Sun, 26 Sep 1999

Marketing Products a la Bill Gates

Business @ The Speed of Thought, Using a Digital Nervous System; Written by Bill Gates; Published by Penguin Books Ltd

It is fair to say that Bill Gates is not only the world's richest man but, also one of the biggest marketers in history. This is evident not only from the phenomenal success of his products -- just under 90 percent of PC operating systems worldwide -- but also from the way he markets them.

Four years ago, Gates made the market his own by capturing many of the world's PC users with his newest operating system, Windows 95. Here was a graphics-based system which was far simpler to operate than anything that had gone before, including earlier products put out by Microsoft itself. Perhaps this explains why many people now believe that Microsoft products are easy to operate and are now used by so many people worldwide, who are totally sold on Gates' words. What is more, Microsoft products are easily available everywhere.

Because of this, although the product launch was delayed, and it received mixed reviews from the Internet techies, it was generally acknowledged by experts worldwide that the long wait for Windows 95, officially launched in August 1995, had been worth it. The day before the launch was marked by long queues. It is little wonder that the product seized a lion's share of the market in a relatively short time.

But Bill Gates is not only a successful seller of products; he also sells ideas. This is shown from the fact that many people predicted that Microsoft would play a minor role in the popular rise of the Internet, as the company was a late starter when it came to launching Net-related products. It even "allowed" Netscape to be the sole Internet browser.

It is interesting to note that Bill Gates did not attack this perceived lateness head on. Instead, in a cunning move, he published a book entitled The Road Ahead, in which he outlined how many new things which would have previously been unimaginable were now unfolding before our eyes and changing our lives for the better. According to Gates, this is what was happening with the Internet. The book offered no new revelations, but it did show one thing: Gates had not been left out of the Internet race. In fact, he had embraced the new technology and was very much in with the times.

Sure enough, a mere two years after he published his book, Netscape, which had up to then seemed unshakable in the Internet browser business, began to flounder after Microsoft successfully improved its browser and bundled it into its operating systems. Microsoft soon emerged with the stronger hand.

But, as he himself explains in The Road Ahead, the Internet has changed many of the most fundamental aspects of human life, including the way we do business. That is why, as has always been the case, even before the Internet era, Gates is not satisfied with being the recognized trendsetter in a single field. He is out to capture the biggest field of them all: E-commerce. In the age of the Net, being all things to all customers is no small task.

But Bill Gates has not taken leave of his senses. He has published a second book, Business @ The Speed of Though: Using Digital Nervous System. In the book, he describes 12 model trends of e-commerce. First, communication via e-mail. Second, data analysis sold on-line, making it easier to share insights. Third, empowerment of the workforce, which now has far greater access to information and can communicate with people around the globe at the click of a mouse, leading to a more "strategic" way of thinking. Fourth, the use of digital tools to create virtual teams that are no long restricted by geographical boundaries or the same factor. Fifth, the Net has converted the paper chain to kilobytes and megabytes. Sixth, it has eliminated "single-task" jobs. Seventh, it has created digital feedback loops. Eighth, it has enabled customer complaints to be routed immediately. Ninth, it has redefined the old boundaries. Tenth, it has transformed every business process into "just-in-time" delivery. Eleventh, digital delivery has eliminated the middleman. Twelfth, it has helped customers solve problems for themselves.

As in The Road Ahead, there is no original thought here. But, once again, before he comes marching in with a timely product, Bill Gates, the central player in the information era, has felt the need to share his "vision" for the new age. So what does the future hold in store for us? Whatever it is, you've guessed it: we are going to need a Microsoft product to handle it. (Taufik)