Sergii K.’s Post

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Technology Startup CEO and R&D Director | Over 15y in Technical Project Management | Building Lean Operations | Coaching High Performance Teams | Transparency and Kaizen

Quite interesting perspective from Tim O’Reilly. In short. What has brought success to big guys like Amazon, Google, Facebook? With internet, you are overloaded with information, and they are managing your attention, scarce and precious resource. Directing it where it needs to be. A little bit artificial term "rising tide rent" is used to describe why these folks were receiving more economical value (and so grew faster) than other participants of their ecosystem. Basically, positive sum game, where they had a lead. Then now, when their dominance is well-established, while growth is naturally getting slower, they are changing the strategy. Abuse of "paid" search results shifts us a zero sum game, and excess economical value big guys are receiving is solely defined by where and who they are. "Robber baron rent". Personally, I'd just use word "rent" here without overcomplicating things. Funny, but I've seen this pattern many times with restaurants. First years they focus on value. Then they have a reputation and an established client base, and shifting to milk these, as much as possible. Making shortcuts on everything so both food and service slowly becoming crappy. Link is in the first comment #strategy #innovation

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Sergii K.

Technology Startup CEO and R&D Director | Over 15y in Technical Project Management | Building Lean Operations | Coaching High Performance Teams | Transparency and Kaizen

9mo
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