Can Imperfect Models Still Add Value?

Credit and Thanks: 
Based on insights from 20VC with Lenny's Podcast.

Deep Dive

When Mike Kreiger and Kevin Weil transitioned into their new roles, the reactions from their peers and friends varied widely, reflecting a mix of excitement and skepticism. Mike noted that those who knew him well were supportive, recognizing that he would thrive in a challenging environment. In contrast, others questioned his decision to return to work after a brief semi-retirement, expressing disbelief that he would choose to take on such a demanding role. This spectrum of reactions serves as a reminder for founders to cultivate a network of supporters who understand their vision and can provide encouragement during pivotal career moves. Founders should be prepared for mixed feedback and use it as an opportunity to clarify their motivations and goals.

Mike's biggest surprise in his new role has been the pace and complexity of enterprise operations. He found himself grappling with the slower timelines typical of enterprise environments, where decisions can take months to materialize. This contrasts sharply with the rapid iteration cycles often found in consumer tech. For founders, this highlights the importance of patience and adaptability when navigating different market segments. Understanding the unique dynamics of enterprise sales and product development can help founders tailor their strategies accordingly, ensuring they are prepared for the longer sales cycles and the need for extensive stakeholder engagement.

The iteration cycle discussed by Mike and Kevin emphasizes the necessity of continuous feedback and adaptation in product development. They shared that successful iterations often arise from real-world usage rather than theoretical models. This insight is particularly valuable for startup founders, who should prioritize user feedback to inform their product iterations. By actively engaging with users and incorporating their insights, founders can create products that better meet market needs and enhance user satisfaction.

Mike and Kevin also touched on the value of tasks, noting that even a model performing at 60% effectiveness can still provide significant value if designed thoughtfully. This perspective encourages founders to focus on creating products that deliver meaningful outcomes, even if they are not perfect. Founders should embrace the idea that a product can evolve over time, and they should not be deterred by initial shortcomings. Instead, they should view these challenges as opportunities for growth and improvement.

Developing intuition around AI and its applications is another key theme from their discussion. Mike and Kevin stressed the importance of product managers deepening their understanding of AI technologies to enhance decision-making. Founders can take this to heart by encouraging their teams to engage with AI tools actively, fostering a culture of experimentation and learning. This proactive approach can lead to innovative solutions and a more agile response to market changes.

Educating end users, particularly in enterprise contexts, emerged as a crucial point. The duo emphasized the need for tailored educational materials to help users adapt to new technologies. Founders should prioritize user education as a core component of their product strategy, ensuring that customers understand how to leverage their offerings effectively. This can lead to higher user satisfaction and retention rates.

In discussing how to use AI, Mike and Kevin shared their experiences with OpenAI/Anthropic, highlighting the potential for AI to automate repetitive tasks and enhance productivity. They recounted a humorous anecdote about a beta test where AI successfully ordered pizza for their team, showcasing the technology's capabilities in a lighthearted manner. Founders should explore similar use cases for AI within their organizations, identifying areas where automation can alleviate burdens and allow teams to focus on more strategic initiatives.

Looking to the future, both experts expressed excitement about the potential for AI to become more proactive and asynchronous in its interactions. They envision a world where AI can anticipate user needs and provide timely assistance, fundamentally changing how people interact with technology. Founders should prepare for this shift by considering how their products can leverage AI to enhance user experiences and streamline workflows, ultimately positioning themselves at the forefront of technological innovation.

By synthesizing these insights, founders can better navigate the complexities of product development in an AI-driven landscape, fostering a culture of adaptability, user engagement, and continuous learning within their organizations.

Actionable Insights

• Build a supportive network that encourages open dialogue about career transitions and new ventures.

• Actively engage with users to gather feedback and inform product iterations.

• Design products that can adapt and evolve based on real-world usage and user insights.

• Invest in training your team on AI technologies to enhance their decision-making capabilities.

• Create educational resources to help users understand and effectively utilize your AI-driven products.

Mind Map

Key Quote

"Your output for experiment should be learning, not necessarily perfect products you're going to ship every time."

Future Trends & Predictions

As AI technologies continue to advance, we can expect a shift towards more proactive and personalized user experiences. The integration of AI into everyday tasks will likely lead to increased efficiency and productivity, particularly in enterprise environments. Founders should anticipate these changes and consider how their products can adapt to meet evolving user expectations, ultimately fostering a more intuitive and responsive interaction with technology.

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Thanks for reading, have a lovely day!

Jiten-One Cerebral

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