The PC is dead, or is it?

by Frank 7. October 2012 06:00

The financial and IT news services tell us very pessimistic stories about the major PC players like DELL and HP. The general gist is that sales of PCs are down and sales of tablets are up and that the share prices of DELL and HP are falling. Just yesterday, the CEO of HP announced to a stunned market that 2013 will likely be worse than 2012. She also lamented the frequent turnover of HP CEO’s since the demise of Carly Fiorina. But to my mind that was a strange thing to do when also announcing that she won’t be improving anything and in fact will be in charge when things get worse. The mental picture I get is of the captain steering the ship into the rocks. My guess is that the musical chairs game at the top of HP will continue for some time yet because market analysts don’t like bad news and shareholders don’t like falling share prices.

So is the PC dead? Will we see it completely replaced in our homes and offices within a few short years? Are you still planning to buy a new PC? If so, why? Is business still planning to buy more PCs, for example to support Windows 8?  Will business in fact move to Windows 8 in 2013 or 2014 or 2015? Why would anyone be investing in expensive new PC hardware for their home or office? Are there better alternatives available now?

To my mind the global financial crisis that began in 2007/2008 has at least as much to do with falling PC sales as the advent of clever tablets from people like Apple. All over the western world people are holding back on spending money and are simply not replacing ‘older’ PCs or notebooks. In fact, I see the current crop of tablets as complimentary devices to PCs and notebooks, not replacements.  I blogged about this previously in “Why aren’t tablets the single solution yet?” and still believe my arguments to be valid.

My customers for example, still use PCs in the office to run my enterprise content management system RecFind 6 and use notebooks to run it when travelling. However, they are also now demanding that I provide support for a range of mobile devices including smartphones and tablets. But my customers are not replacing their PCs and notebooks with tablets, they are using tablets in an appropriate way to extend what they can do with mobile workers.

I also think that companies like DELL and HP are their own worst enemies. They have both exhibited a surprising lack of innovation and salesmanship and their marketing people seem to be about five years behind the market. They have both outsourced their services and support to awful Indian call centres and focussed more on reducing costs than on improving customer service. Customers have a way of showing their disapproval by walking away and I believe this is what they are doing.

So whereas I think tablets are the future I don’t think they are capable enough yet to replace PCs and notebooks in the office environment. I think most people have a tablet in addition to their PC and notebook (and smartphone).

I don’t see tablets, even the next generation, having all the functionality and screen size and power we need to replace PCs in the office. Even in the home, the small screen size of a tablet mitigates its value as does the lack of applications and connectivity; not everyone wants to replace their working backup drive and USB printer just to accommodate Apple.

I also think that PCs and notebooks are too expensive and that Intel, DELL and HP are too used to big margins. In economics we talk about the intersection of the price and demand curves; the theoretical point at which we make the most money. Set the price too high and you sell fewer and make less money. Set the price too low and you sell more but make less profit. Somewhere in the middle is the point where we set our price to get the optimum sales and profit results.

For example, if Apple priced the New iPad at $5,000 if wouldn’t sell any and it wouldn’t make any money but if it priced it at $10 it would sell a shed-load but also wouldn’t make any money. At $400 plus it seems to sell as many as it can produce and also make the maximum profit. Apple has found its optimum price point.

Every vendor struggles for the optimum price point and over time as technology matures and becomes more common, prices have to drop. I don’t think the prices of PCs and notebooks have dropped enough. It’s just economics stupid, your PC and note book prices are way above your optimum price point and that’s one reason why people are not buying them.

So no, I don’t think PCs are dead. I think their sales have dropped because of a combination of the ongoing global financial crisis and poor management and product decisions from the major players like Intel, DELL and HP. Apple has cleverly capitalised on this situation, it didn’t create it. Apple is clearly innovative, HP and DELL are not.

I believe that we are yet to see at least one more re-invention of the PC and notebook, albeit of a higher quality and with more innovation that Intel’s Ultra Book attempt at reinventing the notebook. The re-invention should also come with a new lower pricing algorithm, not a raising of prices as attempted by Intel with the Ultra Book range of notebooks.

So, Intel, DELL and HP; the ball is firmly in your court. You all employ scores of really smart and innovative people. Why don’t you give them the challenge? If you come up with a realistically priced and innovative new PC solution I would certainly buy a few. But, please do something about your service levels; I for one am really tired of being bounced around Indian, Singaporean and Philippine call centres. If foreign call centres are part of the new deal I am afraid that I want no part of it. That model is broken. If you want my business then I demand better service.

 

Are you addressing the symptoms or the problem?

by Frank 19. August 2012 06:00

We are a software company building, selling and supporting our product RecFind 6 as an information management system and enterprise content management system. We have an in-house support department (we don’t outsource anything) and thousands of customers that contact it with questions and reports of problems they are having.

However, like I suspect happens at most software vendors, it is often very difficult for my support people to initially diagnose the real problem. Obviously, if there is an error message then it is easier to resolve but in most cases there is no error message, just an explanation of what a user thinks is the product not working properly.

If we can connect in to the user’s workstation using GoToAssist then we can usually ‘see’ firsthand what the problem is and then help the customer. However, this is not always possible and in a lot of cases my people are working ‘blind’ via phone or email and the only recourse is a question and answer dialog until we get to the point where we can define what the user thinks is going wrong and we can get the history of the problem. That is “When did it start to happen? What changed? Does it happen with everyone or just some users?” Etc., etc.

My people are pretty good at this process but even they get caught occasionally when the customer describes what he/she thinks the solution is rather than what the problem is. This usually takes the form of the customers telling us the ‘fix’ we need to make to the product to solve his/her ‘problem’. The wise support person will always ask, “What were you trying to do?” Once you can determine what the customer was trying to do, you then understand why they are asking for the particular ‘fix’. In most cases, the real problem is that the customer isn’t using the right functionality and once shown how to use the right functionality the need for a ‘fix’ goes away.

Problems also arise when my support people start mistakenly addressing the symptoms instead of the problem. In all fairness, it is often hard to differentiate the two but you can’t fix a problem by addressing the symptoms; you have to go back further and first define and then fix the root problem. Once the root problem is fixed the symptoms magically disappear.

For example, a customer reports multiple documents being created with the same auto number (i.e., duplicate numbers) as a problem. This isn’t really the problem though that is how the customer sees it. It is in fact a symptom and a clue to the identification of the real problem. In the above example, the root problem will be either an auto-number algorithm not working properly or an auto-number configuration with a flawed design. The former is what we call a ‘bug’ and the latter is what we call ‘finger trouble’; the configured auto number configuration was working precisely as designed but not as the customer intended.

Bugs we fix in code but finger trouble we fix by first clearly understanding what the customer wants to achieve and then by helping them to configure the functionality so its works as expected.

All experienced support people get to know the difference between:

What the customer thinks is the solution versus the problem; and

The symptoms versus the problem.

In my experience these are the two most common challenges faced when handling support calls. Recognizing both as early as possible is critical to achieving a speedy resolution and minimizing frustration. Not recognizing both as early as possible leads to longer resolution times and unhappy customers.

If we extend our support experience to real life we realize that these same two challenges face us in everyday life and in all of our social interactions. It why we often argue at cross-purposes; each party seeing the problem differently because of different perceptions of what the real problem is.

The challenges of misunderstanding are also often harder to overcome in real life because unlike a support call which has form and structure, our social interactions are mostly unstructured and opportunistic. We don’t start with a problem, we start with a casual dialog and don’t realize we are about to enter a conflict zone until it sneaks up upon us.

So if you find yourself in an argument please take pause and take the time to ask yourself and the other party, “Just what is it exactly we are arguing about?”  Which upon reflection, is exactly how we should handle each and every support call.

If we take the time to properly define the real problem we would spend far less time arguing and making people unhappy and far more time enjoying the company of our customers and friends. It is a no-brainer really, who wants to go through life in constant conflict?

For my part, I will just continue to ask to ask, “Before I address your request for a change would you mind please explaining what you were you actually trying to achieve; can you please show me?” And “What were you doing when you first saw that problem? Please start from the beginning and walk me through the process.” These two questions have worked for me for a very long time and I certainly hope that they work for you.

 

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