Product & Startup Builder

Apps are not businesses

Added on by Chris Saad.

Business requires a clear mission, target market, brand and brand voice, go-to-market strategy, business and pricing model, customer journey, user experience and more.

These things need to align and work as a system over a sustained period of time and iteration to produce a successful result.

This requires that your team and its leadership are collectively explicitly aware of these key decisions and work in alignment to execute them well. It might even require that you create a new business unit or business!

If you can’t get alignment, someone needs to be the final decision maker and the others need to disagree and commit.

Sometimes the decision is made by leadership. Sometimes the leadership trusts the operations team of domain experts they assembled. But it needs to get made and the others need to commit.

The decision should be fully informed (with all the facts and best thinking) and fully committed (even by those who disagree) - or a team struggle will persist, undermining morale and effective execution of anything.

If you just ship an App, or a new feature, without aligning the business properly, it will fail.

The clearest example I can think of in recent memory is the Taxi industry, In response to the threat of Uber, many of the Taxi companies released or started more heavily promoting an App. What they failed to do, however, is understand that Uber's entire business model was totally different and more efficient than theirs.

Peer-to-peer supply without pre-determined shifts (meaning a more elastic supply with less scarcity), lightweight enablement of drivers via mobile phones (vs. 100k fit-outs of the Taxis with cages, livery, proprietary meters and other in-car tech, etc), mutual accountability with ratings (vs. unaccountable drivers and riders doing unaccountable things) and yes, massive subsidies powered by a global high-growth, venture capital based business plan (vs. regional, revenue-based model).

These were the things they were really fighting - not just an app.