Even as fanatic customers can be counted on to line up outside the Apple store for the latest iPhone, there are still millions of Americans who dont use a smartphone at all. For that matter, there are still plenty of happy owners of tube televisions, rotary dial telephones, film cameras, fax machines, typewriters and cassette tape players.
The accelerating pace of disruption means more and more products are facing an early retirement. But even as computers, electronics and health products move quickly from must-haves to museum artifacts, a small but loyal following often carries a torch for the old stuff, sometimes out of nostalgia, sometimes from sheer stubbornness. For them, familiar and functioning technologies are good enough.
My Big Bang Disruption co-author Paul Nunes and I refer to these have-wonts as legacy customers, users who simply refuse to migrate to disruptive innovations even after theyve become both better and cheaper, and even after almost everyone else has made the shift.
Legacy customers are a niche market, although not necessarily a bad one. Much of Brooklyn, it seems, has been turned over to rediscovering handmade goods which, ironically, are sold over the Internet.
But in some cases the devotion of the laggards can cause major headaches. When the market for outmoded products shrinks, most manufacturers just stop making them. By law, however, some technologies cant be put to sleep until regulators give permission usually long after the dying market has become unprofitable.
Car manufacturers must keep up to a decades worth of spare parts, for example, even for discontinued models. And the U.S. Postal Service, teetering on bankruptcy for over a decade, still has to deliver mail to 155 million households, even as first-class volume continues to decline precipitously.
As the post office has learned, the cost of keeping old technologies on life support skyrockets when expensive networks of equipment and people must be spread over a dwindling number of users.
Although the vast majority of consumers have long since abandoned the analog telephone network for better and cheaper Internet voice, to take another example, 5 to 10 million households still rely solely on the old system. But as equipment manufacturers exit and older workers retire, maintenance costs now far exceed what the remaining customers pay. Yet carriers cant junk the old technology without approval from the FCC and state regulators.
No surprise, our research found legacy customers are largely older consumers who long ago gave up trying to keep up with the latest and greatest. Many are perfectly happy with worse and more expensive products; perhaps even take pride in still knowing how to use them. I was slow to embrace smartphone technology myself, and I still resist upgrading to the newest models even when its clear they offer better value and more features that Id likely use.
But like me, legacy customers are often wrong about both the costs and benefits of embracing disruptive new products and services. As recently as 2010, 80 percent of profits at AOL came from subscribers, many of them older, paying $25 a month for dial-up service they no longer used, but who thought the fee paid for (free) email service.
Worse, data recently issued by the Commerce Department finds that 13 percent of Americans still dont use the Internet at all, even though its now available nearly everywhere. (More homes have access to Internet service than indoor plumbing.)
You might think the holdouts just cant afford it, which certainly remains an important factor despite programs that subsidize both wired and wireless broadband. But the real holdup is that non-adopters mostly older, rural and less-educated just arent interested in Internet access, at any price. As other factors such as price and usability fall, a perceived lack of relevance now dominates.
Public and private efforts to overcome that perception are crucial for two important reasons. The first is that the resisters are wrong the Internet has become the starting point for government services, news, employment, entertainment and, increasingly, health care and education. Life without it is increasingly and unnecessarily isolated.
The second is that non-adopters ultimately cost more to serve. Printing information is increasingly a waste of scarce resources as digital alternatives continue to get better and cheaper. And all of us pay for the waste. A few consumers may prefer standing in line at the bank branchto using an ATM or banking app, but the higher cost is spread over all customers.
To overcome the inertia of legacy customers, it may be appropriate for governments to step in. The United States has long had programs aimed at making broadband more affordable for lower-income Americans and more accessible for those living in sparsely populated areas. On Thursday, the FCC unanimously approved the allocation of up to $2 billion in additional taxpayer funds for rural broadband build-out in areas where private investment cannot be cost-justified. Total support for rural broadband could reach $20 billion over the next decade. (The devil, however, will be in the details. A government audit found that an earlier Agriculture Department effort to expand rural broadband wasted $3 billion of stimulus money.)
At the other end of the life cycle, some technology dinosaurs need help being euthanized. Here, regulators can serve as a catalyst, providing the final nudge for legacy customers. Once it was clear that smart LEDs would become better and cheaper than inefficient incandescent lightbulbs, for example, governments around the world began passing laws banning production of the older technology.
And while things got a little messy at the end, in 2009 Congress succeeded in turning off analog TV, switching the few remaining holdouts over to digital. To ensure no one had to go without Lets Make a Deal, lower-income families were given converter boxes for older tube TVs.
As a bonus, the more efficient digital signals have made it possible for the FCC to reclaim and auction prized radio frequencies to feed exploding demand for mobile services. So far, the auctions have deposited nearly $20 billion in the treasury, with additional auctions going on right now that will soon bring in much more.
Retirement rarely pays so well.
Read more from The Washington Posts Innovations section.
A new digital divide has emerged and conventional solutions wont bridge the gap
Humans once opposed coffee and refrigeration. Heres why we often hate new stuff.
The big moral dilemma facing self-driving cars
Read more from the original source:
Listen, technology holdouts: Enough is enough - The Washington Post - Washington Post
- Technology Synonyms, Technology Antonyms | Thesaurus.com - January 7th, 2017 [January 7th, 2017]
- Information technology - Wikipedia - January 7th, 2017 [January 7th, 2017]
- Technology and Electronics Reviews - USATODAY.com - January 7th, 2017 [January 7th, 2017]
- Technology Forum - reddit.com - January 7th, 2017 [January 7th, 2017]
- Technology: Industries: PwC - January 22nd, 2017 [January 22nd, 2017]
- National Education Technology Plan - Office of Educational ... - January 22nd, 2017 [January 22nd, 2017]
- Technology News - The New York Times - January 24th, 2017 [January 24th, 2017]
- Computer Business Review - Computer Business Review - January 24th, 2017 [January 24th, 2017]
- Technology - Pogue's Posts Blog - The New York Times - February 2nd, 2017 [February 2nd, 2017]
- What the Tech: Neuro-Bio Monitor Technology - KFDX - February 7th, 2017 [February 7th, 2017]
- Globalization failed too many people. Here's the technology that could help it work for everyone - Quartz - February 7th, 2017 [February 7th, 2017]
- Bill Nye forecasts next 50 years, says we're at a technological crossroad - Digital Trends - February 7th, 2017 [February 7th, 2017]
- Interview with Matt Nix about his new Fox show APB. - Slate - Slate Magazine - February 7th, 2017 [February 7th, 2017]
- In This Year's Super Bowl Of Technology, Intel Led The Way With A Sky Full Of Drones - Forbes - February 7th, 2017 [February 7th, 2017]
- Learning From Last Year: Technology Funding Outlooks For 2017 - Forbes - February 7th, 2017 [February 7th, 2017]
- Ossia hires new CEO to help commercialize its wireless charging technology - GeekWire - February 7th, 2017 [February 7th, 2017]
- Microsoft's AI group debuts customizable speech-to-text technology, rapidly expanding 'cognitive services' for ... - GeekWire - February 7th, 2017 [February 7th, 2017]
- A flare for self-destruction: How technology is the means, not the cause, of our demise - National Post - February 7th, 2017 [February 7th, 2017]
- Broadcaster dangles new technology for Winter Olympics - Reuters - February 7th, 2017 [February 7th, 2017]
- These Four Black Women Inventors Reimagined the Technology of the Home - Smithsonian - February 7th, 2017 [February 7th, 2017]
- How 3D and Self-Design Will Change Technology - Huffington Post - February 7th, 2017 [February 7th, 2017]
- Factory Boss Says Fishing Technology Could Improve Controversial US Border Wall - Voice of America - February 8th, 2017 [February 8th, 2017]
- Republicans Aim to Kill Election Technology Standards Agency - Gizmodo - February 8th, 2017 [February 8th, 2017]
- Solutions replace technology as the focus at ISE 2017 - Installation International - February 8th, 2017 [February 8th, 2017]
- Five Rules That Define The Technology Innovator - Forbes - February 8th, 2017 [February 8th, 2017]
- Three Ways That Digital Technology Can Help Chemical Producers - Forbes - February 8th, 2017 [February 8th, 2017]
- Cinematographers Deploy Innovative Technology to Create Better Images - Variety - February 8th, 2017 [February 8th, 2017]
- How Technology Transforms Dreamers Into Economic Powerhouses - Forbes - February 8th, 2017 [February 8th, 2017]
- Coming technology will likely destroy millions of jobs. Is Trump ready? - Washington Post - February 8th, 2017 [February 8th, 2017]
- Mysterious $5 Billion Biotech Moderna Hit With Legal Setback Related To Key Technology - Forbes - February 9th, 2017 [February 9th, 2017]
- Berlinale: Jury Talks Up Art But Politics and Technology Enter Discussion - Variety - February 9th, 2017 [February 9th, 2017]
- Opinion: Harry Boxer's stocks to watch: biotechnology and technology - MarketWatch - February 9th, 2017 [February 9th, 2017]
- Nasdaq plans venture arm to invest in financial technology: sources - Reuters - February 9th, 2017 [February 9th, 2017]
- A modern-day Rosie the Riveter campaign: Women in technology - The Hill (blog) - February 9th, 2017 [February 9th, 2017]
- A growing concern: Technology and transportation - Florida Today - February 9th, 2017 [February 9th, 2017]
- Top 10 Mobility Technologies Market by Technology & Geography - Global Forecast to 2022 - Yahoo Finance - February 9th, 2017 [February 9th, 2017]
- Volvo melds technology and luxury in the XC90 T8 hybrid - Engadget - February 9th, 2017 [February 9th, 2017]
- CEFC warns against risky investment in 'clean coal' technology - The Guardian - February 10th, 2017 [February 10th, 2017]
- Scientist calls for industrial scale-up of greenhouse gas-eating microbe technology in UK - Phys.Org - February 10th, 2017 [February 10th, 2017]
- Software company introduces game-changing technology for Michigan Realtors - HousingWire - February 10th, 2017 [February 10th, 2017]
- New laser technology enables more sensitive gravitational-wave detectors - Phys.Org - February 10th, 2017 [February 10th, 2017]
- Why Quotient Technology Inc. Stock Surged 21% Higher on Friday - Fox Business - February 10th, 2017 [February 10th, 2017]
- How Technology Is Improving Influencer Marketing (And Can Help Improve Your Brand) - Forbes - February 10th, 2017 [February 10th, 2017]
- Hands-on: EVGA's sensor-laden iCX technology revolutionizes ... - PCWorld - February 10th, 2017 [February 10th, 2017]
- New Ground Technology uses digital graphics on turf - Golf Channel - February 11th, 2017 [February 11th, 2017]
- Facing State System review, Cal U to emphasize science and technology - Pittsburgh Post-Gazette - February 11th, 2017 [February 11th, 2017]
- International Game Technology: A Lottery Bet That's Paying Off - Barron's - February 11th, 2017 [February 11th, 2017]
- Our seas have become a plastic graveyard - but can technology turn the tide? - Telegraph.co.uk - February 11th, 2017 [February 11th, 2017]
- Technology identifying fastest checkout lanes comes to metro - KCCI Des Moines - February 11th, 2017 [February 11th, 2017]
- This Technology Could Be a Game-Changer for the Marijuana Industry - Fox Business - February 11th, 2017 [February 11th, 2017]
- Editorial: Higher education and technology are job creators, so why is the governor cutting their funding? - STLtoday.com - February 12th, 2017 [February 12th, 2017]
- BLAEDC: Entrepreneurs find a technology-friendly home in the Brainerd lakes area - Brainerd Dispatch - February 12th, 2017 [February 12th, 2017]
- Small cell technology is large endeavor for state - Crain's Cleveland Business - February 12th, 2017 [February 12th, 2017]
- Eye tracking technology will change these 4 domains - The Next Web - February 12th, 2017 [February 12th, 2017]
- The technology fixing Britain's parking problem - The Independent - February 12th, 2017 [February 12th, 2017]
- Tim Cook: Augmented Reality is as big of a technology as the smartphone - BGR - February 12th, 2017 [February 12th, 2017]
- How technology is encouraging society to be stupid - The Next Web - February 12th, 2017 [February 12th, 2017]
- IBM Adds Voice Help to Cybercrime-Fighting Watson-Powered Weaponry - Campus Technology - February 13th, 2017 [February 13th, 2017]
- Market Higher As 4 Key Steel, Technology Stocks Top Buy Points - Investor's Business Daily - February 13th, 2017 [February 13th, 2017]
- A look at North Korea's missile launches and technology - ABC News - February 13th, 2017 [February 13th, 2017]
- The CFO Imperative: Next-Gen Technology Drives Cost Optimization - Knowledge@Wharton - February 13th, 2017 [February 13th, 2017]
- Technology puts 'touch' into long-distance relationships - Phys.Org - February 13th, 2017 [February 13th, 2017]
- A New Angel Investing Platform Connects Deep Technology And Science Startups With Capital - Forbes - February 13th, 2017 [February 13th, 2017]
- Formula 1 now capable of 'internet' broadcasts with new technology - autosport.com - February 14th, 2017 [February 14th, 2017]
- How dangerous is technology? - OUPblog (blog) - February 14th, 2017 [February 14th, 2017]
- Apple's Eddy Cue says technology companies have a responsibility to combat fake news - Recode - February 14th, 2017 [February 14th, 2017]
- Valentine's day: what's your secret technology crush? - Naked Security - February 14th, 2017 [February 14th, 2017]
- Parents and technology How much is too much? - WGBA-TV - February 14th, 2017 [February 14th, 2017]
- Is Magic Leap Lying About Its Acid Trip Technology? - Vanity Fair - February 14th, 2017 [February 14th, 2017]
- BYU-Idaho dedicates and showcases new Science and Technology Center - LocalNews8.com - February 15th, 2017 [February 15th, 2017]
- Even Indian technology entrepreneurs think they are living in a ... - Quartz - February 15th, 2017 [February 15th, 2017]
- 3 tips for regulating our kids' technology use - The Herald-Times (subscription) - February 15th, 2017 [February 15th, 2017]
- Don Cunningham column: Technology giveth, and it taketh away - Allentown Morning Call - February 15th, 2017 [February 15th, 2017]
- Warren Buffett's Increasing Passion For Apple And Technology - Forbes - February 15th, 2017 [February 15th, 2017]
- DNA technology gives new face to decade-old cold case - The San Diego Union-Tribune - February 15th, 2017 [February 15th, 2017]
- Can Technology Really Solve China's Healthcare Crisis? - Forbes - Forbes - February 15th, 2017 [February 15th, 2017]
- Emerging technology is keyword: Demand for experts in robotics & big data up 50% - Economic Times - February 16th, 2017 [February 16th, 2017]
- Five technologies that will change how we live - Financial Times - February 16th, 2017 [February 16th, 2017]
- Football League agrees to use goalline technology in Championship - The Guardian - February 16th, 2017 [February 16th, 2017]
- Telecom operators navigate three technology transformation options - TechTarget - February 16th, 2017 [February 16th, 2017]