Build Businesses Not Apps

I gave a presentation at CocoaSlopes 2013 in Ogden Utah this weekend. It was extremely well received by a wonderful crowd. I thought I’d share the slides with everyone:

Build Businesses Not Apps

The few complaints I received was that it was depressing. My guess is that this came from people who haven’t experienced the App Store yet, those who haven’t had their bubble burst by the hard realities of the Store.

Personally I thought the presentation was hopeful albeit realistic. There is opportunity there for all of us if we just choose to think differently about the problem at hand.

In the early days of the Internet you could build almost anything and make it. Then reality hit with the stock market crash and things had to change. We are at that inflection point now for mobile as well.

I hope I get the chance to give this presentation again. It was a ton of fun to give, albeit somewhat grueling to create.

All links in the lower right corner give credit to the material source if there was any. In addition I added a slide at the end with credit links to all the images, which I found with Google image search.

The Blackberrys Are In The Back

I was in an AT&T Store a week ago activating an iPhone 5 for my wife. We had some time as the staff was busy with other customers. So I wandered around the store. There were all three iPhones on display with the new ones strategically aligned closest to the door, plenty of Android phones, and a couple of Windows Phones.

I noticed something conspicuous. No Blackberry devices. An intern came around to check on me and I mentioned this fact. One of the sales guys at the counter, overhearing our conversation, called out that they had some “in the back.” I commented back that it is hard to sell phones that are “in the back.”

I don’t hold out much hope for BlackBerry. A few weeks ago Fairfax Financial (an insurance company?) agreed to buy it. BlackBerry’s market cap is down to $4 billion, 8% of its high less than five years before. Already rumors are swirling that the price will drop from $9 per share to $7 before the deal closes.

It strikes me that that conversation with the AT&T salesman perfectly reflects the demise of the company. It used to be that BlackBerry phones had the iPhone shelf position, right up front closest to the door so you can see them the moment you walk in. Now the products are in the back. Soon they will be sent back, marked obsolete and eventually destroyed.

If you haven’t read it, I highly recommend the Globe & Mail article entitled How BlackBerry Blew It: The Inside Story.

Give Customers Something Worse

Larissa MacFarquhar, in a 2012 New Yorker profile of Clayton Christensen:

In industry after industry, Christensen discovered, the new technologies that had brought the big, established companies to their knees weren’t better or more advanced – they were actually worse. The new products were low-end, dumb, shoddy, and in almost every way inferior. The customers of the big, established companies had no interest in them – why should they? They already had something better. But the new products were usually cheaper and easier to use, and so people or companies who were not rich or sophisticated enough for the old ones started buying the new ones, and there were so many more of the regular people than there were of the rich, sophisticated people that the companies making the new products prospered.

Very important thinking and one very viable way to attack an existing market, one I’m exploring right now.

via Ben Thompson

Speaking of Underscore David Smith…

Yesterday I linked to a Marco Arment article that referenced David Smith’s podcast Developing Perspective. David Smith (affectionately known as Underscore David Smith because of his Twitter handle) was working on a new service called FeedWrangler when Google announced they were shutting down Reader. His timing was perfect. For $18 per year you can have your RSS feed delivered to most any news reader, including one he wrote, and have an independent developer dedicated to making a better product working on it. I’m happy to pay my $18 per year.

But what David is doing now is really smart. He recently released PodWrangler, a podcasting app. He made some of the features available for free and more paid, but if you subscribe to FeedWrangler you get the entire app for free. I downloaded it this weekend. A very solid first release.

The business thinking here is brilliant. Get your customers locked in and provide those willing to pay an annual fee more value for their money. I hope it works for David. More of us need to find business models that keep us in business.