Here’s a nice monday morning read–Clay Shirky‘s “The collapse of complex business models”
It would be easy to regard this as short-sighted on their part, but that ignores the realities of culture. For a century, ATT’s culture had prized—insisted on—quality of service. Their HR Department worked to identify potential employees who would be willing to cut corners, but the point of identifying those people was to avoid hiring them. The idea of getting into a business where those would be the ideal employees was heresy. ATT, like most organizations, could not be good at the thing it was good at and good at the opposite thing at the same time. The web hosting business, because it followed the “Simplicity first, quality later” model, didn’t just present a new market, it required new cultural imperatives.