Building Products & The Importance of Focus: How Software is Revolutionizing the World of Supply and Demand

Kazuki

Hatched by Kazuki

Aug 25, 2023

4 min read

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Building Products & The Importance of Focus: How Software is Revolutionizing the World of Supply and Demand

In today's fast-paced and ever-evolving world, the success of product managers and founders often hinges on their ability to maintain focus and stick with one idea for an extended period of time. The days of being a jack-of-all-trades, with a wide range of products to pitch and sell, are over. Instead, building great products requires unwavering conviction and dedication to a single vision.

The concept of focus is not limited to product management alone. As technology continues to permeate every aspect of our lives, we are witnessing a seismic shift in the way the world operates. The rise of software and its ability to disrupt traditional industries has ushered in a new era of abundance, where access to resources and information is no longer scarce.

In the past, scarcity was the organizing principle of our society. The scarcity of goods and services meant that only a select few could enjoy them, and those who controlled the supply held the power. However, with the advent of technology, we now have the ability to do more with less, enabling a greater number of people to enjoy the same benefits at a fraction of the cost.

This shift from scarcity to abundance has given rise to a new form of emergent scarcity - attention and loyalty. In a world where supply is no longer the limiting factor, demand becomes king. This is where Ben Thompson's idea of aggregation theory comes into play. In the pre-internet era, profits were captured by controlling supply. However, in the post-internet world, profits are captured by aggregating demand.

We see this unbundling and rebuilding happening in every industry that has been influenced by software. Take the music industry, for example. Songs were once bundled into CDs, which were controlled by record labels. However, with the advent of digital music platforms, songs have been unbundled and are now rebundled into playlists curated by individuals or algorithms. The same can be said for articles, which were once bundled into newspapers but are now unbundled and rebundled into social media feeds.

This shift towards curation highlights the increasing importance of capturing attention and loyalty. In a world where information is abundant, consumers are overwhelmed with choices. The ability to curate and filter content, products, and services becomes paramount in capturing and retaining customers. It is no longer enough to simply offer a product; it must be tailored and presented in a way that captures the attention and loyalty of consumers.

Looking beyond media and entertainment, the impact of software and technology on industries such as education, housing, and healthcare cannot be understated. These sectors are ripe for disruption, and technology has the potential to revolutionize the way we approach these fundamental aspects of our lives. From online learning platforms that democratize education to smart homes that optimize energy usage, the possibilities are endless.

In this world of abundance, where the barriers to communication, access to products, and getting work done are significantly reduced, it is crucial to understand that the fundamental variable is no longer the unit of production or the unit of capital; it is the unit of demand. Building great products and capturing the attention and loyalty of consumers requires a deep understanding of their needs and desires.

So, how can product managers and founders navigate this new landscape and build successful products? Here are three actionable pieces of advice:

  • 1. Find Your Focus: Resist the temptation to chase multiple ideas or jump from one project to another. Instead, identify a single idea or vision that you are passionate about and commit to it for an extended period. This unwavering focus will not only allow you to build a better product but also demonstrate your conviction to potential investors and customers.
  • 2. Embrace Curation: In a world where consumers are bombarded with choices, the ability to curate and present your product in a way that captures attention and loyalty is crucial. Understand your target audience, their preferences, and the platforms they engage with. Tailor your messaging and presentation to resonate with them and provide value in a way that is unique and compelling.
  • 3. Embrace Technology: Embrace the power of technology to disrupt traditional industries and find innovative solutions to age-old problems. Whether it's leveraging data analytics to personalize user experiences or utilizing AI to automate processes, staying at the forefront of technological advancements will give you a competitive edge and enable you to create products that truly make a difference.

In conclusion, the importance of focus in building successful products cannot be overstated. In a world where attention and loyalty are the new scarce resources, product managers and founders must commit to a single idea and demonstrate unwavering conviction. By embracing the power of technology and leveraging the principles of aggregation theory, they can curate and present their products in a way that captures the attention and loyalty of consumers. In this era of abundance, the key to success lies in understanding and catering to the unit of demand.

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