AI will transform markets and many new business models will emerge. There is nothing more; new technologies enable and expire business models. Let us see how mobile internet and AI affected two companies:

Option A: Have 10 great movie producers produce 200 short videos for your digital platform over two years (Quibi like). Quibi was a media company which developed short videos optimized for smartphones.

Option B: Allow tens of thousands of amateur creators, and use an AI to select the best videos daily and distribute them massively in your platform (Tiktok like). TikTok is a short-video sharing app and social network platform.

In 2000, Option A would have been a good business because the computing resources to run AI and crunch the numbers were not (commonly) available for Option B. But with cloud computing and the age of AI here, Option B wins. The probability of getting a hit video compounds in Option B while A is limited by the insights of just 10 people; virality is key for short movies, on mobile.

The foundational model of TikTok is supreme. Quibi did go bankrupt despite being under the guidance of legendary Jeffrey Katzenberg and former eBay CEO Meg Whitman. People, as I have noted in the Grand Playbook of Business, your business model is more important than your ability to execute.

Yes, in Igbo mythology, dreaming about fetching water is a good thing because it symbolizes vitality as the road to the stream is never covered by weeds. But dreaming of fetching firewoods is bad, as after the firewoods are gone, the weeds take over the road. So, you want to be fetching water over fetching firewood as it means there is a future (the road is never covered by weeds). Quibi was like going to fetch firewood while TikTok is going to the stream for water. 

The consistency of the AI discovering and releasing new viral videos, in a sea of constantly updated millions of new videos,  will also keep the ecosystem healthy, unlike Quibi which was frozen in space. My message: improve your business model tech transforms markets.

In the realm of startup culture and entrepreneurship, recent discussions have shed light on the critical importance of understanding user needs and prioritizing customer satisfaction for sustainable business success. Founders, the visionary individuals behind innovative startups, are increasingly recognizing that meeting user demands not only drives market potential but also fosters long-term growth and loyalty. 

While starting a startup for financial gain is acceptable, the most successful startups prioritize user satisfaction over immediate profits. Simply, the mission of the firm which is to fix frictions in the market must rule supreme over the financial reward obtainable doing that.  If you focus on the customer, the market will reward you with profit over time. But if you just focus on profit, you will likely lose the mission.

But how do you focus on the customer? Simple: create products and services the customer needs, and not what you think the customer needs. At Tekedia Institute, we have the NEP Customer-Centricity Framework. NEP stands for needs, expectations and perceptions; we teach that the best companies do not just satisfy the Needs, the Expectations, but can meet the Perceptions of customers, through innovation.

Read the NEP in my piece in Harvard Business Review here . Watch this video here.

Understanding and exceeding customer expectations has become a cornerstone of success in today’s dynamic business landscape. Businesses are no longer solely focused on meeting basic customer needs but are now striving to surpass expectations to differentiate themselves from competitors and foster growth. This shift stems from the evolving market dynamics and changing consumer behaviors that demand a deeper understanding of customer perceptions.

Customer perceptions, defined as the subjective views and beliefs customers hold about a company’s offerings, play a pivotal role in shaping brand loyalty, profitability, and competitive advantage. By embracing customer-centricity and disruptive innovation, companies aim to not only meet but exceed these perceptions to secure their position in the market.

How do you thrive in business? I will take you to Oriendu Market Ovim and this is the answer: “ahia oma na-ere onwe ya” which means that a great product will sell itself. It is not saying that you do not need to advertise. Rather, the Igbo proverb is saying that if the product is great, customers will come, and they will repeat, and they will recruit other customers, because great products create fandom.

So, to thrive in business, the African business worldview encapsulated in that Igbo ageless line (other tribes have different versions) challenges companies to make great products. Then, they did not stop there; there is another component which is “onye nwere mmadu ka onye nwere ego”; he or she who has networks, contacts, relationships, etc, is going to be more successful in business than someone who has just money. This is about building trust in the market, and nurturing relationships because business wins on intangible factors of production which even capital or money cannot deliver.

Join me today as we discuss How To Thrive in Business, and Keep Thriving – Ndubuisi Ekekwe | Sat, July 13 | 7pm-8.30pm WAT . Looking at data from dozens of Tekedia Capital startups, I have put together 5 core factors which define winning and thriving  in markets. This is Tekedia Institute, our product is knowledge.

Please note that we have opened registrations for the next edition of Tekedia Mini-MBA; register here and get the early bird discount now