personal limits faster than most other challenges in business, this is a fitting thought on which to close this book

What I got out of it

  1. Fascinating insights into the paradoxical path that it takes to be successful with technologically disruptive companies