Wow! I can’t tell you how impressed I was about this amazing statement from Reed Hastings, CEO of Netflix, in response to the debacle that occurred last year after raising prices and splitting DVD from streaming.
It takes a lot of guts to not just wax over or ignore mistakes – but even more amazing, Continue Reading →
One company’s cannibalization is another company’s disruption. This is the conundrum of our time. Companies are hesitant to cannibalize their own business, which opens them up to others disrupting their business (think Blockbuster, Kodak). Continue Reading →
It gave me great pleasure to read a recent article in The New York Times outlining the process of Nickelodeon’s newest digital product – an iPad app for kids. Like any new product there were some surprising outcomes Continue Reading →
The last post focused on the 3 most likely reasons new products fail during the pre-build stage. You get it wrong from the beginning it is almost impossible to end up getting it right.
But even if you get that first part right – there are plenty of potholes to flatten your tires as you start the design and development stage. Continue Reading →
The general wisdom is that most new products fail (you’ll see numbers between 75-95%). The odds are, sadly, against you. So it’s no wonder there is so much fear and trepidation around building new products. All this failure has high costs in money, resources and reputation. Continue Reading →
Like many others, I was disappointed to read that News Corp was shutting down The Daily, it’s iPad only ‘newspaper’. Not just because they were a client – but also because I was (am) a big fan!
There are two key lessons about building new products that everyone can learn from what happened. Continue Reading →
Yesterday I applied Moore’s ‘technology life cycle adoption’ thesis to business and found an inverse relationship. Today we’ll look at how to reverse that indicator line from top left down to bottom left up.
It requires creating a new series of stages for how a company should adapt to new technologies.
1) Early assessment. This is a creative investigative endeavor to find out who is doing what and determine how it will affect your business. At issue is how wide do you toss your net?
Example: The movie business should have been tracking the early goings-on in the music business – similar DRM issues, revenue models, and audiences were in play.
2) Early testing. Once you assess the players and the opportunities, start executing with small tests (either in partnerships or small build-outs).
Example: Early stages of testing that ABC engaged in with Hulu and iTunes.
3) Broaden offering: Now that you understand where the wins and the risks are – lean toward the wins – expanding the exposure, growing the usage base through adding to existing products, building new product(s), establishing new/expanded partnerships, altering business models.
Example: Amazon was brilliant at this – started with books, grew to CD’s and DVD’s and then became the place to shop for everything.
4) Market compatibility. At this stage you should be matching the needs of the market through business relevancy and revenue sustainability.
Example: The Economist’s early pay-wall and multiple platform distribution help them retain and grow subscribers.
The result is in the chart at the top of this post (the + indicates going in the positive direction).
Just like Moore’s chasm – this is not a 1-year effort – it is ongoing overtime. To remain relevant, businesses will need to return to assessment, testing, and broadening stages over and over again. Doing so will keep their chart heading in the right direction!