beolion:I think B&O has a VERY big challenge here, what do you think?
Overnight I have given this question more thought.
The key challenge that B&O management face is to carefully define their "core competencies" and the market and market segments they want to pursue and therefore invest in.
In the past we (and B&O) have seen a core competence as being their expertise in shaping aluminium - give us beautiful product finishes and enabling the realisation of the acoustic lens technology. But does this competency still have a place at the core of the company as 'media sources" disappear into the "cloud") (see the other thread running at the moment). The BeoCentre 2 is wonderful engineering as is the BeoSound 5; but perhaps we (and the market) only need these kind of products once a decade?
Another clear competency is audio as in loudspeakers: the BeoLabs as well as their inclusion in the luxury car market. Clearly this is a place where B&O must continue to operate. But the speakers are not sufficient to create a design presence - the BL5s for example can only be loved after one has heard them, I think only the BL5000s, BL6000s and BL8000s are true works of art as well as sound.
So this brings us to the realm of AV technology - I continue to be amazed how much today is now driven by software. The more I read of improvements and glitches with BeoVision software updates the more I realise that B&O has to move to creating stronger competencies with software and more importantly INTEGRATION.
B&O will never have the economies of scale to compete with the panel manufacturers. Low cost product is not a core competency of B&O. But B&O can be superb at integrating panels to create works of art. The BV10 is clearly one of those. B&O has a core competency in the aesthetics of design. The current practice/virtue of having this living outside of the company in a symbiotic relationship is perhaps a strategic concern - how to protect the David Lewis studio from being poached, and how to build a transition/succession plan must be a major concern for management.
So B&O needs to expand its integration competency to survive. That is integration of components into works of design art, AND integration into the AV fabric of people's lifestyles: their homes, their cars. I think luxury boats are a distraction, but luxury hotels are important for revenue and for exposure. And perhaps some form of B&O on cruise ships and on key "luxury" airline carriers in business and first class would be equally important exposure.
But the key AV fabric integration has to take place in people's homes. And here the challenge of software as a core competency really comes forward. Superb software engineering and integration is extremely difficult. To move forward on this front B&O needs to make some hard management decisions:
- simplify the integration challenges by excluding certain heritage products -- if there is a particular problematic area, then B&O need to cut their losses, perhaps compensate the installed customer base, but rather than have R&D and testing taking 3 years to produce a product that fits imperfectly into all existing products produce a "Selected Product List" that is the target space and produce solutions that integrate perfectly with less R&D/testing effort and greater customer delight and satisfaction. The "SPL" should also be made know to the customers: this would simplify their purchasing decisions, as well as create opportunities for integration partners that could address heritage niches.
- simplify the R&D process by settling on a platform and a target set of open and market standards; in reality we should not mind that the BM5/BS5 is Windows based, but we should mind our audio and visual investments can not be accessed. B&O used to be about simplifying their customers' lives, (right now I feel that my life is being made complicated (but to be honest I am not too sure how much that is the market's "fault").
Above all B&O needs to get closer to its core customers that push the limits of B&O adoption and usage - I think the recent UK/Benelux CEO interview was excellent since it shows there is an intent to do so.
First B&O (1976) was a Beogram 1500 ... latest (2011) change has been to couple the BL11 with the BL6Ks *sounds superb*