HTC On Innovation, Simplicity, And Branding

I ran across a very interesting Q&A with John Wang, CMO of HTC, the Taiwanese company that delivered the first cell phone using Google’s Android operating system. The article focuses on how HTC cultivates innovation through it’s Magic Labs organization, which is a group of people across multiple disciplines (called “Magicians”) that focus on long-term innovations. The CMO runs the group and his business card says “Chief Innovation Wizard.”

While the article provides interesting insights about how HTC handles innovation, I really enjoyed Wang’s discussion about two of my favorite topics: simplicity and branding.

The way most companies compete is by adding features to their products and services. So, over time, the offerings become more complicated than what’s actually needed by large segments of customers. And the interface to those products becomes increasingly complex. That’s why I’ve defined ULTRASIMPLICITY as one of the Five Disruptive Customer Experience Strategies. Here’s some of what Wang had to say on the topic:

Everybody was talking about simplicity, everybody was talking about usability. What did people do? Well, they rearranged the menu and called that improving usability. That’s not simplicity, that’s rearranging menu items…. The true mission is not to reduce learning, but to eliminate learning… The baby is probably the best expression for zero learning because the baby has not learned anything yet. If she wants to see the monkey on the other side of the block, she simply reaches out and turns the cube.

When I discuss brand, it’s often in context of the 2nd principle of Experience-Based Differentiation: Reinforce the brand with every interaction, not just communications. Brands need to be about walking the walk, not just talking the talk. All too often, though, I find that “the brand” only exists in advertising groups. When that happens, the rest of the company doesn’t really reinforce any of the brand value; leading to empty promises in marketing. So I really appreciated the following comments from Wang:

There is a very important difference between brand value and brand recognition. Brand value means something to the end user. Brand recognition, all it means is a bunch of advertising to make people recognize the brand name. At HTC we care about brand value, not brand recognition. Building brand value is like earning respect; you have to earn respect, you cannot buy respect.

The bottom line: “Innovation + Simplicity + Brand Value” is a great formula.

Written by 

I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

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