Bob Lentz, our left-brain CEO, always asked me to explain the key difference between our video technology and Brightcove, the 800-pound gorilla of the online video platform space. My answer was always the same, “nothing.” As someone who spent years in venture-backed enterprise software companies, Bob couldn’t believe my answer. I went on to say that it’s not the technology that’s the differentiator, it’s what you do with it that matters most. “Our software is like a pen”, I explained, “you can give the same pen to ten different people, but what they do with it will be very different”. Bob didn’t appreciate my answer to say the least, but I think it helped me make the point.
It used to be that software was unique, but today it’s a left-brain commodity. Everyone has access to the same developer tools, technologies, and talent both on and offshore. With cloud-based infrastructure it no longer costs millions of dollars in venture capital to create a new SaaS business. We can invent a business idea one day and have a website up and running with a prototype the next night. So, how do we create unique software-based product offerings? How can we differentiate our online products and services? How do we create value in a commoditized world where there is a level playing field? How can we justify raising millions of dollars of venture capital if we don’t produce any real IP?
I didn’t think there was a good answer until I learned about the Lean Startup movement and the principles of Customer Development, pioneered by successful start-up veterans Eric Ries and Steve Blank. Their whole-brain ideas helped me to realize that:
- We need to stop trying to create unique software and start focusing on creating unique value for customers.
- A solution to lack of market traction is never more software features, but always more customer focus.
- There is no better way to learn how to improve your software than by listening and speaking with real users.
And they reinforced my belief that I have an equal chance of becoming a Pulitzer prize winner with a $.25 Bic as I do with a $963 Cross Classic Century 18K Gold Ball-Point Pen.
Hi – for many years now (24+ in the software industry) I have felt that part of a software solutions measure is not only dotting the i’s and crossing the t’s to meet requirements but how “else” it could be used in a business scenario. Its a bit like your “pen” story … give the software solution to 10 different people and they’ll do their job but they may use the solution for “something else.” I find this “something else” extremely interesting to the true measure of understanding a customer, their focus, and their goals. I’ve been pretty lucky in most projects that I’ve worked on to get into the customer’s head and also walk-a-mile in their shoes (how they think and how they feel). I enjoyed reading your blog, Matt. Keep up the good work.
Hi Rob,
Thanks for the comments and great point. I’ve found it really interesting to see how customers end up using what you originally designed. It could be for a totally different, and albeit better, purpose.
Thanks,
Matt