When reviewing companies we look at what the product actually does.
- How does it work?
- Why should anyone care?
- What is the relationship between your product and your customer?
The simple way to look at it is defining the measure of disruption as a function of benefit to the customer and the ease of adoption.
Benefit/ Value to Customer
People value Time, Money and Things that make them happy (Recreation/Pleasure/Friends/Family)
- What is the value proposition for a customer?
- What is the increase in their utility?
- How are you enhancing their experience to save time, money or indulge more in the things that make them happy?
Ease of Adoption
Now if you believe you have something that will be of great benefit to a customer, it will need to be easy to adopt and integrate into the customers’ behavior and/or business.
- How accessible is it?
- This goes beyond making it a mobile app and in the cloud. How accessible is it for them and other players involved – be it people or data.
- How natural is it for them to begin using it? What are the existing behaviors?
- What is the ease of adoption?
- If there is a cost to change their behavior, how big is the benefit? Does it outweigh the cost? By the way, changing behaviors completely is very difficult.
Case Study: Air BnB
Benefit/Value to Customer
– Save Money
– Save Time On Booking a place to stay and Finding activities/places to go by staying with a local, and it makes them happier to get to things that provide pleasure – food, recreation, etc.
– Increases overall utility
Ease of Adoption
Existing Behavior: People search places to stay for travel: Home Stay, Air BnB, Hotels, Smaller Hostels
Made Accessible by providing transparency online, images of the place to stay and contact with host directly
Grew the home stay industry from Craigslist and personal sites
Disrupted the hotel industry for personal travel
Created opportunity by increasing the supply side by putting more places on the market and allowing people to earn additional income