Your data model is your destiny
3 days ago
- #data-model
- #competitive-advantage
- #startup-strategy
- A startup's data model is the core abstraction that determines its product's success and moat.
- Data model refers to the core concepts or objects prioritized in a product, shaping everything from UI/UX to pricing and GTM strategy.
- Most founders inherit their data model implicitly, making it hard to change once solidified.
- Breakout companies like Slack, Toast, Notion, Figma, Rippling, Klaviyo, and ServiceNow succeeded due to distinctive data model choices.
- AI commoditizes code, making differentiated data models more critical as a competitive advantage.
- Horizontal tools innovate on broad use cases, while vertical tools focus on deep domain complexity.
- To design the right data model, start with the workflow, not technical implementation, and look for mismatches in incumbent products.
- A strong data model creates compounding advantages, making new features more powerful with inherited context.
- The right data model is hard to replicate, as competitors would need to rebuild from scratch.