As I walked around the Kundawada Lake in Davanagere (A major city in central Karnataka state of India) photographing some native birds and rare migrant birds yesterday morning, I listened to the audiobook “Originals” by Adam Grant. There is an interesting analysis about Segway from which the medical sector can learn.

Segway was the most hyped innovation in the early 2000s and expected to change personal transportation like never before. Launched with much fanfare, it was meant to transform urban commuting, rid the Earth of pollution, and alter how we move in the modern world. Yet, after all, it is the Segway that everyone remembers as a failure. 

Dean Kamen developed the Segway. He is also an inventor in the US who has specialized in healthcare technology. He developed the insulin pump and a portable dialysis machine. Kamen started Segway Inc. in 1999, designing an electric self-balancing two-wheeled vehicle applying gyroscopic technology in controlling balance functions. Kamen dreamt of Segway as a green, efficient alternative to the car, not only changing cities but also changing the way in which they were designed and, in so doing, how people moved in them.

Core to the Segway was innovative technology that literally made it a vehicle in a class of its own among personal transport vehicles. The device used sophisticated gyroscopes and tilt sensors, which makes it self-balance without the need for stabilizing wheels. The value in this technology, in relation to user experience, is that one leans forward to move and backward to decelerate or reverse. More so, it was battery-powered, offering an environmentally friendly solution to pollution-heavy transportation methods. The design and concept were considered groundbreaking, to the point that the public actually thought the Segway was going to truly revolutionize the way people got around in the city. Even industry experts firmly believed that this was the next dramatic evolution in how people moved.

Those big names in the world of technology and business greatly supported the Segway, too. Steve Jobs and Jeff Bezos were amongst the first to laud the innovation; it is said that Jobs even predicted cities would have to be redesigned around the Segway, while Bezos perceived the gadget’s potential for a mass-market appeal. Besides, Kamen’s invention caught great interest from venture capital firms. John Doerr, having invested in Google and Amazon, was one of the venture capitalists who raced to the first line during Segway investment. This interest of the bigwigs in Silicon Valley impelled the much-needed impetus to promote the product through the waves of media speculation on how it might change life in the city.

The Segway first appeared on ABC’s Good Morning America in December 2001 and was greeted with amazement and fanfare. The press called the product one of those technologies, similar to the development of the personal computer. Time magazine heralded it the “future of transportation” and most experts envisioned it as a fundamental part of daily commuting. But when Segway finally entered the market, the public’s response remained tepid. While excitement existed, it wasn’t very compelling for consumers to buy a Segway because it was prohibitively expensive ($5000 upon initial launch) and many regulatory issues had to be resolved; use-cases were also not very clear. Cities weren’t ready for Segways, safety concerns, and qualms with compatibility with infrastructure weighed down people’s desire to buy a Segway.

Why Did Segway Fail?

The failure of the Segway was multi-faceted. Among the more important reasons are:

  • Pricing: The Segway was so highly priced that an average consumer couldn’t afford it, and it didn’t have the mass appeal that could generate its adoption on a wide scale.
  • Infrastructure: The use of the Segway required urban infrastructures—a sidewalk, bike lane, or parking space for it to use. Most cities are not ready and not willing to reconfigure infrastructure around the vehicle. In addition, many imposed legal restrictions on the device—treating it like a motorized vehicle more than a pedestrian one.
  • Misjudgment of Target Market: Segway was marketed as the world-changing product for the people, while in reality, it was perceived as having little use. It did not solve any existing problem for an average person; rather, walking was easier and more convenient and cars were definitely more practical for a longer distance.
  • Safety Issues: Its design posed a big risk to accidents, more so among new users who were alien to its balance mechanism. Several high-profile accidents, including the death of Jimi Heselden, a former owner of Segway Inc., who tragically died while riding a Segway, cast a negative shadow on the brand.
  • Lack of Versatility: The Segway could be used for very few purposes. It wasn’t good for indoor use, and it wasn’t practical to go over long distances. Its rather limited appeal constrained its application to niche areas such as tourism and police departments, holding it back from becoming mass urban transportation.

Things We Can Learn from the Segway Fiasco

  • Solve the Right Problem: Segway did not solve a pressing issue for the majority of its target audience. Innovation should focus on addressing real, widespread problems. The problem with the Segway was that it was a solution looking for a problem rather than the other way around.
  • Know Your Market: It derailed the growth of the Segway by failing to target a clear, focused market. Any innovation needs to be aimed at a certain well-defined user group and hence must aim to satisfy their needs and expectations.
  • Price Accessibility: All technological innovation should come with a pricing strategy that does not alienate potential consumers. The price structure of the Segway made it impossible for an average person to own one, hence had low mass appeal.
  • Consider Regulatory and Infrastructure Compatibility: It is imperative for any innovative product to consider the regulatory environment that already exists and the readiness of infrastructure. Segway failed to take into account the legal and logistical barriers to its adoption.
  • Safety and Usability: Products needing a new skill or having a steep learning curve should balance their priority between usability and user safety. A few accidents and safety concerns tainted the image of Segway, reminding one of the significance of designing for simplicity.

Lessons for Medical Equipment and Innovation

The failure of the Segway offers many lessons for the medical equipment industry, where innovation is equally critical and caution must be taken. Innovations in medical devices need to meet clear clinical needs, solve defined problems, and be within reach of healthcare providers as well as patients. Pricing has to consider both the cost of innovation and the reality that healthcare budgets face in countries with fewer resources. The Segway was in need of urban infrastructure just as much as medical devices are in need of hospital infrastructure, the training of clinical staff, and patient adaptability. Further, medical innovation is subject to rigorous regulatory approval and matters of safety. Products that present risks without adequate potential benefit will not fare well, much like the Segway’s safety concerns. Lastly, innovating for the sake of technology is not sufficient. Medical devices should be patient-cantered, practical, and transformative in addressing the most critical healthcare needs.

Dr. Prahlada N.B
MBBS (JJMMC), MS (PGIMER, Chandigarh). 
MBA (BITS, Pilani), MHA, 
Executive Programme in Strategic Management (IIM, Lucknow)
Senior Management Programme in Healthcare Management (IIM, Kozhikode)
Postgraduate Certificate in Technology Leadership and Innovation (MIT, USA)
Advanced Certificate in AI for Digital Health and Imaging Program (IISc, Bengaluru). 

Senior Professor and former Head, 
Department of ENT-Head & Neck Surgery, Skull Base Surgery, Cochlear Implant Surgery. 
Basaveshwara Medical College & Hospital, Chitradurga, Karnataka, India. 

My Vision: I don’t want to be a genius.  I want to be a person with a bundle of experience. 

My Mission: Help others achieve their life’s objectives in my presence or absence!

My Values:  Creating value for others. 

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