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There’s an App for That…

How many apps, a.k.a applications, do you have on your device?  I bet you have no idea how many apps you carry around.  I certainly don’t but I do know how many I use regularly, and the answer is about 5 or 6.

So, I did a little research using Bing Copilot and the findings were staggering.

The typical number of mobile apps that a smartphone user carry can vary, but here are some relevant statistics:

Monthly App Usage:

On average, a smartphone user accesses 30 mobile apps in a month, which translates to roughly 10 apps every day.

App Store Availability:

Apple’s App Store boasts a staggering 1.96 million apps available for downloads.

Google Playstore, catering to Android users, offers an even larger selection with 2.87 million apps.

Frequency of App Usage:

Approximately 49% of people open an app more than 11 times a day.

Interestingly, 21% of individuals between the ages of 23 and 38 open an app more than 50 times in a single day.

These numbers represent just how dependent humans are on technology these days. There are nearly 3 million apps available to download.  What do all these little pieces of software do, exactly?

As I’m having fun playing with app numbers let’s do a little more math.

Here’s a table that breaks down the estimated number of apps per category based on the total size of available apps at 2.87 million in the Google Play Store:

These figures are calculated using the percentages provided for each category and the total number of apps in the Google Play Store. Keep in mind that these numbers are estimates and can change as the app market evolves.

Not to be hyperbolic but this is CRAZY!!! 396,000 games, really? Nearly 300,000 business apps? Holy overload!

More fun with math, I asked Copilot to calculate the number of apps per person on Earth. Using the total number of app downloads and the global smartphone user count. As of 2024, there are 4.88 billion smartphone users worldwide1, and the total number of app downloads has reached 257 billion2.

Using these figures, we can estimate the average number of apps downloaded per smartphone user:

So, on average, each smartphone user has downloaded about 53 apps.

These numbers indicate a serious addiction to apps. So, if we take it from the top of this discussion where we saw that the average user accesses 30 apps per month with the potential to download 53 apps per month what is the point of all these technologies?

What’s the Value of Each App

I ask this question only to highlight the business issue of value. Where does the value lie for investors? How many new apps can be supported by the user community? There is no data available for the length of time that an app is viable in the marketplace, it may be years for some and weeks for others.

The average value of a mobile app can be determined by various factors, including its revenue, user base, and market demand. A common valuation method is to calculate the app’s value based on its average monthly revenue multiplied by a specified number of months. For instance, if an app generates $500 a month, it might be valued at 6 months’ worth of revenue, or $3,0001.

For apps that are post-revenue (already generating some income), a simple valuation formula could be:

Valuation=(CLV−CAC)×number of users

Where:

  • CLV (Customer Lifetime Value) is the total net margin earned per user over their lifetime.
  • CAC (Cost of Acquisition) is the cost to acquire a user.

This formula assumes the valuation is equal to the sum of all users’ average customer lifetime value minus their cost of acquisition2.

However, it’s important to note that app valuations can vary widely and are ultimately determined by what a buyer is willing to pay for it. Factors such as growth prospects, niche, and consistent revenue can influence the multiple used to calculate the final valuation. For example, an app generating $100,000 in net cash flow per year might be valued between $200,000 and $300,000, using a multiple of 2x to 3x3.

The cost of developing an app can also provide insight into its value. On average, building a mobile app can range from $100,000 to $500,000, with some feature-rich apps costing more than half a million dollars4

Be Diligent

Whether you’re a burgeoning founder of a new application offering or an investor looking for the next killer app you must be diligent.

  • Research currently available apps in your category of interest.
  • Determine the “white space” available, there isn’t much.
  • Identify the functions users must have and those that will differentiate your offering.
  • Develop an MVP (minimal viable product) quickly
  • Test, test, test. Test the market, test the technology, test your resolve.

There will always be a market for the next “cool” app. Just be diligent before you spend mom and dad’s retirement fund.

May 29, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Are you a chicken or a pig?

Chickens and pigs, both wonderful animals that contribute to healthy, delicious breakfasts all over the world. Many years ago, when I was a young professional, one of my mentors would tell the story of breakfast. It goes like this. When you look at your morning fuel plate it’s not unusual to see bacon and eggs sitting in front of you.  Consider the contribution of the chicken and the pig. The chicken is involved in the meal by offering a fresh egg.  The pig is committed to its involvement.

Which are you? Do you commit to change or are you involved? The difference is stark.

Chickens use words like buy-in and alignment to affirm that they’ll work to make a change successful. Soft words with soft meanings imply that you’re sort of going to do things that contribute to the goals of the necessary change. You’ll be involved in the work, but if the work gets too hard, maybe you’ll quit on the efforts. Chickens need multiple enticements to stay engaged and really work to achieve the stated goals. Chickens will move the goal posts of the change just to declare success. Most people involved in transformation programs are chickens. It’s just human nature to be cautious and leave options open.

Pigs on the other hand are all in. They use words like commitment and must do. Pigs put everything they have into the effort without enticements because they believe in the ultimate vision. Pigs don’t let obstacles move the goal posts. Pigs persevere through the challenges, make sacrifices, and never relent. Achieving the goals of transformational change sits at the top of their to-do list. Every change effort must have leaders that represent the characteristics of the pig. These are the change agents, the visionaries, the evangelists.

Imagine if every team member was committed to a change effort versus being involved. The success rate of change programs would skyrocket. Visions would be achieved at a higher rate and returns on investment goals would be beaten.

Just a few tips to garner commitment:

  • Set clear goals for the change effort. Words to describe and metrics to achieve.
  • Align incentives for goal achievement.
  • Communicate expectations clearly. Achieving genuine commitment requires clear communication of expectations, goals, and responsibilities.
  • Build a roadmap of actions together with all the stakeholders.
  •  Assign accountabilities for all actions with clearly defined results.
  • Measure progress frequently adjusting as needed to maintain commitment.

May 21, 2024 Posted by | Thinking About Change | , , , | Leave a comment

Branding…Does it really matter?

If your brand requires an explanation, it’s not a brand, it’s just a fictitious name. 

I submit that because of marketing oversaturation in every field of endeavor, unique branding has become irrelevant. I contend that the sheer volume of companies and branded products has diluted the impact of individual brands. Established brands are living off decades of saturation while new introductions get lost in the background.

Let’s consider the available data:

Number of Companies: As of 2021, there were approximately 333.34 million companies worldwide. This represents a significant increase from previous years, indicating a crowded marketplace where countless companies vie for attention. Although this number is enormous it doesn’t represent the single shingle service providers that proliferate every day so I’m adding a few more for mom and the kids, let’s call it 500 million for fun.

Branded Products and Services: While exact numbers are elusive, the proliferation of brands is evident. For instance, Nestlé alone boasts over 2,000 brands, and there are numerous examples of successful brands with numbers in their names, indicating a trend in branding strategies. Think about that for a second. One consumer company holds 2000 brands, pshaw you say, I’m not a consumer business I’m a B2B business.  OK then, let’s do some quick math on that; say 50% of the 500 million or so going concerns are B2B and have just a single brand. Oops, that’s in the neighborhood of 200 million unique, or so everyone thinks, brands.

The impact of this saturation is reflected in consumer behavior and marketing effectiveness:

Consumer Trust: Over-targeting and ad saturation have been shown to damage consumer trust in brands, with 54% of UK consumers objecting to being targeted based on past online activity.

Ad Fatigue: The phenomenon of ad fatigue sets in when a target audience is bombarded with ads from the same brand, leading to decreased engagement.

Brand Relevance: Despite the challenges, 44% of consumers enjoy ads that are directly relevant, suggesting that unique branding can still resonate when executed properly.

While the data indicates a crowded marketplace with a vast number of companies and products, the relevance of unique branding is not entirely negated. Instead, the challenge lies in cutting through the noise and connecting with consumers in meaningful ways. Unique branding, when aligned with buyer interests and executed with precision, can still hold significant value and relevance.

A brand stands as the silent ambassador of a company, embodying its values, ethos, and identity. encapsulates the quintessence of what a brand should represent—a seamless connection between the product and the buyer that requires no intermediary.

Think about your own businesses branding for a moment. Does it meet the criteria as a brand? Probably not. Most branding these days is around some whimsical made-up set of letters and symbols that mean nothing to anyone other than the folks that created it.

A brand is much more than a name or a logo:

  • It represents the emotional and psychological relationship a company has with its customers. Strong brands evoke a visceral response,
  • It generates a feeling of familiarity and trust that resonates with the buyer on a subconscious level.
  • An effective brand transcends the need for explanation because its essence is already known and felt. This immediate recognition is the hallmark of a successful brand.

The necessity for a brand to be self-explanatory also lies in the fast-paced world we live in. Consumers are bombarded with countless choices and messages every day. In such a saturated market, the ability of a brand to stand out without requiring a detailed backstory or rationale is crucial. A brand that needs to be explained is at a disadvantage, as it fails to make an instant connection with potential customers.

A brand that is self-evident is more likely to foster loyalty. When consumers understand what a brand stands for, they can align their personal values with the brand’s image. This alignment creates a strong emotional bond that is far more enduring than any rational explanation could provide. It is this bond that turns first-time buyers into lifelong customers.

Remember to consider the role of simplicity in branding. A brand that is too complex or abstract may struggle to communicate its message clearly. Simplicity in design and messaging allows a brand to be direct and powerful. A simple, yet strong brand cuts through the noise and delivers a clear message that is easy to remember and recognize.

Growing up my family would visit a butcher shop called “Meatland” no doubt there about the branding. Simple, elegant, and clear as a bell. You didn’t visit “Meatland” if you needed a tomato.

May 14, 2024 Posted by | Uncategorized | , , , , | Leave a comment

A Twisted Pair: Growth & Risk Mitigation

We are surrounded by opportunities. Each opportunity brings with it inherent risks. Just looking around at everything we do every day there is risk around every corner. From crossing the street to grilling on a barbeque, risk is all around us.  Navigating risk is the foundation of growth, both in life and in business.

Whether you’re a startup founder or a seasoned business leader, navigating risks effectively will significantly impact your company’s growth trajectory.  How we manage that risk makes all the difference.  Examples of typical risks include both internal and external factors.  Common internal risks include operational inefficiencies, talent management, inadequate financial controls, or poor strategic planning.  External risks range from economic downturns to regulatory changes or supply chain disruptions.  These are only a few of the risks that could be encountered on a regular basis.  What a mess!

I’ve found in my experience that an abundance of the potential risks can be determined well in advance of a crisis occurring if we keep our eyes open and ears to the ground.  Situation awareness is crucial for risk management to be an ally.  Seeing the whole picture of the business environment in context to your own endeavors will allow you to see well in advance of serious risks so that mitigation actions can be taken, and growth scenarios built.

Thinking about risk management is everyone’s responsibility.  I’ve highlighted a few things to consider in helping ensure growth and risk can work in synergy.

1. Identify and Assess Potential Risks

Before mitigating risk, you must understand what you’re up against. Conduct a comprehensive risk assessment by considering both internal and external factors. Execute the identification process deliberately as part of your planning cycle.  Log the risks, rank them for severity and probability of occurrence.

2. Plan for Potential Scenarios

Anticipate potential risks by creating various scenarios. What if demand suddenly drops? What if a key supplier goes out of business? Scenario planning helps you prepare for the unexpected. Develop contingency plans for each scenario, ensuring that your business can adapt swiftly when needed. This is where the latest in Artificial Intelligence (AI) can make a huge difference. The latest AI technology allows for rapid scenario analysis.

3. Spread the Risk

Diversification isn’t just for investment portfolios; it applies to business risk as well. Relying too heavily on a single product, market, or customer can be dangerous. Diversify revenue streams, expand into new markets, and build a resilient customer base. By spreading the risk, you hedge against the impact of any single risk event.

4. Build Resilient Operations

Build operational resilience by investing in robust processes, redundant systems, and disaster recovery plans. Regularly test these mechanisms to ensure they function seamlessly during crises. A resilient business can weather storms without compromising customer satisfaction or core operations.  Our recent experience with the global pandemic puts a fine point on resiliency.  During that period, I saw some of my clients scramble to implement remote communications processes for typically desk bound employees or rapidly invest in innovative methods to manage their disrupted supply chains. Build to weather any storm.

5. Watch the Data

Leverage data analytics to identify patterns and predict potential risks. Monitor key performance indicators (KPIs) and track deviations. Early detection allows you to take corrective actions promptly. Whether it’s detecting fraud or optimizing supply chain logistics, data-driven insights enhance risk management.

6. Embrace Change

Risk management isn’t static; it’s an ongoing process. Stay informed about industry trends, regulatory changes, and emerging risks. Maintain a high level of situation awareness. Adapt your strategies accordingly. A growth-oriented business embraces change and learns from both successes and failures.

7. Lead with Commitment

Risk management starts at the top. Leaders must champion a risk-aware culture. Encourage employees to report risks without fear of reprisal. When everyone understands their role in mitigating risk, the entire organization becomes more resilient.

The twisted pair of  business growth and risk management go hand in hand. By proactively identifying, assessing, and mitigating risks, you pave the way for sustainable expansion. Remember that risk isn’t the enemy—it’s an opportunity to innovate, adapt, and thrive.

May 6, 2024 Posted by | Uncategorized | , , , , , , | Leave a comment

Are You Torturing Your Data?

The Scene

In the dimly lit chamber of ones and zeros, where data slumbers, the flickering fluorescent lights hummed a melancholic tune, and the air smelled of burnt circuits and forsaken dreams.

Before the database stands a weary human, hunched over a massive data table. Eyes, bloodshot from countless late nights, bore the weight of expectations. Fingers danced across the keyboard, summoning arcane SQL incantations. But the data table remained stubborn, withholding its secrets.

“Tell me!” the analyst pleaded, voice echoing off the cold, sterile walls. “Where are the sales figures for Q3? The projections for next year? The elusive customer churn rate?”

The data table remained silent, rows and columns mocking him. Its cells held the answers, but they were encrypted in cryptic codes and nested joins. The analyst’s desperation grew, and he clenched his fists, knuckles white.

He tried coercion, threatening the table with NULL values and DELETE statements. But the table merely shrugged, unyielding. It had seen countless analysts before—some defeated, others broken—but it remained stoic, like an ancient oracle guarding forbidden knowledge.

The analyst’s eyes darted to the clock. Deadlines loomed like vultures, circling overhead. His sanity frayed at the edges. He pulled at his hair, muttering regex prayers and vowing to sacrifice a USB drive to the SQL gods.

And then, in a desperate act of defiance, he reached for the mouse. With trembling fingers, he clicked and dragged, selecting entire columns. The data table quivered, its digital essence trembling.

“Speak!” the human shouted, sweat dripping onto the keyboard. “Reveal your secrets!”

And there, in a pixelated burst of defiance, the data table complied. Rows unfolded like ancient scrolls, revealing graphs, trends, and insights. The human gasped, his eyes wide with revelation.

But victory came at a cost. The data table whispered its final plea: “Normalize me, optimize me, and remember—I am more than cells and bytes. I am the heartbeat of your decisions.”

The human nodded, humbled. He copied the data, closed the table, and stepped back into the harsh fluorescent light. Outside, the world awaited, hungry for answers.

And so, with newfound wisdom, he emerged—a weary hero, scarred by SQL battles, yet armed with insights. For in the labyrinth of data, where tables held their secrets close, he had learned the truth:

Data, like life, yields only to those who persist, question, and listen.

If this story sounds anything like a typical day then it’s time for logic to set into your work. Stop torturing data to provide answers. Start building data sets designed to meet your needs. Here are a few tips:

  1. Begin with the end in mind. When designing data collection strategies begin with what you’re looking for from the data set.
  2. Articulate your business goals clearly with measurable outcomes and trend points.
  3. Develop a list of clear questions the data will answer for you.
  4. Determine the amount of data required to make the answers reliable.
  5. Load dummy data that reflects your goals and the answers you’re seeking.
  6. Test…Modify…Test…until your design works.

Torturing data will eventually give you the answers you’re looking for. Designing collection strategies will give you answers on demand.

May 1, 2024 Posted by | Uncategorized | Leave a comment