[1.0] GROWTH SYSTEMS: thoughts on how momentum of technological adoption creates new consumer behaviors & new business opportunities.

This is a work in progress and I will continue to update & explain each point over time…

GROWTH SYSTEMS: thoughts on how momentum of technological adoption creates new consumer behaviors & new business opportunities.

THE CONSEQUENCES OF TECHNOLOGY:

1. Cobb-Douglas economic model [y=output] shows productivity as the main driver of growth [v factors of production; human & physical capital]. Productivity is a direct function of technology
2. Explanation of logarithmic effect of technology in history (pre-industrial age to machine learning-age) re increase in output & movement along s-curves of technologies.
3. Diffusions of innovation & the digital divide lead to unequal adoption curves across consumer groups. Differences exponentiate due to logarithmic function of tech productivity. Different adoption rates lead to different productivity levels and income inequality. Gini coefficient exacerbated.
4. Role of government is to set the stage and realign incentives with regulations

SHIFTS IN CONSUMER BEHAVIORS:

1. At the micro-level, technological adoption creates ruptures in equilibrium between needs + current solutions. In the short run, this leads to new user pain points. New behaviors create new needs which create new behaviors, etc..
2. What user value are you creating as a business? Identification + addressing of unmet needs is an opportunity for new entrants to create a wedge into the market.
3. Look for mega-shifts in organic behaviors. Identifying biggest unmet needs for core behaviors is essential for business success. Maslow’s hierarchy of needs + momentum of pain points + size of addressable market determine size of business opportunity.
4. construct a model for pre product-market-fit. Model rate of change in core behaviors & level of unmet needs on a 2x2 grid * total addressable market = market opportunity

FROM WEDGE TO FULL PRODUCT:

1. A new market entrant needs to build a hook & form a habit with the consumer. trigger/bridge/action/reward & user-level feedback loops.
2. Maximize LTV and minimize CPA from top of funnel through engagement.. Focus will change as a function of level of success and stage of biz lifecycle. Apply growth pyramid roadmap + tools based on growth pillars of heart&mind.
3. An increase in the rate of effective solutions reduces friction and increases the rate of tech adoption, which increases productivity for those within the system

THE GIG ECONOMY AT EQUILIBRIUM

1. Frictionless adoption leads to new decentralized labor models due to increase in productivity per hour. Time and space can be reconstructed to fit the metered laborer. Time can increase based on rate of productivity. Spaces [mental & physical] for individuals can multiply due to increase in time.