Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.
It turns out that is exactly what product strategy is all about—figuring out the right product is the innovator’s job, not the customer’s job.
Interpretation
What this quote means
Product strategy involves innovators determining what products to create instead of relying on customers to dictate their needs.
In the quote, Ben Horowitz emphasizes the crucial role of innovators in product strategy, stating that it is their responsibility to identify and develop the right products based on insight and vision, rather than waiting for customers to express their desires. This perspective shifts the focus from customer-driven development to innovator-led exploration, suggesting that true innovation requires proactive decision-making and creativity from those in charge.
Themes
In practice
Example use cases
This quote can be used in a presentation about product development strategies.
More from Ben Horowitz
All quotes →As a company gets big, the information that informs decision-making gets massive. Depending upon the prism through which you view the business, your perspective will vary. If two people are in charge, this variance will cause conflict and delay.
You read these management books that say, 'These are the hard things about running a company.' But those aren't really the hard things. The hard things are when you have to layoff half your company, or you have to fire your best friend. Or you have to figure out a way not to go bankrupt.
Look - this is the terror of being a founder & CEO. It is all your fault. Every decision, every person you hire, every dumb thing you buy or do - ultimately, you're at the end.
Nobody knows how to be a CEO. It's something you have to learn. It's a very lonely job.
As long as people are clear on what they need to do and what's going on, you're very likely to succeed. When nobody is clear, then you're guaranteed to fail.
Similar quotes
We've done price elasticity studies, and the answer is always that we should raise prices. We don't do that, because we believe -- and we have to take this as an article of faith -- that by keeping our prices very, very low, we earn trust with customers over time, and that that actually does maximize free cash flow over the long term.
The game business reinvents itself every five years.
If a brand genuinely wants to make a social contribution, it should start with who they are, not what they do. For only when a brand has defined itself and its core values can it identify causes or social responsibility initiatives that are in alignment with its authentic brand story.
We used to think that the enterprise was the hardest customer to satisfy, but we were wrong. It turns out, consumers are harder than the enterprise because the consumer will not give you a second chance.
Investors are always biased to invest in things they themselves understand. So venture capitalists like Uber because they like driving in black town cars. They don't like Airbnb because they like staying in five-star hotels, not sleeping on people's couches.
Management innovation is going to be the most enduring source of competitive advantage. There will be lots of rewards for firms in the vanguard.