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What s the point There can always be another way to physically distribute whatever you re selling. Direct mail, online, kiosks in malls, kiosks in airports, door to door think about what else you could use.
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Over the years, we ve badmouthed convergence as a way to evolve a product. Creating products that do more than one thing requires sacrifice of a different kind. Designing multifunctional products forces your designers to give up what could be an outstanding single-function design for a lesser design that accommodates the extra functions. Can a great car be a great boat at the same time Of course not. If you want a really fast car, get a Ferrari. A fast boat Get a Cigarette boat. Can a great Formula One racing tire be a great passenger car tire at the same time Of course not. (Racing tires don t have any tread.) People want the best of the breed, not a mutt that contains several breeds. People don t want to give up important features so that they can do other things with the product. Just because you can build it is no insurance that people will buy it. If your difference is that your product can do a lot of things not very well, as opposed to a product that does
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CHANGE HAPPENS; EVOLUTION IS REALITY
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The only time that convergence, or creating products that do more things, can work is when the product becomes something new. Consider the cell phone. Thanks to iPhones, BlackBerries, and other such devices, the cell phone is evolving beyond just making phone calls. Now you can go online, play games, find directions, take pictures, and use many other applications. The cell phone isn t really a cell phone anymore. It s become a pocket computer that does many things. That s why people stare at it more than they talk into it. That thing in your hand has become a computer screen that you can talk into, listen to, or just read if you want. We re fast approaching a time when no one will be looking where they are going or looking at the person they are with. We ll have a rude world of people looking at their little computers. The worst will be the next generation of kids.
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There are reasons that companies do well at evolution. Richard Foster, a director at McKinsey & Company, laid
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out the reasons for failure very succinctly when he was quoted in an article in California Management Review:
Of the 10 leaders in vacuum tubes in 1955 only two were left in 1975. There were three variants of error in these case histories. First is the decision not to invest in the new technology. The second is to invest but picking the wrong technology. The third variant is cultural. Companies failed because of their inability to play two games at once: To be both effective defenders of what quickly became old technologies and effective attackers with new technologies.*
Foster suggests that firms like Intel and Motorola were not saddled with internal conflict and inertia and, as they grew, they were able to recreate themselves. Other firms, like RCA, were unable to manage these multiple technological approaches; they were trapped by their successful pasts. In contrast to RCA, consider Seiko s watch business. Seiko was the dominant Japanese watch producer in the 1960s, but Japanese firms were small players in the global watch market. Seiko s senior management team
* M. L. Tushman and C. A. O Reilly III, Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change, California Management Review 38, no. 4 (1996), pp. 8 30.
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