Don't Lose Sleep Over Unproven Concepts

By: David J. Wardell


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© 1993 By: David J. Wardell.  Reproduction or redistribution in any form without written permission is strictly prohibited.


Since 1989 GTE has conducted a large-scale test of interactive television on a Cerritos, Calif., cable TV system. Some have hailed such interactive TV systems as a precursor to the much discussed "information highway" that will provide subscribers with hundreds of channels where all manner of information and services will be just a few screens away.

Futurists in our own industry tell us that this "information highway" will be so powerful and compelling that it will radically alter the way we do business. They warn that unless we come to terms with the new tools, the very existence of travel agencies as we know them is imperiled.

Hardly. Emerging technologies have and will change the way we all think and do business. But in the rush to be progressive it is easy to forget the distinction between technology and products.

Fortunes are made and lost based on this distinction. The GTE interactive television test has been described as "nonexistent" as far as most cable subscribers are concerned — it’s a dud.

While interactive TV will undoubtedly exist within five years or so, it will not be mainstream technology. Until it evolves into widely used products, it’s simply premature —as well as unwise — to begin reshaping the travel business. Whatever commercial benefits might be available will probably never materialize in a form resembling what we envision today.

One of my first experiences in the computer business, in the early ‘70s, involved renting time on large systems to provide services to small businesses. I noticed that some people spent a great deal of money doing nothing more than playing simple games on these expensive computers.

I thought there must be some way to turn this into a marketable product, perhaps using the "revolutionary" technology of the moment: Sony’s new BetaMax video recorder.

This seemed the perfect technology marriage; fortunately, I could never follow it up. Video recorders did permanently change the entertainment industry, BetaMax is long gone, people made lots of money building computer games and Sony never participated in a meaningful way. The market decreed that my early idea would have been a commercial bust.

Commercial success comes to those who skillfully adapt their services to what the marketplace proves it will support. The key, however, is proof.

We are not in the information business. Travel agencies are not run like information businesses. They are not paid that way, nor has anyone ever successfully demonstrated that consumers will pay for travel information.

We sell customer service and it must be the customer who determines how this service should be delivered. Always be open to new ideas, but don’t lose sleep that you’re missing something wonderful until you’re certain there’s something to miss.

 

 

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Copyright © 1974 - 2008 by David J. Wardell.  All Rights Reserved
Revised: Monday, May 19, 2008 06:35:10 AM