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Recently I looked at 25 companies that are no longer with us, but were ahead of their time with innovative products. Before you write and say that I missed your favorite, I wanted to take a few moments here and talk about some of the interesting trends that I saw that list. The reasons for failure could be divided into five general categories:

Corporate arrogance and hyjinks. Technology companies do not have the best results when it comes to staying on task, and this is especially true when merging or begin to bleed their best people. Look at Ashton-Tate dBase. When they were at the height of his powers in the 1980s, thousands of people around the world studied the language programming and database built on PCs (I was one of them). Then they lost their way and were sold to Borland in 1991, and that was the beginning of the end for the company and its main product. Borland had a database of competing products and could not sustain dBase. Or Banyan VINES network operating system, which also had a loyal customer base and directory services innovative applications long before they are implemented by Novell and Microsoft. How About Digital Communications Associates, a manufacturer plates of 3270 Irma? They quickly disappeared after 1994, when Attachmate acquired.

The market has evolved past them. Columbia Data Products made the first clone PCs in 1982, shortly after IBM came out with its model. That lasted five years, and has turned to more efficient suppliers such as Dell and HP. Ironically, we have some other innovation in Colombia that they were less known, the SCSI storage interface that was used for many years to connect hard drives for computers. AST Research was another who had a dominant share of the market for peripheral expansion in the 1980s, only to see many of these peripherals integrated on the motherboard of the PC.

Bright people who work in the wrong company. Just because you have a collective brain trust does not mean that you will live long and prosper. Sometimes the chemistry is wrong, or the circumstances not very well. Take First Virtual Holdings, one of the pioneers of payment systems over the Internet. Its founders started to develop essential products for PayPal Founding General Magic went on to develop the key pieces of several phones, including the iPhone for Apple, Android Google, eBay and to help started.

The effect Osborne. A company is still remarkable for its failed strategy of pre-announcing products that killed all the demand. Osborne Computers was the first leader of portable PCs that were not so portable – about 30 pounds and several inches too large to fit on an airline seat, they were a bear to make. However, Osborne, when he announced a new version in 1983, all stopped buying the current models.

Engage lawyers. Sue everybody. Repeat as needed. Research in Motion uses this tactic for the present day, even if it has lost its share of cases in the creation of the smart phone and BlackBerry million dollars. SCO / Caldera Systems has done something similar to the inventors early Unix. Sometimes, winning a lawsuit can be the death of a company as well: Witness Stac Electronics who won 120 million dollars of its technology in Microsoft disk compression, something that is now part of just about every operating system.

Take a look at my trip down memory lane here: http://tr.im/rcro

David Strom is a noted speaker, author, podcaster and consultant who has written two books and thousands of magazine articles for dozens of IT publications such as Computerworld, eWeek, Baseline Magazine, Information Week and Information Security magazine. His blog can be found at http://strominator.com, and he can be reached at david@strom.com.

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