THE FATE OF AN IDEA - THE DELTA FOUR THEORY




Bill gates had an Idea called Microsoft

Mark Zuckerberg had an idea called Facebook 

Elon musk had an idea called Tesla

These are not just companies these are ideas turned into reality.

What does it take for an idea to become successful?

Do all the ideas succeed?

The answer is a big NO.

95% of startups are said to be failed.

A thought that strikes my mind always is how do we form a successful idea?

Let's talk about an idea in the terms of startups.

why do the ideas by many intellectually advanced founders not succeed?

Do they lack talent?

Do they lack execution?

Well that might be the case ....but the major reason why startups fail according to Kunal shah

A well known entrepreneurial face and the founder of free charge and CRED is that 

"Founders do not provide an efficient solution to the existing problem"

Does it mean they are identifying a wrong problem?

No.

He also says "Everything in the world is a problem because there is always an efficient way to solve it"

Let's dive deep into the Delta four strategy by Kunal shah.

THE DELTA FOUR THEORY




Before moving into the article 

How much would you rate the following out of 10

Booking a ticket online through IRCTC  vs    Going to the platform and getting your ticket

I would rate the first one as a 9 and the second a mere 3

So what is the difference 

It is 6.

According to Kunal shah, if the difference between the efficiencies of the previous state and the new state is more than 4 then the start-ups are more likely to succeed.

This seemed completely logical and relevant to the present scenario.

Here is the SWOT analysis of this theory 

Advantages of Having delta > 4

1.. It makes your product state irreversible: People will not move back to inefficient State A after moving to State B.

2.It gives you a Unique Bragworthy Proposition (UBP): Word of mouth marketing would help you get the scale you need and you wouldn't need to spend hefty amounts on marketing. Eg. Truecaller is a product that most of us downloaded because someone we know bragged about its value.

3.High Tolerance: Even if customers face issues with your product they will be tolerant and will not shift back immediately to State A.


Is having delta > 4 enough?

there are places where despite having a Delta 4 product, other constraints would lead to the product's failure
1. Affordability: Trains vs Flights. Though flights are a lot more efficient than trains, the costs are high and hence this state is reversible

2.Readiness: If you build an app like Uber but nobody has smartphones, then the app is way ahead of its time though it's a Delta 4 product.

3. Learning Efforts: If the product has a steep learning curve, people will not abandon their current state for a new state. Example: Since most CA's were trained on Tally they will not want to move to better software.

4. Configurations: If an incredible amount of time and effort was spent on micro-configurations on a previous state to make the system personalized for you, then there will be a lot of inertia to move to the new state. For example, replacing your old maid with a new maid.

5. Collective Participation: If the previous state has network effects then moving to the new state is difficult. For example, moving people away from Whatsapp onto a better messaging product is very difficult.

6. Branded Lanes/verbs: When the previous state is used as a verb then the new state will face very tough competition. Example: "Google this" or "Let's photoshop this"



MY TAKE

"This theory seems completely logical and well-framed to me. Founders must evaluate their startup before they jump into building beautiful apps. Yet Ideas alone are not enough you need to get into the field and play the game. We need to be execution-oriented."

"In modern days strategy is overrated, but at the end of the day execution matters no theory can guarantee you success....it is us who should learn from the mistakes and make our idea more refined"

"But before we start off its is a must to evaluate our idea if it serves the interest of the public or not"

"As I always say A well-formed idea goes in vain if it doesn't reach the proper customer"



SOURCES

1.https://twitter.com/AakashJNair/status/1315564854070013953?s=20

2.https://youtu.be/sk6hA6JR9gI










I am hustling monk.

Comments

Post a Comment

Popular posts from this blog

RESERVATION FOR LOCALS - IS IT REALLY REQUIRED? - POSSIBLE SOLUTIONS

Image
What if you aren't allowed to work in Bangalore since you are not from Karnataka ?. This sounds alarming when heard. Because 40% of people working in silicon valley in Bangalore are Outsiders. This is the new idea of reservation for locals. Recently Haryana government passed an ordinance alloting 75 percent of jobs to people hailing Haryana.Previously Andhra Pradesh  was the first government to do this.In this article I would give you a comprehensive analysis on the feasibility and necessity of this types of Ordinance. These governments argue that this would provide the youth in their state with employment  opportunities. WHAT DOES THE PROPOSAL MEAN ? It implies that jobs that will be created in a state will be first offered to only people who belong to that State. It means that some percentage of seats will be reserved for the domiciles of the state and the companies should abide the law .There is different percentages of reservation proposed in different states...
Read more

THE DARK TRUTH THIS PANDEMIC HAS EXPOSED

Image
There are two India's according to me.One India is well out the sight of the other.This pandemic has widened the gap between two sections of the Indian society.I am sure you might be trying to guess what are the sections I am referring to.One is the privileged and the other the underprivileged. Let me demystify a little bit.Corona doesn't believe in Nepotism.Every Human being is equally prone to the attack of the virus.But the kind of treatment when a VIP gets affected is  no way in Comparision with that to a common man.For example when Amitabh Bachchan tested positive the concern that the BMC authorities showed  will not be seen when a person in a slum like Dharavi get infected.In this article I would bring to your optics the inequalities which were prevalent in the Indian society are exposed by corona.   HEALTH CARE FOR ALL ......WHEN? Politicians in India often give election speeches and promise for a complete revamp of health infrastructure.They also promise that...
Read more

NO BODY CAN STOP AN IDEA WHOSE TIME HAS COME -IDEOPLATFORM

Image
Idea is the only asset that a person has.An idea can change the world very drastically.If an idea that was born in a person can influence others in an extreme way it can turn into an ideology and thus turn into a way  of life.For example the religions which can  be  interpreted as way of life are culmination of practices which are formed from an idea that was propagated.every idea need not be accepted by everyone.now let us talk about ideas that can change the lifestyle of people or that can have a direct impact on peoples life.every such idea has a time where the world will be knowing its potential to change.especially when an idea needs to expand beyond its potential,it needs to have constant introspection and constant correction in itself. so as a teenager i feel that there should be a platform for an idea to make sure that it will be showcased to the world in a better way.
Read more