Hi nerds -
I salute you from Panama City, as I pack my bags to cross the Pacific Ocean tomorrow. But more details on that later..
This week, I’ve been taking a strategy course with NYU Professor, Scott Galloway, where we go over the “T-Algorithm”: the main strategies implemented by trillion-dollar firms. I’ll be sharing some of my insights within the next few editions.
I also wrote an article answering a question I get too often: “How to hire software engineers (if you’re not technical)”. You can find the article here.
3 brain farts
👵🏻 Benjamin Button products: One of the most fascinating concepts presented in Prof Galloway is that we should strive to create Benjamin Button products.
Cars, computers, and toys, for example, are all products whose value depreciate over time. Au contraire, Benjamin Button products’ value increases as time passes by thanks to their network effect.
Network effects are created by two variables:
- The amount of new users in the platform;
- The amount of times those users interact with the platform.
Every additional user makes the product more valuable thanks to (1) the content they create, (2) the friends they bring along, (3) the food they provide to the algorithm with every interaction. Twitter is a great example for this, as is TikTok, YouTube, and Waze.
But social media platforms are not the only ones who can implement this strategy. Any time we get new clients, gather data on their needs, and provide a great service, we can better our product and work the network effect by asking them to share reviews. Every testimonial increases product’s perception, which then increases organizations’ growth and margins.
💍 University Monogamy: Best understood as “recurring revenue bundles”, rundles are products or benefits a user gets by paying a recurring fee.
The best example of this is Amazon Prime’s subscription, where users pay a recurring fee to get faster and often free shipping, Prime Video, Whole Foods discounts, unlimited access to Prime reading, Amazon Music, etc.
In a similar fashion, higher education stands to gain huge benefits from implementing a rundle strategy. Shaken up by remote learning, cohort-based courses, exorbitant prices, and a struggle to catch up to bootcamps and market demands, offering a rundle could allow universities to transition from a 4-year model to a life-long learning subscription - creating a monogamous relationships with its alumni and getting profits in a longer-basis.
Pay a monthly subscription fee and get access to unlimited asynchronous courses (better known as MOOCs), access to their facilities, networking events, career services, and x amount of synchronous classes that add to a student's education portfolio.
🎯 Growth trifecta: Creativity, analytics, and purpose are the winning trifecta to any organization (or human).
Creativity unleashes innovation and disruption. Analytics enables efficiency and effectiveness. Purpose drives direction and vision.
- Creativity is sparked through autonomy, trusting employees to implement what they consider are the best strategies for success.
Analytics within organizations is a double fold:
- Data gathering processes: collecting the data
- Analyzing that data: how to get the most out of the information collected
- Purpose is the company’s shared vision, which builds ownership within teams and increases talent retention.
2 intellectual goodies
“The long run is just a collection of short runs you have to put up with”
~ Janel, Brain Pint newsletter
“When you choose a life partner, you’re choosing a lot of things, including your parenting partner and someone who will deeply influence your children, your eating companion for about 20,000 meals, your travel companion for about 100 vacations, your primary leisure time and retirement friend, your career therapist, and someone whose day you’ll hear about 18,000 times.”
~ Tim Urban, How to Pick your Life Partner (Part I)
1 funky audio
This playlist is what I describe as the intersection between a Monday and a Friday.
It’s the bump you need to enjoy working on Monday morning and the perfect hype to dance to on a Friday house party. Of course, this assumes you enjoy house music, funky sounds, and a sweet base.
Thank you for reading.
As always, feel free to connect by hitting reply and sharing a juicy thought 💡.
We all help the curious community grow 🧠.