Which goods and services were more efficient 10 years ago? That is a difficult question to answer. This is because all efficiencies that have been created are for the future. And this is unique to human beings; they are hacking efficiency through different goods and services,
says Kunal Shah, Founder of FreeCharge, at the seventh edition of TechSparks.
The consumer today, however, goes through a million different painpoints. And these are more on the lines of 'how do I upload pictures quickly, get funding faster, or even get better scores in examinations'. "Every time you cross an inefficient phase and take consumers to higher levels of efficiency, you've created wealth," says Kunal.
However, how do you know that you have moved away and created an efficiency? Many of us build things, and almost 99 percent of them fail. Citing the example of going to the railway ticketing counter and booking through IRCTC, Kunal says that in most cases customers do not go back to booking through a ticketing counter. The Delta in this case is more than four. "And every time you hit a Delta of four, you've hit the perfect efficiency scale," says Kunal.
"If you do not have a Delta 4, it becomes difficult to actually create wealth. If you take the example of buying shirts online v/s buying shirts offline, you see that it hasn't created a Delta 4, because people are still wary of it and many don't see buying offline as being inefficient, and this, therefore, doesn't unlock a pot of gold," says Kunal.
While people might resort to artificial modes of creating Delta 4 through the creation of cash backs and discounts, it isn't sustainable. Citing the example of laundry startups, Kunal adds that while washing your clothes are inefficient, in India, the efficiency of creating a Delta 4 would be hiring a maid. Downloading an app is solving an inefficiency in the western world, where hiring domestic help is an expensive affair.
The factors along which Delta 4 doesn't work are:
However, many people fake Delta 4 by creating great marketing efforts. The different ways to fake Delta 4 are:
"When you get an idea, don't build the product. If you build it, you have a vested interest. Ask five unknown people and founders what they think of the idea. Get brutally honest answers and opinions. Don't ask friends and family. When I started FreeCharge, I, being a philosophy graduate, built a rough version of the product, and asked people if they would use it. Only when there was a 95 percent confirmation, did I go ahead and build it. Build products to solve an inefficiency."
Watch the complete talk below:
A big shoutout to all our sponsors - Zendesk, Axis Bank, Sequoia Capital India Advisors , Digital Ocean, Microsoft, AWS, Akamai, Target, Verisign, Kerala Startup Mission, Brand Launch Centre, Tork and Blink.