The first mover disadvantage
Continuing our discussion on shattering assumptions … let’s pick another assumption to shatter – the first mover advantage …
Before there was Google there was Yahoo and AOL … and we all know who won the search-engine war and who lost half a trillion dollars of valuation …
Here’s the next assumption about digital transformation that we will shatter today …
Assumption #2 – First Mover Always Wins
Does digital transformation need to happen faster?
ABSOLUTELY.
But does it have to be the FASTEST for it to work?
Is it a winner take all scenario all of the time?
NO.
NOT AT ALL.
True, speed can be an advantage.
But there are many risks and missteps associated with being the first mover …
You could misread pain points and solve the wrong problem.
You could rush the design and testing and build an inferior solution.
You could spend too much on educating the users on a new platform.
You could help competitors learn from your mistakes and build a better product or solution.
Digital Transformation is NOT a winner take all scenario.
The key is not being fastest but rather innovating at the right speed.
And leverage all the assets that gives the business its competitive advantage.
Ever heard of Book Stacks Unlimited? It was an online bookstore founded in 1992, 3 years before Amazon.
Amazon did not have first mover advantage. But it moved fast and scaled quickly. It’s doing pretty well I would say 😊
Walmart moved slower, leveraging its assets. And yet it built a sizeable online business.
So did Best Buy and Home Depot.
So, the key question to ask is NOT ‘Are we the first mover?’ … and then give up when the answer is no.
The key question is – How do we innovate faster and execute better and move at the right speed that works best for our business and our customers?
Yes, it’s always more complicated than you think 😊
If you would like to know more about how ConvergeHub can help you drive Digital Transformation in your company by helping you execute better at the speed that is right for your business, talk to us.
Or, if you like to check it out yourself, go ahead and create a free ConvergeHub account here.