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Showing posts with label standards. Show all posts
Showing posts with label standards. Show all posts

February 25, 2011

WAC - Innovation & Standardisation

As telecom guys, we can’t let last week’s Mobile World Congress go by without a mention. One of the announcements was about the WAC (Wholesale Applications Community) standard. The WAC initiative was founded a year ago, has published v2.0 of the standard this week and plans v3.0 later in the year. A few telecom operators and suppliers have made some supportive announcements.

The basic idea of WAC is to allow developers a device agnostic way to bring their products to market and it will also improve operator involvement with application stores by allowing the operators to offer added value and services through their network. It is the latest in a series of initiatives to try to standardize this area of the telecom market.

Significantly Apple and Google are not members of WAC and are enjoying significant commercial success with their application stores. (In January Apple announced the 10 billionth app download.) They both choose to innovate aggressively, to create their own solution and to shun the standard approach.

The purpose of this blog is not to debate the merits of WAC, or its chance of success, but rather to consider the correct balance between standardization and innovation from the perspective of Product Management & Marketing.

Conventional wisdom (since the days of Henry Ford) has been that standardization rules. It simplifies the process, drives down costs and is at the core of mass production. WAC has the same objectives in mind – “WAC is …..dedicated to establishing a simple route to market for developers to expose their new applications to a customer base of over 3 billion customers.” It has been a brave PMM that has chosen non standard solutions – they increase cost, reduce the likelihood of success and are generally guaranteed to cause project delay.

However, Apple and Google have gone their own ways; and built their own solutions and created de-facto standards around their own eco-systems. Their strategy is that standardization should not be allowed to obstruct innovation. (There are many other technology examples in the past that followed the same basic strategy.)

However, also in the Telecom news was the agreement between Nokia and Microsoft. Behind the headline is the recognition that these two mega companies each with a strong tradition and proved track record of innovation have failed to deliver individually with Symbian (Nokia), MeeGo (Nokia & Intel) and Windows Phone 7 (MS). So clearly innovation even when driven by market leaders is no guarantee of success.

Often the process of standardization reduces innovation to the lowest common denominator to reach broad consensus and it can be driven by strong partisan commercial interests. In almost all cases it slows down the process – WAC is a good example. Compare the few early commitments with the number of devices and solutions in the Droid and Apple app stores.

Of course most PMM do not have the luxury of being able to create eco-systems on the scale of the app stores. However, we do need to balance standardization and innovation. Even today it is probably a wiser move to innovate in the context of app stores and not to rely on the WAC standard.

In many ways it is harder for the regular PMM; our product decisions are complex. We have to balance our need to differentiate with the need to be accepted via standardization. Our products are often expected to differentiate. We must also make some tough judgment calls on which are the correct standards and if it they are really appropriate for our product. If we are building a bleeding edge product we will often need to decide how we build a product that can be launched today yet is flexible to rapid change if a standard develops in a different direction.

Standardization is needed and should be supported, yet we need to remember when and how to innovate. Clever well executed innovation can be much faster to market and a strong differentiator and there is always the (remote) chance of creating a de facto standard!

When we manage our products we need to carefully evaluate what is our true ability to innovate and to generate product leadership and differentiation and when should we rely on standards and standardization. This is not a purely technical or tactical question. It is a strong commercial and strategic decision; just because a standard exists it does not mean that it will be commercially successful, nor that it is the correct product positioning for our product. The Telecom world has many examples of the standard that never caught on; Betamax is another example of the standard that didn’t bring commercial success.

However, to ignore an easy standard solution will ensure that we invest scarce resources in re-inventing the wheel rather than in creating the product we want in the time scale we need.

The balance between innovation and standardization is very difficult to achieve. Standards can simplify our product yet take time to evolve and are frequently not the best solution. On the other hand, wild innovation can produce an isolated, weak, expensive and late solution. However, without innovation it is very hard to differentiate at the product level. Finding the correct balance between innovation and standardization is The Art of Product Management & Marketing.

November 14, 2010

Product Management - The Longest Race - Part 2

In a recent blog (here) I discussed the product management and marketing lessons that could be learnt from the recent Nike 10K night race in Tel Aviv. I discussed the event planning (impressive and complex) and the event objectives (which were probably significantly more than just a fun run).

In this blog I will discuss some of the results of the event.

As a runner I can say I had an amazing time, and that on the whole this was an impressively run event.

However, the main question is what did Nike think? What KPI's did they set in advance for the event (number of runners? low number of problems? set up/clean up time? News minutes? Facebook group members?) Were their targets met? More importantly were the targets the correct ones or were they chasing the wrong things - were they were focused on their own issues and not on being customer centric?

During the course of the race itself there were other aspects of product management in action. Every once in a while there were music and water stations, we can consider them to be product features, helping the customers to enjoy the experience more, to engage with them - what will make them happy customers that will come back next year and recommend to their friends?

On the assumption that they plan to run a similar event next year, how, are they acquiring data and how are they planning to review and improve?

On the subject of next year we can consider product extension; will they feel the need to enhance the offering - perhaps by offering a shorter or longer version or by diversifying into a cycle race or triathlon? Perhaps there is a market for more than one event a year?

There were strict rules, we were all supposed to wear the official race shirt and run the course in an orderly manner. There were a few people who ran but I guess hadn't registered, and so ran in their own shirts and there were a few who wanted to stand-out and so ran in other shirts (last year's race etc) - on the whole this caused no problems to the runners. However, we can certainly view them in the context that the product was excellent, but, that it wasn't perfect - it was fit for purpose. Of course, since we mostly followed the rules, then we were complying with a certain standard, specification or protocol.

The race had a strict delivery schedule - it had to be ready on time and it had to work adequately well on the night. So part of the secret here is in team work and execution. The PM&M can have designed the perfect race, but if his project team didn't get the water in the runner's hands or publish the results then the product experience would have been irrevocably tarnished in the eyes of many of the customers.

So in conclusion I had a good run that evening and I believe that the experience was shared by the vast majority of the runners; I suspect that Nike felt that it was a success, but, that they have some points to improve or change in the next year. Overall this was a fine example of the craft of product management and marketing.

More importantly, I hope that by looking at an event that is outside of our day to day we can see the implications of strong product management leadership on all aspects of product design, management and marketing in general.