Wednesday, August 04, 2010

Dead on arrival

A good example of how NOT to innovate:

Jolicloud, the netbook and web services-focused operating system by Netvibes founder Tariq Krim, has finally launched with an official version 1.0 release.

With Netvibes, Krim managed to create a personalized startup page site with a massive widget (or web application) ecosystem. In many ways, Netvibes acted as an online operating system — bringing access to services like Twitter and Facebook into one convenient location.

There are three strikes against the company.

First strike: the startup enters an extremely competitive existing market - ultra–portable web devices, e.g. netbooks, tablets, and, potentially, phones.

Second strike: the market is dominated by deep–pocketed players like Apple, Google, and Microsoft, willing to play a "war of attrition" game.

Third strike: the product that the startup offers doesn't bring to the market a significant (10X) change in user experience and/or performance.

In short, it's a classical "better mousetrap" innovation that has very low chances to succeed. Really unfortunate.

tags: moustrap, innovation, 4q diagram, example, startup

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