How Big Customers Are Getting It Wrong in the Recession (and Out)

Yeah, if my post about my par­ents hav­ing sex wouldn’t have been frowned on over at the cor­po­rate blog, this one surely would!

There’s a thread going around on a cou­ple of blogs about how MISO is get­ting it all wrong in the reces­sion. How they need to be more cus­tomer focused, and pro­vide more rel­e­vant solutions.

What really got me going in Dave’s post was the quote:

What’s the point of sell­ing me shiny new tech­nol­ogy which I’m strug­gling to under­stand any­way when I need to pay the bills more effi­ciently but more impor­tantly find new business.

The point is, because that’s what cus­tomers are ask­ing for.

Have you ever read an RFP? Do you real­ize hun­dreds of ques­tions, most of which are irrel­e­vant to the actual project at hand (and the suc­cess of future projects in the pipeline), are put on paper as if there were a sim­ple “yes/no” answer. Then, these RFP’s are passed to ven­dors with lit­tle or no con­text, and given two weeks to respond. I know cus­tomers think we do this stuff all the time, so why not just take what must be stan­dard answers and cut-and-paste them?

Well, that’s not how it works. Prod­ucts are com­plex, and so are the answers. Unless you want a gob­bledy­gook expla­na­tion of what we do. A great exam­ple… both Sytinet (HP) and Actional (Progress) say we dis­cover ser­vices. Sure, great. But only one ven­dor can do it with­out any a-priori knowl­edge of the envi­ron­ment (Actional). And, explain­ing that dif­fer­ence, why it’s impor­tant, and how it works/happens is the sub­ject of a the­sis length response. In fact, I pick these two prod­ucts because they are obvi­ously dif­fer­ent and com­ple­men­tary, yet can be described with lots of over­lap­ping func­tion­al­ity if kept at a high level.

You might argue, the prob­lem is, as I stated, that prod­ucts are com­plex. Yes, they are. But, they are com­plex at the demands of customers.

Cus­tomers want prod­ucts that solve every pos­si­ble prob­lem, in every pos­si­ble use case, for any­thing they need now, and any stan­dard that might appear in the future.

Sure, some cus­tomers, like some ven­dors, are more extreme than oth­ers, but I think this is a two-party prob­lem (sorta like the US Government).

Ven­dors make com­plex prod­ucts to try to meet all cus­tomer expec­ta­tions with one solu­tion. We strug­gle with dif­fer­en­ti­a­tion in a world where words have no mean­ing (here & here), so we need to get into the com­plex details to dif­fer­en­ti­ate. Cus­tomers, on the other hand, have been burnt by use­less tech­nol­ogy (OK, that’s extreme — let’s say by prod­ucts that don’t do exactly what the cus­tomer needs), so they try to solve the prob­lem with hun­dreds of fea­ture requests whether they need them or not. So they know they’re protected.

Per­son­ally, I think the answer is sim­pler, purpose-specific prod­ucts that work more eas­ily (install and inte­grate) and intu­itively (user expe­ri­ence) and cus­tomers who shop for what they need.

PS Since I know cus­tomer will con­tinue with those really long question-filled RFP’s, please do a me a favor and add one more ques­tion at the very end of your RFP’s: “With respect to all those fea­tures ven­dor said they sup­port above, can I use them all at the same time?”