“I love reality, it helps constantly”
The above words by him itself describes everything about Delta 4 and why he created this theory yes reality, the theory is created to show the reality of the Business models where they actually stand and their validation in a current disruptive market, to simplify it is about how to create wealth and how to destroy wealth.
What is Delta 4?
Before we go ahead
Which Goods and Services were more efficient 10 years ago?
It is impossible to think about this because as Human we dominate this planet because we have cracked this, if you were a tiger or a lion and if I had asked you what was more efficient for you 10 years ago, you would have looked at your cloth and teeth and would have said same, we waiting for evolution to make us more efficient.
Further, he quoted “We humans hacked it and we created more and more efficiency and dominant this planet. Only we have this rule all the efficient work is In future and inefficiency in past and today probably is the most efficient stage which has not been evenly distributed”
The theory explains about the efficiency
The Conventional law we follow, All efficient things exist in future, all inefficient things exist in past the rate at which this is changing is really fast. Evidently, if your business is moving consumers from current state to a more efficient state you unlock the pot of gold.
To simplify this he added scoring. (0-lowest and 10-highest)
Efficiency Scoring: Any business upgrade we do, which is efficient as compared to previous business model/product which makes getting back to a previous way of business moderately irreversible. An example is Online and Brick & Mortar shopping or online ticket booking compared to booking at a railway station. To compare all this with the scoring system from 1–10 is Efficiency Scoring for any business.
Efficiency score can be calculated by calculating the % of people adopted your business divided the number of people sticks around after a specific period of time. An example can be buying mobile phones online compared to buying it in stores. A fairly large number of people have accustomed to buying a mobile phone online compared to brick and mortar store. Right there, they got offered efficiency and people adapted it. The people who offered the efficiency have found their pot of gold.
“Every time there is a hurdle, there is a pot of gold.” Kunal Shah, Founder, FreeCharge at #TC.
If Efficiency Scoring (Number of customers who adapts the new model and those who sticks to the old one) is more than 4, It carries a huge potential to be successful
Q: What businesses should keep in mind or do to increase the Δ4?
- A) Affordability (No one would take a train if they can afford a flight everywhere)
- B) Readiness (WhatsApp wouldn’t be popular if smartphones were not affordable and accessible)
- C) Learning effort (English- as a language compared to any other more efficient language)
- D) Micro Configurations (Setting up preferences like address before you checkout, making the transaction more efficient)
- E) Collective participation
- F) Branded lanes/verbs (using WhatsApp me or Google it, instead of text me or search for it on the web)
He also claims, if Δe = >2 but <4, Business becomes unstable and you may need to pour in more money(can be referred to OLA CABS or give discounts) to increase the delta. if Δe = <2 The business is not worth doing
Before starting with your business or implementing an idea, make sure that your business will be at least Δe = 4. Make it BragWorthy.
Also recently, he has been listed in top 7 Angel investor list by H1 2017 for investing angels funds in Spinny, lets Reap and Innov8, also currently he is part of Sequoia Capital.
This article was written by Bhavana Vyas, this was a key-note workshop at The coalition event in Mumbai,happened on March 31st and April 1st of 2017.