26 June 2012

Secrets about human behavior as the basis of future massive enterprises

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Nir Eyal, lecturer in marketing at the Stanford Graduate School of Business, believes secrets about human behavior, which provide insights into the way people act even though they can’t tell you why, are levers for creating user habits and competitive advantage. These kinds of secrets are also relatively cheap to uncover but can be the basis of massive enterprises.

“Once, only large companies had the resources to discover monetizable secrets. Throughout the twentieth century, companies like GE, Dupont, Chrysler, and IBM specialized in discovering the optimal form of physical goods and their insights lay largely hidden in the discipline of industrial design. For these companies, uncovering secrets required massive R&D investment to find the best way to create a better, cheaper, or faster product.

But today, as software continues to eat the world, service industries are being upended by upstarts. A new crop of companies like AirBnB, DropBox, and Square exploits secrets gleaned not from industrial design, but from interaction and systems design. These companies remedy old problems by designing interfaces to create new user behaviors.’

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