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I spent my early career leading M&A at IAC.
I think it's one of the best places to live & breathe consumer tech
Of all the lessons I learned there, this one from the legendary Barry Diller stuck with me the most:
"Words matter."
What does that mean?
Let’s break it down.
I think it's one of the best places to live & breathe consumer tech
Of all the lessons I learned there, this one from the legendary Barry Diller stuck with me the most:
"Words matter."
What does that mean?
Let’s break it down.
Now your first reaction might be “what’s the big deal?”
I get it. That was mine too, especially in the early years.
But I’ve learned the hard way that words, their framing and ultimately the storytelling behind them can make or break companies.
I get it. That was mine too, especially in the early years.
But I’ve learned the hard way that words, their framing and ultimately the storytelling behind them can make or break companies.
Let’s take a look at today’s “hot trends.” History doesn’t repeat, but it often rhymes:
“Metaverse” → Second Life
“NFTs” → Getty Images
“Mobile Apps” → WAP
Markets (their opportunity, size and attractiveness) look very different depending on how you name them.
“Metaverse” → Second Life
“NFTs” → Getty Images
“Mobile Apps” → WAP
Markets (their opportunity, size and attractiveness) look very different depending on how you name them.
One of the most pervasive words in consumer meets enterprise today is PLG (“product-led growth”).
And for good reason.
There was a moment in time in which PLG was a really helpful way to understand why companies like Zoom, Atlassian, Slack, Dropbox and Calendly were winning.
And for good reason.
There was a moment in time in which PLG was a really helpful way to understand why companies like Zoom, Atlassian, Slack, Dropbox and Calendly were winning.
At its core, PLG described a sales methodology.
The PLG go-to-market strategy is a bottoms-up motion.
Individual users engage with the product, (ideally) love it, and then share it with others.
This builds in a natural viral loop and creates a flywheel effect for companies
The PLG go-to-market strategy is a bottoms-up motion.
Individual users engage with the product, (ideally) love it, and then share it with others.
This builds in a natural viral loop and creates a flywheel effect for companies
While PLG was helpful to clarify thinking around sales methodology, it falls short of capturing a broader trend we’re seeing in the enterprise:
Consumerization of the enterprise.
We are at the earliest stages of total reinvention of traditional enterprise software.
Consumerization of the enterprise.
We are at the earliest stages of total reinvention of traditional enterprise software.
Consumer spend and practices are starting to collide with traditional business categories at an unparalleled velocity.
And the opportunity is big. Consumer spend represents a $24T opportunity.
And the opportunity is big. Consumer spend represents a $24T opportunity.
PLG is a part of the consumerization of enterprise.
I think there are 7 other equally important elements:
1. Customer Obsessed
2. Product-Led
3. Brand with Soul
4. Metrics
5. Right People at the Right Time
6. Organization Design
7. Tools
I think there are 7 other equally important elements:
1. Customer Obsessed
2. Product-Led
3. Brand with Soul
4. Metrics
5. Right People at the Right Time
6. Organization Design
7. Tools
The best "consumerized enterprise" companies I've seen intricately weave each of these 7 elements together.
On the surface it looks easy - none of these 7 elements on their own are rocket science.
The magic is how they all fit together.
And that's where the nuance lives.
On the surface it looks easy - none of these 7 elements on their own are rocket science.
The magic is how they all fit together.
And that's where the nuance lives.
Remember, as a Founder “words matter.”
Using “consumerized enterprise” (an encompassing phrase) vs. PLG (a specific phrase) to describe your startup can help frame the opportunity.
And this isn’t just for investors. It’s for customers, partners and your team.
Using “consumerized enterprise” (an encompassing phrase) vs. PLG (a specific phrase) to describe your startup can help frame the opportunity.
And this isn’t just for investors. It’s for customers, partners and your team.
The words we choose are also important to attract future founders from diverse backgrounds to build
Founders who may see themselves in a market termed consumerized enterprise more than one called PLG
A broader term should call to consumer leaders, designers + community builders
Founders who may see themselves in a market termed consumerized enterprise more than one called PLG
A broader term should call to consumer leaders, designers + community builders
The best founders I've worked with are a blend of world class:
- Vision: You have a specific view on the world
- Storytelling: You can communicate this view in a compelling way
- Execution: You can translate this viewpoint into reality
At its core, they use the right words.
- Vision: You have a specific view on the world
- Storytelling: You can communicate this view in a compelling way
- Execution: You can translate this viewpoint into reality
At its core, they use the right words.
I’ll be writing a lot more about the 7 elements of “consumerized enterprise” going forward.
If you’re interested in hearing more, feel free to give me a shout!
If you’re interested in hearing more, feel free to give me a shout!
Thanks to the great founders we’ve worked with that have inspired this thinking:
@abilmes @may_habib @ZackBlum @jesseendah @kenkouot @carolinedclark (+ a few more I am not allowed to tag yet 😊)
@abilmes @may_habib @ZackBlum @jesseendah @kenkouot @carolinedclark (+ a few more I am not allowed to tag yet 😊)
Full blog post with thoughts on what it takes to build a consumerized enterprise company ⤵️
ventureinside.com/where-did-consumerization-of-the-enterprise-go-d2259cc7427d
ventureinside.com/where-did-consumerization-of-the-enterprise-go-d2259cc7427d
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Trung Phan @TrungTPhan
·
Jan 21, 2022
This is great Kara! Thanks for sharing