Wednesday, March 22, 2006

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You Gotta Beat the Devil

"… best-in-class projects should be classified as waste."
--Geoffrey Moore
A lot of high tech marketers run away from differentiation. They would rather be viewed simply as better-faster-cheaper -- not different. Most times, the value of being different is not self-evident to the customer. And competitors may paint you as simply being out of step.

I hate it when that happens, because most high tech people I know are passionate about their technology's differences. Besides, just because it's hard to communicate the value of your differences doesn't mean you shouldn't try.

In fact, according to Geoffrey Moore (read his blog) that's pretty much the only way to raise your margins and your revenues -- until competitors imitate you and take those differences away. His argument reminds me of a line from a Kris Kristofferson song, To Beat the Devil -- "If you don't wanna join him, you gotta beat him."

I do think, however, that there is a place for flawless execution, independent of whether you innovate. Is "best in class" service, for example, by itself a sustainable basis for high margins? I think so, especially in luxury brands. If you don't believe me, take a cruise.

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