Successfully reported this slideshow.
Your SlideShare is downloading. ×

Making Product Defensible with Scale by Quora Product Lead

Ad

www.productschool.com
Making Product Defensible with Scale
by Quora Product Lead

Ad

Join 40,000+
Product Managers on
Free Resources
Discover great job
opportunities
Job Portal
prdct.school/PSJobPortalprdct....

Ad

CERTIFICATES
Your Product Management Certificate Path
Product Leadership
Certificate™
Full Stack Product
Management Certif...

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Loading in …3
×

Check these out next

1 of 97 Ad
1 of 97 Ad

Making Product Defensible with Scale by Quora Product Lead

Main takeaways:
- The hardest lock-in for even well capitalized competitors to overcome is network effects, and there's several subtypes
- Ask yourself: How can you connect your users to other users such that it truly adds value and they will continue to need you as an intermediary
- Negative network effects are less talked about but impediments to your growth. Be aware and ready to respond to them

Main takeaways:
- The hardest lock-in for even well capitalized competitors to overcome is network effects, and there's several subtypes
- Ask yourself: How can you connect your users to other users such that it truly adds value and they will continue to need you as an intermediary
- Negative network effects are less talked about but impediments to your growth. Be aware and ready to respond to them

More Related Content

Slideshows for you (19)

More from Product School (20)

Making Product Defensible with Scale by Quora Product Lead

  1. 1. www.productschool.com Making Product Defensible with Scale by Quora Product Lead
  2. 2. Join 40,000+ Product Managers on Free Resources Discover great job opportunities Job Portal prdct.school/PSJobPortalprdct.school/events-slack
  3. 3. CERTIFICATES Your Product Management Certificate Path Product Leadership Certificate™ Full Stack Product Management Certificate™ Product Management Certificate™ 20 HOURS40 HOURS40 HOURS
  4. 4. Corporate Training Level up your team’s Product Management skills
  5. 5. Abhinav Sharma T O N I G H T ’ S S P E A K E R
  6. 6. Defensibility 101 How to build and break software monopolies
  7. 7. 👨💻 1 year: Software Engineer, Facebook 🕵🕵♂️ 1 year: Data Science, Facebook 👨🎨 2 years: Product Design, Quora 🕵 3 years: Various Product Leadership Roles 🚀 Now: Startup
  8. 8. Defensibility 101 How to build and break software monopolies
  9. 9. Part 0: Why defensibility matters
  10. 10. Blue Apron 1. Good software-enabled product 2. Early to market 3. Talented team
  11. 11. 15x Drop
  12. 12. Defensibility is a spectrum
  13. 13. Indefensible Defensible Monopoly
  14. 14. Today’s Talk How to strengthen your market position once you already have a good product
  15. 15. 4 Parts 1. How to make a business defensible 2. What’s unique about software 3. Software monopolies that were built and broken 4. How to predict make the future
  16. 16. Part 1: How to become defensible
  17. 17. What do people really need?
  18. 18. What do people really need? People need resources People need people
  19. 19. ⚡2 Ways to be Indispensable Own finite resources Operate a network that’s hard to leave
  20. 20. ⚡2 Ways to be Indispensable Own finite resources Operate a network that’s hard to leave
  21. 21. Own Finite Resources Land, but also intellectual property and talent
  22. 22. Operate a network Power grid, telecom, roads, social networks
  23. 23. AT&T’s Monopoly Resource: An expensive physical infrastructure Network: Very hard to not have a phone The effect was so strong that the government declared AT&T a “natural monopoly”
  24. 24. The Ethics Are these behaviors too zero-sum and hinder value creation? Does too much competition hinder long-term thinking? (why patents exist) This talk does not take a position
  25. 25. Part 2: What’s unique about software?
  26. 26. 3 Things
  27. 27. Personalization
  28. 28. Cost to Copy
  29. 29. Faster Network Effects
  30. 30. Number of Users ValuetoEachUser
  31. 31. Number of Users ValuetoEachUser Cost
  32. 32. Number of Users ValuetoEachUser Cost
  33. 33. ⚡ What’s unique about software? Zero marginal costs Personalization Faster network effects
  34. 34. Part 3: Making software defensible
  35. 35. ⚡ “there’s only two ways I know of to make money – bundling, and unbundling” Jim Barksdale, Netscape CEO
  36. 36. Bundling Value-add to an already strong product
  37. 37. Taken too far
  38. 38. Unbundling Extract a feature that’s better standalone
  39. 39. ⚡Key ideas recap Own finite resources or hard to leave networks 0 marginal cost, personalization, network effects Opportunities are in bundling and unbundling
  40. 40. Case Studies The rise (and fall?) of 4 software “monopolies”
  41. 41. Computers were complex The best way to make everything work together was to own all the relevant resources. Hardware, software, talent, patents
  42. 42. The Fall Hardware and software was about to be unbundled
  43. 43. 1968 19811975
  44. 44. Hardware became “easy” … and software became the finite resource
  45. 45. Computers began talking So Microsoft made proprietary formats
  46. 46. One more thing Open standards like the web were emerging, so Microsoft does “Embrace, extend, extinguish”
  47. 47. Bundle IE for free to embrace the open standard Extend IE with proprietary extensions Make UX worse for non-IE users, extinguish competition
  48. 48. That didn’t quite work out Sometimes people do get around to collective action (usually via government)
  49. 49. The Open Web Protocols unbundled operating systems from application software
  50. 50. Google became the best search engine because of an algorithm but PageRank is hardly a factor in ranking today.
  51. 51. Network Effects Personalization Bundling
  52. 52. Data & Identity Defensibility We’ve sort of seen this before but not really
  53. 53. +1 (212) 555 - 5555 Number Portability
  54. 54. The Privacy Pushback … is underway ...
  55. 55. Finite Resource Owned Controls a network via IBM Bundled processes, hardware, software Microsoft Closed-source software Proprietary formats Google Click data improves ranking for everyone Facebook Knows who’s friends with who
  56. 56. ⚡ Rise & Fall Pattern
  57. 57. ⚡ Rise & Fall Pattern 1 / Centralized service creates value via effective resource allocation within a network of users
  58. 58. ⚡ Rise & Fall Pattern 2 / Bundling increases the (wealth captured / wealth created) ratio
  59. 59. ⚡ Rise & Fall Pattern 3 / Incumbent’s wealth capture method starts to hinder overall wealth creation
  60. 60. ⚡ Rise & Fall Pattern 4 / Incumbent unbundles, creating new opportunities for others
  61. 61. ⚡ Takeaways
  62. 62. Own finite resources or operate hard-to-leave networks Software has zero marginal costs, personalization and accelerated network effects Bundling and unbundling opportunities arise through technological and cultural changes
  63. 63. Part 4 The Future
  64. 64. Chaotic systems are impossible to predict in detail
  65. 65. https://techcrunch.com/2017/06/01/the-meeting-that-showed-me-the-truth-about-vcs/
  66. 66. Fundamental Trends
  67. 67. Cost of building software is plummeting Negative network effects are settling in for dominant actors, e.g. the facebook original content sharing decline Privacy is increasingly important to consumers Regression to the mean is a side-effect of algorithmic recommendations that we’re tiring of
  68. 68. Truths about the future What are they, how do they combine?
  69. 69. Thanks! hi@abhinavsharma.com
  70. 70. www.productschool.com Part-time Product Management Training Courses and Corporate Training

Editor's Notes

  • If you’re interested to connect with other Product Managers, aspiring PMs, or those within tech, join our Slack community of over 40,000 professionals. It’s a great place to network and to find interesting content. We host a weekly AMA through our Slack channel on Tuesdays from 11:15am - 12pm PST. We have also recently launched the Job Portal where you can find the latest Product Management opportunities! As members of the Product School community, we'd like to provide you with these resources at your disposal.
  • Product School’s Product Management Certificate Path comprises of 3 part-time courses for professionals with strong technical or business background who want to further explore Product Management at software-based companies.

    During Product Management Training you will first learn Product Management fundamentals to understand the software product lifecycle and what it takes to successfully transition into a product management role.

    You’ll then be trained to retrieve data, understand its value and make impactful decisions with SQL, data visualization and Tableau. Learn to understand your users to deliver exceptional UX/UI design and develop a robust digital marketing plan. During the Full Stack Product Management Training, you will deep dive into the technical knowledge to enhance your ability to work with agile teams.

    Finally, Product Leadership Training will elevate your product knowledge to become an effective Product Leader. You'll do an in-depth analysis on how to implement best PM practices on a strategic level to significantly impact your company’s portfolio and revenue. Learn the soft skills to manage product teams and manage stakeholders to deliver performing products.

  • As well as individual courses we provide corporate training across the world! If you’d like to upskill your product team this is the best option for you. We have trained employees from multiple companies such as Deloitte, Salesforce, JP Morgan, Bank of America amongst many other companies across all industries.
  • Tonight's talk is “ [TITLE] ” with [NAME]. Welcome, [NAME].
  • Today I’d like to talk about how to make software defensible
  • Today I’d like to talk about how to make software defensible
  • So first let’s talk about why this matters
  • And the example I like talking about is Blue Apron, which, while not purely a software company, is definitely a software-enabled business
  • … and my favorite example of defensibility is
  • Now, the word defensibility and monopoly in particular has positive of negative connotations based on how much you own of one, so I’d like to start by trying to have a neutral lens on this. Irrespective of whether you want to build something monopolistic or fight against the established monopolies, you have to start by understanding how the process works work.
  • I find the best place to start to be with understanding people, fundamentally, people need two things
  • We need food, water, shelter, entertainment, etc. but we’re also evolved to be a networked species. Physically, we can’t beat a bear or a lion alone, but we’ve evolved to the top of the food chain because we’re interdependent
  • … and that corresponds to two ways in which you can make something that people absolutely need
  • … and that corresponds to two ways in which you can make something that people absolutely need
  • … and one of the strongest examples of a company that put these together is AT&T
  • In fact the government tried breaking them up twice
  • … and that corresponds to two ways in which you can make something that people absolutely need
  • Second, software can also be different things to different people. Machine learning and personalization enable a degree of flexibility that has never been seen before.
  • Historically, making more of the thing you’re selling costs money, but software
  • But software is different. It costs nothing to copy, nearly nothing to distribute, and can be created with very small teams of people using open source.
  • Finally, I want to highlight network effects, and network effects are not unique to software but as we’ll see, they have a powerful combination with the zero marginal cost property.

    For example, if I were to try and create a better, new, telephone protocol that rarely drops calls, I’m not going to beat the current system, because the cost of switching everyone else over is too high.

    And that’s not all, even if my new protocol were cheaper for everyone if deployed to everyone, social problem of incentivizing collective action is hard to overcome.
  • Finally, I want to highlight network effects, and network effects are not unique to software but as we’ll see, they have a powerful combination with the zero marginal cost property.

    For example, if I were to try and create a better, new, telephone protocol that rarely drops calls, I’m not going to beat the current system, because the cost of switching everyone else over is too high.

    And that’s not all, even if my new protocol were cheaper for everyone if deployed to everyone, social problem of incentivizing collective action is hard to overcome.
  • Finally, I want to highlight network effects, and network effects are not unique to software but as we’ll see, they have a powerful combination with the zero marginal cost property.

    For example, if I were to try and create a better, new, telephone protocol that rarely drops calls, I’m not going to beat the current system, because the cost of switching everyone else over is too high.

    And that’s not all, even if my new protocol were cheaper for everyone if deployed to everyone, social problem of incentivizing collective action is hard to overcome.
  • We’re going to talk
  • And by feature I mean often multi billion dollar companies.
  • And by feature I mean often multi billion dollar companies.
  • We’re going to talk
  • We’re going to talk
  • We’re going to talk
  • We’re going to talk
  • We’re going to talk
  • We’re going to talk
  • WELP talk about how microsoft implemented the three key ideas here.
  • WELP talk about how microsoft implemented the three key ideas here.
  • We’re going to talk
  • We’re going to talk
  • In dealing with the future, that’s a terrible idea is to try and predict the future accurately. What you do know is some high level facts and trends, but they can combine in too many ways to imagine.
  • Firstm a disclaimer
  • Feel free to speak with me and I can point you in the right direction (explain where to apply). Or you can visit www.productschool.com

    Have a good night!

×