Thinking About Convergence

The question of convergence functionality is one of the most difficult issues for a technology provider: which kind of feature combination has the potential of inspiring the market? Which new “mix” of features could suddenly hit a sensitive streak in the market?

This problem is as much a question of When as it is of What? Timing is crucial, and so is not overselling the potential of the new mix. No sales figures are available yet to see how the iPod Photo is faring in the market. But it seems already clear that Apple did well by not positioning the device along the “nerdy” edge of multi-media functionality, but rather as a simple slideshow device which will appear immediately useful to anybody who owns a digital camera.

Sony will face a similar dilemma with its highly anticipated PSP handheld games console. The company seems to see the device very much as a convergence device, which offers movie viewing capabilities as much as game playing. Expectancy in the market is high (the device is currently only available in limited numbers in the Japanese market) but it remains to be seen whether the PSP actually manages to move beyond the games enthusiasts to become attractive to mainstream users. (Sony has actually attempted for several years to use the Playstation II as a stealth weapon to enter the living room; despite its considerable success in the games market, however, the games console never relinquished its mainstream potential.)

Gender-specificity is another hurdle to overcome. The more high-tech and cutting edge a device is, the higher is the risk to appear “nerdy”, a predominantly male character trait, and thus locking out the female audience. The same goes for gaming: for Sony the fact that the core application of the PSP remains gaming in effect eliminates large portion of the female population. Do we need to underline how problematic this could prove to be when trying to sell a mainstream consumer product?

Few get it right

Few companies are successful in getting the right mix. For all its proudly displayed visionary posture, Bill Gates’ Smart Objects idea (you know, the Dick-Tracy style wristwatch which displays automatic stock quotes and other tidbits of information) just oozes nerdiness.

Getting convergence right means balancing cutting edge features with usefulness, style and good marketing. By now, the Apple iPod has become the most recent textbook example for that kind of success. But even Apple may not get it right when it tries to expand beyond its current product line. (See related story)

Which brings us to the main problem: timing. There is a popular saying that it can be very wrong to be right too early. Being able to deliver the appropriate new convergence device at the right time, surfing on emerging market awareness almost impossible. And that's why it remains so rare.

©Pfeiffer Consulting 2004

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