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Diving into Web 2.0

Marginal Madness

52 Bicycles has a nice little post about how many Web 2.0 startups are too focused on making the “plus one” killer app.

… I think there is a focus on “plus-one” features to “kill” the previous generation (i.e. Digg killer, bloglines killer, etc). Arrington is all over this, and from an analyst’s point of view, it’s good: each marginal iteration is not only a chance for a new review, it’s also a way to examine how new features help/hurt on the margin. So Arrington writes up a review or profile, and his 53,651 readers flock to the reviewed service, and some fraction actually sign up and use it for a day or a week. And then nothing.

I couldn’t agree more with this observation. After editing BuzzShout for about a month, I have seen a plethora of newly submitted web applications that are simply an increment of an old established one. Sure, if the newly added features are compelling enough, there is added value, and maybe, it even solves some problems that have plagued many of the legacy users. But, more often than not, the new and exciting web app fails to be as disruptive as they claim they would be.

The post ends with the statement:

Go where the other guy aint - that won’t get a review in TechCrunch, but it is the basis of a more sustainable competitive advantage.

I totally disagree with this. I believe that Michael knows the value of a truly creative and original idea when he sees it. Those are the type of companies and ideas that I’m personally seeking out — ideas that make anyone say, “Wow, that’s so easy and effective. Why didn’t I think of that?” Can anyone name a web application that only introduces incremental features that would make you say that?

2 Responses to “Marginal Madness”

  1. Ray Says:

    Thanks for the trackback! But which part do you disagree with - the idea that it is strategically advantageous to go “where the other guy ain’t” or that those kinds of “judo” opportunities don’t get covered adequately by TechCrunch?

  2. James Yu Says:

    I was disagreeing with the statement that TechCrunch wouldn’t cover those kinds of original strategies (or “judo” oppurtunities, as you say). I can’t list any off the top of my head at the moment, but I remember finding out about various sites that are quite original from TechCrunch.

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