Bob Lentz, our left-brain CEO, always asked me to explain the key difference between our video technology and Brightcove, the 800-pound gorilla of the online video platform space. My answer was always the same, “nothing.” As someone who spent years in venture-backed enterprise software companies, Bob couldn’t believe my answer. I went on to say that it’s not the technology that’s the differentiator, it’s what you do with it that matters most. “Our software is like a pen”, I explained, “you can give the same pen to ten different people, but what they do with it will be very different”. Bob didn’t appreciate my answer to say the least, but I think it helped me make the point.
It used to be that software was unique, but today it’s a left-brain commodity. Everyone has access to the same developer tools, technologies, and talent both on and offshore. With cloud-based infrastructure it no longer costs millions of dollars in venture capital to create a new SaaS business. We can invent a business idea one day and have a website up and running with a prototype the next night. So, how do we create unique software-based product offerings? How can we differentiate our online products and services? How do we create value in a commoditized world where there is a level playing field? How can we justify raising millions of dollars of venture capital if we don’t produce any real IP?
I didn’t think there was a good answer until I learned about the Lean Startup movement and the principles of Customer Development, pioneered by successful start-up veterans Eric Ries and Steve Blank. Their whole-brain ideas helped me to realize that:
- We need to stop trying to create unique software and start focusing on creating unique value for customers.
- A solution to lack of market traction is never more software features, but always more customer focus.
- There is no better way to learn how to improve your software than by listening and speaking with real users.
And they reinforced my belief that I have an equal chance of becoming a Pulitzer prize winner with a $.25 Bic as I do with a $963 Cross Classic Century 18K Gold Ball-Point Pen.
