🔔Day 52: Modern Product Insights: Systems thinking suggests that Youtube's model works because it has what is called a positive feedback loop.

Systems thinking is an approach to problem solving and management that looks at the "big picture." 

It's a way of seeing connectedness and relationship, so we understand why it works when we apply it to something like Youtube.
 
What makes Youtube capable of having hundreds of millions of users? 

Why might these people, who make up the system, be motivated to use it?

And how could we improve the experience without damaging the system?

This reinforces itself over time and grows exponentially, like global warming. 

A positive feedback loop means that if you like what you see on Youtube and want to watch more (and you will), and the more you watch, the more ads youtube can show, which means they make ever-increasing amounts of money.

Or that watching one video makes it easier to find another, inspiring another favorite upload, another search term. 

The feedback loop increases engagement, which leads to an increase in time spent on the site, which leads to more users and a more significant network effect. 

The fact that people spend hours on Youtube has allowed it to become such a powerful platform. 

But as with all systems, this approach is not without its side effects.

🔔I highly recommend watching this video if you’re interested in understanding similar growth related topics.🔔

https://lnkd.in/dHth62g6

#systemsthinking #systemsengineering #product #growthstrategy #growth #networkeffects