How to Eat an Elephant, One Atomic Concept at a Time

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Jul 10, 2023
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How to Eat an Elephant, One Atomic Concept at a Time
In the world of technology and innovation, building a successful platform is no easy feat. One of the key challenges faced by new platforms is attracting developers to build on top of them. Without a large user base, new platforms struggle to create an ecosystem of add-ons that can meet the diverse needs of users. This is why established platforms have such enduring success.
To thrive in the market, platforms need to have a higher-level understanding of the components and variants that make up their ecosystem. They must be able to adapt to changing customer needs and emerging use cases. When customers change, the function of a tool may remain the same, but the type of user changes. Different types of customers have different priorities and product needs, which can drive the emergence of new atomic concepts.
Changing customer needs are the largest source of entropy in markets. When customer needs rapidly change, incumbents face the challenge of adapting their products to meet these new demands. However, legacy companies often resist changing core parts of their product for every new use case, as it can be costly and time-consuming. But occasionally, a small use case grows into something large enough to support its own company, giving startups an opportunity to become compelling contenders against incumbents.
Understanding the importance of atomic concepts is crucial in building successful products. Atomic concepts refer to the fundamental building blocks or components of a product. The best products are those that align with how customers think about their workflow. They match the abstraction level of their customers, providing a balance between usability and flexibility. For example, Figma builds on Sketch's approach but includes a greater focus on the collaborative process, while Canva's atomic concepts revolve around templates and components to help users easily accomplish their tasks.
New workflows and different customer types often have different priorities compared to existing customers. It is the changed atomic concepts that make startups a compelling contender against incumbents. Blockbuster, for instance, failed to embrace digital transformation because execs, store operators, and investors resisted changes that would turn their consistent business into a high-risk venture. In contrast, companies like Figma and Canva have embraced new atomic concepts that cater to evolving customer needs.
Building for collaboration is a significant challenge for many companies. Figma, with its technical prowess and knowledge of new technologies like WebGL, was able to overcome this challenge and build a product that enables seamless collaboration. This led to a complete rethinking of the company, including new pricing models, distribution models, and sharing form factors.
Canva, on the other hand, offers a lightweight editing experience with easy templates and a process for making small changes quickly. The platform's ecosystem of add-ons allows Canva to address the varied needs of its customers, far beyond what one company could achieve on its own. This personalized approach empowers customers to use Canva in a way that suits their specific use case and aesthetic preferences.
Treating marketplaces as first parties has several benefits for companies like Canva. It increases the value of the product and cements platform network effects. Companies often struggle to navigate customer needs because customers themselves may not precisely know what they want. The best companies introduce better atomic concepts that push their customers forward and help them achieve their goals more effectively.
Becoming a platform or going multi-product is key to compounding into more meaningful companies. Founders must understand that their products are complex and opaque to outsiders. They need to regularly refactor their products and narratives to maintain clarity and simplicity. Strong atomic concepts serve as the foundation for this clarity and enable effective communication with both users and employees.
In conclusion, building a successful platform requires a deep understanding of atomic concepts and the ability to adapt to changing customer needs. By focusing on these key principles, companies like Figma and Canva have been able to build thriving ecosystems around their products. Here are three actionable pieces of advice for founders and companies:
- 1. Continuously reassess and adapt to changing customer needs: Stay attuned to evolving market trends and be open to redefining your product's atomic concepts to meet new use cases.
- 2. Foster collaboration and build for it: Invest in the technical infrastructure and processes that enable seamless collaboration among users. This can lead to significant improvements in product value and open up new opportunities for growth.
- 3. Embrace ecosystems and empower customers: Leverage the power of an ecosystem by allowing individuals or companies to build add-ons and extensions for your platform. This not only expands the capabilities of your product but also creates a loyal and engaged community.
Remember, the success of a platform lies in its ability to understand and address the atomic concepts that underpin its product. By prioritizing customer needs, fostering collaboration, and embracing ecosystems, companies can build enduring platforms that revolutionize their respective industries.
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