InformationWeek: The Business Value of Technology

InformationWeek: The Business Value of Technology
e2 Conference & Expo - Boston 2013
= Member Content
Facebook Twitter Share

E-mail | Print | Permalink | LinkedIn | RSS

PC Makers, Learn From Car Makers: Use Model Years


PC vendors, are you tired of losing sales to the cool new tablets? Take a page from the auto industry's playbook and introduce model years.




Top 10 Tech Fails Of 2012
Top 10 Tech Fails Of 2012
(click image for larger view and for slideshow)
In my last column, I offered PC vendors some advice on how to position Windows 8 systems. That's not a miracle cure for solving PC players' woes. All that will do is pry from the industry's hand the pistol it's using to shoot itself in the foot. PC vendors will need to do more if they want to re-inject excitement into their products and get their business back on a growth trajectory.

Let me get right to the point: PC vendors need to incorporate model years into their product positioning. You know, like the automobile makers do. I know this isn't something they want to hear. (I know they don't want to hear it because I've been telling them for years. And they tell me that it isn't something they want to hear.)

I'll take my own advice here and call this my Model Year 2013 column. Years ago, long before the first iPad shipped, I suggested employing model years as a way to combat saturation in maturing markets. That's why automobile suppliers implemented model years some 90 years ago. Most people who wanted a car already had one. And a six-year-old vehicle could do 35 mph as well as a new one.

[ Wondering if the next Windows operating system is for you? Read Windows 8: Why I Won't Upgrade. ]

Model years helped remind consumers that their automobiles were aging. That, as well as styling and performance upgrades, gradually convinced consumers that it was time for a new car even though the old one still worked. The primary objection I hear from PC vendors is that model years would complicate manufacturing plans and inventory management up and down the supply chain. That used to be a valid argument. But it's not any more.

That's because they're already being forced to deal with those headaches. Consumers have been adjusting their purchasing behavior to account for the PCs' annual rollout schedule. For a few years now, consumers have held off buying last year's models just as PC vendors were trying to clear inventory to make way for new systems. So PC vendors are enduring all the pain of a model-year marketing model, but enjoying none of the benefit.

Smartphones and tablets -- the devices that are eating the PC's lunch -- exploit the model-year concept. Suppliers leverage their annual rollouts to generate pull from consumers, and consumers respond. PC vendors, meanwhile, continue to manage new releases like it's 1999.

There are positive pieces of the model-year mentality that are already in place, as well. Intel's Core lineup gets a facelift once a year, for example. And it's beginning to look as though the Ultrabook spec will be refreshed at a similar pace. If Microsoft would get on board, then PC vendors could really update the entire platform annually.

Another hesitation I hear is this: What if there's a delay? What if we can't deliver when it's time to roll out the new model year?

Good point. But there are ways to ease that burden. Intel, for example, releases a new generation of its Core-series processors every year. But the company tackles major architectural enhancements only every other year as part of what it calls its "tick-tock" cadence.

PC vendors could take on a lighter load than that. The auto makers execute a major overhaul only every four years. The changes to their offerings during the other three years are cosmetic by comparison. Call it a tick-tick-tick-tock schedule.

Although I'm recommending a model-year marketing mentality, there's really no need to differentiate by years. Distinguishing a new model with '4,' for example, instead of '2013' would leave some room for schedule slop. Microsoft, the unofficial schedule-slop champ, abandoned the year designation on Windows releases more than a decade ago and eventually settled on a generation numbering scheme. Combine that with the tick-tick-tick-tock concept, and you'd expect systems rolling out this summer to bundle Windows 8.1 followed by Windows 8.2 next year.

Remember, the point of all of this is to etch into the product a milestone, so people don't just think they have a Core i5-based PC, but a three-year-old Core i5 system. It will serve as a gentle reminder each time a new generation is released.

And if PC vendors don't fix the problem this year, then keep an eye out for my all-new Model Year 2014 column next winter.

Mike Feibus is principal analyst at TechKnowledge Strategies, a Scottsdale, Ariz., market research firm focusing on client technologies. You can reach him at mikef@feibustech.com.

InformationWeek is surveying IT executives on global IT strategies. Upon completion of our survey, you will be eligible to enter a drawing to receive an Apple 32-GB iPad mini. Take our 2013 Global CIO Survey now. Survey ends Feb. 8.

Federal agencies must eliminate 800 data centers over the next five years. Find how they plan to do it in the new all-digital issue of InformationWeek Government. Download it now (registration required).




InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
Subscribe to RSS


Advertisement


InformationWeek Reports

report Cloud Implementer's Checklist
Once your agency has completed the business case for a private cloud, how do you actually move ahead with your data center transformation? Our report provides a practical set of steps to get you there, including a "to do" list that will be helpful to anyone on your IT team who's involved in the project. By the time you're done, your data center should be home to a more flexible, on-demand IT services.

report Cloud Compliance in Government
Compute clouds created for government data centers must adhere to a range of specifications designed to support data and system security, privacy, and governance. FISMA, HIPAA, SOX, and SAS 70 are just some of the requirements that have to be taken into account as federal IT pros deploy a shared-services cloud model. In this report, we identify the key specs that need to be factored into any federal cloud architecture.

report Government Cloud Platform Strategy
This report analyzes the key IT infrastructure considerations that must be taken into account for implementing cloud services in federal data centers: software/hardware environment, multi-tenancy, security, virtualization, and management tools. We also explain the key important role that APIs play in supporting hybrid scenarios that tap into public cloud services.

report The Business Case for Government Clouds
This report assesses usage scenarios, barriers, and other variables that factor into the decision of whether and how to implement cloud computing in federal environments.