Sometimes you just have to beat yourself.
Via: http://www.flickr.com/photos/pedalebarrique/
A couple of things which bring together several of my favourite themes, caught my attention this morning.
First was Netflix, announcing a big leap in profits. Netflix is an interesting company to me. They started off with the goal of disrupting the traditional video rental service, but with their “watch instantly” service (of which I am a huge fan) have clearly realised that they actually need to disrupt physical media. They have realised, what very few companies ever realise, that they actually need to create their own disruptions.
Next, a story about Nintendo opening up the Wii as a platform for services – medical ones in Japan. Nintendo of Japan (I wish NOA were half as innovative) have also clearly recognised, what Sony never did, that services are a killer app. However, I think this is also reminiscent of the Netflix case. The Wii clearly disrupted traditional gaming through delivering innovation in the interface, but now moves like this signify a willingness to be open to new disruptions in their market.
What both examples have in common are the use of services to disrupt one’s own existing business. Stories like this are near and dear to our hearts because Zeus Jones was created through a similar line of thinking. However, both are also clear examples of market leaders benchmarking themselves against their entire categories and, more accurately, against themselves.
I think this is an inspiring and practical strategy for companies in these times. When competitors are retreating and moving the horizons of your category closer, it’s easy to fall prey to incremental, and/or defensive thinking. But the real leaders aren’t watching what everyone else is doing, they’re too busy trying to beat themselves.