TikTok & ByteDance
ByteDance is one of the most intriguing tech unicorn today. Its flagship app, Tiktok, is one of if not the most addictive apps of all time. In this thread, I will share some lessons that i learned from @mbrennanchina's Attention Factory
Let's get started! 👇👇
ByteDance is one of the most intriguing tech unicorn today. Its flagship app, Tiktok, is one of if not the most addictive apps of all time. In this thread, I will share some lessons that i learned from @mbrennanchina's Attention Factory
Let's get started! 👇👇
1. The importance of reading
The founder of ByteDance, Zhang Yiming, started to read when he was only in the second grade of kindergarten. He reportedly reads until 1-2 after work if he doesn't need to OT. All these make him a better decision maker and a better observer.
The founder of ByteDance, Zhang Yiming, started to read when he was only in the second grade of kindergarten. He reportedly reads until 1-2 after work if he doesn't need to OT. All these make him a better decision maker and a better observer.
2. Global Perspective
When Yiming founded ByteDance, he thought of an English name first before its Chinese one. Such practice is weird for Chinese companies, but Yiming believes that ByteDance must have a global perspective as China only make up 1/5 of the global market.
When Yiming founded ByteDance, he thought of an English name first before its Chinese one. Such practice is weird for Chinese companies, but Yiming believes that ByteDance must have a global perspective as China only make up 1/5 of the global market.
3. Take numerous tries
ByteDance was the fourth company that Yiming started/or played a huge role in. Tiktok was only a 'backup app' that wasn't expected to be successful. However, with many trial and errors, Tiktok is ultimately the most successful. Always tries numerous times.
ByteDance was the fourth company that Yiming started/or played a huge role in. Tiktok was only a 'backup app' that wasn't expected to be successful. However, with many trial and errors, Tiktok is ultimately the most successful. Always tries numerous times.
4. Doubt
Almost all the angel investors in China thought that ByteDance was not going to make it because it was too small, and Tiktok is just an app that is easily replicable. When you start something disruptive or innovative, doubt is a regular reaction. Fight against it!
Almost all the angel investors in China thought that ByteDance was not going to make it because it was too small, and Tiktok is just an app that is easily replicable. When you start something disruptive or innovative, doubt is a regular reaction. Fight against it!
5. Decision making framework
Whenever Yiming is going to make a decision, he list out the specific and most important criteria of the decision. Then he make his decision by choosing the option that fits all criteria without hesitation. This allows him to make many great decision.
Whenever Yiming is going to make a decision, he list out the specific and most important criteria of the decision. Then he make his decision by choosing the option that fits all criteria without hesitation. This allows him to make many great decision.
6. Machine Recommendation
One of the biggest reason that Tiktok has been widely successful is because of its strong machine learning and feed recommendation systems. Although there have been many competitors, Tiktok has been able to recommend the most suitable video to its users.
One of the biggest reason that Tiktok has been widely successful is because of its strong machine learning and feed recommendation systems. Although there have been many competitors, Tiktok has been able to recommend the most suitable video to its users.
7. Data Data Data
Its all about the data, with many data, a flywheel can be created, and the customer experience will be continuously improved and network effect can be formed. Data is the new oil and it is by far the most important resource for this new digital age.
Its all about the data, with many data, a flywheel can be created, and the customer experience will be continuously improved and network effect can be formed. Data is the new oil and it is by far the most important resource for this new digital age.
8. Big data and machine learning
ByteDance uses big data/machine learning in all their apps. Although these two phrases have been heavily used and may sound like a gamic from time to time. They are definitely not 'abstract concept' but really critical ideas for the digital age.
ByteDance uses big data/machine learning in all their apps. Although these two phrases have been heavily used and may sound like a gamic from time to time. They are definitely not 'abstract concept' but really critical ideas for the digital age.
8. Information finding you, not you finding the information
The biggest innovation that ByteDance has implemented is that it allows for information to find you, instead of you trying find the information via a search. This 'breakthrough' is what makes Tiktok so addictive.
The biggest innovation that ByteDance has implemented is that it allows for information to find you, instead of you trying find the information via a search. This 'breakthrough' is what makes Tiktok so addictive.
9. Talent
Yiming is very willing to pay for high level talents. Even when ByteDance was small, he was still trying to get top level engineers from Baidu, as he knows that getting to know the important 'know-how' is critical to his potential success.
Yiming is very willing to pay for high level talents. Even when ByteDance was small, he was still trying to get top level engineers from Baidu, as he knows that getting to know the important 'know-how' is critical to his potential success.
10. Correct order
To build a great content creation platform, you must first have great content creators. Not the other way around. ByteDance knows the importance of such order and paid handsomely for early days influencers and content creators on Tiktok.
To build a great content creation platform, you must first have great content creators. Not the other way around. ByteDance knows the importance of such order and paid handsomely for early days influencers and content creators on Tiktok.
11. Advertisement
Yiming advertises heavily. Whenever he sees an opportunity for growth, he would advertise heavily and try to spend as much as necessary to fuel the growth. Such willingness to spend is one big reason why Tiktok was able to fence off its competitors.
Yiming advertises heavily. Whenever he sees an opportunity for growth, he would advertise heavily and try to spend as much as necessary to fuel the growth. Such willingness to spend is one big reason why Tiktok was able to fence off its competitors.
12. Not the first 'Tiktok'
Before Tiktok, there was Vine, Mindle, Musical.ly that all focuses on short video. However TikTok was the one that succeeded because it started when 4G was widespread and had the best technology. Sometimes there is no first mover advantage.
Before Tiktok, there was Vine, Mindle, Musical.ly that all focuses on short video. However TikTok was the one that succeeded because it started when 4G was widespread and had the best technology. Sometimes there is no first mover advantage.
13. The right timing
Tiktok has entered the market at the perfect time. Timing has helped TikTok tremendously. This illustrates the importance of having a great overview of the world, which can only be gain by experience and reading.
Tiktok has entered the market at the perfect time. Timing has helped TikTok tremendously. This illustrates the importance of having a great overview of the world, which can only be gain by experience and reading.
14. Tiktok beat Tencent
Tencent tried to came up with its own version of Tiktok before, but failed miserably because Tiktok has already built up its network effect. Classic example of why sometimes a big company entering into a field does not mean the end for existing companies.
Tencent tried to came up with its own version of Tiktok before, but failed miserably because Tiktok has already built up its network effect. Classic example of why sometimes a big company entering into a field does not mean the end for existing companies.
15. Knowing your identity
One of the biggest reason why musical.ly failed was that it believe that it was the next ig (social platform). Instead, they were the next youtube (content platform). Not knowing the right identity will makes the business loses its focus.
One of the biggest reason why musical.ly failed was that it believe that it was the next ig (social platform). Instead, they were the next youtube (content platform). Not knowing the right identity will makes the business loses its focus.
16. Reflection
When Tiktok started, it was not all great. People were mocking the app for its lack of features. Yiming reflected on this, and he reinforced that the vision is correct, but he admitted to himself that there are serious execution problems that needed to be solved.
When Tiktok started, it was not all great. People were mocking the app for its lack of features. Yiming reflected on this, and he reinforced that the vision is correct, but he admitted to himself that there are serious execution problems that needed to be solved.
17. Risk adverse yet bold
Yiming gives me a feel that he is risk adverse but at the same time, after extensive research, he would be very confident in his plan. Then he will be bold. Be bold when you are confident and be risk adverse when you are not.
Yiming gives me a feel that he is risk adverse but at the same time, after extensive research, he would be very confident in his plan. Then he will be bold. Be bold when you are confident and be risk adverse when you are not.
18. In regards to investing
After learning about TikTok and ByteDance, it once agains illustrates the idea that investing in companies that have data and can create a data and network flywheel effect is always a win. They just don't seem to lose. At least that is for this moment.
After learning about TikTok and ByteDance, it once agains illustrates the idea that investing in companies that have data and can create a data and network flywheel effect is always a win. They just don't seem to lose. At least that is for this moment.
End// I hope you have enjoyed this thread and learnt a thing or two about ByteDance, TikTok and Zhang Yiming. If you have enjoyed this thread, please consider liking or retweeting it, I would really appreciate it!
Please also consider following me @joshuatai0427, where i tweet and write threads about exciting companies and books like this one! I hope you can have an awesome day and may God bless you!
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