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“For the simplicity that lies this side of complexity, I would not give a fig, but for the simplicity that lies on the other side of complexity, I would give my life.”
What he means by this is, our initial conceptions of a product or a project are often clear and simple … then in the middle of the project things get almost hopelessly complex.
But on rare occasions, a visionary like Steve Jobs has a clear vision for achieving simplicity and elegance and doggedly pursues this to the end.
In business, being mostly correct and decisive typically yields better results than taking the time to figure out what is perfectly correct.
Those who deliver the most economic benefit to humanity are the simplifiers, the people who bring the fruits of invention and discovery to mass markets.
Benefit × People affected is when the world really changes,
we should celebrate those who bring extraordinary value-for-money to millions.
simplifying is the key to the kind of product and business innovation that creates incredibly high value for customers, society and shareholders alike.
Thesis of this text
The two simplifying strategies are quite different and nearly always incompatible.
you must choose just one of them.
The first we call price-simplifying. This requires cutting the price of a product or service in half, or more.
The new — hugely cheaper — product or service is not identical to the old, expensive product, but it fulfills the same basic function.
the way to cut prices by 50–90 percent is usually not to provide an inferior product, but rather to organize the delivery of the product in a different way that allows much higher volume and greater efficiency .
Yet price-simplifying makes financial sense only if you are able to make the product simpler to make and thereby cut costs by at least half.
proposition-simplifying. This involves creating a product that is useful, appealing, and very easy to use,
Proposition-simplified products are also usually aesthetically pleasing.
products that proposition-simplify do not involve a radical reduction in price; they may even command a price premium.
Proposition-simplifying works when the product becomes a joy to use.
One way to create a huge new market
is to simplify your product so that it is much easier and cheaper to make, and hence sell.
In order to price-simplify, you need to reduce the price by at least 50 percent.
Redesign your product from first principles, cutting out unnecessary or costly parts.
standardize
Reduce the number of c...
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Use different, new, lighter, and cheaper materials.
Go for volume and production facilities that are far larger than those of your rivals.
maximize the specialization of yo...
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Automate ...
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also increase your product’s quality, utility, and ease of use if this can be done without incurring extra costs.
Can you think of a new business system for your industry that could enable you to cut prices by more than 50 percent?
integrated its customers into the production and retailing system,
is there a parallel with your own industry, or...
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Are there ways in which your firm — or a new venture — could offer customers advantages that would not cost you very much, or would even increase profits?
if you invent a way of price-simplifying that works, be sure to roll it out internationally before local rivals have a chance to copy it.
Could you automate an industry or service that has not yet experienced anything comparable?
price-simplifying works as well in a service or retail setting as it does in manufacturing.
Spend time learning about other business models, strategies, tactics, and techniques...you never know whether they might apply to your industry and create a unique competitive advantage
If you are considering price-simplifying, how might you create a dramatically better economic system than whatever exists today in your market?
What might be the equivalent extra benefits in your industry?
Benefits to customers at little extra cost and reinforce your brand reputation
the system, standardized it, and cloned it on a scale that its creators could never imagine.
look for a simplifying system that already exists on a tiny scale but could be made into a universal product and rolled out around the globe.
Also, develop a system that is validated on a small scale, can scale, and duplicate!
He was a proposition-simplifier who aimed to make an “insanely great” product.
Do you find it easier to imagine yourself as a price- or a proposition-simplifier? What about your company?
Price simplified
Do you think this might work in your industry?
Infrared industry is already dominated by proposition players...not much competition on price because of barriers to price slashing
For price-simplifiers, it is a mass market.
Which of these advantages do you think your organization would value more?
My company's innovation and advantage depends on price simplifying by scaling...favors mass market
there can be only one successful price-simplifier in any given market,
Highly competitive on price...then switch to proposition simplified???
Can you think of a proposition that will allow you to carve out a new market and provide your new target customers with a service that greatly increases ease of use, usefulness, and aesthetic appeal to them?
If you are a strong proposition-simplifier, you can create word-of-mouth referral, resulting in explosive growth with little investment in customer acquisition.
Think tesla
Network effects, economies of scale and other volume-based economic “goods” necessitate an intensified competitive stance.
you have to become the leading firm, and you have to do it really fast.
