Friday, June 5, 2015

Let's chat, lessons from WeChat

If you are a smartphone user then you most certainly use an Instant Messaging application almost on a daily basis. However have you ever stopped to consider how messaging applications are able to achieve such mainstream acceptance despite having spent almost nothing on marketing? WhatsApp’s growth was purely organic, in a market that is as mature as Instant Messaging, this is definitely a phenomenon.

About a year ago WeChat was splashing out what I can only imagine were millions of Rands on marketing. I’ll admit they got me to download the app. And so did a fair amount of my contacts. But that was that. It ended there.

What can we learn about ourselves from this? WhatsApp did not do anything revolutionary, they did something so basic that we couldn’t help falling in-love with it. Thereby revolutionising the way we communicate.

The need to communicate is an ongoing and well understood need among all people; regardless of age, gender or occupation. With WhatsApp, for the first time we had a reliable, cost-effective, and frictionless medium to communicate. The very reason why some lambasted it, was the reason that the platform was so successful. By removing the friction which, (with reasonable thought) had been added to other IM applications.

Now WeChat seems to be positioning it’s self as a platform rather than just another application. Whereby other app developers will be able to launch their offerings. The said value proposition I imagine is that users need a single App to replace all their Apps, also that the developers can leverage off WeChat’s existing user base. I once again foresee some challenges with this.

1. Phone manufactures understand themselves as building platforms rather than full solutions, part of the reason why major OSes have an App-Store. By positioning themselves this way they are taking on markets like Google Play, a position that I think might quickly prove even harder to sustain.
2. Although WeChat may have achieved significant downloads as a result of their marketing campaigns, they do not seem to have managed to convert a decent portion of those into active users. So without a sizable amount of active users (who understand the value of the platform), the developers are once again left to wrestle with the challenge of Discoverability.

With that said, if WeChat did manage to gain market share as a Platform, one definite positive could be an easing of the native vs hybrid debate for the development community. But this can only been seen as a value add if indeed the WeChat market place was understood and accepted by a sizable share of users and developers.

In closing we have learnt about ourselves that we are driven firstly and mostly by function. Despite the on-going myth that consumers are driven by trends and “what is cool”. The rate at which both WhatsApp and WeChat have been downloaded, could be seen as a strong indicator that Network Effects, as they have previously been understood, are less significant for the modern user.

Thursday, April 9, 2015

Don't get thrown out the window!

Living in the technology arena, you are very likely to find yourself suffering from an identity crisis. And sure enough at its core this is not a new problem, however I felt it was worth highlighting. There is a fallacy among many in this arena that the latest frameworks are always the greatest. Maybe what is needed here is the discipline of knowing how to separate the immediate requirement of delivering a solution from your always eager curiosity.

Knowing that I am an “IT-guy” friends and associates often approach me asking for a website, or my favourite an APP. If I had a dollar for every time I was approached by someone who had an idea for an app, I surely would have managed to pay for a couple of fancy dinners by now. The issues with this are:
1. An app is not a business, before commissioning the development of an app it is important to make sure that you have clarified your business model.
2. Just because there is a valid business case, it does not always follow that it is best delivered with the latest technology.

As an example USSD is a powerful tool (which I am looking into quite keenly), that is used extensively in developing markets, but often taken in contempt. Some great illustrations for application of this technology in solving real issues are Wikipedia over USSD, and AskMama. Oh, and your mobile banking you did this morning.

Now sure enough there are some exceptions to the above, but if you think that you are an exception chances are you’re not. So what can the average South African do to help build this nation even if you do not have the required technical aptitude? Well before approaching a developer asking for an app (and also to avoid getting thrown out the window), try this: 
  1.  Do some basic testing to prove the validity of the need that you seek to address. Some tools for this are the Business Model Canvas and Effectuation.  
  2. When you do approach your Technologist, say to them “I have noticed that there is a Problem/Need…I know this because…I would like your help to build a solution.

You know, in the same way that you go to a GP and describe the symptoms and leave it up to them to prescribe a remedy.

It takes a whole nation to build an economy. So don’t be shy to apply yourself.