Expert Judgment


Posted in Innovation by dnzrn on May 18, 2009

Learn from the mistakes of others. You can’t live long enough to make them all yourself.

-Eleanor Roosevelt 

Kindling is a simple web-based knowledge management system. Main function of Kindling is that, it enables users to post their ideas, share it with other people from a certain group and provide feedback to other ideas. There is no need to discuss the obvious benefits of such a system to an organization or a team. The easy-to-use web interface makes the whole experience a lot more appealing.

However, there is a huge defect with their sales strategy. When I saw the Kindling first, I was amazed by its simplicity, elegance and power. However my amazement turned into a real shock by the time I realized that it comes with an absurd price. It is basically a wonderful Web 2.0 tool, with a legacy sales strategy.

Discontinuous Innovation is defined as the type of innovation which significantly changes how customers co-create the value. This co-creation of value requires customers to adopt three different roles of buyer, user and payer. Until Kindling, Web 2.0 succeeded in discontinuous innovation operations. Think about Wikipedia, WordPress, eBay, Youtube, Flickr, Twitter, Facebook and many others. Now imagine what would happen if these sites requested a compensation for their services. Probably you wouldn’t be familiar with most of these names. I’m not suggesting that these successful websites are running a non-profit operation, but they somehow managed to accomplish a discontinuous innovation and making huge profit out of it.

Get prepared for the aftershock. Kindling has three different licensing models. First one is limited to 40 users. The second licensing option allows up to 100 users. Only after you consider paying more than $99/month the user limitation ceases to become an issue. Web 2.0 thrives by collaboration and synergy of the users. The more the merrier. Perhaps I was wrong. Perhaps Kindling is not Web 2.0 at all…

My forecast? Here it is:

Alexa shows that (Kindling) is not in to 100,000. In fact Kindling’s traffic rank is 299,310 as of today. I believe we will never be able to see Kindling in top 100,000. I don’t expect a significant rise in its current rank either. Unless, of course, they do not change their current sales strategy.