What Apple did “wrong” with the iPhone

Apple is now the largest mobile phone device manufacturer in the world based on value. When the first iPhone was released, I worked for one of their competitors and it’s striking how much Apple did “wrong” according to the practices in the industry in 2006-2007. This list can probably get much longer.

The name. You’re not supposed to give your phone a name. It’s supposed to be called a letter and a number. Yeah, the RAZR was cool, but that was it.

One device. You’re not supposed to have only one device. That’s madness! You should cover every possible segment of the market with various flavours of the same platform. In fact, you should use many platforms and OSes just to be “safe”.

No buttons. Users don’t understand a phone without buttons. You have to have buttons. If you have a touch screen it has to use a tiny pencil. But the phone should still have buttons.

No MMS. When the iPhone was released I worked for a competitor with operator requirements for Java ME. The end user never sees this, but each major operator sends thousands of pages of requirements that the device manufacturer is supposed to live up to. MMS is one of the most important ones. The iPhone didn’t have it. It seemed to be not based on operator requirements at all. Insane!

No video calls. How can you make an expensive smartphone and not include the coolest mobile technology of them all: video calling? You’re not supposed to do that. What? No one uses it? Don’t care, it’s cool, OK? And the industry spent billions developing it.

Lousy camera. The mega-pixel race was on but the first iPhone contained a 2MP camera. You’re supposed to max out the mega-pixels. That’s how you do it.

Poor bluetooth support. Another telecom favourite technology that you’re supposed to implement in a smartphone but that the first iPhone didn’t do very well.

No 3G (first generation). Now this is truly insane! The first iPhone didn’t even have 3G.

The price. The iPhone was too expensive. Everyone in the business knows that in order to get volume you have to handle the price pressure. You have to have volume or else the operators don’t want you in their deck (they sell subscriptions and want your phone to be as cheap as possible so the customer can buy an expensive subscription instead). You also have to prepare for being able to sell your phones in Africa and then they have to be super cheap. Remember the key word: VOLUME!

The size. Too big. Phones are small, OK? Small with lots of features!

The AT&T deal. The device manufacturer is supposed to do what the operator tells them to. The operator is supposed to be in command. Not the other way around.

Installable apps. This one’s a favourite. As I mentioned, I worked with Java ME and we (as in “our team”) could clearly see where the market was heading: the phone you buy in the store is only a starting point. The buyer should be able to customize it and install new features developed by third party developers (aka “apps”). There were some attempts to go in this direction but when we tried to push this harder everyone said the same thing “there are no operator requirements for this”. Oh well.

Yeah, the first iPhone didn’t have this either but when they finally did it they did it exactly right and created a whole new ecosystem. So this is actually two “wrongs”: first, not having downloadable apps at all and then when they did add it they added it completely outside the control of the operators. They even implemented their own payment mechanism.

Insane…


2010 in review – this blog in numbers

This blog is hosted on WordPress.com and they just sent a summary over last years activities on the blog.

Hm. Only 14 blog posts. I need to speed up this year. Hopefully, that would increase the visitor count as well. Also, there seems to be a bug in the mail generator. I didn’t have  2 visitors on my busiest day, March 3, I had  2709 visitors that day (I was on the front page of Hacker News).

The WordPress.com stats mail below:

The stats helper monkeys at WordPress.com mulled over how this blog did in 2010, and here’s a high level summary of its overall blog health:

Healthy blog!

The Blog-Health-o-Meter™ reads Wow.

Crunchy numbers

Featured image

A helper monkey made this abstract painting, inspired by your stats.

A Boeing 747-400 passenger jet can hold 416 passengers. This blog was viewed about 13,000 times in 2010. That’s about 31 full 747s.

In 2010, there were 14 new posts, growing the total archive of this blog to 136 posts. There were 3 pictures uploaded, taking up a total of 379kb.

The busiest day of the year was March 3rd with 2 views. The most popular post that day was It’s going to take five years.

Where did they come from?

The top referring sites in 2010 were news.ycombinator.com, reddit.com, Google Reader, twitter.com, and blog.inklingmarkets.com.

Some visitors came searching, mostly for kinds of money, different kinds of money, ola ahlvarsson, bredbandsbolaget, and blocket omsättning 2009.

Attractions in 2010

These are the posts and pages that got the most views in 2010.

1

It’s going to take five years March 2010
9 comments

2

Build a system, not a product December 2009
30 comments

3

Different kinds of money June 2010
2 comments

4

Money is failure September 2009
4 comments

5

Your business idea as a promise August 2009


Yes, you can

Flying not-so-high
You can fly.

You can write a book.

You can be a photographer and sell your photos online.

You can import and sell finger dolls.

You can make and sell your own finger dolls.

You can be a painter.

You can build web sites.

You can start a band.

You can start an electric motor cycle business.

You can start a radio talk show.

You can start whatever.

You can do anything.

What is stopping you?


The Four Actions Framework

I am reading the book Business Model Generation during the christmas holidays. Lots of good stuff to chew on for someone interested in agile busines development. One of the chapters is about the Blue Ocean Strategy and the four actions defined to challenge and disrupt an industry.
To find the four actions you ask four questions:

1. Which of the factors that the industry takes for granted should be eliminated?

2. Which factors should be reduced well below the industry standard?

3. Which factors should be raised well above the industry standard?

4. Which factors should be created that the industry has never offered?

Good questions to ask for anyone willing to disrupt and do some creative destruction on existing markets.


Fire. Aim. Load. Repeat.

I believe this is the essence of agile business development and the lean startup philosophy.

Fire. Just do it. Try something. The simplest thing that could possibly work. Build it as simple as possible, and then…

Aim. Learn from what you did. Measure everything. Make your product a learning entity, and then…

Load. Improve based on what you’ve learned. Adjust. Rebuild. And then…

Repeat. Start over again. This time a little wiser, a little better. A little closer.


Testing Wylio – CC-licensed image finder

Wylio looks lika a quick and easy way to find CC-licensed photos to use in your blog posts. I found this happy dog after searching for “happy”.

happyphoto © 2009 Thomas Lieser | more info(via: Wylio)

Very nice. I’ll use it. Thanks Mattias Östmar for the tip.


What your company can learn from Sweden Social Web Camp

OK, this will be a long post so bare with me. The topic for today is marketing.

And customer service.

And R&D.

Oh, and also some words about recruiting.

What the heck, it’s actually about the future of business. Period.

I told you it will be a long post…

But let’s start at the beginning. First let me explain what Sweden Social Web Camp (SSWC) is.

SSWC is an “unconference” taking place in August on an island in the Blekinge archipelago in Sweden. Blekinge is sometimes called the appendix of Sweden – as in a small place no one really knows what it’s good for – but if there’s one thing that’s great about Blekinge it’s the archipelago. It’s beautiful, especially in the summer time.

The theme of the conference is (unsurprisingly) the social web in different flavours and contexts.

This year, the second year of SSWC, roughly 400 people participated in the unconference on the tiny island of Tjärö. Most of them were camping – as in tents – while sheep and other creatures roamed the island. (Hey, it’s a camp, isn’t it?)


Camping. No sheep. Photo by Gitta Wilén.

There are no big names on the speaker list (in fact, there’s no speaker list at all – there’s not even a schedule!) and it all takes place during a weekend. So, what brings 400 entrepreneurs, journalists, PR-people, bloggers and hackers to a small island somewhere between Nowhere and Faraway to spend a weekend sleeping in a tent?

The answer to this question holds the key to what business will be like in the 21st century.

Exciting, huh? Before we go on please take a moment to read my blog post from last years SSWC. That will explain a little more details on how an unconference actually works.

No, seriously, read it.

OK, so now you understand that an unconference is all about participation. The organizers of the unconference only set the stage, it’s the participants that creates the play as they are there. They become both the speakers and the audience and in many cases the line is blurred as a speech turns in to a conversation.

The interesting consequence of this is that the value for the participants is higher than it would be if they only came to listen to a Big Name Speaker sharing her knowledge while at the same time the monetary cost is lower since Big Name Speakers are expensive.

How can the value be higher? At a traditional knowledge conference with Big Speakers there can be hundreds or thousands of people with overlapping interests, skill sets, insights, experiences. They all share a common interest, otherwise they wouldn’t be there – and yet there is no way for them to pool each others knowledge base. They all come to passively listen to one or a few heavy weighters in knowledge – but the sum total of untapped knowledge in the room far surpasses the knowledge of even the best speaker.

An unconference acknowledges this fact and builds the entire meeting around it with the goal to maximise interconnections between participants.

So now you have two different models.

1. A (traditional) knowledge conference that tries to maximize value through the knowledge radiated from the stages. Keywords are: broadcast, authoritative, passive, expensive (the best speakers are the most expensive),

2. A participatory (un)conference that tries to maximize value by leveraging interconnections in the crowd. Keywords are: conversation, open, active and low cost (blocking people out with a high price can even lower the value for the participants).

When something can create higher value at a lower price compared to what came before that’s a sure sign of disruption happening.

And that is why you need to learn from SSWC.

Because you can do participatory marketing. It’s called social media.

Because you can do participatory R&D. It’s called open source. And open innovation.

Because you can do participatory customer service. It’s called a community.

This all means higher value, lower price – if done right. Disruption, remember? And if you can do all that, so can your competitors.

Now you must ask yourself one question. A very important question. Namely this one:

Do you want to be the only one in your business executing your strategy with something that provides lower value at a higher price?

Do you think you will survive if you do that? Seriously?

Now, you may argue that in some markets broadcast, authoritative, passive and expensive actually works – and yes, you may be right. Some parts of your business may not be affected by competitors that are open, participatory, agile and costs less. But some parts of your business will be affected. And, here’s the catch: you don’t know which parts!


Kristin Heinonen and the remains of Mr Krax (long story…).

You should also know that going this route is not easy. What Tomas & Kristin have done with SSWC may look easy, but it’s the result of years of active participation and community building. Also, neither of them planned to start the best social media conference in Sweden, it just happened that way.


Tomas Wennström, Campfixer.

As a big company you carry a heavy burden: your history. Your customers are most likely not your friends or fans. You don’t have an active community. You don’t have a voice on the web. Probably, you’ve treated your customers as an expense (once they’ve made the first purchase) instead of an asset. You’ve been doing the broadcast, authoritative, passive and expensive way for so long that it’s part of your DNA and your culture.

This must change.

This has to change.

Or you will perish.

How’s that for a lesson from Tjärö?

(I couldn’t attend this year because of the birth of my daughter. To her, all this talk about participating and opening up will be the most natural thing in the world. She will require it. She will expect it. Your company can still change. Do it. Now.)

Follow me on Twitter.


#entreprenorskap Tweetup, Stockholm, October 2010

There’s a small community of entrepreneurs using Twitter and social media in Sweden and thanks to Christian Rudolf at the blog Disruptive we’re finally starting to meet face to face.

The meetups got the name “entrepreneurs unplugged” by Geek Girl Supreme Heidi Harman. A suiting name because what happens at the meetups is that a few entrepreneurs get the chance to tell a story – “unplugged” – from their life as an entrepreneur. It’s all very down-to-earth and real, warts and all.

The previous meetup was this Thursday and I took a few pictures. You can find them here. Brand Eye kindly lent us their office.

Here’s a few of the photos…


Christian makes the introduction.


Anna Caracolias, Adimo, explains something. Her story circled in on the importance of “taking the shot” when an opportunity arises and on facing your fears.


Jonas Hombert is only 24 but already the CEO of a company that has Oprah Winfrey as a client, amongst others. He told the story of how Jaycut got started.


Erik Eliasson runs a cross fit gym in Stockholm. He talked about challenging oneself and building a business on something you love doing.

More pictures here.

A big thanks to Christian Rudolf for organizing and Per Sahlkvist from Brand-Eye for providing food, wine and a place to be! And, of course, a big thanks to the entrepreneurs for sharing their stories. Looking forward to the next meetup and more stories.

(PS. Follow me on Twitter.)


Serendipity and the opportunity cloud

Paul “don’t be evil” Buchheit has a great post on serendipity and opportunity clouds. He writes:

My theory of serendipity is still evolving, but from what I’ve seen, it’s better to think in terms of “allowing” serendipity rather than “seeking” it or “creating” it. Opportunity is all around us, but we have beliefs and habits that block it.

The two biggest blocks to serendipity seem to be ego-fear and “other plans”.

I had to look up the exact meaning of the word “serendipity”, this is what Wikipedia says:

Serendipity is a propensity for making fortunate discoveries while looking for something unrelated.

I guess you could sat that your opportunity cloud is what makes serendipity possible. This is how I summarized the opportunity cloud in a previous post:

“Your opportunity cloud is the sum total of all the positive things that can happen to you at one particular moment. It is what happens when you position yourself to be in a spot where good things happen. For example, exposing your skills on a blog, going to a mingle party, connecting with the right people on social networks, moving to a larger city, becoming good at pitching yourself or your product etc.

Call it accumulation of opportunity capital that may or may not be turned in to real money.”

Call it whatever you want, just don’t call it luck.


How to get rich

Diamond Ring

It’s actually quite simple.

1. Earn more than you spend. This one is obvious. If you don’t earn very much – cut down on your spending.

2. Passive income. You need to make money when you sleep. The easiest form of passive income is money on a bank account that carries interest, but that’s a very passive income. The most effective (but also most difficult) form of passive income is to launch a business that can run by itself without your constant attention.

3. Time. It will take time. Accept this fact and the temptation of easy money will not be as strong.

That’s it.