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Google Does Not Have Innovator's Dilemma

I asked a question to myself: "Why has Google been incredibly successful in defending and growing its core as well as introducing non-core disruptive innovations?". To answer my own question I ran down Google's innovation strategy through Clayton Christensen's concepts and framework as described in his book " Seeing What's Next ". Here is the analysis: Google's latest disruptive innovation is the introduction of free GPS on the Android phone. This has grave implications for Garmin. To put this innovation in the context it is a "sword and shield" style entrant strategy to beat an incumbent by serving the "overshot customers". The overshot customers are the ones who would stop paying for further improvements in performance that historically had merited attractive price premium. Google used its asymmetric skills and motivation - Android OS, mapping data, and no direct revenue expectations - as a shield to enter into the "GPS M...

Branding On The Cloud Is Part Business Part Mindset

As it goes " on the Internet, nobody knows you're a dog ". Actually people do. Recently AT&T asked their employees to fake the net neutrality . Employees were asked to use their personal email addresses to petition against net neutrality. The internal memo ended up on the blogs and Twitter in minutes. Forcing your brand down your employees' throats is not particularly a smart idea. Is your brand ready for the cloud? This is not a question that many companies ask until their brand gets caught in a cloud storm. The storm is about the customers, partners, and suppliers discussing your products and brand in the public using social media, report problems using the SaaS tools, and engage into the conversations in ways that you never anticipated. Recently Seth Godin announced an initiative to help companies launch brand in public . It stirred quite a controversy and created confusion. He had to pull back. The organizations are simply not ready. The organizations are uncl...

Augmented Reality Will Change Enterprise Software For Real

Augmented Reality (AR) has seen a sudden buzz in the last few weeks. The announcements just keep coming; Layar announced a 3D API and Wikitude announced AR API . VentureBeat recently ranked the emerging start-ups in augmented reality . AR is still a nascent domain with many quirks and twists but it is for real and it is going to cause disruptions in many dimensions. This is how I see it would affect the enterprise software: No interface will be the interface The augmented reality uses the most natural interface, the reality, and layers information on top of it essentially eliminating the need to have an artificial interface. Users will prefer in-context user experience at the locations where they perform their primary task compared to unnatural static experience on their current devices. I also see the impact and potential for innovation in the MVC frameworks. The AR opens up a lot more opportunities for the developers and designers, who were constrained by the traditional technologi...

True Entrepreneurial Spirit Is Believing In A BHAG

GigaOM has a post " How Start-ups can win big with VCs " that muddies their point of view of having a clear value proposition with not doing something because no one may want this or someone else has already done it. I added the following comments to that post: I agree with the viewpoint about honing the pitch. However I have a different take on some of the start-ups. It’s one thing not to know what the value proposition is but it is other thing to believe in a BHAG . Many start-ups had huge success when people initially thought that they could live without that. Twitter is one of those examples. Also, there is nothing wrong in duplicating what someone else is doing. Presence of similar companies signal that there is a market. It is now up to the new entrant to beat the competition by solving the problem well. When Google announced Gmail it was one of the last (as of now) web-based email that was introduced. Google would not have released Gmail or even the sear...

Amazon Customers Can Now Get A Placebo Cloud

That would be the new Virtual Private Cloud (VPC) by Amazon . I am a big proponent of the public cloud but I am a bigger proponent of giving what the customers really want. Amazon had resisted offering a private cloud but they finally gave in and offered a private cloud or at least this is what they want the customers to believe. The bloggers are already questioning whether VPC is a true private cloud . Regardless of the arguments whether the VPC is really a “virtual” private cloud or a “virtually" private cloud , I believe, this placebo cloud is likely to help the customers overcome the cloud computing adoption barriers: Security: The placebo cloud would alleviate the perceived risk of adopting the cloud computing. The perceived risk is based on the customers’ past experiences. The customers believe that anything that they can connect using VPN must be safe even if they are tunneling into a set of shared resources. The customers will get an environment what they believ...

SOAP may finally REST

Lately I have observed significant movement in two transformational trends - adoption of REST over SOAP and proliferation of non-relational persistence options. These two trends complement each other and they are likely to cause disruption sooner than later. The enterprise software that required complex transactions, monitoring, and orchestration capabilities relied on the SOAP-based architecture and standards to realize their SOA efforts. The consumer web on the other side raced towards embracing RESTful interfaces since they were simple to set up and consume. There are arguments on both the sides. However, lately the market forces have taken the side of REST even if REST has significant drawbacks in the areas such as security and transactions. This once again proves that a simple and good enough approach that conforms to loose contracts outweighs a complex solution that complies to stricter standards even if it means compromising certain critical features. The web is essentially an u...

SaaS 2.0 Will Be All About Reducing The Cost Of Sales

A clever choice of the right architecture on right infrastructure has helped the SaaS vendors better manage their operational infrastructure cost but the SaaS vendors are still struggling to curtail the cost of sales. As majority of the SaaS vendors achieve feature and infrastructure cost parity, reducing the cost of sales is going to be the next biggest differentiation for the SaaS vendors to stay competitive in the marketplace. Direct sales model is highly ineffective and cost-prohibitive for the SaaS vendors as it does not scale with the volume business model that has relatively smaller average deal size. The role of the direct sales organization will essentially get redefined to focus on the relationship with the customers to ensure service excellence and high contract renewal rates in addition to working on long sales cycles for large accounts. How can a SaaS vendor reduce the overall cost of sales to maintain healthy margins and growth? This is a difficult nut to crack. There are...