Making the Right Digital Transformation Decisions: How to balance a customer centric approach with groundbreaking innovation

Deciding on the right direction for product development during digital transformation is critical. The story of BlackBerry and iPhone offers a compelling example of how a decision based solely on current customer desires can lead to the downfall of a product, while visionary thinking can redefine an industry.

Your customers might not have spent time to think how your product could be radically better, they just think about improvements going from what’s being offered now. If users only knew phones with a numerical keyboard and a few arrows, then adding more buttons and whole keyboard seemed to make total sense. The idea of a phone without any buttons was never thought of by users until Apple brought that idea up and it became the new standard.

As a seasoned Product Manager, I have seen that happen multiple times. A product can easily become stale while you are listening to your users and implementing the changes they are requesting.  Users are happy but it might not last long, as soon as a competitor introduces some disruptive feature, your product is suddenly obsolete and users become unhappy because now it looks obvious that this new feature was long needed. How to find balance between a customer centric approach and a disruptive digital transformation?

Understanding Digital Transformation

Digital transformation involves the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It requires a cultural change that demands organizations to continually challenge the status quo, experiment, and get comfortable with failure.

The BlackBerry vs. iPhone Case Study

The Rise of BlackBerry

BlackBerry was once a leader in the smartphone market, renowned for its physical keyboard and secure email capabilities. The brand had a loyal customer base that loved its reliable and tactile keyboard, which made typing emails and messages convenient and efficient.

The Introduction of the iPhone

In 2007, Apple introduced the iPhone, a groundbreaking device that lacked a physical keyboard, relying instead on a full touchscreen interface. At the time, many BlackBerry users and industry experts were skeptical. They couldn’t envision how a phone without buttons could be practical or user-friendly.

Customer Desires vs. Visionary Innovation

BlackBerry’s decision-making was heavily influenced by what their current customers wanted – a better version of what they already had. They continued to focus on enhancing the physical keyboard and improving their existing features.

In contrast, Apple took a bold leap. Steve Jobs and his team envisioned a future where the smartphone was not just a communication tool but a powerful handheld computer that could transform the way people interact with technology. This vision led to the creation of the iPhone, which revolutionized the industry with its innovative design and user interface.

Key Lessons for Digital Transformation Decisions

1. Think Beyond Current Customer Desires

While customer feedback is crucial, relying solely on it can be limiting. Customers can only express their needs based on their current experiences and knowledge. They might not be able to envision groundbreaking innovations.

• Example: BlackBerry users wanted better keyboards, but they couldn’t imagine the possibilities of a touchscreen interface that the iPhone offered.

2. Embrace Visionary Thinking

Successful digital transformation often requires looking beyond the present and envisioning the future. This involves taking calculated risks and being willing to disrupt your own products before someone else does.

• Example: Apple’s vision of a touchscreen smartphone redefined what a phone could be, leading to the iPhone’s immense success.

3. Foster a Culture of Innovation

Encourage your team to think creatively and explore new ideas, even if they seem unconventional. Provide the resources and support needed to experiment and iterate.

• Example: Apple’s culture of innovation allowed them to explore the potential of a buttonless smartphone, ultimately leading to a revolutionary product.

4. Balance Customer Feedback with Market Trends

While it’s essential to listen to your customers, also pay attention to emerging technologies and market trends. This balance can help you make informed decisions that align with future opportunities.

• Example: BlackBerry focused too narrowly on their existing user base, while Apple recognized the broader trend towards touchscreen devices and mobile computing.

5. Be Prepared to Pivot

The digital landscape is constantly evolving, and flexibility is key. Be ready to pivot your strategy based on new information and changing market conditions.

• Example: Apple’s willingness to pivot from traditional phone designs to a touchscreen interface positioned them as leaders in the smartphone market.

Conclusion

Deciding the right direction for a product during digital transformation is a complex but critical task. The BlackBerry and iPhone example illustrates the importance of visionary thinking, embracing innovation, and balancing customer desires with future market trends. By fostering a culture that supports these principles, businesses can navigate digital transformation successfully and create products that redefine their industries.