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The most discouraging thing about running a startup is how long it takes to start up. Maybe that’s why I found The Myths of Innovation by Scott Berkun such a great read. He systematically demolishes common misconceptions about how ideas get to market. Just skimming some of the chapter headings made me feel better:
The Myths of Innovation
We’ve absorbed these myths into our culture because they make entertaining and memorable stories, but innovation rarely works that way. Edison had a team of reasearchers working for him and trial-and-error was his primary means of refining ideas. The advertising industry owes much of its existence to the difficulty of getting people to try new products and services. Sometimes it takes years for a new development to reach consumers, as was the case with 3M’s laughably weak glue formula eventually becoming the blockbuster Post-It note.
It’s good to be reminded of these counterexamples. The idea is often the easy part. It’s the execution that’s hard.
I heard an interesting story the other day about automotive companies. Apparently after the Model T went into production, Ford concentrated on selling cars to people who didn’t have cars. Now, as far as marketing strategies go, this seems like a really good one. After all, most people didn’t have cars. The production model meant that this kind of new-fangled transport was now available to all. And, despite some initial adoption barriers, it worked. Ford sold lots of cars. The problem came about when General Motors arrived, a bit later on.
Turns out GM couldn’t sell cars to people who didn’t have cars, because everyone already had one. So, they decided to sell the car as a ‘status symbol’ — to entrench the car as a reflection of its owner. Obviously, this too was a brilliant marketing strategy. It was at this point that GM began to surpass Ford as the number one car manufacturer. Ford, meanwhile, was still trying to figure out what to do with its profits — and still hunting for customers among people who didn’t have cars. “Look! No Horse!”
History repeats itself. Microsoft completely missed the Internet thing. They were firmly focused on the extremely profitable business they invented: selling consumer software. When they did finally engage with the Internet, they saw it as though it was consumer software. Even today, Microsoft are still talking about “Software + Services” — as though the Internet is some kind of Add-On pack to their consumer offerings. In a sense, they still seem to say, “Look! No more IBM mainframe!”
Companies seem to think that the way to beat the Idea 1 legacy thinking problem is to get crazy obsessed with finding Idea 2. Microsoft are trying to be, among other things, an advertising company. Google has gone from Internet search engine to enterprise software/hardware vendor, mobile phones and even virtual worlds. Both companies acquire startups regularly. I can’t help but be skeptical of these efforts. I think that there’s no doubt that they are possible avenues for success, but looming large over all of these is the legacy of Idea 1.
Success seems to be a fertile breeding ground for legacy thinking. In a way, it’s like we’re all striving to find a point where we don’t have to think any more. Or perhaps it’s just that every new idea has to be seen through the lens of the idea that proceeded it. People are innately more inclined to protect against loss than to seek out ways to gain. The advantage of Idea 1 is that it carried no risk of jeopardizing existing profits, unlike Idea 2 and all subsequent ideas.
Anyway, it’s an interesting paradox, but me musing on it isn’t getting this startup any closer to its Idea 1 release. Back to Vark!
This week we began showing off what we’ve built to a select few folks, mainly former coworkers of ours. All of them were polite enough to say that the idea was very interesting and that we were very brave.
Frankly, we’re just glad that nobody laughed.