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The Flip Side of Product Improvement

January 4, 2005 - by Robert E. Stevens, GENESIS II (The Second Beginning) E-Mail: views@aol.com

After I sent out my Views of May 24, 2004, titled "But we have always done it this way", Ms. Janet Pizzarello of Sorensen Associates, sent me one of the most intriguing papers I have read on the topic of "Change." The paper was a presentation given by Neil Postman titled "Six Things Worth Knowing About Technology." I do not know where it was given or even to whom it was given. I only know it was given some time around 1991.  [Editor's note: the paper referenced is: Postman, N. "Six Things Worth Knowing About Technology." Cause/Effect 14 (3) (Fall 1991): 46-48.]

The presentation focused on the meaning and impact of technology on our culture. The first idea was that all technological change is a Faustian bargain. That is, for every advantage a new technology offers, there is always a corresponding disadvantage. As I have often said, 'There is no such thing as a free lunch." Unfortunately the creators of the new technology turn a blind eye to the potential of a down-side to the product. Some will intentionally ignore the possibility for fear of damaging their project.

In one of my lectures I frequently refer to Newton's Third Law. Newton said that for every reaction there is an equal and opposite reaction. I believe it is not only true in physics but also in business.  I use a shortened version, however, that is for every action there is a reaction. Actually, we hope there is a reaction and that the reaction is positive. But in business there are usually multiple reactions, some positive and some negative. There will be times when the disadvantage will exceed the importance of the advantage, or the advantage will be worth the cost of the disadvantage.

Consider the 1980s New Coke venture where New Coke was a positive for the product but not the brand. Or recall one that I was involved in which resulted in a costly market introduction. That is, Rely. In this case we had a very superior Tampon but the superior attributes led to a costly end result. A result that research could not have predicted. You just do not conduct research that results in a negative effect among fewer than one in hundreds of thousand of users.

There are results that present additional opportunities. Consider a short history in laundry practices. When I started at P&G in 1951, our flag-ship Tide was taking a firm foothold in the market. While Tide brought excellent cleaning and whiteness to the market, it had a downside. At that time almost all laundry was line dried. Clothes washed in Tide were stiff as a board, whereas clothes washed in typical soap products such as Duz, Oxydol, Rinso and Silver Dust were very soft. Enter a new market opportunity, fabric softener. As time passed, the use of automatic washing machines and dryers entered the market. Clothes dried in the new automatic dryers did not result in stiff fabrics even without the use of a fabric softener. However, enter a new opportunity, clothes dried in the new automatic dryers held static. The downside to dryers was static cling. The result was fabric softeners that controlled static cling.

With every change, look for the negative side effect as well as the opportunity. Both will be there.


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