You need to make sure your products are 10x better than your competitors. Why? Well first, youre likely exaggerating how much better your new products are. In addition, as youre innovating – producing that order of magnitude improvement – so are your competitors. If you shoot for 10x better you might hit 3x better, and if you achieve that – you win.
“Incremental improvement is guaranteed to be obsolete over time. Especially in technology, where you know there’s going to be non-incremental change.”
Alphabet CEO Larry Page
Lessons from watchmaking
There are many examples of 10x jumps in history. For centuries Swiss watchmakers yearned to improve the accuracy of their mechanical watches. Even with exquisite craftsmanship and precise tools – accuracy improvements were minimal. To 10x accuracy – a revolutionary new approach was needed.
The winners – with the first quartz watch – Seiko. The Astron was the world’s first successfully marketed electronic quartz movement watch. These electronic watches were 10x more accurate than the best mechanical watches, and cost 90% less. Still today you can buy a £10 Casio watch that’s more accurate than a £10,000 Rolex.
“It’s often easier to make something 10x better than it is to make it 10% better”
Astro Teller, Google
Volume can beat precision
One day a ceramics teacher decides to run a split test – not for one class but for a whole year. Team A will have their pottery graded based on “quality”. Team B would be graded purely on the “quantity” of pots created – just churn out as many pots as you can this year.
At the end of the year, the best pots, both technically and artistically came from Team B – the quantity group. By making a high volume of pots they were learning and adapting. Their goal wasnt to create the best pots – yet they did. By 10x’ing their production Team B outperformed Team A. The quantity group won.
Is there room for another competitor?
Some entrepreneurs enter the wrong markets. In many markets success is usually binary. Over-optimizing for dilution usually ends badly. So far the Internet has created a “winner takes most” marketplace. The largest player is highly successful and the rest are nowhere. YouTube vs its competitors is a good example.
Focus on people not products
Steve Jobs rarely talked about the features of Apple products. He knows the average consumer doesn’t care. The geeks who do care can find that information on the website.
Jobs focusses on how the product affects you. He mentioned how dumb it is to carry both a phone and an MP3 player – with an iPhone, you now have just one device. Apple are the best on delivering simplicity, productivity, style — all things he knows the public are truly interested in.
Jobs built products to help people achieve their dreams. Apple’s marketing strategy is, in many ways opposite to most other organisations – Apple starts with their vision, their beliefs and their ‘why’ – then bring in the product. The result? Customers want to buy their products.
Allow your people to take risks
The people you hire are professionals – they want to do great work. When they make mistakes, its usually the result of good intentions. Most companies talk innovation but don’t live it. As an organisation grows, it starts to insulate itself from failure. The goals are more about protecting the downside than optimising the upside.
The best are persistent problem solvers
Steve Jobs famously said; “When you start looking at a problem and it seems really simple, you don’t really understand the complexity of the problem. And your solutions are way too oversimplified. Then you get into the problem, and you see it’s really complicated. And you come up with all these convoluted solutions….That’s where most people stop.”
Not Apple. It perseveres. “The really great person will keep on going…and find the key underlying principle of the problem and come up with a beautiful, elegant solution that works.”
Test monetisation of your product early
You can easily fool yourself into believing that there is inherent value in your product. However, you only really know if your product is worth paying for when customers vote with their cash. You have to be sure your product is solving a problem that buyers are willing to pay to solve. You should never assume there is a problem that needs solving.
Power Positioning
Positioning is the set of things your organisation does to place your product clearly in the minds of your buyers. If your positioning is unclear, your buyers will be confused. A confused mind doesn’t buy. Remember your product doesn’t have to be 10x better in all aspects. But where does it excel?
You can have the greatest idea in the world however if you can’t get users excited about it – it will fail. Communicate with passion. Steve Jobs turned product launches into an art form.
Create insanely great experiences for your users. Connect with them and look for ways to enrich their lives.
Use data, not opinions
As a product manager there are things you can do to promote 10x thinking.
“If you have facts, present them and we’ll use them. But if you have opinions, we’re gonna use mine.”
Jim Barksdale, CEO Netscape
Use data to drive your decisions, not opinions. Favour truth over intuition.
We like to think we’re hired for our brilliant instincts. When you switch from opinions to data – you move faster. Don’t argue for weeks; test your assumptions and see what works .
The biggest barrier to 10x thinking is a stakeholder saying “that will never work”. If you rely on opinions – you’re always going to be on the back foot. Use data to prove doubters wrong.
For a new product or startup – focus only on business specific code. Dont make things people wont use. If theres an option to rent or buy a tool – do that – dont build it yourself.
Launch with an armada
You want to launch with a big bang not a whimper. You want the news of your product launch to spread like wildfire to maximise leverage and minimise marketing cost.
Your armada should consist of the people in your company, partners, industry experts and thought leaders Think big. Who would you include in your armada?