High fidelity is a rich experience, and you'll put up with terrible convenience to get it - maybe it's high cost, waiting in line, jumping through hoops. High convenience is the opposite - it's a commodity, but it's cheap and easy and ubiquitous. A great exclusive boutique shop is high fidelity; Wal-Mart is high convenience. Both are hard to establish in their own way. The thing to remember about sustaining either is that you can't sit still. Some other entity will always find a way to challenge your fidelity position or your convenience position.
Kevin ManeyIf you spot a market where the only choices are at either one end or the other - high fidelity or high convenience - there's probably a big opportunity at the other end. That was the opening for Federal Express, for instance. When it started, there was only one mail service in America - the US Postal Service, which was high convenience. Fred Smith created a high-fidelity mail service.
Kevin ManeyChunking makes our brains more efficient. The more you can chunk something, the faster and easier you can process it. Wayne Gretzky had chunked hockey like no one before or since. Talented people have supremely chunked whatever they become talented at doing.
Kevin ManeyNow companies tend to mine gigantic databases for insights into what might happen six months from now. That might always be valuable, but there's a different kind of value - and a competitive edge - in processing ongoing streams of data through a software model that can quickly and constantly make predictions about, say, whether a certain customer is going to defect, or an aircraft is going to run into trouble.
Kevin ManeyA CD these days is not all that convenient, and it doesn't bring enough fidelity to make you put up with that inconvenience. So, nobody buys CDs anymore.
Kevin ManeyIf you want to stand out, find a way to be either high fidelity or high convenience in whatever you do. If you're halfway in between on both measures, you're not going to make people feel very excited about you.
Kevin ManeyEventually, we need to have computers that work differently from the way they do today and have for the past 60-plus years. We're capturing and generating increasingly massive amounts of data, but we can't make computers that keep up with it. One of the most promising solutions is to make computers that work more the way brains work.
Kevin Maney