Kiko, the anti-view

In my last post, I linked to Paul Graham’s thoughts on the demise of the Web 2.0 calendar startup formerly known as Kiko. He pretty much blamed Google for their demise and cautioned everyone to innovate outside of the path of Google. And all I pointed out was that failing when you’re flying fast and light isn’t always a bad thing; it’s always painful, but it’s not like Kiko toiled for 5 years only to flame out unexpectedly. But, a refreshing anti-view comes from David at 37Signals. He found Paul’s post mortem of Kiko demoralizing and off base. As he says it: “No. Don’t run, don’t hide. Be different. You can’t outdo Google by trying to match them point-by-point, but you don’t have to. There are other, better ways to fight. Compete differently.”

David backs his statement up by revealing that 37Signals’ Backpack calendar was released “late in the game” and wasn’t even free, and yet Backpack subscriptions were up 20 percent in the three weeks since its calendar feature was launched. Customers even wrote in to reveal that they switched from Google’s calendar to Backpack’s because they liked its take on a calendar better.

This comment by “Dr Nic” reveals the general consensus from readers on why Backpack is succeeding where Kiko failed:

I think your new calendar customers - in part - may have switched from GCal to Backpack, for the same reason users may have switched from Kiko to GCal: integration with related services. GCal with Gmail. 37cal with 37backpack.

The truth is, Backback is now a well-rounded product that helps individuals stay organized. It has well chosen and implemented features that are integrated in a way that Google hasn’t copied yet, and taken as a whole, it offers a compelling reason to shell out a few bucks a month. Adding the calendar was a necessity, a feature that I think will help “tip” backback subscriptions. But the key is, a calendar alone wouldn’t be as compelling. It becomes so though as part of a well-rounded personal organization tool, and I think that’s what David’s talking about when he says to “compete differently.” There is immense power in using synergy and integration as a feature, and the 20 percent uptake in Backpack subscriptions proves that.

If you’re working on a web app right now, you should be asking yourself how you’re going to offer a truly game-changing product. As Guy Kawasaki says in his “Art of the Start” video, don’t be a little better than your competition, be 10x better. And keep in mind that even the most successful entrepreneurs won’t have a perfect batting average. Heck, even Guy (who has an arguably golden touch) turned down about $2 billion dollars by not betting on Yahoo and accepting a position as their CEO. It may take a lot of research and soul searching, but you have to find the “killer app” in what you’re doing, or you’d be better off doing something else.

There is one other core principle to learn from Kiko. Don’t over-complicate your apps with unnecessary features, cause that can kill you too. For proof of the evil of feature creep, read this post by Kiko’s UI designer (he doesn’t blame Google for their demise). As Guy says, we shouldn’t have to bust out the manual to learn how to operate a remote control. Netrepreneurs should take heart in the fact that there are so many small problems to solve and so many opportunities that are screaming out for elegant implementation.

One last thought: when you think of going up against Google, that can admittedly be a very scary prospect. But the truth is, Google isn’t perfect. Look at how MySpace beat Orkut and YouTube laid waste to Google Video to see how the right combination of features and simplicity can give you an edge over even the biggest competitor. Also, you’re not up against all of Google, you’re up against a small team of developers inside Google that may not have your vision and drive to succeed. There is no company that “owns” success on the Web. If you study and struggle and fight and learn, never giving up, you can find a way to win.

Especially if you always fly fast and light.