Week 6: Clear - "Continuous Innovation" - Key to Successfully Satisfying Dynamic Customer Needs

"VisiCalc" on an Apple II - the Mother of It All!  
Today!?  My How Things Have Changed! 
 
Well we are using two (2) books in ISM 30004 and earlier this week, I first read Chapter 9 from "How Computers Work", 9th Edition by Ron White instead of from the book assigned for this week's reading, "Information Systems: A Manger's Guide to Harnessing Technology" by John Gallaugher.  Like I've told you before, I can laugh at myself and I'll even admit to having to do it often at times and although it was a mistake on my part, I'm glad I read both books.  Surprisingly enough, the subjects covered were very closely related as White gave more specific detail about the different types and categories of software and the applications for which Gallaugher gave a detailed overview from a manger's perspective. 

Dr. Olson added to the information in Gallaugher's book  and provided vital information for any manager - actually for any one - about to purchase software, whether on a small or large scale.  He included topics most of us rarely think of like the Total Cost of Ownership (TCO) - I have thought about this when it came to owning a vehicle but never in regards to owning software.  However, it was clear that this is something software purchasers should really pay attention to as in March 2011, according to Gartner, a reputable research firm, TCO of software and software maintenance current base cost was $750.00 annually - this may not be much of an issue for ownership of one or two software suites but just think about a company that owns 100s or even 1,000s - the dollars add up pretty quickly. 

http://en.wikipedia.org/wiki/File:Visicalc.png 

                                                Wikimedia Commons.

While reading White's book, I learned that VisiCalc was the first electronic spreadsheet application and that it was released on an Apple II computer.  Apparently in its day, VisiCalc was radically innovative software that made bankers, financial managers/officers, accountants - anyone having to "crunched numbers manually", very, very happy!!

I've heard of multiple Apple products including Apple computers that are currently successful and continuously gaining in market share as a result of innovative technology which continues to anticipate and meet customer needs.  On the other hand however, VisiCalc failed to realize that its users' needs changed - users wanted and needed more than just the ability to crunch numbers - many required database and graphing capabilities.  Where is VisiCalc now?  I had never heard of this software until this week - but I have heard of Lotus 1-2-3, Quattro Pro and Excel - which are all application software, that met the changing needs of VisiCalc users and eventually replaced it - two (2) of which I have personally used.  So managers also need to be aware of changes in the market and or technology that could impact their firm but also their firms changing needs.  One way of proactive dealing with this by making sure an "exit strategy" is included in any plan to acquire any software. 

This made it clear to me that in order for any firm's services or products to remain useful, they must be able to successfully satisfy dynamic customer needs and to do this the firm must be capable of continuous innovation.  If a firm cannot keep its finger on the pulse of the ever changing needs of its customers, it will not be able to proactively meet those needs and will eventually lose those customers to its competitor(s).  Apple is still alive and not just kicking but kicking butt!  According to Figure 9.3 of Gallaugher's book, in 2009, Apple held 5% market share of "Desktop" operating systems (OSs), 25% of "U.S. Mobile" OSs, and 16% of "Worldwide Mobile" OSs.  Below, I have zoomed in on a portion of an infographic from February 2011, which shows Apple's market share of the "U.S. Mobile" OSs to be 34% - that is a 9% increase since 2009.  In seven of the 14 countries shown, Apple has the largest market share - "click" on the first link below to view the entire infographic:

  http://connect.icrossing.co.uk/wp-content/uploads/2011/02/Mobile-OS-Market-Share-2.jpg              www.icrossing.co.uk           

To view this entire infographic - "click" the first link above.

Dr. Olson shared the following information regarding "Desktop OSs" and in closing,  would like to share it with you - he stated the following (paraphrased): 

• "In 2005, a survey revealed that 50% of UF students bought Dell computers and 17% bought Apple - presently, nearly 50% buy Apple and only 13% buy Dell". 
• "In 2003, Apple only had 2% of the market share but in 2006, they changed to the Intel processor and their market share increased to 6%". 
• "In 2010, Apple's market share has increased to 10%, even though they are selling high-end systems which focus on quality, performance, reliability, and design - like a Porsche".
• "He also shared his observations on campus and noted that Apple laptops are #1 on campus and this is a trend for college campuses nation-wide".        

So if you are faced with the task of purchasing software, make sure you also consider the reputation and track record of the company and remember, "You get what you pay for but you will certainly miss the important stuff you don't pay for"...