The Art of ‘Ware [version 2.0] by Bruce F. Webster
[Copyright (c) 1995, 2008 by Bruce F. Webster. All rights reserved. Last updated: 04/30/08]
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I had the most fun writing this chapter. I’ve been in all the roles mentioned here: early adopter, customer, reviewer, journalist, industry analyst, author, developer, marketer, and, of course, competitor. I know what has and hasn’t worked in influencing me; likewise, I’ve had my share of successes and failures in influencing others.
I consider this one of the most important chapters in this book. Why? Because so many companies do such a poor, or at least inconsistent, job of influencing those they need to influence, whether it be customers, the press, the industry, or the competition. I have been amazed and frustrated over the years at the illogical, insufficient, and often counterproductive approaches to marketing products, image, and technology by so-called professional marketing types, or by those who think they know how to market.
Sun Tzu’s twelfth chapter is on attacking with fire; it is, of course, an easy leap from lighting brushfires to issuing press releases and leaking rumors. It’s interesting how many of the tactics map so well from one topic to the other.
There are five ways to compete by influence.
To influence is “to affect or alter by indirect or intangible means.” To compete by influence is to use means other than standard development, marketing, and sales to gain an advantage over the competition.
First, influence the competition.
Enter into negotiations with them. Talk with their partners. Talk with their customers. Leak to them information that will make them reconsider their plans. Keep from them information that would make them reconsider their plans. Give them lots to think about, while you stay focused. Misdirect, mislead, and see if you can get them to chase their own tails.
Second, influence the press.
This does not mean to subvert journalistic integrity; that not only damages your own integrity, it almost always has negative consequences in the long run. It does mean to court the press, to treat writers and editors with forethought and respect, to not underestimate or insult their intelligence, to make yourself and other key employees available for interviews and questions, and to provide them with review products and lots of useful, interesting, and accurate information. The last point is especially important, because most writers and all editors will smell hype and puffery a mile away and will almost always react unfavorably to it.
Third, influence the industry.
Produce products with ideas worthy of imitation; that casts you into the role of a standard setter, and makes others take you more seriously. Network with key people in other companies. Establish a strong presence at industry conferences and seminars, raising your visibility. Have your employees publish papers and appear on panels. In all these efforts, you seek to influence not just the management of other companies, but their employees also, as well as investors and industry analysts.
Fourth, influence customers.
Influencing customers requires several interlocking steps. Let the customer know that your product exists and that it meets some key requirements or desires they have. Convince the customer that your product will be worth the investment (money, time, effort, mind-share, training, support) they will make in it. Persuade the customer to decide to make that investment now (or at least by a certain date) rather than sometime in the future. Create a corporate image that makes the customer desire to associate with you and your products.
Advertising is part of this, as is press coverage, word of mouth, and (when appropriate) direct customer contact. Think of new ways to influence, but beware of clumsy manipulation: customers will detect it and will get upset with you.
Fifth, influence technology.
Introduce technology that leads other to adopt, build upon, conform to, or coordinate with your technology. This increases the value and desirability of your technology in the eyes of your customers, which in turn leads even more firms to adopt, etc., your technology. Successful examples of this include the Intel x86 processors and Microsoft Windows.
Be warned that you can influence technology without succeeding at it yourself. Xerox PARC developed many key aspects of the graphical user interface (GUI), but had no commercial success with it. Apple, with the Macintosh, achieved commercial success for GUIs, but ultimately paved the way for Microsoft to dominate the market (though Apple is now making a comeback due to reasons discussed in previous chapters).
To use influence, circumstances must be appropriate, and the right means and contacts are required.
Poorly timed or poorly conceived influence is worse than no influence at all, since it can cause negative backlash.
There are key periods during the year to use influence.
This depends in part on both your product and your audience, particularly if the market is institutional (government, educational, corporate) and has key budgeting and purchasing times during the year. It can also depend on lead times in publications for editorial material and advertisements. Finally, you may want to coordinate your efforts with key trade shows or other conferences related to your products, technology, or industry.
Use influence when concerns over related issues are rising.
If you’re too early, no one will care or notice. If interest has already peaked, you’ll be seen as someone else trying to jump on the bandwagon.
In using influence, there are situations that you must be aware of and handle appropriately. If influence is having effect within the competition, match it with efforts outside that company.
When you see the competition reacting to your efforts to influence them, you can multiply the effect by influencing other areas (the press, the industry, customers, technology) at the same time.
However, if the management and employees of that company are handling things well, then stand back and wait.
Don’t spend time, effort, and capital on an effort that will have little effect.
When the influence has run its course, then press your advantage if it will be to your benefit; otherwise, hold off.
Sometimes it’s good to follow up the influence with market and product actions; sometimes it’s best to appear aloof and independent.
If you can influence factors outside of the competing firms, then don’t wait for an opportunity to influence matters inside those firms, but push ahead. Be sure, however, to always wait for an appropriate time.
You may be laying the groundwork for having influence inside the competition by influencing factors outside it.
Be sure you are in the proper position to benefit from your efforts.
Be prepared to follow up or act upon the results of your attempts to use influence.
Take care, lest your efforts backfire.
For example, if you manage to create significant interest in your product and/or technology, but then can’t deploy it quickly, you may lose influence and credibility and damage your reputation.
Your attempts at influence may spread quickly at first, but they will die down sooner or later.
Face it: people and institutions have short attention spans. This is why you need to be ready to take advantage of influence even as you wield it.
Your employees must be aware of these means of competing by influence and must be prepared to deal with them.
Remember, all these efforts can be directed against you as well. Make sure you and your employees are sensitive to efforts by others to influence your company.
Those who use influence to aid in competition show intelligence; those who use technology show strength. Technology can block a competitor’s advances, but will not affect their resources.
We often think that the best technology, the best product will win. History teaches otherwise. Many excellent products have died prematurely because the company could not exert the necessary influence, while less-than-excellent products have survived or even thrived because their company could.
It is a waste of time and effort to gain market share or to win customers, and then fail to take full and timely advantage of it or not to reward those who made it possible.
Two separate failings: not to press your advantage, and not to reward those who got you there in the first place. Either failing will undermine what success you have achieved.
A wise board of directors considers the company’s plans and policies carefully, and a skilled CEO carries them out well.
This may seem utterly obvious, but many companies end up on paths that at best represent a holding pattern and, at worst, a downward spiral.
Don’t assign personnel to a product unless it can succeed.
Obvious, yet often ignored. There are lots of reasons why people are assigned to products that are unlikely to succeed: turf wars, wishful thinking, internal politics, empire-building, and external image.
Don’t compete with another firm unless it is critical to do so.
Unnecessary competition wastes vital resources and lessens the chances of success and profit.
Directors shouldn’t dictate a course of action out of pique, nor should a CEO attack another company out of resentment. Anger and resentment pass, but failed companies are seldom restored and lost employees seldom regained.
How many companies have been damaged or destroyed because of the pride and ego of the CEO? Yet it is not the CEO but the employees who usually suffer.
A wise board is thoughtful, and a skilled CEO is careful. The company is kept whole, and the jobs of its employees are preserved.
In short, make sure you don’t cause layoffs because of poor judgment based on an emotional response to the competition.
Influence and fire have much in common indeed, including this caution: think carefully about what you are doing lest you get burned yourself in the process.
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