Innovation Happens

Here is a campfire tale from the CEO of Sun Microsystems. It explains one companies response to a change in market conditions.

“Years back, Sun was under pressure in the market.

Although many users loved our core Solaris operating system, others thought it was built for high end computers, not grid systems. Our computer business had failed to keep pace with the rest of the industry . . . . [W]e gave customers one choice – leave Sun. Many did. Those were the dark days . . . .”

Evolve

“Where did they go? They went to GNU/Linux, a free and open source operating system built by a growing community, running on x86 systems. Why? Because the pair (“Linux on a whitebox”) delivered, then, better grid performance, with more flexibility. We didn’t erect barriers to exit, we promoted customer choice. Even when it cut the wrong way, as it did here. And yes, it hurt.

With business down and customers leaving, we had more than a few choices at our disposal. We were invited by one company to sue the beneficiaries of open source. We declined. We could join another and sue our customers. That seemed suicidal. . And we were encouraged to innovate by developers and customers who wanted Sun around, who saw the value we delivered through true systems engineering.

So we took that advice. . . . We redoubled our focus on innovation, in hardware and software, that would differentiate our offerings. Not just as good as the competition, but vastly better.

In essence, we decided to innovate, not litigate.”

As it stands, the web is redefining the way that everyone looks at intellectual property. In a realm where ones and zeros can be ripped, remixed and redeployed with almost no barriers to entry, corporate interests are being pushed to find ways to maintain their position in the market.

While some organizations have chosen to rely on litigation to keep their tired models afloat (RIAA, MPAA oh my!) soon everyone will have to recognize the fact that the only way to create a sustainable business in this landscape is to give consumers what they have always wanted, value.

Web 2.0 Roundup

Without real added value, whether it comes from impeccable service or intangible benefits you will never be able to convince an increasingly jaded consumer market to pay for something they can get for “free.”

Holding the axe of litigation over your customer’s heads will only serve to terrify people who would have purchased your products anyway. Try to understand the mind of a pirate. They honestly don’t see value in purchasing your product, and they know the odds of you getting around to suing them are slim at best.

So, take a page from Sun’s book and instead of litigation try a bit of innovation.

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