Wednesday, May 1, 2013

MANAGEMENT/STRATEGY SPECIAL.... FOLLOW TO LEAD


FOLLOW TO LEAD 
 
Is there really much advantage in being a “first mover”? Technology evolves at the bleeding edge,
but followers are often those who realize the advantage from advances.  Google was not the first search
engine, nor Facebook the first social network. Windows was not the first operating system. The iPad was not the first tablet; it wasn’t even Apple’s first tablet. And while Apple has led the way in smartphones, Samsung has eclipsed its market share.
The evolution of technology is a leapfrog process in which first movers frequently get left behind by “fast followers.” Part of the reason is that technology leaders tend to focus on the technology, while followers focus more on the business model. Followers get to see the marketplace before launching; leaders have to jump in sight unseen.
For most brand marketers, the issue at hand is a mix of bringing their own new technologies to market and using new technologies from other categories. Either way, they face the decision of whether or not to be first.
This is an especially difficult challenge in today’s digital marketplace, but it is not a new one.
For example, it has long been common for large packaged goods companies to wait out innovations.
When a novel product proves itself, these big companies will follow, introducing copycat products that
have the advantage of vast marketing support to overwhelm smaller innovators handicapped by fewer
resources, less scale and weaker retail relationships.
Through their cultures and processes, these big marketing companies have long operated in a
manner that recognizes they can lead without having to be the first mover. Pioneering something wholly new through discovery and invention is just one way to dominate. Sometimes it is smarter to scan and imitate, yet too few marketers have this orientation or skill.
Leading by following has macroeconomic implications, too. The leapfrog pattern of technology evolution is one reason why developing economies are catching up. Every technology requires an embedded
infrastructure to support it. The costs of transitioning away from current infrastructure can be astronomical, so the places and firms that get the advantage of new technologies often are those not invested in prior technologies and preexisting infrastructure. This explains why Africa, the global economy’s stepchild continent, is a global leader in mobile payments.
Marketers are heading into a future of mammoth changes. But an itchy trigger finger can be trouble.
Discovery and invention will be needed, but must be balanced by a parallel patience to scan and imitate.
Marketers need reserve no less than boldness to ensure an opportunity to lead
.
J WALKER SMITH MM WINTER 2012

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