My name is Hans Scharler. I am a community builder.

My goal with this series of blog posts is to explore AI and community and how community will drive change in business. Community is about being authentic and taking your members along with you. We form a symbiotic relationship as we build movements together.

Community is the only way companies will differentiate themselves in this era of AI.

Hans Scharler

Figuring out where to start this series of blog posts was challenging—a quandary, if you will. Do I explain the value proposition of community? Do I provide all of the background and context? Well, I decided to kick off this series with my hypothesis: community is the only way companies will differentiate themselves in the era of AI.

Let’s first acknowledge the sweeping wave of AI’s influence, from sophisticated tools like ChatGPT and its underlying large language model and transformer technology to image generation from simple language prompts. AI has completely changed how businesses work; they just might not know it yet. Recent breakthroughs, services, and combinations of services have brought about a level playing field. This means that your current technical edge in the marketplace will erode quickly, as anyone with text prompting can duplicate a feature of your app, game, or service. They can’t, however, duplicate your community.

That’s where having a community-driven strategy comes in. It’s a new way of doing things that moves the focus away from simple transactions and toward building relationships with users and customers. This happens by being authentic and getting people involved. Companies can use the power of their communities to not only survive but to thrive in this brave new world.

Key Takeaway

If you take one takeaway away, then take this one takeaway away… You must shift your organization’s plan to a community-driven marketing and development strategy in the age of AI. With AI leveling the playing field, companies must find new ways to set themselves apart and build long-lasting relationships with their users and customers. The community-driven approach is a powerful way to solve problems because it lets businesses take advantage of the huge potential of human connection and shared growth.

What lies at the very core of community-driven marketing and development? This approach can be summed up in three key points: fostering relationships that benefit both parties, making sure people stay engaged, and fostering growth for everyone

• Relationships are the bedrock of any successful community-driven initiative. By genuinely interacting with users and customers, organizations can learn a lot about their wants, pain points, and goals. This open conversation helps companies learn more about the people they want to reach, so they can make sure their products and services are right for them. In turn, customers feel heard and appreciated, which builds trust and loyalty that go beyond simple transactions.
• Consistent participation is the most important thing for keeping a community-driven approach alive. Customers today get a lot of marketing messages and have shorter and shorter attention spans, so companies must always find ways to keep their audience interested. This can be done in a number of ways, such as by providing useful content, making it easy for people to talk to each other, and giving members of the community special perks. By making people feel like they belong and are part of a group, businesses can not only keep their customers but also turn them into passionate brand advocates.
• Shared growth is the ultimate goal of community-driven marketing and development. By getting customers and users involved in the ideation, creation, and improvement of products and services, companies can give their customers and users a sense of ownership and pride. This way of working together makes sure that products and services change to meet the ever-changing needs of the market and gives users and customers the power to help the company succeed. As a result, businesses can enjoy sustainable growth and a competitive edge in the market.

Community-driven marketing and development is no longer just an option in the age of AI; it is an absolute must. Businesses can use the power of community to stand out in a crowded market and reach new heights of success by embracing the ideas of relationships, sustained engagement, and shared growth.

Subscribe, comment, and let’s explore this together. Welcome to The Age of Authenticity.

“7 Powers: The Foundations of Business Strategy” is a book written by Hamilton Helmer released in 2016. It is considered a seminal text in business strategy and has been influential in many industries.

The book presents a framework for understanding, analyzing, and changing a company’s position in the market, whether you’re an entrepreneur, a business veteran, or a student of business strategy. The framework is built around the concept of “7 Powers,” each of which represents a specific business condition that allows companies to sustain profits against rival forces.

The 7 Powers

1. Scale Economies: The company’s costs decline as its volume increases.
2. Network Economies: The value of the company’s product increases as the number of users grows.
3. Counter-Positioning: A newcomer adopts a new, superior business model which the incumbent does not mimic due to anticipated damage to their existing business.
4. Switching Costs: It is hard for customers to switch to competitors because of the high costs (economic, emotional, etc.).
5. Branding: Customers trust and therefore prefer the company’s product, allowing it to charge a premium price.
6. Cornered Resource: The company has privileged access to a valuable resource.
7. Process Power: The company has superior methods of production that provide it with a cost advantage.

Each of these Powers can create a barrier to entry for competitors and give the company a competitive edge, allowing it to sustain its profitability over the long term.

The Prepared Mind

There are lots of nuggets in the book, but the biggest takeaway for me was this idea of the prepared mind.

“The Prepared Mind” is a concept put forth by Louis Pasteur, a 19th-century French biologist, who said, “Chance favors the prepared mind.”

“Chance favors the prepared mind.”

Louis Pasteur

In the context of strategy and business decision-making, having a prepared mind means that you are ready to recognize and seize opportunities as they arise. This preparation typically involves having a solid understanding of your environment, including industry trends, market dynamics, and competitive forces. It also includes an understanding of your own organization’s strengths, weaknesses, and strategic position.

Being prepared means that you’ve done the work to analyze different scenarios and understand their potential impacts on your business. This allows you to make better decisions because you have thought about the possibilities in advance and are ready to act when the time is right.

Having a prepared mind means that you are proactively learning, anticipating, and strategically thinking about how to achieve success. It encourages leaders and decision-makers to invest time and resources in understanding their business context deeply, to increase the probability of recognizing valuable opportunities when they emerge.

It’s worth noting that this concept of a “Prepared Mind” is not only applicable to the field of business and strategy but also to various other fields like science, arts, sports, etc. It highlights the importance of continuous learning, foresight, and readiness to adapt and act decisively in a changing environment.

7 Powers for Community Builders

I always take what I read and try to apply it to my work. Here’s how I think of the 7 Powers looking through a community lens: Remember that the goal of the 7 Powers is to create a sustainable advantage—something that your competitors can’t easily copy or overcome, and something that’s valuable enough to your users that it keeps them engaged with your community over the long term. I believe you can’t copy your competitor’s community; it is what defines you in the marketplace.

1. Scale Economies: As your community grows, each new member brings more value to the others, and the costs of managing the community can be spread over a larger user base. This could also relate to your capacity to create content or features: the more users you have, the more content is generated, and the cost per piece of content decreases.
2. Network Economies: In an online community, the value of the community increases as more people join, because each new member can bring new perspectives, information, and connections. This is particularly relevant to social networks, professional networks, or any community based around information exchange.
3. Counter-Positioning: Your community could offer a unique value proposition that other communities can’t easily imitate without losing their existing users. For example, if your community is focused on privacy, a competitor that depends on data monetization might find it hard to replicate your model.
4. Switching Costs: If your community platform has unique features, or if users have built strong relationships and invested a lot of time in your community, it might be difficult for them to move to a new platform. This could be strengthened by exclusive content, earned reputation points, or proprietary tools that members can’t access elsewhere.
5. Branding: A strong brand can make your community more attractive to new members and more resistant to competitors. This might be built through unique values, a distinctive visual identity, thought leadership, or a reputation for high-quality discussions and content.
6. Cornered Resource: This might be exclusive access to certain experts, content, tools, or experiences that your community offers. For example, if your community is the only one that offers access to certain industry leaders, or if you have exclusive educational content, this could be a cornered resource.
7. Process Power: This could be a unique way you manage or organize your community that gives you an advantage. For example, a distinctive moderation system, a unique way of categorizing content, or a proprietary algorithm for recommending connections or content might give your community a competitive edge.

Join my Discord server to keep the conversation going. Let me know what you are reading and how you apply it.