01 June 2001

Innovating For Humans In general, though, software demands constant innovation for two reasons: to differentiate one product from another and to justify upgrades. If an innovation sets your product apart enough to increase its market share, others will imitate it and the differentiation will slowly disappear; to keep your software distinct, you have to constantly innovate. And to keep generating profit from existing customers, you work to improve your product in a way that is compelling enough to make people want to go out and buy it again. Innovation becomes a careful, strategic game in which everyone tries to innovate enough to distinguish their product and justify upgrades, but not so much that they alienate their installed base or step too far away from the familiar.