Lack of innovation

Are many of the problems too many product ranges, a lack of innovation or too much reliance on planned obsolescence?

An article in Baseline Magazine caught my eye this week about GMs decline and suggesting that Apple is going the same way.

Basing Apple's decline on reports that Microsoft's poorly named and badly executed Zune has outsold the iPod is a bit flakey in my view. But there are some good points in this argument about innovation and it's role in keeping businesses and economies vibrant and growing.

While I agree Apple's strategy with rolling out too many versions of the iPod is confusing , even I have trouble keeping track of what iPod does what, and perhaps Apple's motives are a bit cynical, Apple are actually the poster child for innovation.

The real battle here isn't innovation; it's about quality. Apple and Toyota are perceived as putting out higher quality products than GM and Microsoft.

Because customers believe the quality is better, they are prepared to pay more for it.

Innovation is essential to keep ahead of the pack, particularly in markets like consumer electronics and motor vehicles where's a bunch of low cost commodity manufacturers are constantly snapping at your ankles, but it's quality that is essential to grabbing the high margin customers.

In the case of GM, I'd argue they've failed on counts; in Microsoft's case many innovations haven't added much value and their quality, particularly in the last two versions of Windows, has been dire.