Finding the right product amidst the hype
Media is a profit-driven sector that focuses on getting more attention from people. To increase this attention, they use the basics of human psychology, and human psychology always looks for stories. Since abstract situations are more difficult to understand, we create a story with a timeline, create a hero for it, and then dramatize and create a fairy tale.
By extension, in tech articles, you can find many so-called heroes, utopias, and unicorns that are designed to fulfill people’s expectations. This situation brings two main problems. First, the real value of the technologies, people, or companies can be underestimated or exaggerated. Second, it can create an overblown sense of hype that colors all agendas for a long time and blurs people’s perspective.
If we look at some examples of hype over the last decade, we can list them as Augmented Reality, Chatbots, Blockchain, IoT, VR, and now AI. By listing these as “hype,” I’m not trying to claim that they are worthless or ineffective technologies. The main problem is, when a technology is getting hyped, the media pulls a blackout curtain and everything on the outside is expelled. As a recent example, if you are creating a start-up nowadays and it is not somehow related to AI, you won’t get much coverage in the media.
This type of hype also creates common motivation and cultural awareness and become a gravity point for founders and capital. Thousands of ideas race to be the next unicorn. Many of them fail, and only a handful of them survive and move for the following steps.
To be a hero who survives at the end of the movie, you have to check for this list before diving into the hype.
Know your technological limitations
Even though the hype always says these new technologies will revolutionize everything in a couple of years, in reality, this revolution happens slower and in a narrower field. A small working prototype for a niche problem does not always mean it can be applied in a broad business case. Even if it has the potential to be applicable, you may need to invest enormous amounts of time and money to be successful.
For instance, self-driving car technology started to get traction ten years ago, but we still do not have a valid common usage even though billions of dollars have been poured in from large corporations.
To overcome this problem, you research the technology and its capabilities in detail. Even if you are keen to go forward, adjust your expectations. As a result, you will be able to understand your potential and abilities.
Do current and potential market research
If the market is not large enough or your approach does not involve the whole market, your idea will not be able to create a profitable operation. Also, every layer in the user experience creates a barrier, and every barrier puts you one secondary level above the market. In these cases, your idea would not be sufficient to run as a business even if it runs on a large market.
Prominent UK startup Blippar is an excellent example of this. They were the leader of the Augmented Reality hype, which has worked in a massive ad market with the world’s best brands. However, their solution was not adding real value to the brand due to the technological limitations of the user experience. They couldn’t generate enough revenue and had to close their doors after burning $131.7 M.
Knowing your market size and potential will draw a safe path for you and your investors. You may not be a unicorn, but you can be a medium-sized company that is profitable.
Look for regulations
Regulation always follows after technology. In some cases, this lateness may cost you too much and or put your idea in a life-or-death situation.
For instance, Uber or similar ride-hailing companies are still not allowed in certain countries or cities due to their local transportation laws. Clashes of Uber and councils or cab unions has been a standard reel for news. Another niche example: due to the Highways Act passed in 1835, riding an electric scooter is still illegal in London. Even famous USA electronic scooter brand Bird was able to make a small showcase in London Olympic Park (private property) as a result of this regulation.
Researching these regulations will help you define your abilities, which will help you estimate how long you have to fight with these conditions — or show you an alternate solution.
Measure your impact
You will only be as successful as the impact of your idea. For instance, if your approach is 10x powerful, it can create its market and bring many benefits. However, if it is adding a subliminal value to the current processes, this impact will be small, and you may not get enough traction. Knowing your strengths would be an excellent start to getting better results.
It’s cliché, but an excellent example of this is Google. There were dozens of search engines in the market when Google started, but due to the quality of their search results, have turned the whole market upside down in a couple of years.
Be aware of the culture
Culture is the main factor that directs us on how to behave, sleep, eat, and live. Cultures evolve slowly and can have distinct differences between countries, religions, languages — even in different postcodes. You have to know the culture of your proposed market in detail. You have to be successful in a particular culture initially and then adapt your project into other cultures.
A four-hour drive is not much for an American, but it is a long drive for a European. People buy takeaway food more in large cities, but people drive to restaurants in the countryside.
You have to know the culture in detail for your proposed market. Copying and applying an exact idea may not be the best solution. An excellent example is Go-Jek, which is popular in Southeast Asia. They are using Uber’s business model concept, but since motorbikes are more convenient in these countries, they have adopted a motorcycle-based cab service with the same ride-sharing standards.
As a final note, there is not just a specific exact path. But having a careful approach will help you to avoid obstacles.
