Sunday, July 20th, 2008

Doing it right the first time .. or does IT matter?

When releasing a product (especially innovative ones) in the IT domain, just how important is it to do it right the first time?

The experts are divided on this: Some would advocate the importance of showing others something that works and impresses, and emerge from your dark garage with a huge big impact that gets everybody’s jaw open - at the expense of time/effort and perhaps lost ground to competitors.

Others would tell you to build a community with a beta launch early, get their feedback and consistently improve. The latter situation helps you gain a first mover advantage, gain some sort of credibility as a company that delivers gradually, assures your VCs, but as you would have guessed, the wow effect would have been subsided. In terms of branding, your company is gauged accordingly to that buggy beta launch you have. In terms of marketing, you could miss out on the advantage of viral marketing (my reasoning is that if you potentially lose part of your community with a less than perfect application and miss out leveraging on their “word of mouth”)

I do not believe dude-my-solution-works-for-you-and-all exists. As usual, I listed down some guidelines that will help a startup determine its strategy, and end off with a possible solution startups can consider.

1) Can you foresee competitors that are already working on something similar?
If you do, you probably should release your application in iterations, even if it its less than perfect. First mover advantage has so much benefits that you simply can’t miss out in the fast moving IT world, and building a community with your beta can lock them into your application. Releasing early iterations also place pressure on competitors, forcing them to show their hands with less than perfect applications. You are better off than ignoring them and run the risk of competing with a even better application which the world saw earlier than yours.

2) Can you decide well enough what is good for the community? (Do you even know em?)
One of the best lesson I have learned in many years is from the trendsetting guru, Mr Steve Jobs, who quipped that focus groups are useless because most of the time, your customers does not know what they want. However, if you feel pretty inadequate in deciding what THEY want, you are better off releasing your early versions of your ugly application to them. Who knows, they may be more than happy with that! Also, if you are still unsure about your target market, an early release may help you decide. It is common in every business to evolve and adapt to the market pays you more.

3) Do you have enough engine and dolli?
The later you release, the less confidence your investors will show in your company, and so will you to your corporate bank statements. Slow release may also result in demotivated staffs who have been waiting to capitalize on their equity stakes. You run the risk of your best programmer quitting you for another company just because the work they do don’t seem to see daylight as the days dragged on with another of your “Oh I think it will be great to add this function!”. At the same time, releasing your application gives potential new talents a preview of what great idea you have, thus attracting them towards you.

In a nutshell, the 3 questions above in fact are point to the same rhetorical question: Just how important is your product coming in with a BIG BANG? (Kaboom and Cracklings)? If it is a matter of life and death (which is implied from your answers from above posers), and yet the disadvantages bother you all the time, you can consider what I call a ring-fence launch.

In a ring-fence launch, you ensure that competitors and general public are not able to access the application. Get only friends (preferably close ones) to see your application, as well as reiterate to them the importance of keeping to themselves. Explain to them your motive, and ensure that this is far from being the final product, and that their word-of-mouth help is critical to success when you eventually do the final launch. This is helpful because you do not want them to ignore your fiinal product due to boredom and lack of excitement.

Personally, I would chose to launch something that is 50% completed - with quite a different look to the final look and feel. I would even use a slightly diff name for this application in my url ,e.g. such as myproduct_beta such as as myproduct. This is to illustrate the key difference in both releases to the test community.

In my next post, I will discuss the different kind of beta launch and more strategies in doing so. Please feel free to comment on this post!