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Signature SeriesThe Best Issue
Signoff: The best of the best

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Every week, 30 companies parade through The Yankee Group, each proclaiming that its product is "The Best." The CEOs stand in my conference room swearing that the product is "so good, we don't really have competition." Then they modify that by admitting, "Well, we might have some competitors, but we're kicking the crap out of them."

H. AndersonYeah, right.

But the idea of "The Best" is intriguing. Clearly a product can be best for only some set of time before it is either eclipsed by the competition or by the company itself. "Good" products might be The Best for, oh, 4 or 5 nanoseconds. "Great" products are usually The Best for several years. They define the category.

I've got examples galore. Action Communications System's WATSBOX, the first least-cost routing system, was far and away The Best product of its genre: It let communications managers cram seven hours per day - not four - on a dedicated line. VMX's voice mail invented the category; that technology eventually was ported to every PBX manufacturer as well as the central office equipment vendors.

We learned early on that the user community could adopt a best product and build on it. Northern Telecom's Meridian SL-1 PBX was the first all-digital switch with the features the market needed. It vaulted Nortel to the front of the pack. Meantime, AT&T resisted adding least-cost routing because it was afraid it would result in lost long-distance market share. Its competition didn't have that concern, and AT&T lost 60% of the PBX market. Major rule: Don't hobble your products.

The Best products not only make a user look smart, they can build an industry. Cisco's AGS Plus was the first corporate multiprotocol router; it made the company. The Cisco 12000, a carrier-class high-performance router, positioned the company as a provider of software-based products, not just hardware. Cisco's Kalpana Ethernet switch legitimized LAN switching.

Sure, some products are The Best because they hit that sweet spot between value and functionality. Apple's early portable computers weighed 23 pounds and had a form factor only a masochist could love. But the early PowerBooks were fantastic, and the Apple operating system was The Best for 10 full years. The Apple Newton, on the other hand, was flawed from the minute it was introduced. The 3Com Palm V may endure as an "insanely great" product for six months - until I can get my hands on a Palm VII.

What makes a product great?

  1. It forgives without penalty changes its vendor makes. In other words, it has a life of its own: IBM's 360 PC family.

  2. It works well with other products of the same design, so your investment is not trashed prematurely:SAP R/3 enterprise software.

  3. It returns substantial and continuing economic benefit to the user. On an internal rate of return basis, it shows 50% to 75% return per year: IBM's PC; Digital's PDP 8 computer.

  4. Users need virtually no instruction: Microsoft PowerPoint.

  5. It becomes the standard: Motorola StarTac portable phone.

  6. It creates a better way: Novell NetWare; Network Equipment Technologies' T-1 multiplexers; 3Com adapters.

  7. It lets applications that were not previously possible thrive: Lotus 1-2-3; Lotus Notes.

  8. It builds and supports standards so the user is not forever mucking around: TCP/IP.

  9. It's elegant in design, sparse of gimmick: Hotmail Web e-mail.

  10. It continually rewards users for making that choice, building fanatics: Check Point Software's Firewall-1.

Bottom line: "The Best" may be an illusive term, but we all have experienced such products. Great companies don't start out great by themselves, they begin with these insanely great products. The designers won't compromise; they strive to outdo themselves and won't settle for me-too products.

So to all you vendors besieging The Yankee Group, a word please. Spend a little less on your PR flacks and a lot more on your product design. Do great work and build The Best products. Why else are you here?

Anderson is founder and president of The Yankee Group, a Boston-based consultancy. He can be reached at handerson@yankeegroup.com.

Related links

Other recent columns by Howard Anderson

The beauty of bake-offs
Have vendors face off to see who is the best for a particular need. Network World, 09/06/99

3Com's Palm Computing site

IBM PC home page

More information on Check Point's Firewall-1

More information on Lotus Notes

More information on Microsoft PowerPoint

"Best of the Best"
Movie about a group of kickboxers that want to be World Champs. Information from Internet Movie Database.

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