4 Sep, 2015
http://swarajyamag.com/biz/why-products-fail-in-the-digital-world/
Prashant Kulkarni teaches economics, a digital economy and globalization at a leading B-School. His area of interest lies in dissecting resource contestations and human behavior at the intersections of digitization, urbanization and globalization.
What Apple Maps, Windows Vista, Google Plus etc could have done differently
High profile failures like Apple Maps, Google Glass, Pets.com, Windows Vista, Apple Watch, GeoCities, and Google Plus, etc. are not unusual. On the other hand, success stories like Android, YouTube, Whatsapp!, Instagram seem outcomes of acquisitions than internal development. Inquisitiveness leads us to explore probable causes of digital product failure. If for Henry Chesbrough, failure to escape the clutches of traditional innovation paradigm is the cause, Geoffrey Moore attributes it to the inability to cross the ‘chasm’ implying failure to bridge the gap between early adopters and its diffusion with masses.
Too Early or Too Ahead of Times
The late 1990s saw the rise of ‘dotcom’ firms. It seemed prefix ‘e’ propelled firms into the club of high valuations. Nonetheless, very few succeeded. The reason quite often is neither inability in understanding business nor the viability of business models. They simply were ahead of times. Pets.com, an online retailer for pet food, found that consumers were not ready to purchase pet food online. The firms bet on certain changes in consumer behavior but erred in gauging the rate of change of preference formation. Firms like Geocities, Pets.com, and Boo.com, etc. too experienced similar results.