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0 pointsnetcan2mo ago0 comments

Yes.. I agree.

.. and that entropy can be where all the ultimate value is. That said... considering the point at hand is the context, it's important to start with the diminishing marginal returns.

To give a simple example... Google and FB do not have "invest able software opportunities" at hand. They've been searching everywhere for nails for their "build software" hammer. They are well resourced and risk tolerant.

The diminishing returns curve for "more software" is steep.

Good stuff coming through often starts with $100m markets becoming $1bn markets. That's not even noise at the scale they're thinking about. Long term, sure. Plausibility range is as wide at it has maybe ever been.

But... systemic value is hard to make.

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jmalicki2mo ago

Most places I've worked have roadmaps, i.e. investable priorities.

If you can burn through lower priority experiments quickly it's great!

They might be working on all of the super high level things they can think of, but there are always more A/B tests, more features, etc. that are just lower priority, and the chaos of scaling up the org to address them all is super linear whereas the return on going down the list is sub linear.

So you end up with an equilibrium. If the cost shifts, just like in econ 101, the output will change.

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