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Category design

December 18, 2023

Category design is a business strategy and discipline that helps companies create, develop, and dominate new categories of products and services.

Category design extends beyond a leadership team's narrower focus on products, company culture and business models. Taught in academia as a business and market strategy,[1][2] it is explicitly deployed by disruptive innovation companies like Uber, Airbnb and other start up brands.[3][4][5] Business magazines such as Harvard Business Review and Inc. have published articles on the value of category design.[6][7][8] Marc Benioff is an aficionado.[9]

In academic terms, category design fits within research on the dynamics of product and market categories,[10][11][12][13] such as the historical emergence of new categories[14][15][16] vs. entrepreneurial efforts to valorize a new category of product or market.[17][18] Different forms of gatekeeping are also relevant to categories of markets and products, from critics who determine which books are deemed to belong to a genre,[19] to art gallerists who decide which customers are worthy to buy a high value artwork.[20]

History edit

Category design was first proposed in the book Play Bigger.[21] The book lays out a justification for why category creation is an important strategy,[22] and includes a step-by-step guide to applying design thinking to category creation:[23]

  • discovering and defining a category problem,
  • creating a clear story (called a point-of-view) that explains and sells the category idea,
  • defining a category blueprint,
  • driving the category strategy across a company's stakeholders (mobilization),
  • shaping customers' thinking (lightning strikes).[24]

The concepts tie back into recent writings about how our brains work, particularly cognitive biases as described by Daniel Kahneman.[25] Good category takes advantage of cognitive biases such as the choice supportive bias and groupthink bias.

After the book was published in June 2016, Mike Maples, a founding partner of Floodgate, published articles supporting the concept.[26]

The book, "Play Bigger" was co-authored by Christopher Lochhead, Dave Peterson, Al Ramadan, and Kevin Maney.[21]

The 6–10 law edit

Data research shows that "category kings" (companies that dominates a market category)[27] that go public when they are between six and ten years old create most of the value among all VC-funded tech companies. Companies that go public sooner than six years old often lose value; companies that IPO after ten years old create little value for shareholders. The reason is thought to be that categories take around six years to develop, and most of a category's growth happens in that six to ten year timeframe. After ten years, a category is established and growth slows, so share prices level off.[28][1] This was discussed in a Harvard Business Review article titled "How Unicorns Grow".[29]

See also edit

References edit

  1. ^ a b "Dave Peterson: The Journey of Category Design | Stanford eCorner". ecorner.stanford.edu. Retrieved 2017-07-16.
  2. ^ "Jennifer Johnson | Go-To-Market And Category Design Fundamentals | Heavybit". Heavybit. 2017-03-29. Retrieved 2017-07-16.
  3. ^ Snyder, Michelle (2015-06-17). "5 Essentials for Creating a New Market Category". Entrepreneur. Retrieved 2017-07-25.
  4. ^ "Creating Category Of One Brands | Branding Strategy Insider". Branding Strategy Insider. 2015-10-30. Retrieved 2017-07-25.
  5. ^ "7 Strategies To Create New Business Categories". Branding Strategy Insider. 2014-01-17. Retrieved 2017-07-25.
  6. ^ "Why It Pays to Be a Category Creator". Harvard Business Review. Retrieved 2017-07-25.
  7. ^ "How to Create a New Category for Your Product". Inc.com. Dec 2014. Retrieved 2017-07-25.
  8. ^ "Category Creation Is the Ultimate Growth Strategy". Harvard Business Review. Retrieved 2017-07-25.
  9. ^ Development, PodBean. . Archived from the original on 2017-08-01. Retrieved 2017-07-25.
  10. ^ Pedeliento, Giuseppe; Andreini, Daniela; Dalli, Daniele (July 2020). "From Mother's Ruin to Ginaissance: Emergence, settlement and resettlement of the gin category". Organization Studies. 41 (7): 969–992. doi:10.1177/0170840619883366. hdl:10446/151077. ISSN 0170-8406. S2CID 210485306.
  11. ^ Gollnhofer, Johanna; Bhatnagar, Kushagra (February 2021). "Investigating Category Dynamics: An Archival Study of the German Food Market". Organization Studies. 42 (2): 245–268. doi:10.1177/0170840620980245. ISSN 0170-8406. S2CID 229394104.
  12. ^ Anand, N.; Jones, Brittany C. (September 2008). "Tournament Rituals, Category Dynamics, and Field Configuration: The Case of the Booker Prize". Journal of Management Studies. 45 (6): 1036–1060. doi:10.1111/j.1467-6486.2008.00782.x. S2CID 146564280.
  13. ^ Delmestri, Giuseppe; Wezel, Filippo Carlo; Goodrick, Elizabeth; Washington, Marvin (July 2020). "The Hidden Paths of Category Research: Climbing new heights and slippery slopes". Organization Studies. 41 (7): 909–920. doi:10.1177/0170840620932591. ISSN 0170-8406. S2CID 220392540.
  14. ^ Navis, Chad; Glynn, Mary Ann (September 2010). "How New Market Categories Emerge: Temporal Dynamics of Legitimacy, Identity, and Entrepreneurship in Satellite Radio, 1990–2005". Administrative Science Quarterly. 55 (3): 439–471. doi:10.2189/asqu.2010.55.3.439. ISSN 0001-8392. S2CID 154563830.
  15. ^ Durand, Rodolphe; Khaire, Mukti (January 2017). "Where Do Market Categories Come From and How? Distinguishing Category Creation From Category Emergence". Journal of Management. 43 (1): 87–110. doi:10.1177/0149206316669812. ISSN 0149-2063. S2CID 149810891.
  16. ^ Categories in markets : origins and evolution. Greta Hsu, Giacomo Negro, Özgecan Koçak (1st ed.). Bingley [England]: Emerald Group. 2010. ISBN 978-0-85724-594-6. OCLC 693772806.{{cite book}}: CS1 maint: others (link)
  17. ^ Hilkamo, Oona; Barbe, Anne-Sophie; Granqvist, Nina; Geurts, Amber (2021-11-02). "Temporal work by consultants in nascent market categories: constructing a market for knowledge in quantum computing". Technology Analysis & Strategic Management. 33 (11): 1303–1316. doi:10.1080/09537325.2021.1931098. ISSN 0953-7325. S2CID 236395026.
  18. ^ Edman, Jesper; Ahmadjian, Christina L. (2017-03-24), Seidel, Marc-David L.; Greve, Henrich R. (eds.), "Empty Categories and Industry Emergence: The Rise and Fall of Japanese Ji-biru", Research in the Sociology of Organizations, Emerald Publishing Limited, vol. 50, pp. 109–140, doi:10.1108/s0733-558x20170000050004, ISBN 978-1-78635-915-5, retrieved 2023-03-24
  19. ^ Sharkey, Amanda; Kovács, Balázs; Hsu, Greta (January 2023). "Expert Critics, Rankings, and Review Aggregators: The Changing Nature of Intermediation and the Rise of Markets with Multiple Intermediaries". Academy of Management Annals. 17 (1): 1–36. doi:10.5465/annals.2021.0025. ISSN 1941-6520. S2CID 248212860.
  20. ^ Coslor, Erica; Crawford, Brett; Leyshon, Andrew (July 2020). "Collectors, Investors and Speculators: Gatekeeper use of audience categories in the art market". Organization Studies. 41 (7): 945–967. doi:10.1177/0170840619883371. hdl:11343/241430. ISSN 0170-8406. S2CID 213927815.
  21. ^ a b Lochhead, Christopher; Peterson, Dave; Ramadan, Al; Maney, Kevin (2016-06-13). "How to Design a Business That Dominates Its Niche". Inc. Retrieved 2019-03-07.
  22. ^ Zwilling, Martin. "Bold Entrepreneurs Now Create New Market Categories". Forbes. Retrieved 2017-06-27.
  23. ^ Guttman, Amy. "'If There's A Playbook For Building The Next Google...This Is It': 4 Founders' Favorite Books". Forbes. Retrieved 2017-07-16.
  24. ^ "How to Design a Business That Dominates Its Niche". Inc.com. 13 Jun 2016. Retrieved 2017-07-16.
  25. ^ Griffith, Liz (2017-04-19). "First came behavioural economics – Now it's time for behavioural marketing". Linkedin Pulse. Retrieved 2017-06-27.
  26. ^ Stebbings, Harry (11 October 2016). "Floodgate's Mike Maples on what makes category kings | TechCrunch". Retrieved 2017-06-27.
  27. ^ Lee, Roger; Lu, Jeff; Ravichandran, Deepak (5 February 2017). "Keys to ascending the consumer-internet throne | TechCrunch". Retrieved 2017-06-27.
  28. ^ "The 6–10 Law: Data Science Reveals How Age and Money Impact Startup Value Creation | Sandhill". sandhill.com. 14 June 2016. Retrieved 2017-06-27.
  29. ^ "Unicorns and Other Mythological Creatures". harvardpolitics.com. 11 August 2015. Retrieved 2017-06-27.

December 18, 2023
category, design, business, strategy, discipline, that, helps, companies, create, develop, dominate, categories, products, services, extends, beyond, leadership, team, narrower, focus, products, company, culture, business, models, taught, academia, business, m. Category design is a business strategy and discipline that helps companies create develop and dominate new categories of products and services Category design extends beyond a leadership team s narrower focus on products company culture and business models Taught in academia as a business and market strategy 1 2 it is explicitly deployed by disruptive innovation companies like Uber Airbnb and other start up brands 3 4 5 Business magazines such as Harvard Business Review and Inc have published articles on the value of category design 6 7 8 Marc Benioff is an aficionado 9 In academic terms category design fits within research on the dynamics of product and market categories 10 11 12 13 such as the historical emergence of new categories 14 15 16 vs entrepreneurial efforts to valorize a new category of product or market 17 18 Different forms of gatekeeping are also relevant to categories of markets and products from critics who determine which books are deemed to belong to a genre 19 to art gallerists who decide which customers are worthy to buy a high value artwork 20 Contents 1 History 1 1 The 6 10 law 2 See also 3 ReferencesHistory editCategory design was first proposed in the book Play Bigger 21 The book lays out a justification for why category creation is an important strategy 22 and includes a step by step guide to applying design thinking to category creation 23 discovering and defining a category problem creating a clear story called a point of view that explains and sells the category idea defining a category blueprint driving the category strategy across a company s stakeholders mobilization shaping customers thinking lightning strikes 24 The concepts tie back into recent writings about how our brains work particularly cognitive biases as described by Daniel Kahneman 25 Good category takes advantage of cognitive biases such as the choice supportive bias and groupthink bias After the book was published in June 2016 Mike Maples a founding partner of Floodgate published articles supporting the concept 26 The book Play Bigger was co authored by Christopher Lochhead Dave Peterson Al Ramadan and Kevin Maney 21 The 6 10 law edit Data research shows that category kings companies that dominates a market category 27 that go public when they are between six and ten years old create most of the value among all VC funded tech companies Companies that go public sooner than six years old often lose value companies that IPO after ten years old create little value for shareholders The reason is thought to be that categories take around six years to develop and most of a category s growth happens in that six to ten year timeframe After ten years a category is established and growth slows so share prices level off 28 1 This was discussed in a Harvard Business Review article titled How Unicorns Grow 29 See also editCornering the market New business development Value chain Value network Value shop List of unicorn startup companiesReferences edit a b Dave Peterson The Journey of Category Design Stanford eCorner ecorner stanford edu Retrieved 2017 07 16 Jennifer Johnson Go To Market And Category Design Fundamentals Heavybit Heavybit 2017 03 29 Retrieved 2017 07 16 Snyder Michelle 2015 06 17 5 Essentials for Creating a New Market Category Entrepreneur Retrieved 2017 07 25 Creating Category Of One Brands Branding Strategy Insider Branding Strategy Insider 2015 10 30 Retrieved 2017 07 25 7 Strategies To Create New Business Categories Branding Strategy Insider 2014 01 17 Retrieved 2017 07 25 Why It Pays to Be a Category Creator Harvard Business Review Retrieved 2017 07 25 How to Create a New Category for Your Product Inc com Dec 2014 Retrieved 2017 07 25 Category Creation Is the Ultimate Growth Strategy Harvard Business Review Retrieved 2017 07 25 Development PodBean 022 Entrepreneur Roundtable How to Design amp Dominate Your Category w Rhonda Smith Part 2 Archived from the original on 2017 08 01 Retrieved 2017 07 25 Pedeliento Giuseppe Andreini Daniela Dalli Daniele July 2020 From Mother s Ruin to Ginaissance Emergence settlement and resettlement of the gin category Organization Studies 41 7 969 992 doi 10 1177 0170840619883366 hdl 10446 151077 ISSN 0170 8406 S2CID 210485306 Gollnhofer Johanna Bhatnagar Kushagra February 2021 Investigating Category Dynamics An Archival Study of the German Food Market Organization Studies 42 2 245 268 doi 10 1177 0170840620980245 ISSN 0170 8406 S2CID 229394104 Anand N Jones Brittany C September 2008 Tournament Rituals Category Dynamics and Field Configuration The Case of the Booker Prize Journal of Management Studies 45 6 1036 1060 doi 10 1111 j 1467 6486 2008 00782 x S2CID 146564280 Delmestri Giuseppe Wezel Filippo Carlo Goodrick Elizabeth Washington Marvin July 2020 The Hidden Paths of Category Research Climbing new heights and slippery slopes Organization Studies 41 7 909 920 doi 10 1177 0170840620932591 ISSN 0170 8406 S2CID 220392540 Navis Chad Glynn Mary Ann September 2010 How New Market Categories Emerge Temporal Dynamics of Legitimacy Identity and Entrepreneurship in Satellite Radio 1990 2005 Administrative Science Quarterly 55 3 439 471 doi 10 2189 asqu 2010 55 3 439 ISSN 0001 8392 S2CID 154563830 Durand Rodolphe Khaire Mukti January 2017 Where Do Market Categories Come From and How Distinguishing Category Creation From Category Emergence Journal of Management 43 1 87 110 doi 10 1177 0149206316669812 ISSN 0149 2063 S2CID 149810891 Categories in markets origins and evolution Greta Hsu Giacomo Negro Ozgecan Kocak 1st ed Bingley England Emerald Group 2010 ISBN 978 0 85724 594 6 OCLC 693772806 a href Template Cite book html title Template Cite book cite book a CS1 maint others link Hilkamo Oona Barbe Anne Sophie Granqvist Nina Geurts Amber 2021 11 02 Temporal work by consultants in nascent market categories constructing a market for knowledge in quantum computing Technology Analysis amp Strategic Management 33 11 1303 1316 doi 10 1080 09537325 2021 1931098 ISSN 0953 7325 S2CID 236395026 Edman Jesper Ahmadjian Christina L 2017 03 24 Seidel Marc David L Greve Henrich R eds Empty Categories and Industry Emergence The Rise and Fall of Japanese Ji biru Research in the Sociology of Organizations Emerald Publishing Limited vol 50 pp 109 140 doi 10 1108 s0733 558x20170000050004 ISBN 978 1 78635 915 5 retrieved 2023 03 24 Sharkey Amanda Kovacs Balazs Hsu Greta January 2023 Expert Critics Rankings and Review Aggregators The Changing Nature of Intermediation and the Rise of Markets with Multiple Intermediaries Academy of Management Annals 17 1 1 36 doi 10 5465 annals 2021 0025 ISSN 1941 6520 S2CID 248212860 Coslor Erica Crawford Brett Leyshon Andrew July 2020 Collectors Investors and Speculators Gatekeeper use of audience categories in the art market Organization Studies 41 7 945 967 doi 10 1177 0170840619883371 hdl 11343 241430 ISSN 0170 8406 S2CID 213927815 a b Lochhead Christopher Peterson Dave Ramadan Al Maney Kevin 2016 06 13 How to Design a Business That Dominates Its Niche Inc Retrieved 2019 03 07 Zwilling Martin Bold Entrepreneurs Now Create New Market Categories Forbes Retrieved 2017 06 27 Guttman Amy If There s A Playbook For Building The Next Google This Is It 4 Founders Favorite Books Forbes Retrieved 2017 07 16 How to Design a Business That Dominates Its Niche Inc com 13 Jun 2016 Retrieved 2017 07 16 Griffith Liz 2017 04 19 First came behavioural economics Now it s time for behavioural marketing Linkedin Pulse Retrieved 2017 06 27 Stebbings Harry 11 October 2016 Floodgate s Mike Maples on what makes category kings TechCrunch Retrieved 2017 06 27 Lee Roger Lu Jeff Ravichandran Deepak 5 February 2017 Keys to ascending the consumer internet throne TechCrunch Retrieved 2017 06 27 The 6 10 Law Data Science Reveals How Age and Money Impact Startup Value Creation Sandhill sandhill com 14 June 2016 Retrieved 2017 06 27 Unicorns and Other Mythological Creatures harvardpolitics com 11 August 2015 Retrieved 2017 06 27 Retrieved from https en wikipedia org w index php title Category design amp oldid 1183928786, wikipedia, wiki, book, books, library,

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