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Product Differentiators

Tomasz Tunguz:

There are three types of product features, a seasoned head of product told me recently. MMRs, neutralizers, and differentiators. MMRs are minimum market requirements; basic features that every customer expects and demands. Neutralizers mitigate competitive threat. Differentiators are your startup’s competitive advantage.

As the product team talks to customers, they are likely to hear feedback encouraging more investment in MMRs and neutralizers. “Your product is missing this feature. We need this capability that exists in another piece of software in yours.”

customers rarely push vendors to further their differentiation. By definition, the unique selling proposition doesn’t exist elsewhere in the market. So advances or improvements to the differentiator may not be obvious to customers.

Some Early Numbers From South Australia's Big Tesla Battery

The Tesla’s big battery in South Australia has already taken a 55 per cent share in the state’s frequency and ancillary services market, and lowered prices in that market by 90 per cent, new data has shown.

And the 100MW battery has achieved over 55 per cent of the FCAS revenues in South Australia. So it’s 2 per cent of the capacity in South Australia achieving 55 per cent of the revenues in South Australia.

Various estimates have put the cost savings to consumers from the FCAS market alone at around $35 million, just in the first four months of its operation.

That’s a pretty good bang for the buck for the estimated $50 million investment by the South Australia government. South Australia is the only state that has experienced a decline in FCAS prices over the past few months.