"good enough" products

A McKinsey paper from 2005 says that “Good enough” is the single scariest thing for all technology companies http://144.214.55.213/wagner/tiki-download_file.php?fileId=39. They normally try to increase their average selling prices (ASP) by improving functionalities. By making products better. Make them significantly cheaper to make them affordable for the mass market is an opportunity companies often not look at. Remember what the BASF South America President was talking at our visit at BASF in Sao Paolo. The issue however is that the same engineers that design a BMW for $100’000 cannot design a Tata for $2500. There is another interesting statement in the paper: ‘… if you are not participating in the mass market of the emerging countries you’re not developing the capabilities you’ll need to compete back home.’ Specialization requires businesses to find partner that enhance and complement their capabilities; find them and ‘orchestrate’. In our company we're calling the partnering in innovation Open Innovation http://en.wikipedia.org/wiki/Open_Innovation