Not
a business model but much used by tech companies, notice the clean uncluttered
look (websites)? There are reasons.
It
didn’t start this way. Dot.com’ers treated
their website as valuable real estate, plastered with as much content as
possible. With no reference, they looked
to newspapers for inspiration, thus the sated complex look. But this wasn’t the way the internet model
worked. Simplicity
is at the heart.
This
has to do with the innately competitive nature of the global internet. As the internet took off circa 2005 meaning
number of users increased and internet commerce took root, the borderless
environment meant your competitors are only a click away.
This
changed everything.
Customer
service became paramount and in internet commerce, redefined. In traditional business, it has always been
important, that’s what they say but in reality it’s the last item on the list
while for tech firms, it’s near the top.
Customer
or user experience now provides a competitive edge. It is the quality of users’
interactions on a website and how
quickly an act can be completed.
Speed, how easy and pleasing it is to use is
now a digital strategy. Simplifying it
is crucial.
You
probably have clicked to another site because it was cumbersome or slow. To reduce such disasters, reduce
friction.
One
is speed. Google search is already fast but according
to the product manager in an interview, he has an annual multi-million budget
to shave micro-seconds off it.
Market-speak? In fact it was
Google’s search site that first got me thinking about the minimalist search
box-and-nothing-else model.
Such
a look is intentioned so a user goes in, execute and get out quickly. No distractions. Bland quickens. Clicks
are minimised. Obviously for media sites it’s
different but new-gen news sites such as qz.com have a streamlined look. Quite a contrast from the tiring first generation
sites that makes you click through as many pages as possible to increase hit
rates and expose us to more opportunities for ads.
This
simple approach has also shaped recent startups. Browse AirBnB, Indeed.com, Trulia,
Flipboard. It has entered the realm of
business.
The business
of digital
“First,
because they've amassed so much data, Y-Combinator partners can, for some critical
early decisions, tell you that one option is much more closely correlated with
success than another. One example -- at my last company, a sizable contingent
of people believed that the way to move more quickly is to be more
deliberative, more careful, more judicious with precious engineering resources,
and plan in more detail before building something so that we could be sure we
were building the "right" thing -- IE, "measure twice & cut
once." Not an unreasonable position, but one that always sat not-quite-right
with me. The YC partners make it pretty clear that their data suggests the
opposite: you're much more likely to succeed if you get something -- anything
-- even if it's the wrong thing -- built as quickly as possible. That gave me
the confidence to embrace that strategy wholeheartedly.”
Conventional
wisdom says business plans must be carefully completed, in detail. But it seems with internet commerce this may
not be so. Fascinatingly but this was first
observed in the beginnings of the internet.
Just
as the nascent internet showed promise, several jumped in vying to become THE
global network. IBM had their SNA (1974).
The International Telecommunications
Union developed the OSI (1978). They
intended to design better technology (they did) and this meant a more complex
design. In contrast, the internet is
simpler. Today, just about all networks
are based on internet tech; in homes, offices, telcos. Simple won.
Simplicity
continued in the software that runs the internet. You will hear this among programmers ‘Rough
consensus and running code’. It’s what I
call the reverse 80/20 rule, get 20% of the specification done and get it
going. It doesn’t mean the software is
only ever 20% complete but to start.
This became a philosophy, even to tech entrepreneurs. That’s why the new
gen online companies start as though they are an experiment!
Translated
With
complexity versus simple, err
towards simple to get it going. Isn’t this part of agile and lean startup, the latest management techniques? Be
mindful that we were brought up in an age of complexity.
Use
the 20/80 rule as a guide. When designing a digital platform, specify it
less completely then launch it. Let the
market add other features. Never wait
till it’s 80% complete.
With websites, streamline the user
experience. Apply what I call the
2-click principle. It’s not possible
most of the time but this is a way of saying - minimise the number of clicks
when designing digital processes. But
getting to within 2 clicks is great. No
clutter, no distraction. Move everything
that’s not connected to the task elsewhere. Company information shouldn’t be on the
homepage.
Use
personalisation. When
applied to website design, it is the ability to capture a user’s browsing
habits in order to use that information to improve his experience by reducing
his site navigation effort. If a customer usually navigates 4
levels down to a specific brand of lipstick, let her do it in 2 clicks the next
time. And really, websites should be the
domain of business development or sales, not IT.
Many
sites and digital stratagems can be made more effective. The simple model is one guide.
- - - - first version below for posterity - - -
Not a business model but it’s much used by New Economy companies, noticed the clean uncluttered look (websites) of the newer digital start-ups? There are reasons for this.
Not a business model but it’s much used by New Economy companies, noticed the clean uncluttered look (websites) of the newer digital start-ups? There are reasons for this.
The early
dot.com’ers didn’t adopt the simple
design, rather they seem to treat their website as valuable real estate,
plastered with as much content as possible.
With no reference, they looked to newspapers for inspiration, thus the
sated complex look. But it wasn’t the
way the internet model worked. Simplicity is at the heart of internet
culture.
Perhaps this has
something to do with the innately competitive nature of the global internet.
As the internet
took off meaning number of users increased and internet commerce took root, the
borderless environment meant your competitors are only a click away.
This changed
everything.
Customer service
became paramount and in internet commerce, it is redefined. In traditional business, customer service is
always important, at least that’s what they all say but in reality it’s about
the last item on the list while in the New Economy, it’s near the top.
User or customer experience now provides a competitive edge - it is
how quickly an act can be completed, how easy and how pleasing it is to use -
in a digital strategy. Simplifying it is
crucial.
As I, you probably
have clicked to another site because it was cumbersome or slow.
To reduce such
disasters, they continually reduce friction.
The first is speed and I’m not even referring to access which obviously must
be fast.
Google search is
already speedy but according to the product manager in an interview, he has an
annual multi-million budget to shave micro-seconds off it. Market-speak? In fact it was Google’s search that first got
me thinking about the search box-and-nothing-else model.
Such a bland
look is intentioned so a user goes in, execute, get out, the quicker the
better. No distractions. Bland
quickens. These days they don’t hope for
ads on the website, even for ad-based Google unlike the dot.com’ers. Clicks are minimised. Obviously for media sites
it’s different but again new-gen news sites such as qz.com have a streamlined look. Quite a contrast from the tiring first gen
sites that makes you click through as many pages as possible to increase hit
rates and expose us to more opportunities to ads.
This simple
approach has also shaped recent startups.
Browse AirBnB, Indeed.com, Trulia, Flipboard. It has entered the realm of business.
“First, because they've amassed so much data, Y-Combinator partners
can, for some critical early decisions, tell you that one option is much more
closely correlated with success than another. One example -- at my last
company, a sizable contingent of people believed that the way to move more
quickly is to be more deliberative, more careful, more judicious with precious
engineering resources, and plan in more detail before building something so
that we could be sure we were building the "right" thing -- IE,
"measure twice & cut once." Not an unreasonable position, but one
that always sat not-quite-right with me. The YC partners make it pretty clear
that their data suggests the opposite: you're much more likely to succeed if
you get something -- anything -- even if it's the wrong thing -- built as
quickly as possible. That gave me the confidence to embrace that strategy
wholeheartedly.”
Conventional
wisdom says business plans must be carefully completed, in detail. But it seems in internet commerce it may not
be so. This is fascinatingly but first
observed in the beginnings of the internet.
Not many are
aware but in the early days, just as the nascent internet showed promise, there
were several initiatives vying to become THE global network. IBM had their proprietary SNA (1974) while
the International Telecommunications Union developed the OSI (1978). They intended to design better technology (they
did) and traditionally this meant a more complete design. In contrast, the internet’s is simpler. Today, just about all networks are based on
internet tech; in your homes, offices, the telcos’. Simple won.
Simplicity continued
extending to the software ecosystem that powers the early internet and now most
internet software. You will hear this
among programmers ‘Rough consensus and running code’. It’s what I call the reverse 80/20 rule, get
20% of the specification done and get it going.
It doesn’t mean the software is only ever 20% complete. This became a philosophy, even to
entrepreneurs in the internet economy.
Otherwise your
competitors will be upon you in a flash.
And perhaps this
is one reason many new gen online companies start as though they are an
experiment!
Translated
Complex versus
simple...be mindful that we were brought up in an age of complexity but has now
entered another that thrives on simplicity.
In the complex versus simple argument, err towards simple to get it
going.
20/80 rule...use
as a guide. If you are designing an open
platform to engage clients for your site for example, specify it less
completely then launch it. Let the
market add other features. Never wait
till it’s 80% complete.
“A website is not the face of a company, it is the company”
Websites...streamline
the user experience. Apply what I call
the 2-click principle. It’s not possible
most of the time but this is a way of saying - minimise the number of clicks
when designing processes. But getting
within 2 clicks is great. No clutter, no
distraction. Move everything that’s not
connected to the task elsewhere. As
example, company information shouldn’t be on the homepage. Use personalisation. If a user usually goes to a particular
section, bring that into his ‘homepage’.
If she usually navigates 4 levels down to a specific brand of lipstick,
let her do it in 2 clicks the next time.
There is so much one can do. And
really, websites should be the domain of business development or sales, not IT.
Many sites and digital
stratagems can be made more effective.
The simple model is one guide.
©Thet Ngian Chen,
internetbusinessmodelasia.blogspot.com (2014)
