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(This article was originally published in
February 2000)
Federal Express called it Zapmail because of the great speed
it promised. When Fedex introduced electronic mail in 1984,
it enabled customers to send documents in a few hours instead
of overnight. Customers could drop off documents at a local
Fedex office and have them sent by satellite across a continent
to another Fedex office for local delivery. Fedex was so chuffed
with the prospects for this hybrid of paper and electronic
transmission, it planned a $1.2- billion (U.S.) outlay over
10 years for equipment. But just two years and $340 million
later, Fedex zapped Zapmail. Everyone everywhere was zapping
his or her own mail with a hot new technologythe fax machine.
Fax machines and other champions of electronics provide some
important lessons about how new technologies settle into our
lives. The following are rules that turn The Next Wonderful
Thing either into the Internet or Betamax of its generation.
One: Time. One reason why certain technologies are resoundingly
successful and others fail is the ability of new products
to save time or help individuals control time. Four champions
of the late 20th Centurythe fax machine, the VCR, E-mail
and the automatic teller machine (ATM)all delivered this.
The VCR proved to be enormously successful because people
could control time by shifting when they watch programming.
Two: Convenience. If a technology makes it easier to do something,
people will use it. Canadians make 30,000 calls on cellular
phones to 911 emergency services every month. It says as much
about how easily consumers can reach for their cell phones
as the mayhem they must be witnessing. Likewise, the grandfathering
of ATMs to the Internet has ensured the long-term survival
of self-serve banking.
Three: Regulation. No other technology held such elusive promise
as high-definition television (HDTV), which would have delivered
1,500-line video pictures, rivaling motion-picture film for
clarity. HDTV might have been everywhere by now if the Japanese
had been able to swamp the world market with sets, just as
they had with colour television in the mid-1960s. But they
have been blocked for years by the European Union, and by
U.S. electronics companies, who successfully lobbied their
regulators not to approve the expensive sets of technical
standards for HDTV. That, says Stephen Rosenthal, a director
of the U.S.-based industry-academe Manufacturing Roundtable,
was the mortal blow to HDTV. "In order for a technology
to be a success you have to have broad technical standards,"
says Rosenthal. This protectionist strategy paid off for Western
manufacturers. By forcing regulators to drag their feet, these
companies used the time to create the now-inevitable digital
standard that will leapfrog over Japan's analogue-HDTV standard.
Four: Humanity. Technologies that demand people change the
way they behave are doomed to failure. Microsoft likes to
refer to something called the technology-adoption curve. Personal
computers, for instance, had a slow adoption rate in homes
because of the built-in behaviour-modification requirement.
Indeed, the amount of time we spend futzing with new programming
techniques on the World Wide Web alone, with their growing
arrays of peculiar plug-ins and demands for catalogues of
Personal Identification Numbers and passwords, have vastly
alienated the public. Contrast that with debit cards. Interac,
the association of Canadian financial institutions that share
a national banking network of ATMs, is ecstatic with the POS
terminal's acceptance. Whereas it took 10 years for Canadians
to make 300 million annual ATM transactions, it took only
five to reach that number with POS terminals. That's because
consumers already knew how to use ATMs, so they were automatically
comfortable with debit terminals.
Five: Cost. The less money a product or service costs, the
more likely people are to buy it. When car phones cost $4,000
apiece in the early 1980s, there weren't a lot of consumers
buying them. Now that they are given away free as part of
phone-service contracts. Says Thomas Bodenberg, assistant
professor of mass communications and public relations at Boston
University: "When the price point goes below $200 (U.S.),
you can break out a technologyVCRs proved this." Laptops
could become as ubiquitous as calculators if they fall below
$200.
Six: Snowballs. The question accompanies so many business
telephone calls these days you can almost predict it: "What
is your E-mail address?" E-mail has become so pervasive
that it's almost impossible to do business without it. E-mail
is the latest example of a product benefiting from snowballingthe
process by which late technology adopters come on board quickly
and in large numbers. The amazing aspect to E-mail was just
how quickly that snowball got rolling.
Ultimately, the most important component of a technology has
nothing to do with its physical aspect but with human need.
Although "videotex" was the direct ancestor of the
World Wide Web, it flubbed its entry because it answered no
particular need. That technology sought to provide masses
of data over television sets accessed with hand-held keypads.
Most of that information, such as news, weather and financial
data, was already available, freely or cheaply, through existing
channels. Videotex added nothing. A technician working on
Telidon, a pricey version of videotex fostered by the Canadian
government in the late 1970s, complained at the time that
videotex was "a solution in search of a problem."
Yet filling unexpected needs happens all the time. The World
Wide Web has taken off, partly because of low cost, partly
through its convenience but also because Internet programmers
began to find all sorts of cunning uses for it that never
occurred to the videotex boys: trading stocks, buying stuff
and connecting micro-communities of people with common interests.
And that matters more than all R&D into processor speeds
in the world.
Copyright © 2000 Jared Mitchell
All Rights Reserved
Toronto novelist Jared Mitchell has written
about technology for The Globe and Mail and many other publications
for eons.
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