The Time Value of Shipping: How to Build and Improve Products

The Time Value of Shipping: How to Build and Improve Products

Shipping is a Feature is a core principle for product managers. It emphasizes the importance of learning how and when to ship an imperfect product because customer use of the product is what really matters. To further understand this principle, we can apply the concept of the Time Value of Shipping.

The Time Value of Shipping is a framework that highlights the idea that delivering customer value now is worth more than delivering value later. This concept is similar to the time value of money, where one dollar today is worth more than one dollar tomorrow due to inflation. In the context of product development, the price of the basketball represents the users' expectations of the product at any given point in time.

When you ship your product, usually your Minimum Viable Product (MVP), you earn the sum of customer value that your team builds over time. The goal is to build enough value over time to afford the basketball, which symbolizes meeting the users' expectations.

However, if you choose to deliver value later, you need to account for inflation in user expectations. This means that your eventual product needs to be much better to compensate for the delay. The trajectories of customer expectation and value curves illustrate the differences between them. Customer expectation growth accelerates over time, while the value curve plateaus. This is because the longer a customer has to wait for their problem to be solved, the more likely they are to switch to a substitute product.

One important aspect to consider is the scope of the MVP, which grows the longer it takes to ship. There may only be one point in time where you can ship and satisfy users, known as the "gap of doom." This realization often leads to product pivots, as companies realize they cannot innovate at the pace of the industry and need to move towards more attainable customer expectations.

Contrary to the popular belief in shipping an MVP as soon as possible, the time value of shipping suggests that sometimes holding off on a launch, even when it meets expectations, is the optimal thing to do. This is especially true when considering the network effects that come with launches, which have diminishing returns after the initial marketing push.

To summarize, the Time Value of Shipping teaches us that delivering customer value now is more valuable than delivering value later. It highlights the importance of considering customer expectations and the scope of the MVP. Sometimes, delaying a launch can be the best decision to make, especially when considering network effects.

Now that we have explored the concept of the Time Value of Shipping, let's shift our focus to the addiction of self-improvement.

Self Improvement Is Actually Addictive — If You Have the Right Frame of Mind

Improving oneself can become an addiction, the most rewarding kind one can develop in life. However, for self-improvement to be truly addictive, it needs to be approached with the right frame of mind.

Self-improvement encompasses the improvement of the physical, mental, and spiritual self. It is driven by a powerful reason, a "why" to live for. As Nietzsche famously said, "He who has a why to live for can bear almost any how." It is crucial to critically question our efforts, goals, and habits to ensure that they align with our powerful reason for self-improvement. If we can't find a powerful reason behind our pursuits, they might not be worth pursuing.

It is also important to note that solely focusing on productivity and constant improvement can lead to spiritual impoverishment. No matter how productive we are, we may still feel empty. It is essential to find a balance and not solely define ourselves by our achievements. The style of self-improvement may change as we grow older and gain a different perspective on life. The key is to keep improving, as change is life, and stagnation is death.

However, it is crucial to be mindful of our dopamine receptors and the potential for addiction. The more we chase the high of self-improvement, the higher the release needed for the same satisfaction. It is important to approach self-improvement with a self-defined mindset, focusing on what truly matters to us individually.

Incorporating the principles of the Time Value of Shipping and the addiction of self-improvement, we can derive actionable advice for building and improving products as well as ourselves:

1. Ship your product at the optimal time: Consider the time value of shipping and the trajectory of customer expectations. Sometimes, it is better to hold off on a launch to ensure that the eventual product meets or exceeds user expectations.

2. Continuously improve and adapt: Just as self-improvement is a lifelong journey, product development should be an ongoing process. Embrace change and adapt to the evolving needs and expectations of your customers.

3. Find your why: Whether it's in product development or self-improvement, having a powerful reason behind your pursuits is crucial. Understand your motivations and ensure that they align with your values and goals.

In conclusion, the Time Value of Shipping teaches us the importance of delivering customer value now rather than later. It emphasizes the need to consider customer expectations and the scope of the Minimum Viable Product. On the other hand, self-improvement can be an addictive and rewarding journey if approached with the right mindset. By incorporating these principles into our lives and work, we can continuously build and improve products and ourselves.