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Chapter 14:
Support Systems
“Look at today’s leaders and you’ll see no contenders for ‘the next iPod.’
You will, however, find two companies selling iPod accessories.”
- Pat Regnier, Money Magazine
You will, however, find two companies selling iPod accessories.”
- Pat Regnier, Money Magazine
Innovation begets new and exciting products, services and even entire industries. It has the power to open up a world of possibilities where there seemed as though none existed prior. What happens when entrepreneurs succeed is that they not only open doors for themselves, they also open doors of opportunity for the rest of us. For instance, some of us will enter the market as competitors. Others of us will carry the idea to other industries. You may decide to incorporate the new knowledge to enhance your competitive advantage. The possibilities go on and on. The reason for this chapter is that while observing new and creative ideas over the years, I found that a common source of opportunities exists in playing off the innovation of others. Every industry and market in the world has this. You’re like the supporting cast. A source of innovative business ideas exists by being the person or organization to provide supporting products, services and back end systems.
What happens with innovation in the nascent stages of a market is that the idea is being molded and shaped by the original entrepreneur. They are trying to find out where the firm fits in the competitive landscape. They are concentrated on catering the product to the fickle consumer. They are focused and driven on making it succeed. For a time the original innovator is going to have very focused, specific pursuits. Their time, money and eventual success or failure is dependent on such a focus. The opportunity that is posed to the rest of us then is how we can use this to form our own profitable venture. The original innovator cannot be a one stop shop for all of the new avenues of possibilities that their creation has opened. This is especially true when markets are trying to gain traction and firms are just getting up on their feet. That is where you come in. If you are not the trailblazer, you at least have the opportunity to start laying down the road to the door of the original entrepreneur.
If we refer back to the quote at the opening of the chapter, it shows us the essence of what we mean by producing supporting products, services and back end systems. The Ipod was an innovation that transformed a fragmented market. It changed the face of the game in personal music and then in personal entertainment in general. This is somewhat of a generic example to use, but think of all the products that flooded the market after the successful launch of the product line. Hundreds of aftermarket products came into existence. Anywhere and everywhere you could possibly listen to music became a space for a supporting product. Think of ideas such as the “ishower” or the waterproof cases that let you listen while you swim. Also, every type of wearable accessory, stationary accessory, computer and car accessory began to roll out. You can also look to the ways in which the actual iPods and the iTunes are sold and distributed. I have seen them online, in stores, in kiosks and in vending machines. Many people and many firms are contributors to the success of Apple’s vision. Many people have found ways to play off of the ideas presented by Apple and form profitable ventures. The lesson is that entrepreneurs can ride the success of other innovations and create their own venture with supporting products and back end systems.
Google is another company that shows us the power of support systems and creating ventures around the ideas of others. Take for example Google Earth and the map feature. Revolutionary companies like Zillow.com and Trulia.com have used the map resource to find the basis for their own ventures.(32) With the map feature, you can illustrate statistics by transposing them onto the geographic pictures provided by Google. You project the data to create a visual picture of what is going on with that statistic in a geographic area. Zillow and Trulia both decided to frame their business with real estate. With the two sites consumers can compare and contrast the prices of homes in a given market. It allows transparency to potential buyers or sellers. Consumers can see the prices and estimates of homes in a given area. They then framed the information and resulting mapping of the info as a business. Consumers can utilize the information and purchase the mapped statistics. The information is invaluable when you consider the size of the purchase. Knowing whether homes are overpriced or under-priced in a market can give consumers a leg up when it comes time to purchase or negotiate property. The point is again that profitable business ideas are created daily by playing off of the ingenuity of others. Seeing the benefits of Google maps and success stories like Zillow, other entrepreneurs are now moving on to all types of other statistical data. Consumers can see everything from real estate prices in their neighborhood to traffic congestion and strength of the school systems. Google was a necessary component for these businesses to even exist. Their original vision and venture paved the way. Once the technology and resources came into being, entrepreneurs took the opportunity and spawned numerous new ventures that support and add-on to the capabilities of the initial product.
Putting a framework around supporting systems is about asking questions. What else could this product be used for? What other consumer needs does this idea have implications for? Could we product an add-on? Could we provide an alternative distribution strategy? When a new firm chooses a point along the supply chain to establish their business, they are leaving opening a world of possibilities for other people. If the firm is a manufacturer, then the door is opened to be retailer or distributor of their goods. Ideas such as 3D printers and air-taxis are some of the industries that come to mind. Once the original innovators chose to be the manufacturers of the planes and printers, it was up to the rest of the entrepreneurial community to decide what to do with those innovations. In the world of air-taxis you have the case where people started businesses to buy up the jets and actually sell flight plans to consumer. We also saw companies enter to be the online booking agencies for the air-taxis. In the 3D printing market, firms are buying up the printers and then contracting out printing services to firms that need rapid prototyping.(33) The list of possibilities goes on and on. The original innovator can only do a certain set of focused tasks when they bring an innovation into the world. It is up to you to figure out what other implications their innovations have. Start looking for ways to support and play off of other entrepreneurs in route to starting a venture of your own.
So that is the lesson for you. When you encounter industries, when you encounter new ideas, when you are thinking about business ventures in your daily life, start to think about the doors of possibility that have been opened by a given innovation. Whether you choose to start a supporting business that is crucial to the operations of the original innovator or whether you simply develop an add-on perk, you need to ask yourself, what is going to be necessary to be in place in order for an industry to succeed? The original firm is not going to be able to successfully cater to the entire target market that has opened up from their ingenuity. Entrepreneurs can enter the market and pick up the slack. You can capitalize on the successful ideas of others. Innovation begets innovation. Search for it and exploit it.
(32) McNichol, Tom. “Map Mashups Made Easy.” Business 2.0. Jul. 2007: pp. 23.
(33) Morrison, Chris. “3-D Printing For The Rest of US.” Business 2.0. Sept. 2007: pp. 46-47.
What happens with innovation in the nascent stages of a market is that the idea is being molded and shaped by the original entrepreneur. They are trying to find out where the firm fits in the competitive landscape. They are concentrated on catering the product to the fickle consumer. They are focused and driven on making it succeed. For a time the original innovator is going to have very focused, specific pursuits. Their time, money and eventual success or failure is dependent on such a focus. The opportunity that is posed to the rest of us then is how we can use this to form our own profitable venture. The original innovator cannot be a one stop shop for all of the new avenues of possibilities that their creation has opened. This is especially true when markets are trying to gain traction and firms are just getting up on their feet. That is where you come in. If you are not the trailblazer, you at least have the opportunity to start laying down the road to the door of the original entrepreneur.
If we refer back to the quote at the opening of the chapter, it shows us the essence of what we mean by producing supporting products, services and back end systems. The Ipod was an innovation that transformed a fragmented market. It changed the face of the game in personal music and then in personal entertainment in general. This is somewhat of a generic example to use, but think of all the products that flooded the market after the successful launch of the product line. Hundreds of aftermarket products came into existence. Anywhere and everywhere you could possibly listen to music became a space for a supporting product. Think of ideas such as the “ishower” or the waterproof cases that let you listen while you swim. Also, every type of wearable accessory, stationary accessory, computer and car accessory began to roll out. You can also look to the ways in which the actual iPods and the iTunes are sold and distributed. I have seen them online, in stores, in kiosks and in vending machines. Many people and many firms are contributors to the success of Apple’s vision. Many people have found ways to play off of the ideas presented by Apple and form profitable ventures. The lesson is that entrepreneurs can ride the success of other innovations and create their own venture with supporting products and back end systems.
Google is another company that shows us the power of support systems and creating ventures around the ideas of others. Take for example Google Earth and the map feature. Revolutionary companies like Zillow.com and Trulia.com have used the map resource to find the basis for their own ventures.(32) With the map feature, you can illustrate statistics by transposing them onto the geographic pictures provided by Google. You project the data to create a visual picture of what is going on with that statistic in a geographic area. Zillow and Trulia both decided to frame their business with real estate. With the two sites consumers can compare and contrast the prices of homes in a given market. It allows transparency to potential buyers or sellers. Consumers can see the prices and estimates of homes in a given area. They then framed the information and resulting mapping of the info as a business. Consumers can utilize the information and purchase the mapped statistics. The information is invaluable when you consider the size of the purchase. Knowing whether homes are overpriced or under-priced in a market can give consumers a leg up when it comes time to purchase or negotiate property. The point is again that profitable business ideas are created daily by playing off of the ingenuity of others. Seeing the benefits of Google maps and success stories like Zillow, other entrepreneurs are now moving on to all types of other statistical data. Consumers can see everything from real estate prices in their neighborhood to traffic congestion and strength of the school systems. Google was a necessary component for these businesses to even exist. Their original vision and venture paved the way. Once the technology and resources came into being, entrepreneurs took the opportunity and spawned numerous new ventures that support and add-on to the capabilities of the initial product.
Putting a framework around supporting systems is about asking questions. What else could this product be used for? What other consumer needs does this idea have implications for? Could we product an add-on? Could we provide an alternative distribution strategy? When a new firm chooses a point along the supply chain to establish their business, they are leaving opening a world of possibilities for other people. If the firm is a manufacturer, then the door is opened to be retailer or distributor of their goods. Ideas such as 3D printers and air-taxis are some of the industries that come to mind. Once the original innovators chose to be the manufacturers of the planes and printers, it was up to the rest of the entrepreneurial community to decide what to do with those innovations. In the world of air-taxis you have the case where people started businesses to buy up the jets and actually sell flight plans to consumer. We also saw companies enter to be the online booking agencies for the air-taxis. In the 3D printing market, firms are buying up the printers and then contracting out printing services to firms that need rapid prototyping.(33) The list of possibilities goes on and on. The original innovator can only do a certain set of focused tasks when they bring an innovation into the world. It is up to you to figure out what other implications their innovations have. Start looking for ways to support and play off of other entrepreneurs in route to starting a venture of your own.
So that is the lesson for you. When you encounter industries, when you encounter new ideas, when you are thinking about business ventures in your daily life, start to think about the doors of possibility that have been opened by a given innovation. Whether you choose to start a supporting business that is crucial to the operations of the original innovator or whether you simply develop an add-on perk, you need to ask yourself, what is going to be necessary to be in place in order for an industry to succeed? The original firm is not going to be able to successfully cater to the entire target market that has opened up from their ingenuity. Entrepreneurs can enter the market and pick up the slack. You can capitalize on the successful ideas of others. Innovation begets innovation. Search for it and exploit it.
(32) McNichol, Tom. “Map Mashups Made Easy.” Business 2.0. Jul. 2007: pp. 23.
(33) Morrison, Chris. “3-D Printing For The Rest of US.” Business 2.0. Sept. 2007: pp. 46-47.
