Thursday, November 7, 2013

Information theory applied to business

If you want to validate a business need, you have to master information theory. 

#1 Evaluating people feedback
        - Indifference = Nice to Have = No value
        - Hate or Desire = High Information = High potential

Potential is proportional to reaction, good or bad. Normal reaction is a sign of nice to have which means no value.

#2 Value
    - Ask = Little value (nice to have)
    - Pain = High Value
    - Observe = a business opportunity

Never ask people want the want, observe them and focus on their pain.

#3 Don't forget: Benefits >>Cost  

Last, there is no business if the benefits aren't significantly higher then the cost.

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