In this video, I explain the Inversibility Construct which is a construct that deals on what digital entrepreneurs must achieve for them to have scalable advantage. Scalable advantage means that you can scale without much burdens, financially. Scalability comes when what is typically a bad customer experience in the physical domain becomes the enduring strength of a digital product.
Your digital startup cannot grow if you do not have a scalable advantage. You must have a means to add new users at a marginal cost model that tends towards zero. In essence, if the market has been perfect (it is not, and nothing is), you must serve customers at zero prices, on the web. But you do not do that since you need to make profit to exist as a business. That is why you have a cost on your apps or you extract tax via advertising.
For the Inversibility Construct, you need to turn a typical frustration in the meatspace into strength in the digital space. That means, you need to INVERSE the experiences of people, so that what annoys them in the physical becomes strength in the digital space. I provide some examples:
- People hate crowded shopping malls; make people to like crowded shopping malls via your products (Amazon, Konga)
- People hate crowded classrooms; make a classroom where everyone is happy when it is crowded (Udacity, Facyber)
- People hate crowded bank halls; make products where everyone enjoys the service when the bank hall is crowded (Paypal, Paystack)
- People hate crowded motor parks with passenger hailers; make a hailer which people like because it is crowding many people together (Uber. Little Cab)
If you fail to inverse the physical domain experience, you have no digital product. There are core anchors that will help you which I have explained in this portal in many areas.
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- Aggregation Construct
- Internet Diminishing Abundance
- Unbounded Distribution Channel
- Marginal Cost
The Inversibility Construct posits what a digital entrepreneur must work to turn the enablers of meatspace poor customer experiences into strengths in digital domain products or services.
Very insightful videocast.
I agree with all your points, while it’s true that digital products are free for users, the company usually pay in some forms (maintaining brand appeal, improving user experience e.t.c). The same advantage that makes them scale is also the menace they can face if they go less in the forms I mentioned above. Cost of switching is basically zero on the consumer end, so while they enjoy unbounded distribution, they suffer far less loyalty in the face of a better competitor.
Thanks.
That is a brilliant one Mayowa. Thanks for this additional insight