Unveiling the True Innovation of TikTok and the Importance of Post-PMF Strategy

Unveiling the True Innovation of TikTok and the Importance of Post-PMF Strategy

In the world of AI engineering, there is a well-known challenge called the "cold start problem." It refers to the difficulty of determining who to recommend to new users (TikTokers) when there is limited data available. However, TikTok has a fundamentally different mechanism. Even if a new user posts uninteresting videos, they can still be viewed by hundreds of people. This is because TikTok distributes the burden of watching new videos among all its users. Only TikTokers who have already gained a certain number of fans are allowed to post one-minute videos. By leveraging the characteristics of short 15-second videos, ByteDance has ingeniously solved this problem using a human-in-the-loop approach.

However, we must question whether this pursuit of content creation is driven by a genuine desire to contribute to the content itself or simply to expand one's influence. The efforts and training to increase influence will gradually lose significance. In the future, even content created by unknown individuals can reach a wide audience as long as it holds value. So, how should non-influencers navigate this new landscape? The time we are given in life is limited, and we must always anticipate what is important in the next era and proactively seize meaningful opportunities.

On the other hand, before we can even think about expanding our business, it is crucial to consider the concept of Post-PMF (Product-Market Fit). Peter Thiel's four rules provide an excellent framework for this. The key factor is that once we start scaling our business, implementing a post-PMF strategy becomes increasingly challenging. We need to build strong defensibility against competitors to ensure the sustainability of our business. The rapid evolution of technologies, particularly in the IT and software industries, such as AI, IoT, and Blockchain, makes them prone to commoditization.

To establish defensibility, we must focus on four factors: proprietary technology, network effects, economies of scale, and building a strong brand. Proprietary technology is essential, but even if your technology is currently 10 times better than others, it can quickly be replicated, diminishing its defensibility. Therefore, it is crucial to continuously innovate and stay ahead of the curve. Embedding a crazy amount of proprietary technology into our products can help maintain a competitive edge.

Network effects occur when the value of a product or service increases as more people use it. By building a strong network of users and fostering engagement, we can create a virtuous cycle that attracts more users and solidifies our market position. Economies of scale also play a crucial role in building defensibility. As we expand our business and increase production or user base, we can achieve cost advantages that smaller competitors cannot match. This allows us to offer competitive pricing or invest in further innovation.

Lastly, building a strong brand is essential for long-term success. A reputable and recognizable brand not only attracts customers but also instills trust and loyalty. It differentiates us from competitors and creates a connection with our target audience. By consistently delivering value and maintaining a strong brand image, we can establish a solid foundation for sustainable growth.

In conclusion, TikTok's unique approach to content distribution and ByteDance's human-in-the-loop solution demonstrate the power of innovation. As the era shifts towards valuing content based on its inherent worth, non-influencers must seize meaningful opportunities to make a difference. Simultaneously, businesses must consider a post-PMF strategy to ensure long-term success. By focusing on proprietary technology, leveraging network effects, capitalizing on economies of scale, and building a strong brand, companies can establish defensibility and thrive in a rapidly evolving market.

Actionable Advice:

1. Embrace the era of valuing content based on its intrinsic value. Focus on creating meaningful and valuable content that can resonate with a wide audience.
2. Continuously innovate and stay ahead of the curve to maintain defensibility. Embed a substantial amount of proprietary technology into your products or services.
3. Prioritize building a strong brand. Cultivate trust, loyalty, and differentiation through consistent delivery of value and fostering a connection with your target audience.