Emerging Layers: Theory Behind Explosive Growth
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The document discusses the theory behind explosive growth through the emergence of new layers or levels of abstraction. At each new layer, the resource that becomes scarce and thus valuable is that which emerges from the transition from scarcity to abundance at the lower layer. This pattern is seen in technologies like Intel, Microsoft, Cisco, and Google which addressed scarcity at one level to enable abundance at the next. New companies like AirBnB and Uber have grown explosively by serving customer needs that were overserved at one level but underserved at a higher level. Addressing this gap explains how some markets can go from no demand to massive demand very quickly.
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Emerging Layers: Theory Behind Explosive Growth
- 1. Emerging Layers Theory behind explosive growth Yaroslav Smirnov | @stellarnode | facebook.com/yaroslav.smirnov
- 2. Scarcity
- 3. Friction Competes with other local musicians Abundance Competes with all musicians worldwide Abstraction
- 5. Intel ASSEMBLY LANGUAGE § Friction § AbundanceAbstraction
- 6. Microsoft UNIVERSAL OPERATING SYSTEM § Friction § AbundanceAbstraction
- 7. Cisco § Friction § AbundanceAbstraction UNIVERSAL NETWORK EQUIPMENT
- 8. Google § Friction § AbundanceAbstraction PAGERANK
- 9. Facebook § Friction § AbundanceAbstraction SOCIAL GRAPH
- 11. Key takeaway At level i+1 of the stack, the newly valuable resource is that which emerges as scarce out of the transition from scarcity to abstraction to abundance at layer i.
- 12. Customer needs and service
- 13. Overserved customer is a dangerous one.
- 14. Overserviced Customer ServiceJob-to-be-done Underserviced Lower-level needs Higher-level needs This is where the magic happens!
- 16. AirBnB Overserviced Underserviced “But I just need a place to stay” § Little competition from incumbents § It is doable (no significant barriers)
- 17. Uber Overserviced Underserviced “I just want to get from point A to point B.” 95% of the time my car sits idle. Ask WHY you own a car in the first place
- 18. Other examples
- 19. Key takeaway The particular combination of customers overserved at level j while being underserved at level j+1, when it happens, explains how from time to time we see markets where the demand is zero and then all of a sudden a vertical line straight up.
- 20. How it all leads to explosive growth