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One: A successful product must be balanced: marketing, technology, and user experience all play critical roles, but one cannot dominate the others.

Two: There is a big difference between infrastructure products, which I call non-substitutable goods, and traditional products, substitutable goods. With traditional goods, a company can survive with a stable, but non-dominant market share. Coke and Pepsi both survive. Cereals and soaps have multiple brands. With infrastructure goods, there can be just one. MS-DOS won over the Macintosh OS, and that was that. MS-DOS transitioned to Windows, and the dominance continued. VHS tape triumphed over Beta. Most infrastructures are dictated by the government, which assures agreement to a single standard. When there is no standard, as in AM stereo or digital cellular options in the US, there is chaos.

Three: Different factors are important at different stages in the development of a technology. In the early days, technology dominates. Who cares if it is easy to use? All that matters is better, faster, cheaper, more powerful technology. In the middle stages, marketing dominates. And in the end, mature stages -- where the technology is a commodity. User experience can dominate, user experience and marketing. As in soap and cereal. As in watches. Swatch sells its watches for their emotional appeal, not their accuracy: accuracy is taken for granted

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15y ago

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