Per some recent comments and posts (here and here) on discussing responsiveness to customers, Henning Kagermann related a story on a call that I had completely forgotten about. I’m certain that it has been told publicly before, but I’ve disguised it a bit just in case…
In the early 1990’s, SAP was approached by a delegation of firms w/r/t industry-specific improvements to R/2. They had a list of demands that they wanted to see implemented in R/2. Fair enough. That industry was perhaps the core of SAP’s success to that time, so why not do it? Except that SAP was in the midst of developing its next generation product, R/3. We also wanted to expand our footprint to other industries and markets. There was no way we could do R/3 and satisfy much of that list of demands in the current product.
If you know anything about the history and success of SAP, you can guess the answer. We chose to spend the preponderance of our efforts on R/3. While some of the key demands were satisfied, most were deferred in favor of ensuring that R/3 got to market.
This example illustrates the challenge well. Most of the time you should listen to your customers so you can satisfy and delight them. But listening for too well for too long can mean that you wake up one day and find that you’ve become a no-growth “legacy” business. Sometimes you need to say “yes, but.”