As we noted in the first GSQ of the year, we can expect a number of failures of companies who jump into the ACH business looking to be a processor of RCK or ECC transactions. In fact, two organizations have already had funding problems, a loss of their ODFI, and the inability to make a profitable go as early adopters. We hear people say from time to time, that they are "on the bleeding edge" of product development, and we all know what they are bleedingóMONEY!
But before we make too much of this, we should consider the track record of being first. Depending on your age, you may remember the first spreadsheet, Visicalc. Amazing how well itís done, right? Or the first desktop computer, the Altair. Thereís the first browser, Mosaic, and the first portable computer, the Osborne, and the first laptop, the Radio Shack Model 100. Do any of these make the point for you?
It is not always about being first, but more often about being commercially viable. Staying power is often as important as the original idea, and we should all be cautious about products that seem to have a low cost barrier to market entry.
