I went to see Sujal Patel give an intriguing talk on “Introducing Disruptive Technologies into Mature Markets” this Friday. Listed as starting at 6:30 (it actually started at 8, but that’s a different story), my expectations were high as I dragged myself out of bed at 5:30, after a mockingly short 5 hours rest. It didn’t disappoint.
In brief, his three keys to dethroning your gorilla:
1) Possessing a “disruptive technology.” According to Patel, for a new product to make a dent in an existing marketplace, it must be at least 10x better than similar existing offerings. Not twice as good, not five times as good. The logic behind this is that a product anything less than 10x better will not be able to cross the chasm into the early majority, because all breeds of majority adopters (early, middle and late stage) are compelled to adopt only when a product is so overwhelming better that it justifies the investment of time to learn it. This matches my intuitive perception of user adoption patterns — I’m certainly unlikely to adopt something new unless I can clearly see high benefit and low risk (i.e., of the new technology disappearing) to doing so.
2. Tenacity. Though this one is somewhat obvious, the depth to which it is necessary is something that new or non- entrepreneurs may not understand. Patel gave the example of spending literally three months in VC meetings for “all but two days. ” In many of those meetings, he was assured that his idea “was like so-and-so’s idea,” but worse. Other challenges in his case involved convincing VCs that two late 20-somethings, who knew almost nothing about storage, could build a successful storage company amongst a landscape of almost 100 competitors. An illuminating example that he didn’t give was that, as he lectured us, his company had dropped in value almost 22% in the last couple months on news of poor fourth-quarter earnings. Nevertheless, he had to show up, organize an hour-long show, and preach the perfection of his company’s execution. Guts.
3. Partners=results. If there is a single, overarching requirement for success, it is surrounding yourself with the absolute best people that exist. He specifically mentioned the need to find “high ceiling” people who have separated themselves from their peers. When asked in the Q&A session why he’d failed to mention “adaptability” as one of the core needs of a new business, Patel responded that “adaptability” is really a function of who you have. Do you have partners that hear the needs of the business and work together effectively to ensure those needs are met? If so, adaptability is already assured.
Overall, it was an extremely relevant topic for me. Thinking about the features of the site that are truly 10x better than their alternatives helps to focus on the core of the business model. And the need to partner was one that I had already understood, but Patel’s commitment to not compromising on a less-than-ideal partner certainly resonates, as my search for able accomplices extends into weeks from what I’d hoped would be days.
Bill Competition, Entrepreneurship, Motivation, Progress, Technology
