Only the Paranoid Survive by ex-Intel CEO Andy Grove was a wonderful introduction to me about the importance of keeping your organization’s opportunities in check with ever-changing market needs. It did give an importance to diversifying centralization towards specialized decentralization – vertical industries against horizontal industries.
Somehow at that time, which was almost 6 yrs ago, it seemed correct and proven with horizontal names such as Microsoft, Dell, Intel, other OEMs. In fact, I learnt most of my PC maintenance knowledge getting to put these together, and it still works great. The brilliance of plug-n-play type of PC industry really meant a lot of collective good coming together as one for benefit of the customers. And it still rules.
On the other hand, Apple. For a long time, I kept resisting Apple. I was happy with my world as being able to choose from different options (was I really?) over being bundled together into one by Apple. Somewhere, I switched to iPhone, and my views expanded. I unconsciously started to measure ‘good’ in it’s entirety. Not just the idea of ‘monopoly’, but the actual real-world example of that, the influence it showed to an industry I knew was the best, and perfect was dramatically changed.
Now, in my own words, Apple is different to what Microsoft is. By that I literally mean their idea of ‘selling’ themselves. Microsoft enabled PCs, enabled OEMs, enabled plug-n-play but left out one very vital thing – their administrative burden was given to the people. Suddenly we had device drivers, certified programs, expertise sprung around specialization. I had to ask myself – were we really decentralized? You basically have to know your PC before getting to use it. I was a technician, and a user both at the same time. Essentially, I had to make things work by taking what is offered by horizontal industries, and hope to not touch it again (windows upgrade?).
With Apple, I was no longer a technician. Hell, I tried to find Task Manager the first time I handled my iPhone. Slowly with each day I start to ‘use’ my iPhone without bothering that I’d have to take it apart. I was a pure consumer. And that was not just hardware, it was software too. In the back of my mind, I am happy that things funnel through Apple. I am tempted to go beyond, and take things in my hand, but I resist. I remind myself of where I should focus, and what is important.
So in a sense, I prefer the horizontals, but funneled through verticals. In many ways I find that Apple shows responsibility for whatever it offers. It will use horizontals – vendors, makers, app developers – behind its strong fort, but what comes out is from Apple as a single contact with me. It makes me wonder if horizontals did really catch the drift correctly? In many ways, many still want to reach out directly to the customer in trying to push customers into the driver’s seat. Customer’s however seem to be comfortable either way … (alas)
I favor responsibility going beyond just my product. I believe Apple (through Steve Jobs) realized that goal, leaving it to continue as a better way of doing good to the world at large.
In some sense I trust the paranoia hinted by Andy Grove, but I believe too in enduring excellence. I endeavor to achieve that as a responsible entrepreneur someday.