One of my key takeaways from the module was the topic of pattern language. The immediate purpose of developing a pattern language is to enhance the understanding of processes and provide a common language for all relevant parties so that they can adopt a “glass box” approach (Pechoux, 2000). Patterns developed by one professional should be shared with others in order to speed up the process of establishing a comprehensive pattern language, thus benefiting the entire organisation (Iba, 2010).
As a fast-growing startup with fairly nimble processes, Secretlab has run into many growing pains when expanding. There is a significant gap of knowledge between experienced staff who have developed their own ‘rules of thumb’, and newcomers that were hired in recent years. While the company currently adopts a trial and error method to allow newcomers to get familiarised with the company’s processes, finding the best solution to an already known problem can be tedious and stressful. Using pattern language helps to mature these ‘rules of thumb’ into reliable pieces of information that newcomers can use to be more efficient and build upon.
While the use of pattern language aims to create a framework, its strength lies in each individual’s interpretation of each pattern, and their selection and sequence of patterns composing their personal language. A longer-term objective is thus to develop a language that can be customised to the needs of specific launches, which could help channel creativity in design thinking and optimise the process.
Another of my key takeaways is the importance of the ability to deep-dive into other industries, exploring what works for them and bringing my learnings back to the industry that we are in. One of the technologies that is revolutionising different industries is blockchain technology. From creating robust digital ledgers and protecting against fraud in the finance industry (Fernandez-Vazquez, Rosillo, De La Fuente and Priore, 2019) to improving traceability and providing efficient transaction processing in supply chain management (Brody, 2017), it is clear that blockchain technology has many uses across various industries.
These are all practices that Secretlab can adopt in its current production and e-commerce platforms. However, I believe that Secretlab stands to benefit the most from the growth of NFT marketplaces in particular.
The first popular example of NFTs was CryptoKitties, a collection of artistic images representing virtual cats that are used in a game on Ethereum that allows players to purchase, collect, breed, and sell them on Ethereum (Wong, 2017). Following an initial rapid growth in late 2017, when the CryptoKitties collection gained worldwide popularity, the size of the NFT market remained substantially stable until mid 2020, with an average of US$60000 traded daily. Starting from July 2020, the market has experienced a dramatic growth, with the total volume exchanged daily surpassing US$10 million in March 2021 (Nadini et al., 2021).
Nearly $41 billion worth of cryptocurrency was sent to two types of Ethereum smart contracts associated with NFT marketplaces and collections from the beginning of 2021 through mid-December (Versprille, 2022). A survey by Variety shows that the demographic most interested in NFTs are of the 15-29 age range (Bridge, 2021), the same demographic of gaming youth and young professionals that Secretlab is targeting.
Data from the 2021 NFT Market Report from Nonfungible.com shows that the largest amount of Ethereum NFT sales were the collectibles. The aforementioned CryptoKitties fall under this category, with some collectibles under the CryptoPunks collection selling for several million dollars (CryptoPunks, 2022). The second most popular NFTs were art NFTs, followed by utility NFTs - such as providing exclusive privileges to token holders and entry to members-only virtual and real-life events - and gaming NFTs (Yearly NFT Market Report, 2021).
The top-selling CryptoPunks from Larvalabs.com
Secretlab has briefly dabbled in the collectible space by releasing the TITAN XXS, a limited edition mini-sized version of its flagship chairs, back in November 2021. The chair was released as a collectible for the fans of the product after a false launch of a tiny chair was done for April Fools’ Day earlier in the year received good responses (Patino, 2021). However, the sale of this collectible fell short of expectations. While the reasons for this could vary, the main conclusions reached by monitoring the response to the TITAN XXS launch are as follows:
● While the TITAN XXS is a minified version of the actual chair, the collectible is still sizable enough to seat a child or adult of below 160cm, causing the chair to take up a significant amount of space
● The chair is a combination of functional and for-display, without excelling in either areas
● Secretlab overestimated the demand and thus overproduced chairs, lowering the perceived value of the collectible
All of the main concerns above can be mitigated by moving into virtual collectibles. One of the talked about advantages of NFTs, by virtue of it being digital, is that virtual collectibles take up alot less space. Collectors no longer need a dedicated physical space to house their passions. Unlike traditional collectibles that need to be stored in mint condition to protect its value, the nature of virtual collectibles also protects the item from incurring damage should the buyer wish to trade or sell it in the future.
Creating NFTs also allows Secretlab to better scale back on production if needed. A typical chair takes about four years to gestate (Quito, 2021), with Secretlab planning to invest almost S$50 million on rounds of R&D and product testing (See, 2021). When the finished version is finally ready, a lot of resources are also put into introducing the product to the public through social media and marketing channels as well as partnerships with other brands. The TITAN XXS in particular took 6 months from conception to display despite it simply being a minified version of an existing chair.