Turning our focus back to “Jobs to be Done” theory, we look at how producers can exceed the expectations of consumers and the role of the focus group from a “Jobs to be Done” perspective.
We examine “Jobs to be Done” as an essential core of the product development process. Where does this kind of thinking belong in an organization?
Should we be redefining what being “the best” means? We close with a segmentation of social media services based on the seven deadly sins.
via 5by5 | The Critical Path #134: Chief Jobs Officer.
This is a good one.
Airshow, now in it’s twelfth iteration, is coming back to Boston on the 18th.
This time we have Fidelity Investments as a sponsor and their inspiring venue at ThinkSpace, 245 Summer Street, as our setting.
If you are interested in how data and mobility will revolutionize the art of persuasion, please register for what will be the best Airshow ever.
Seating is limited.
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This year’s Thanksgiving and Black Friday data from IBM shows a continuing pattern of growth for mobile devices. As the graph below shows, in the five years since 2010 mobile devices grew from 5% of the online shopping traffic to 50%. Traditional computing (desktop and laptop) made up the difference.
The graph also shows that sales value via mobile devices crossed over 25% of online spending. The fact that mobile shopping is not equal to mobile spending is due to the convenience factor of mobile. It’s more likely that users will spend idle time scanning for bargains or tracking down ideas from friends but wait until they are at home to make the final purchase decisions in front of a computer.
The transition to spending directly from a device is a slower process, but that process was also one that online had to undertake as buyers became comfortable with online commerce. When it comes to payment, buyers are understandably more cautious.
This does not change the prediction made last year that “the transition to post-PC consumption will also be practically completed by 2020″. That leaves six years for mobile saturation and a total transition time of one decade.
At that point I expect 90% of browsing and perhaps 75% of spending to be happening on devices. Some of this will undoubtedly be enabled by biometric authentication as shown by Apple Pay. Trust and ease of use in this technology will undoubtedly accelerate the transition making mobile payments more comfortable and secure than on the legacy computer.
What is less predictable is how much those devices will also be used to transact payments for the physical retail stores. In some scenarios it’s possible that by 2020 a majority of all shopping will be enabled by devices. That would subjugate the retail segment to the power politics of mobile platforms.
It is interesting therefore to note the mix between the platforms in the graphs above.
I tried to assess the opportunity of Apple Pay but found it to be mostly dependent on how quickly card payments will overtake cash. It seems that as payments move to a digital format they will move to a mobile device. The hurdle isn’t going from a card to a phone but from cash to card.
Data published in The Growth and Diffusion of Credit Cards in Society shows that between 1970 and 2001 households with at least one credit card in the US grew from 17% to 70%. More recent data shows 82% of US consumers have at least one credit card and 77% have a debit card.
The Total Addressable Market for Apple Pay then is dependent on how quickly this pattern repeats over the markets where iOS devices are in widespread use. Once cards are in use they are used with higher frequency and quickly overtake cash for the user.
The only assumption that needs to be made is that the device then replaces the plastic card. This seems a safe assumption as the benefits of the device as payment authenticator are high and the costs are negligible given a penetrated market.
The following graph shows an extrapolation of transaction volumes where Visa and MasterCard and Amex are showing moderating growth with UnionPay showing 20% constant growth through 2019.
Two more assumptions are needed: the share of transaction value captured by Apple Pay and the Apple Pay fee. I used 15 basis points ($15/$10000) as the assumed Apple fee and a share schedule as follows:
Having reached $700 billion we ask whether $1 trillion is an achievable valuation for Apple. We also discuss why this is not at all interesting. Also, the future of banking.
The Critical Path #133: Transcendental Valuation.
This is why is so hard to explain to outsiders what it is that I actually do sometimes. Sure, everyone on my team designs and develops but at the core we are constantly persuading with varying degrees of success.
via How The Magic Happens – FOR THE SAKE OF VANITY.
How does an organizations structure, resource allocation and measurement dictate its capabilities? Horace and Anders discuss Amazons AWS business in comparison to their traditional online retail business and the Apple and Google strategies.
via 5by5 | The Critical Path #132: The Worlds PIN Code.
Apples Services business is growing by leaps and bounds. How much of that can be attributed to iCloud? Horace and Anders consider how big the iCloud business is for Apple, as well as Apples recent stock price rise in this “rolling show” on the way to the airport.
via 5by5 | The Critical Path #131: How Big is iCloud?.
Apple has declared that what used to be “Other Music Related Products and Services” plus “Software, Service and Other Sales” which was formerly known as “iTunes/Software/Services” is about to become “Services”.
“We’ll also have a category that we refer to as services and this will encompass everything we report under the heading of iTunes software and services today including content, apps, licensing and other services and beginning this month it will also include Apple Pay.”
“Services” will therefore encompass a massive amount of revenue. The reported revenues for the fiscal 2014 were $18 billion. Including all billings, the turnover in sales is over $28 billion. For next year, assuming that Apple Pay, which is just getting started, is unlikely to contribute greatly to revenues, Services turnover will top over $35 billion. That figure would make Apple Services alone one of the top 90 companies in the Fortune 500.
Regardless, as a component of overall sales, the group formerly known as iTunes/Software/Services (shown in red above) was a modest 7% of total sales in the last quarter. Using all available information regarding downloads, payouts and reported financials, an estimate can be obtained on how this 7% is itself divisible into nine sub-segments: