Product-market fit (PMF) is a core goal for start-ups in popular perception, but the rise of large models has created a need for more comprehensive evaluation criteria. Will the TC-PMF proposed by Kai-Fu Lee become the new standard for stock fighting? Let's break it down.
In the past, PMF (product-market fit) has been a core goal pursued by start-ups. However, with the rise of large language models, this standard can no longer fully meet the needs of modern startups.
Recently, Kai-Fu Lee's TC-PMF (Product-Market-Technology-Cost Fit) has become a new evaluation criterion, marking the birth of a more comprehensive and complex entrepreneurial ecosystem.
Today we'll dive into the concept of TC-PMF and why it's important, as well as analyze its application in the age of AI and the future of customer experience.
1、PMF vs. TC-PMF
PMF (Product-Market Fit) refers to the fit of a product with its target market, which is one of the core goals pursued by start-ups in the product development process.
The concept of PMF emphasizes the success of the product by meeting the market demand. However, in the era of large models, a simple product-market fit is no longer enough to ensure success.
The high cost and complexity of AI technology introduces new challenges, and enterprises need to focus on both technology feasibility and cost management, which is where the concept of TC-PMF (Technology x Cost x Product Market Fit) comes in.
Compared with traditional PMF, TC-PMF adds two key dimensions: technology and cost.
The effective alignment of these four dimensions is critical to the sustainability and market success of large AI models or other technology products:
- Product: The functions and characteristics of the product itself, whether it can meet the market demand.
- Market: The size and potential of the target market, as well as the market's acceptance of the product.
- Technology: The technical capabilities that support the product, including technological innovation, performance, and stability.
- Cost: includes R&D costs, production costs, and operating costs, especially the training and inference costs of AI models.
2. Why do I need to pay attention to TC-PMF?
In the era of large models, the development and application of AI technology faces many challenges. The training and inference of the model are expensive, the technical path is complex, and the business model is not yet fully mature.
Therefore, it is no longer enough to simply pursue the fit of product and market to meet these challenges.
TC-PMF emphasizes that the feasibility of the technology, the controllability of the cost, and the fit of the product market must be considered in the development and application process.
Kai-Fu Lee pointed out that finding TC-PMF is much more difficult than traditional PMF, and ignoring any one aspect can lead to resource exhaustion, market disconnection, cost overruns, and ultimately business failure.
This new standard requires companies to find the best balance between technology, cost, product and market to achieve sustainable development.
3. Characteristics of TC-PMF
The inference cost of AI models is a "moving target", and with the advancement of technology and the change of market demand, it is an important task to continuously optimize the inference cost to achieve TC-PMF.
Through "model-based co-construction", that is, the collaborative development of models and AI infrastructure layer technologies, the use of chips can be minimized and costs can be reduced.
Kai-Fu Lee emphasized that the application of AI-First must adhere to a global perspective.
The demand and feedback from the global market will further promote the optimization of technology and cost control, and help enterprises to occupy a favorable position in international competition.
The TC-PMF philosophy requires companies to focus on AI-first applications, which cannot be built without AI.
This focus enables companies to take full advantage of AI technology in the development process to improve product competitiveness and market acceptance.
4. The development of AI and the drive of TC-PMF
The development of AI technology has driven the adoption and popularization of TC-PMF. In the era of large models, the development of AI has shown the following trends:
1) Technological breakthroughs: The continuous optimization and innovation of large language models provide more powerful technical support for enterprises. However, these technological breakthroughs also come with high R&D and application costs, and companies must find a balance between technology and cost.
2) Cost management: The cost of training and inference of AI models is a key factor affecting the development of enterprises. By optimizing algorithms, improving computing efficiency, and reducing hardware costs, enterprises can effectively manage costs to meet the requirements of TC-PMF.
3) Business model innovation: With the development of AI technology, new business models are constantly emerging. For example, subscription-based AI services and pay-as-you-go computing resources provide enterprises with more ways to make money and control costs.
5. Impact on future customer experience
The implementation of TC-PMF will have a profound impact on the future customer experience.
Here are a few key aspects:
1) Product experience improvement: By optimizing technology and cost, companies can develop products with better performance and more reasonable prices, thereby improving the customer experience. "Low price", which we also talked about before in Amazon's case, is the underlying factor that drives the flywheel of customer experience growth. The application of AI-First will make products more intelligent and meet the higher needs of customers.
2) Market adaptability enhancement: enterprises in the development process of comprehensive consideration of market demand and technical feasibility, so that the product closer to the market demand, improve customer satisfaction and loyalty.
3) Personalized services: The development of AI technology has made personalized services possible. By analyzing customer data, businesses can provide customized products and services to each customer, improving customer experience and satisfaction.
4) Global experience: Adhere to the global vision, so that enterprises can promote and apply their products in the global market, and customers can enjoy more diversified and higher quality products and services.
6. Write at the end
TC-PMF (technology cost x product market fit) is the core goal pursued by enterprises in the era of large models.
Compared with traditional PMF, TC-PMF is more comprehensive, emphasizing the effective fit of technology, cost, product and market.
The development of AI technology has promoted the application of TC-PMF, and enterprises need to continuously optimize the technology path to reduce costs and innovate business models in this process.
The implementation of TC-PMF will have a profound impact on the future customer experience, enhancing product experience, enhancing market adaptability, providing personalized service, and bringing a global quality experience.
If enterprises can effectively implement TC-PMF, they will gain great development and competitive advantage in the era of large models.
More than.
This article was written by Everyone is a Product Manager Author [Long Guofu], WeChat public account: [Long Guofu], original / authorized Published in Everyone is a product manager, without permission, it is forbidden to reprint.
Image from Unsplash, based on the CC0 license.