As Long As There's Innovation, There Will Be New Kinds

As Long As Theres Innovation There Is Going To Be New Kinds Of Chaos

As long as there’s innovation there is going to be new kinds of chaos, explains Robert Stephens, founder of the technology support company Geek Squad. The chaos Stephens is referring to is the difficulty we have all experienced trying to keep up with the many changes in our environment, particularly those related to computers, technology, software, communication, and entertainment. Generally, consumers have found it difficult to install, operate, and use many of the electronic products available today. “It takes time to read the manuals,” Stephens says. “I’m going to save you that time because I stay home on Saturday nights and read them for you!”

The Company

The Geek Squad story begins when Stephens, a native of Chicago, passed up an Art Institute scholarship to pursue a degree in computer science. While Stephens was a computer science student he took a job fixing computers for a research laboratory, and he also started consulting. He could repair televisions, computers, and a variety of other items, although he decided to focus on computers. His experiences as a consultant led him to realize that most people needed help with technology and that they saw value in a service whose employees would show up at a specified time, be friendly, use understandable language, and solve the problem. So, with just $200, Stephens formed Geek Squad in 1994. Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase.

Geek Squad employees were called “agents” and wore uniforms consisting of black pants or skirts, black shoes, white shirts, black clip-on ties, a badge, and a black jacket with a Geek Squad logo to create a “humble” attitude that was not threatening to customers. Agents drove black-and-white Volkswagen Beetles, or Geekmobiles, with a logo on the door, and charged fixed prices for services, regardless of how much time was required to provide the service. The “house call” services ranged from installing networks, to debugging a computer, to setting up an entertainment system, and cost from $100 to $300. “We’re like ‘Dragnet’; we show up at people’s homes and help,” Stephens says. “We’re also like Ghostbusters and there’s a pseudogovernment feel to it like Men in Black.” In 2002, Geek Squad was purchased by leading consumer electronics retailer Best Buy for about $3 million.

The Changing Environment

Many changes in the environment occurred to create the need for Geek Squad’s services. Future changes are also likely to change the way Geek Squad operates. An environmental scan helps illustrate these changes, especially those related to technology. Wireless broadband technology, high-definition televisions, internet-enabled products, and the interconnectedness of devices—such as computers, smartphones, entertainment systems, and appliances—are creating new products and applications for consumers to learn about. These advancements have also led to technology-related problems including viruses, spyware, lost data, and hardware “crashes.” Consequently, there is an increased demand for maintenance tasks such as password management, operating system updates, disk cleanup, and defragmentation.

Social factors—including demographic shifts and cultural changes—have also contributed to Geek Squad’s growth. Traditionally, electronics manufacturers and retailers targeted men, but women are increasingly interested in personal computing and home entertainment and are likely to outspend men in the near future, according to the Consumer Electronics Association. Innovative service expectations from women, such as personalized assistance during purchase and after-sales installation, align well with Geek Squad’s service model. Furthermore, popular culture reflects society’s embracing of “techie” characters, exemplified by the depiction of the “Nerd Herd” in TV shows such as Chuck (2007–2012), further normalizing and glamorizing the geek persona.

The Future of Geek Squad

The success of Geek Squad is driven by positive environmental factors, including technological advancements and shifting social attitudes. Currently, the company repairs over 3,000 PCs daily and generates upwards of $2 billion in revenue, generating high-profit margins that benefit Best Buy’s overall performance. To sustain and expand growth, Geek Squad must continually scan the environment for emerging trends and develop innovative approaches to creating customer value.

One promising strategy involves forming new partnerships. For example, a collaboration with Ford supports installing in-car communication systems, while plans are underway to offer 240-volt home charging stations for Ford’s electric vehicles. Geek Squad agents are also equipped with smartphones to access updated schedules, run diagnostics, and log work hours more efficiently, demonstrating adoption of technological enhancements to improve service delivery. The development of in-store support concepts, such as the “Solutions Central” desk akin to Apple’s Genius Bar, reflects efforts to create a comprehensive customer service ecosystem.

Furthermore, employee motivation and retention remain central to future success. The company is experimenting with a “results-only work environment,” facilitating flexible schedules to maintain high morale and productivity. Such measures attract top talent and foster a dedicated, satisfied workforce capable of adapting to rapid technological changes.

Overall, the future for Geek Squad appears promising, with ongoing innovations and strategic partnerships driving growth. Nevertheless, Robert Stephens remains modest about the company’s position, emphasizing humility with the statement, “Geeks may inherit the Earth, but they have no desire to rule it.” As technology continues evolving, Geek Squad is well-positioned to navigate new chaos and continue serving consumers in an increasingly interconnected world.

References

• Berry, L. L. (1983). Emerging Perspectives on Services Marketing. American Marketing Association, 43-52.
• Christensen, C. M., & Raynor, M. E. (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth. Harvard Business Review Press.
• Hoffman, K. D., & Novak, T. P. (1996). Marketing in Hypermedia Computer-Mediated Environments: Concepts and Issues. The Journal of Marketing, 60(3), 50-68.
• Keen, P. G. (1998). The Paradox of Focused Technology Innovation. Harvard Business Review, 76(2), 32-40.
• Leonard-Barton, D. (1995). Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation. Harvard Business Press.
• Prahalad, C. K., & Ramaswamy, V. (2004). Co-Creating Unique Value with Customers. Strategy & Leadership, 32(3), 4–9.
• Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
• Shapiro, C., & Varian, H. R. (1998). Information Rules: A Strategic Guide to the Network Economy. Harvard Business School Press.
• Williamson, O. E. (1985). The Economic Institutions of Capitalism. The Free Press.
• Zuboff, S. (1988). In the Age of the Smart Machine: The Future of Work and Power. Basic Books.