6 Flashcards
Technology Adaption Cycle
1-5
1 Innovators
2 Early Adopters
the Chasm
3 Early Majority
4 Late Majority
5 Laggards
The Chasm
- big gap between early adopters and early majority: the chasm
- easy to capture early adopters
- difficult to capture early majority
- early majority is crucial for sustainable growth
Technology Adaption Cycle
1 Innovators
1-3
Impact to company:
1-2
“technology Enthusiasts”
- buy new technology for the sake of new technology
- gatekeepers to new technology
- represent a sounding board
for company:
- have the latest/greatest technology
- don’t expect to make much money
Technology Adaption Cycle
2 Early Adopters
“Visionaries”
- buy new tech to be amongst the first
- not miss a new trend
- look for radical innovation, leap forward
- project orientation
- risk positive
for company:
- first source for revenue and visibility
- sell them their “dream”
Technology Adaption Cycle
Early Majority
1-4
Company focus:
1-4
“Pragmatists”
- look for incremental improvement, predictable progress
- will use tech once its proven
- once won = loyal
- risk negative
company:
- focus on standardization, risk reduction, increasing productivity, profitability
Technology Adaption Cycle
Late Majority
“Conservatives”
- against discontinuous innovation
- believe in tradition more than in progress
company:
- focus on convenience rather performance
- understand that they have no high aspirations towards high-tech investments
- will not support high margins
- profit comes through volume
Technology Adaption Cycle
Laggards
“Skeptics”
- do not participate in high-tech market except to block decisions
- point out which sales claim you failed to deliver
company:
- focus on decreasing influence
- decrease gap between promised and delivered services
Steps to conquer the Chasm and mainstream market
1 Select the target customer
2 Define your offer
3 Define your competition
4 Select pricing and distribution
Steps to conquer the Chasm and mainstream market
1 Select Target Customer
Step 1: Create different scenarios of target customers
Step 2: Rate several customer scenarios and select most attractive one
Step 3: Commit to your target
Steps to conquer the Chasm and mainstream market
1 Select the target customer:
Step 1: Create different scenarios of target customers
- create different scenarios of target customers, as many as possible
excel form / one pager
1 header info
- who is economic buyer (who pays for product)
- who is end user (who uses product)
- technical buyer (who makes maintenance)
2 a day in the life before
- moment of frustration
- desired outcome
- attempted approach
- interfering factors
- economic consequences
3 a day in the life after
- new approach (with product)
- enabling factors
- economic results (costs avoided, benefits gained)
Steps to conquer the Chasm and mainstream market
1 Select the target customer
Step 2: Rate Several Customer Scenarios and select most attractive
Showstoppers
- target customer (which sales channels? channels sufficiently well funded?
- compelling reason to buy (economic consequences to justify buy)
- whole product (promise delivery)
- competition
Nice-to-haves
- parters and allies
- distribution (sales channels)
- pricing (consistent with customers budget)
- positioning
- next target customer (bowling-pin-effect)
Steps to conquer the Chasm and mainstream market
1 Select the target customer
Step 3: Commit to your Target
- stick to your decision once you selected your target
Steps to conquer the Chasm and mainstream market
2 Define your offer
Whole Product Model, Levitt
- grasps what the target customer is actually buying
1 generic product (product shipped, described in purchase contract)
2 expected product (customer thinks it buys, minimum configuration of product to service the buying objective)
3 augmented product (maximum buying objective)
4 potential product (room for growth)
Steps to conquer the Chasm and mainstream market
2 Define your offer
Simplified “Whole product” Model, Moore
- figure out features/additionals that five potential customers more reasons to buy your product besides the generic product
in the middle: Generic product (what do we ship)
außen: additions to achieve compelling reason to buy
1 additional software
2 additional hardware
3 system integration
4 installation, debugging
5 change management
6 training and support
7 standards, procedures
Steps to conquer the Chasm and mainstream market
3 Define your Competition
Why is defining competition important?
- mainstream market buyers will believe in product if they can compare it to the competition
- Problem: freshly developed technology unlike to have competition
- Solution: create competition and position yourself against them
—> Easier to win a game if you can define the rules and the playing field
