“Every problem is an opportunity, and the bigger the problem, the bigger the opportunity. No one will pay you to solve a non-problem.”
– Vinod Khosla, on big problems and big opportunities.
The one thing I’ve come to admire about Paul Graham (using “Paul Graham” as a synonym for Y Combinator itself), is that he’s turned into quite a force to be reckoned with – aligning, match-making problems with teams and solutions, cranking up accomplishment cycles. Seems to me that these days, he has access to all sorts of real-world business problems, and conveniently enough he also practically has an army of technology entrepreneurs ready to take a bite out of any gauntlet that he throws down.
I love that quote from Vinod Khosla above, and I’m always on the look for problems, because I see them as unmet needs, and I love disruption – David vs. Goliath style take-on-the-incumbent fights. PG has recently written up on ideas for startups that he’d like to fund, so reading this list was definitely a must for opportunity-seekers, and you know what .. even if it’s not a problem that you can see yourself solving, it’s good to be aware of the problems out there in your adjacent industry.
I find #6 interesting:
More variants of CRM. This is a form of enterprise software, but I’m mentioning it explicitly because it seems like this area has such potential. CRM (“Customer Relationship Management”) means all sorts of different things, but a lot of the current embodiments don’t seem much more than mailing list managers. It should be possible to make interactions with customers much higher-res.
When I think CRM, I think of Salesforce.com, simply because well, who doesn’t associate CRM with Salesforce?
What I really like about Salesforce.com is how they have opened up their platform for 3rd party developers via AppExchange. Why is this such an important strategic move?
They realize that now that they are a huge company serving a huge customer base, there’s bound to be a subset of their customers whose needs are either over-served or under-served, and thus these customers will be ripe to be poached by smaller and more agile startups. Thus, the bigger Salesforce gets, it’s only a matter of time before their core market gets nibbled from say, the low end, .. which would force Salesforce.com to then shift focus on the higher end of the spectrum (and keep going higher) until the nibblers now become this real threat of displacing the incumbent.
Thus, by opening up their platform to innovation, they can capture the “long-tail” of features needed by their customer base and actually meet them. Imagine you are running some obscure business in a very niche vertical. You need CRM, but you also need this 1 extra feature very specific to your business. You now have the option to installing the “addon” to meet your needs. Other (most) companies who don’t care about this addon don’t need to install it.
What Salesforce.com has also effectively done here is allowed their SaaS bread-and-butter be customized specifically to each customer! This is powerful, because most people think that SaaS is just a web app, and because it’s served from the same web server to all customers, customization is difficult.
Software customization/personalization is also way to segment your market and extract more value from the different segments. And all of this, for free to Salesforce.com because they don’t even need to hire developers to build stuff — the platform is open to any 3rd developer. In short, AppExchange is one of Salesforce.com’s competitive advantage that builds network effects over time (like eBay), further solidifying their dominance on the market.
The iPhone too, has a developer app market place. And this too, will be a powerful force to be reckoned with by iPhone competitors over time.
Back to what PG was saying, “It should be possible to make interactions with customers much higher-res.” I wonder what he means by that exactly, but then again he did say that this list was intentionally vague. I can at the very minimum at least conclude that he sees an opportunity for innovation in CRM, which I do too
Paul Graham’s list of problems: http://ycombinator.com/ideas.html
Tags: cloud computing, crm, opportunity, saas, salesforce.com, web 2.0