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Jim Ditmore, Allstate
Jim Ditmore, Allstate
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Mobile Platform Wars Only Beginning

BlackBerry is just an early victim in the platform wars. The likes of Google, Apple, Amazon, and Facebook will disrupt established product players in enterprises, homes, and cars.

Smartphones, tablets, and their digital ecosystems have had a stunning impact on a range of industries in just a few short years. Those platforms changed how we work, how we shop, and how we interact with each other. And their disruption of traditional product companies has only just begun.

The first casualties were the entrenched smartphone vendors themselves, as iOS and Android devices and their app marketplaces rose to prominence. It's remarkable that BlackBerry, which owned half of the US smartphone industry at the start of 2009, saw its share collapse to barely 10% by the end of 2010 and to 1% today, even as it responded with comparable devices. It's proving nearly impossible for BlackBerry to re-establish its foothold in a market where the number of apps in your store, your additional cloud services, and the momentum in your user community are as important as the device.

A bit further afield is the movie rental business. Unable to compete with electronic delivery to a range of consumer devices, Blockbuster filed for bankruptcy protection in September 2010. Over in another content business, Borders, the slowest of the big bookstore chains, filed for bankruptcy shortly after, while the other big bookstore chain, Barnes & Noble, hung on with its Nook tablet and better store execution -- a "partial" platform play. But the likes of Apple, Google, and Amazon.com already have won this race, with their vibrant communities, rich content channels, value-added transactions (Geniuses and automated recommendations), and constantly evolving devices. Liberty Mutual just voted on the likely outcome of this industry by reducing its investment in Barnes & Noble.

What's common to these early casualties? They failed to anticipate and respond to fundamental business-model shifts brought on by advances in cloud computing, app ecosystems, and user devices and communities. They failed to recognize that their new competitors were operating on a far more comprehensive level than their traditional product competitors. Competing on product versus platform is like a catapult going up against a precision-guided missile.

Read the rest of this article on InformationWeek

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Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
4/10/2014 | 9:22:08 PM
re: Mobile Platform Wars Only Beginning
I'm a Barnes and Noble fan too. It's amazing how digital has created these opportunities where one company can just sweep over a whole industry like Amazon has to done to book sellers.
Kelly22
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Kelly22,
User Rank: Author
4/10/2014 | 8:13:10 PM
re: Mobile Platform Wars Only Beginning
Even though I know it's the way technology is headed, I hate to see old favorite stores like Barnes & Noble decline. Insurers (actually, all businesses) need to stay on top of tech trends to avoid going down the same unfortunate path.
Nathan Golia
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Nathan Golia,
User Rank: Apprentice
4/10/2014 | 7:38:24 PM
re: Mobile Platform Wars Only Beginning
Very interesting, Jim. I remember when I wrote an article titled "The Mobile Platform Wars in I believe 2010, BlackBerry was still a major part of the ecosystem. Insurers must be careful to spend their development time and budget on environments that will stick around.
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