|By Lori Witzel||
|January 15, 2013 05:00 AM EST||
The HP TouchPad was launched July 1, 2011, and was discontinued August 18, 2011. The Marketing Center of Excellence (MCOE) may provide a framework for understanding (and preventing) the sorts of “black swan” marketing failure that HP experienced with its TouchPad launch. I think the key value provided by a MCOE for reducing the risk of a “black swan fail” is its enablement of a holistic, cross-disciplinary approach to marketing at enterprise level.
Leslie Ament, SVP at Hypatia Research Group, asked a great question that points towards the complexity underlying the situation, and the potential value of a MCOE: “Is this a failure of 1) product features, 2) timing of launch, 3) targeting of market segment and/or 4) demand generation, branding, and execution of campaigns?” In the framework of a MCOE, the operator here would be an “and,” rather than an “or.”
Hypothesis: Events and Issues
These events may have lead to HP’s decision to discontinue the TouchPad:
A number of poor reviews.
Per Sean Portnoy at ZDNet, “The bottom line was the TouchPad was released with several crucial flaws that led to mediocre reviews…" Mediocre would be an understatement; here’s a small sample:
Walt Mossberg wrote, “[The HP TouchPad] suffers from poor battery life, a paucity of apps and other deficits.”
Said David Pogue, “In this 1.0 incarnation, the TouchPad doesn’t come close to being as complete or mature as the iPad or the best Android tablets; you’d be shortchanging yourself by buying one right now…”
Matt Buchanan on Gizmodo opens his review, “I am so goddamned tired of the iPad. Which is why I was so excited for the TouchPad. And that's why I feel so completely crushed right now.”
And from Eliane Fiolet on Ubergizmo: “Overall, the results speak for themselves: the touchpad is the slowest tablet that we have tried in 2011. … The HP TouchPad did not stand up to expectations, so much that it died before getting a chance to be improved.”
Underwhelming consumer demand at launch compared to projections.
The poor reviews may have contributed to the serious gap between potential customer interest and inventory forecasting. Best Buy sold “less than 10 percent of the units in inventory” according to the “OuchPad” article in All Things D. Other retailers reported similar issues with inventory, per International Business Times.
Reading through an aggregated analysis of the HP TouchPad fail on The Week, some high-level themes emerge:
Poor price-to-performance compared to a market leader. The most serious concerns noted in reviews were slow performance; at a $599 launch list price, people just didn’t choose the TouchPad over the iPad unless they were “A.B.A.” (However, when HP dropped the price to $99 to clear out inventory, retailers sold out.)
Channel issues. As reported by Matt Rosoff in Business Insider SAI, "Best Buy doesn't want all that unsold inventory taking up shelf space, and is asking HP to take them back. Todd Bradley or another HP exec is reportedly going to fly to Minneapolis to try and persuade Best Buy otherwise." While no other channel issues surfaced in my research, Best Buy can’t have been the only retailer pushing back.
Launch issues. HP had a daunting task—to cut through WebOS being lumped into Android “me-too-ness” while grabbing market share from Apple’s iPad. Rather than launch later, which would have put its new product in the run-up to the 2011 holiday shopping season, HP chose to launch on the July 4 weekend.
Despite the July 4th timing, Google Trends shows an incredibly steep climb in search volume for “HP TouchPad”; there was a lot of buzz and interest. Unfortunately, the climb quickly dropped off into a cliff that seems to represent an abrupt collapse in interest and demand.
Using the MCOE evolutionary model to respond to Leslie Ament’s question, what Marketing Communities of Practice would have been involved?
The issues noted by reviewers related to performance would be R&D and Product Management’s domain. The price-to-performance issues would be Product Marketing (possibly compounded by issues on margins and the cost of Bill of Materials involving Product Management). Channel issues would rest with Product Marketing. If there were problems caused by the timing of the launch or pre-sales Demand Generation/AR/PR, they are not reflected in the spike of interest shown by Google Trends. (It’s hard to say what the actual comparative search volumes were in Google - at this moment, “HP TouchPad” shows about 75-100 searches per day, and “Apple iPad” shows roughly 900 per day.)
If we make the assumption (and I know it’s a whopper) that a company like HP would at least be at Levels 2 to 3 on the MCOE Maturity Model across the horizontal domains of People, Processes, Technology, and Data, how could a failure of this magnitude occur?
Using the MCOE framework may help clarify where things broke down:
People. Even if each disciplinary area was focused on “best practices,” were there shared goals to drive and support cross-disciplinary work by the Communities of Practice? Were there breakdowns in communication like this one, but among disciplinary areas? How was conflict (for example, possible conflict between the Hardware team and the WebOS team) managed?
Processes. How were risks (for example, press/reviews) identified and weighted among and by the Communities of Practice? Was some form of cost/benefit analysis applied to risk, so executive management could be advised?
Technology. What inventory and sales forecasting systems were used, how accessible were they to the Communities of Practice, and could they provision for fast (near real-time) corrections?
Data. Were there issues with the data used in planning/reporting that affected accuracy?
In my opinion, the biggest risk to an organization from enterprise-scale marketing comes from silos that inhibit business agility and useful communication.The key value provided by a MCOE - not just for reducing the risk of a “black swan fail,” but also for enabling innovation, effectiveness, and efficiency—is its enablement of a holistic, cross-disciplinary approach to marketing in the enterprise.
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Nov. 25, 2015 02:30 AM EST Reads: 668
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 25, 2015 02:00 AM EST Reads: 277
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 25, 2015 12:30 AM EST Reads: 408
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 25, 2015 12:00 AM EST Reads: 158
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Nov. 24, 2015 10:00 PM EST Reads: 258
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 24, 2015 08:00 PM EST Reads: 339
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Nov. 24, 2015 07:30 PM EST Reads: 344
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 24, 2015 06:00 PM EST Reads: 368
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 24, 2015 04:30 PM EST Reads: 286
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 24, 2015 03:30 PM EST Reads: 460
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Nov. 24, 2015 03:30 PM EST Reads: 507
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 24, 2015 03:00 PM EST Reads: 288
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 24, 2015 02:00 PM EST Reads: 416
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 24, 2015 01:45 PM EST Reads: 409
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 24, 2015 01:45 PM EST Reads: 338
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 24, 2015 01:30 PM EST Reads: 488
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 24, 2015 01:30 PM EST
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
Nov. 24, 2015 01:30 PM EST Reads: 482
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. Because they can be accessed via the Internet, these devices create a tremendous opportunity to inte...
Nov. 24, 2015 01:15 PM EST Reads: 479
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 24, 2015 01:00 PM EST Reads: 493