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- š Ikeaās Flat-Pack Playbook, Googleās Custom Agents, Appleās Foldable Future
š Ikeaās Flat-Pack Playbook, Googleās Custom Agents, Appleās Foldable Future
Plus: Best of Lenny, Lessons From Ikea, Unpopular UX Opinions
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We track Product so you don't have to. Top Podcasts summarised, the latest AI tools, plus research and news in a 5 min digest.
Hey Product Fans! š š
Welcome to this weekās š® Product Tapas ā the Christmas Special Edition!
If youāve been forwarded this or stumbled upon it, youāre in for a treat. For the best experience, check out the web version and sign up for future editions here.
Whatās on the festive menu this week? š§āš³
š° Not Boring ā Christmas might be just around the corner, but the tech world isnāt slowing down. Google is remixing images, building custom agents, and making waves with its new Agentspace. Appleās foldable future is taking shape, TikTok product reviews are soaring, and Prime Video is getting smarter. Oh, and Metaās AI Glasses are doing everything now. I would love to hear from anyone who has seen them in the wild thoughā¦.
ā Time-Saving Tools & GPTs ā Need some extra holiday time? From AI spreadsheets and no-code tools to Reddit insights and AI podcast co-hosts, this weekās tools have got you covered. Plus, donāt forget to dive into our exclusive database of 300+ tools!
š Blog Bites ā Itās all about actionable lessons: the best of Lennyās Newsletter for 2024, hard truths about UX research, and why breaking systems on purpose might be your best strategy for resilience.
šļø Pod Shots ā We wrap up with an epic deep dive into Ikeaās story from the Acquired podcast. Flat-packs, meatballs, and lessons in frugality ā a masterclass for founders and product teams alike.
Plenty to tuck into while sipping mulled wine or sneaking another mince pie at the Christmas lunch. š
Off we go! š š
š° Not boring
OpenAI launches ChatGPT Projects; organise your ChatGPT interactions and build multi-step projects by sorting different chats and GPTs into folders
Plus web search is now available to free users
Google is wrapping up the year on fire:
First launching Agentspace - a platform for custom agents and a way to answer questions across disparate platforms and data sets. Choose from pre-designed or create your own
Then debuting NotebookLM for enterprises
Plus revealing Whisk AI a new tool that allows you to āremixā the pictures you plug in to it without requiring a long text prompt
While over at YouTube theyāre testing voice note replies to videos
Finally, hot off the heels of Sora being released by OpenAI, Google unveiled their new video model Veo 2, completely blowing it out of the water. It is something else - see these examples here and here
Salesforce announces Agentforce 2.0 and Slack is going to be highly integrated, getting access to a library of customisable AI agents that can do anything from onboard employees to managing large multi-team projects
In Apple news: iPhone 17 Air to be cheaper than expected; foldable iPhone and iPad on track for 2026 & 2028
More on the foldable iPad which could be like 2 iPad Pros side-by-side
Prime Videoās new AI Topics feature makes it easier to find something to watch
Short-form product reviews are taking off on TikTok - 62% U.S. TikTok users are there specifically for product reviews and recommendations
Ray-Ban Meta Glasses add live AI, live translation and Shazam support. These get constant good reviews - does anyone you know even have a pair though?
Grammarly has acquired Coda
Mashable has its list of the 20 best podcasts of 2024. It's eclectic but good.
Temu is the most downloaded app on the US App Store in 2024
Finally, Airbnbās anti-party tech is cracking down on āunauthorisedā get-togethers. Yawn š„±
āļø Time-Saving Tools & GPTs
KlerkAI: Actionable insights from millions of conversations happening on Reddit. Validate business ideas, research content, discover user pain points
OctoparseAI; build custom AI workflows and RPA bots with no-coding
Stigg: Single place to manage your SAAS pricing. Set permissions per tier, price and access levels etc.
Monologue: AI-cohost for your next video/podcast
Graphy: Pro level graphs that drive decisions and inspire actions.
AISmartCube: Build AI tools in hours with no code
Bricks: The AI Spreadsheet that does the work for you. No more formulas. No more hours of data cleanup ā just answers. Free to use.
Remember, as a subscriber you can access the full time saving tools database for fast approaching 300 time-saving tools relevant for product managers and founders š„. Check the link below to access šļø .
š Blog Bites - Essential Reads for Product Teams
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Lenny is a force of nature and his podcast and newsletter go from strength to strength. His best of edition 2024 is proof if ever it was needed.
In his year in review, he shares a stack of links covering the following areas:
How to build better products
How to grow your product
Benchmarks
Becoming a better leader and manager
Getting smarter about AI
How to start a company
How to hire the best people
How to get get a job
How to be more productive
How to feel less stressed
Bookmark it and return time and time again.
UX: Unpopular Opinions about UX Research
Tom Kerwin recently created a short post of his Hard lessons every UX researcherāand professionalāshould learn. Itās short but packed with interesting takes. e.g.
"Thereās never time, budget, or appetite to do research properly. Get used to that, itās not changing."
This grounded perspective highlights a universal truth in many disciplines: perfection is the enemy of progress. Embracing constraints leads to impactful outcomes.
UX research often influences key business decisions, but its success relies on understanding organisational politics, communicating effectively, and delivering actionable insights under constraints. Tomās hot take is UX research is less about ideal practices and more about navigating constraints, influencing decisions, and collaborating effectively.
Key Takeaways:
ā¢ Prioritise Influence Over Evidence: Decisions are driven by power dynamics, not data alone. Learn to frame insights around what stakeholders truly care about.
ā¢ Be Pragmatic: Use limited resources effectively, balancing rigour with flexibility.
ā¢ Collaborate Early: Engage teams throughout the process to ensure buy-in and avoid being sidelined.
ā¢ Take Initiative: Anticipate research needs and act without waiting for permission to maximise impact.
ā¢ Pick Battles Wisely: Avoid being a blockerābuild trust by being a partner in achieving shared goals.
Break Stuff On Purpose
Interesting post from one of Slackās staff engineers on how to strengthen your systemās ability to recover by intentionally causing and resolving failures.
āA complex system can fail in an infinite number of ways.ā
Failures are inevitable in complex systems, no matter how well-designed. Instead of fearing them, the article advocates for embracing failures through deliberate exercises that simulate incidents, fostering learning and improvement. Systems are always vulnerable to hidden failures, and untested recovery plans can fail when needed most. By intentionally breaking systems and testing recovery, teams can address weak points, improve processes, and reduce stress during real incidents. Itās a practical way to ensure readiness for the unexpected.
Key Takeaways:
1. Plan Chaos Exercises: Intentionally simulate failures in a controlled environment, such as filling disks or shutting down nodes, to test system resilience.
2. Update and Automate: Use these exercises to refine runbooks and automate recovery processes, turning complex procedures into single commands.
3. Celebrate Learning: Engage your team in these exercises with a sense of fun, making otherwise dry maintenance work exciting and rewarding.
4. Rinse and Repeat: Regularly test and iterate to strengthen both processes and tools.
Strategy: Groupon's FOMO playbook
This recent strategy breakdowns piece on Groupon, is all about Turning human psychology into viral loops.
"In Grouponās first few years it grew faster than Google, Facebook, and Apple."
Insight: Groupon's rapid growth was fuelled by embedding virality and urgency into its product, leveraging time-sensitive deals to create a habitual user base. This strategy effectively tapped into consumers' fear of missing out (FOMO), driving engagement and exponential growth.
By creating time-bound offers that required a minimum number of purchases, Groupon incentivised users to act quickly and share deals, turning customers into a powerful marketing force.
Key Takeaways:
1. Design Urgent Offers: Create time-limited deals to encourage immediate action.
2. Leverage Social Proof: Set minimum purchase thresholds to motivate users to share deals with others.
3. Utilise Email Marketing: Send targeted, timely emails to keep users engaged and informed about new offers.
4. Encourage Daily Engagement: Regularly update deals to make checking your platform a daily habit for users.
šļø Pod Shots - Bitesized Podcast Summaries
Remember, subscribers get access to an ever growing database of all the top Podcast summaries weāve ever created. Check it out below šļø
Acquired: Ikea
As we get close to year end weāre back to our favourite team over at Acquired, who recently did a breakdown of Ikea. A brand synonymous with flat-pack furniture, labyrinthine stores, and Swedish meatballsāis more than just a retailer; itās a global phenomenon. In their own words:
āIKEA may be the most singular company weāve ever studied on Acquired. Theyāre a globally scaled, $50B annual revenue company with no direct competitors ā yet have only ~5% market share. Theyāre one of the largest retailers in the world ā yet sell only their own products. They generate a few billion in free cash flow every year ā yet have no shareholders. And oh yeah, they also sell hot dogs cheaper than Costco! (Sort of.)
Tune in for an episode flat-packed with counterintuitive lessons about how this folksy mail order business from the Swedish countryside came into your living rooms (and bedrooms and dining rooms and kitchens and bathrooms and patios and garages and backyards) all over the globe!ā
Itās a fascinating listen, but at nearly 3.5hrs long itās a beast. So Iāve broken down and summarised the key lessons of this 81-year-old behemoth, exploring its innovations, challenges, and key takeaways from the podcast below.
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Acquired
šļø Listen to the full episode here
š Published: November 17th, 2024
š Estimated Reading Time: 4 mins. Time saved: 220 minsš„
š ļø The Founding DNA: A Frugal Vision
Born in 1926 in SmĆ„land, Sweden, Ikeaās founder Ingvar Kamprad grew up in a region where resourcefulness was a necessity. At just five, Ingvar began his entrepreneurial journey, reselling matchboxes for a profit. By 17, he officially registered Ikea, a name derived from his initials and his family farm.
Key to Ingvarās approach was his frugality. Early on, he sought ways to minimise costs while delivering valueāa principle that shaped Ikeaās DNA. This ethos is best captured in its mission: āTo create a better everyday life for the many people.ā
Takeaway for Founders:
Resource constraints can drive creativity. Ingvar turned rural isolation into an asset by sourcing locally and thinking globally.
Define a mission thatās both clear and inspiring. Ikeaās focus on affordability for the many, not the few, guided every decision.
š Retail Revolution: The Flat-Pack Advantage
Flat-pack furniture wasnāt always part of Ikeaās playbook. It was a practical breakthrough born of necessity. During a photo shoot in the 1950s, an employee suggested removing a tableās legs for easier transport. Ingvar realised this could revolutionise logistics, reducing shipping costs and storage space.
Flat-pack furniture not only saved costs but also turned customers into co-creators, giving them a sense of pride in assembling their purchases. This innovation became the cornerstone of Ikeaās success.
Takeaway for Product Managers:
Iteration is key. Small tweaksālike flat-packingācan lead to monumental operational advantages.
Engage your customers in the product journey. Ikeaās self-assembly model builds emotional connections.
š Meatballs and Maze-Like Stores: Designing Experiences
Ikea stores are iconic for their winding layouts and in-store restaurants. Why? Itās all part of the strategy to keep customers engaged and spending more time (and money) in-store. The restaurants, famous for Swedish meatballs, serve over 1 billion annually and embody Ikeaās ethos of making a trip to their store an experience.
The layouts, often criticised as confusing, are intentionally designed to showcase Ikeaās products in real-life scenarios, sparking inspiration.
Takeaway for Founders:
Craft experiences that complement your product. Ikeaās stores are destinations, not mere transaction points.
Think of customer needs holisticallyāan engaged and fed customer is a happy customer.
š Global Expansion: Tailoring for Success
From its first store outside Sweden in Norway to dominating markets like Germany and the U.S., Ikea has mastered global scalability. However, not every expansion was smooth. In Japan, the company initially failed due to cultural misalignment. They learned from this experience and re-entered with a tailored approach two decades later.
Takeaway for Product Managers:
Scaling globally requires deep cultural understanding. Localisation isnāt optionalāitās essential.
Learn from failure and iterate. Ikeaās Japanese comeback highlights the importance of adapting to local contexts.
šļø Democratising Design: Balancing Five Pillars
Ikeaās design philosophy, "Democratic Design," balances five pillars: form, function, quality, sustainability, and low price. These principles guide everything from product development to store operations. Iconic items like the Billy bookcase exemplify this balance, delivering quality at unbeatable prices.
Takeaway for Product Teams:
Establish clear guiding principles for product development. The five pillars ensure consistency and focus for Ikea.
Sustainability isnāt just a buzzwordāit can be a a competitive advantage. Ikeaās early investments in renewable energy reinforce this.
š° Frugality as a Superpower
IKEA dominates the global furniture market despite its highly fragmented nature. Its success lies in a simple yet powerful strategy: reinvesting profits to expand and lower costs. This frugal mindset, championed by founder Ingvar Kampradāknown for flying economy and embracing minimalismāextends across the entire company. These cost-saving measures not only define IKEA's culture but also fuel its ability to innovate and grow relentlessly.
Takeaway for Founders:
Operate lean to maximise resources for strategic investments.
Frugality isnāt about cutting corners; itās about prioritising value creation over extravagance.
š Future Challenges and Opportunities
While Ikea has dominated offline retail, the shift to e-commerce presents a challenge. With 26% of its revenue now coming from online sales, the company is adapting, albeit slowly. Smaller urban stores and partnerships like TaskRabbit for assembly services signal a willingness to evolve.
Takeaway for Product Managers:
Digital transformation isnāt optional. E-commerce isnāt just a channel; itās a paradigm shift.
Embrace hybrid models. Ikeaās smaller city stores cater to modern consumersā preferences while retaining its experiential core.
š Summary
Ikeaās story is one of vision, resilience, and relentless iteration. From its humble beginnings in rural Sweden to becoming a global leader, itās a masterclass in scaling through operational excellence and customer-centric innovation. For founders and product managers, Ikea offers a blueprint: serve the many, innovate relentlessly, and never lose sight of your mission.
Want to know more quickly? Just ask the episode below [web only]šļøš¤Æ
or if you prefer, šļø Listen to the full episode here
Thatās a wrap.
As always, the journey doesn't end here!
Please share and let us know what you would like to see more or less of so we can continue to improve your Product Tapas. šš
Alastair š½ļø.
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