greg & kevin on apps and business strategy

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Greg & Kevin on Apps and Business Strategy

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Post on 20-Aug-2015

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Greg & Kevin on

Apps and Business Strategy

THE BIG EVILexcess capacity

In Porter’s 1985 landmark Competitive AdvantageBeyond the traditional five forcesIndustry profitability is shaped by EXCESS CAPACITY

Industries drain awayWhen supply and demand tipInto excess capacity

THE BIG EVILexcess capacity

EXCESS CAPACITYpricing

First profits go awayFull costing then moves to Costing At The Margin

To lossesTo industry rationalization

Matching supply & demand pain

NOW WE HAVE APPSUber for everythingApps for everything

More apps than we can countAccessible everywhereBy everyoneBuilt by anyone

WHEN TWO IS TOO MUCHexcess capacity

One app can service the world’s demandTwo apps doing the same thing is global industry excess capacityThen the rot sets inWTF

Deep funding | High riskFirst to growth with only one winnerPower of the Network Effect

Silicon Valley Approach

How Do We Approach This

Strategically | Carefully

A FRAMEWORK | CORE COMPETENCIES

#1 variety of markets can be accessed#2 significant customer benefit

#3 difficult to imitate

Hamel & Prahalad

identify

APPS | COMPETING TO WINFOR CORPORATIONS

#3 difficult to imitate

#5 key steps | DIFFICULT TO IMITATEbeyond software development

embedding your brandaccess value chains and business

processesleverage data pools

alternative monetization streams

Reflections By

Greg McKee | CEO ConnectKevin Potter | CEO KPFB