Day 33: Tuesday
The choir members are hilarious. They’re all adults, some of them quite elderly, but they act like little children […] This meant that yesterday, instead of just chatting during mass, they also told each other to be quiet in between conversations.
This is perfectly like children. It’s kind of a beautiful thing.
Tim have you ever ridden a Segway? I’m going to ride this one to now discuss business models…
So working with early stage companies I come across a variety of ways businesses provide value, ranging from “outsource the humans to other humans” to providing new datasets (e.g. by monitoring something previously not monitored [patients/staff/supplies/etc.]) to making existing datasets useful (e.g. predictive analytics; visual dashboards), among many, many others. It’s a great chance to think about where there are gaps in the market — where there are meaningful problems that there are no real solution for. It has also provided an interesting case study on business models.
Walking through some history, you had mom and pop stores selling things locally — groceries, shovels, bicycles, flowers. Enter Walmart, who truly displaced many of these locally owned stores and sold the same goods. So how did they succeed? They had more shelf space then anybody else, and became a one stop shop — the stores were much larger than what they were displacing and each sold “everything”, at least in that seemingly at that period in time. Having the convenience of going to one store for your cereal, orange juice, and kid’s Christmas present was only part of the story, though. Because Walmart had such scale, they were able to negotiate with suppliers to lower prices; not only could you get Cheerio’s and a rocking horse, but you could do so cheaper than you would be able to anywhere else. That’s part of why Amazon is so interesting current day – by putting your inventory online, you have effectively infinite shelf-space; and by having (free) Prime 2-day (or 1-day/same-day/2-hour depending on location) delivery, you also begin to chip away at the immediacy constraints of traditional retail. Among many other reasons, it’s why Amazon has an interesting business model.
So that’s the kind of business model stuff that’s going through my head (except a lot more detailed and nerdy) when I’m at work talking with these companies. Take yesterday for example. Doctors are highly trained, and thus are “expensive” labor in total dollars. Wanting to keep tabs on patients and visits, when Doctors take notes about visits they are effectively acting as highly trained, very expensive scribes. To help alleviate this problem, there was dictation software — you could speak faster than you could write, and so notes could be gathered quickly. Alternatively, if you put an actual medical scribe in the room, you could have notes taken in real-time, saving the doctors time entirely but now paying another person. The business model continues to move forward — if you put the scribe remotely and simply have an audio and/or visual stream coming to them they could do some from a call center; you could put that call center in a labor market where it is cheaper and also gain the efficiencies in staffing to obviate the down-town it would take an in-person scribe to e.g. switch rooms. Finally, the direction that is exciting, is in the automation of the scribing all-together. To add color, this would be technology that takes the audio and/or visual stream, parses the audio, and then algorithmically places the necessary snippets of information into the relevant fields within the system. What is really exciting about this model is the lack of marginal cost (put too simply: the cost to serve the next customer). Because it is software (outside the very small tech investment to capture the audio stream), no human is being hired to do scribing, and so you no longer scale linearly with costs and revenues, but instead have a high fixed cost up front (to get the algorithm right and have servers to process the necessary information) and then distribute it over every new customer you have.
whew. That was a really large text wall. I doubt anyone has read this far, but I’m going to include a picture and a game as a reward if anyone has.
So Tim here’s how the game works:
- I’m going to draw a base (See below).
- You then draw a base. Then draw something to attack my base.
- I then draw something to defend my base, and attack your base.
- You then draw something to defend your base, and attack my base.
- Repeat steps 3 & 4 (as reasonable)
There are no rules(I kid. I just like it how it sounds intense when people say this…)
- Be creative
p.s. the title of this post was supposed to somehow capture the fun nature of the game and also the very dry nature of my post about business models. I’m imagining someone shouting “Defend our base!” in each case…and in the case of someone shouting it in business in reference to protecting, for example, their customer base, that person would be…annoying.