Harvard Business School Professor Clayton Christensen has coined the term 'Overshooting' to describe a common pitfall businesses may encounter when technological advancements outpace consumer needs. This occurs when companies, particularly those possessing robust technological prowess, focus excessively on competitive tech development. Consequently, they may stray from their markets and create technology that consumers find difficult to adopt. While consumer expectations for product performance gradually escalate, technology may take a giant leap forward, overshooting the desires of its users.
The antidote to Overshooting lies in aligning technological progress with consumer needs. Companies must synchronize the trajectory and velocity of their advancements with the direction in which their consumers are moving. This entails fostering technology that not only satisfies consumer needs but also carefully calibrates the level of demand and the pace of technological progression.
Consider the successful strategy employed by Daum Kakao when launching its mobile messenger service 'KakaoTalk.' At a time when consumer demand for mobile messaging was lukewarm, Kakao chose to pace its technology development with the market, focusing on creating an easy-to-use interface and user-friendly features. They not only increased consumer demand by emphasizing mobile-centric features but also fine-tuned their course by actively incorporating user feedback into their new feature developments. As a result, KakaoTalk emerged as the preferred messaging service in the nation.
Similarly, Amazon deftly managed to stoke consumer interest in technology when it introduced the 'Kindle,' an e-book device. The company offered a vast library of e-book content and adopted 'e-ink' technology to enhance the reading experience. By making it comfortable and appealing for consumers to read books digitally, Amazon successfully entered and established itself in the market.
Through their respective approaches, both Daum Kakao and Amazon struck a balance between consumer needs and technological advancements. They adeptly deciphered consumer demands and developed matching technologies, thereby circumventing the Overshooting trap and securing their positions as market leaders. Their strategies underscore the importance of developing products through close and meaningful engagement with consumers, reinforcing the adage that customer-centricity is indeed a cornerstone of successful innovation.
