I work as a catalyst in two areas: innovation and mindfulness. As an innovation catalyst I help organizations foster a culture of innovation. As a mindfulness catalyst I help individuals perceive the illusions created by their own thinking process.
Edison syndrome and the pitfall of technology centric innovation approach
Technology creation has been a key driving force for many
breakthrough innovations over the past several centuries, be it printing press,
electric bulb or PC. However, the same passion that creates technology can also
blind the innovator in seeing the real need of the customer he is trying to
fulfil. Thomas Edison took the idea of phonograph from concept to cash. However,
Edison’s adamant view that “every problem has a technology solution” led to the
downfall of his phonograph business. We call this view – that every problem has
a technology solution – Edison Syndrome. Let’s see how Edison Syndrome hurt
Thomas Edison invented phonograph in 1877. However, for
the next few years, he decided to focus on commercializing electricity and the practical
lamp. In the late 1890s, Edison went back to phonograph after making many
improvements to his original invention. He founded National Phonograph Company
and by 1904 sold over 113,000 talking machines and seven million records. This
meant a market share of more than 60%. By the end of 1920s it came down to 2%.
How did this happen?
Edison’s phonograph was rivalled by the Victor’s Talking
Machine Company. Victor made technical improvements to the machine as
well. However, Victor also focused on packaging – creating an enclosed horn in
a handsome wooden cabinet. According to a historian “(Victor) was to make the
phonograph for the first time a piece of furniture.” Banker’s panic in 1907 impacted
both Edison and Victor. However, Victor’s recovered much faster.
The following quotes from Edison captures the essence of
Edison’s approach: “We care nothing for the artists, singers or
instrumentalists. All that we desire is that the voice shall be as perfect as
possible.” And in another quote, “It is not our intention to feature artists or
sell the records by using artists’ name,” Edison wrote, “we intend to rely
entirely upon the tone and high quality of the voice.” In fact, Edison called
promoting records by celebrity artists “fakery in music”. An Edison dealer
asked in 1923, “Where do you expect to be in ten years without an artist of
reputation?” And Victor did exactly that. As Edison’s biographer Andre Millard
notes, “Many people bought Victor phonographs because they wanted to hear the
famous singers who recorded on Victor records.”
What is the moral of the story? Technology creation and
improvement is a great source of innovation. However, not every customer need requires
a new technology for fulfilling it. Sometimes the differentiation lies in
designing a superior customer experience, the way Victor did by creating famous
artist labels. Steve Jobs certainly understood this well when he launched iPod a hundred years later.