9 Jul
2010
An article floated in over the Twitter Transom the other day. Go ahead and read the story ... I'll wait. Should you not be the sort that is all that excited about reading things out of band, I'll get you a the highlight:
The tech press and, apparently, Microsofties alike are trying to figure out what went wrong with the Kin "social phones," which Microsoft canned after two years of development but just seven weeks on the market
Continuing the trend, visiting the MS Kin website - You are greeted with a full screen flash page .... I guess they just wanted to make sure that the iPhone peeps felt a small pang of jealously as those 600k pre-ordered iPhone 4's won't be able to see what they're missing.
But I digress. A fundamental question that seems to elude is why do some large companies thrive under the constant need for change (think IBM) while others seem hell bent on hopping on the luge ride to obscurity and crashing stock prices? Microsoft mystifies me as an entity. Money: Check; Smart People: Check; Market Share: Check; Resources out the ass: Check. So how does a company that weighs in at #36 in the Fortune 50 screw up something so completely as to develop a "smart phone" that has a fifteen minute delay for all data pushed to the phone? Wait - did I say push? The device doesn't support push notifications? Excuse me, did you just tell me that you designed and released a mobile device designed for social media without push notifications?
The Pig Is Committed to Breakfast...
So the question comes down to this: "How come start-ups don't make such colossal fuck ups as this?". Answer: "They can't survive if they do". The reason David (the scrappy startup with no budget, no marketing, and sometimes no capital) can take on Goliath is because they can't afford to loose. For every company that makes a $1B US bad decision with an ill fated product, there are countless start-ups that never make it to market and never raise $100,000 US to get their product idea out the door. We only dub a company David after he kills Goliath, not before.
So what's the lesson here? It looks like no one is immune to the hubris of success. Even multi-billion dollar companies. In a free market, no one is too big to fail and there are innumerable David's lining up to take aim at your forehead with a stone.