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Carl Icahn, who is constantly called “the corporate raider turned shareholder activist” is battling Motorola CEO Ed Zander to get a seat on the board of directors and use the company’s cash to buy back stock—including his own Motorola stock. Zander and Motorola are vulnerable to this squeeze because of the sharp decline in the profits derived from the great selling Razr cellphone. Motorola has been cutting its price all year, especially in emerging markets, and is losing market share to rivals Nokia and Samsung. All this before Apple launches its iPhone.
What does this have to do with design? After all, the ultra-slm Razr is a design marvel, attracting millions of people around the world to its fashionable, stylish colors and light, thin form. It took quite a lot of engineering and plain old industrial design to create the Razr.
But the Razr turns out to be bad design, really bad design, because it has an awful user-interface. I personally know nearly a dozen people who truly hate their Razrs, including a number of top designers. People have a very hard time with just the basic features, such as phone numbers, texting, sending photos, even hearing well. There are lots of consumer complaints. The truth is, despite its terrific outside, the Razr runs on an old, homeground operating system
that Motorola is only now updating.
So the Razr, in the end, reflects old-fashioned design—form over function. The resulting poor consumer experiences for a huge number of people may make it harder for Motorola than it anticipates to recoup in the marketplace. In a competitive environment where people can easily buy Nokia or Samsung phones, and now Apple iPhones, memories of bad expiences with the Razr may make them very reluctant to try another Motorola cell.
This is all very strange to me. Motorola is one of the very best design-driven companies in the world and I’ve seen its very sophisticated design analytics. Motorola knows how to do anthropology to understand consumers in China, India, the US, Europe, Latin America. It knows how to translate that data into terrific design that delivers great consumer experiences.
I can only guess that with the Razr, Motorola went with an old, uncompetitive operating system to save money. Did it really think consumers wouldn’t notice? I dunno.
One thing is for sure, top global execs did not notice. And this may tell you something about the understanding or misunderstanding of design by senior managers of companies. Despite its serious problems with the kind of design that counts with consumers, global managers voted Motorola the 26th Most Innovative Company in the World. Think about that.
Here are their reasons:
“Develop innovative technologies that keep the world connected.
HAS REINVENTED ITSELF NUMEROUS TIMES
They seem to find consumer needs quickly and are able to capitalize on them. There problem is that once a need is found they tend to hang on that idea too long.
Regained strong position with good products after years of mismanagement
Rediscovered innovation for cellphones
new product intros
Customer value considerations in products
the RAZR has an amazing design
Experience with products and customer
Their phones are always changing with cool styles and features.
Great phones. They need to work to not fall behind.
new, leading edge products
Trying to bring solutions to crowded market
Innovative, long lasting telephones - Everyone is carrying a RAZR these days.
They have a way with producing products that appeal to the masses.
Their cell phones are constantly changing. They are keeping ahead with style and features.
Great product designs
The thin cell phone technology (RAZR) has made the phones light weight, great looking, and fun to use.
range/model&LF;style married to functionality
Consistent reputation for business excellence, process efficiencies, and product designs.
They are also trend setters in the quality arena.
great phone designs
best cell phone products
More features on cell phones
Focused on distribution through cell.
A leading company in product development
Every thing for everyone.Quite unique.”
If these managers out there are reading this blog, consider this: design is more than style, more than a fashion statement. It is isn’t easy to use and can’t deliver on what is promised, your product/service will ultimately annoy the heck out of your consumers. And you will pay. The Icahns of the world will make you pay.
Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.