Lecture IMTelkom MM-Biztel: Crossing The Chasm And Competing Technologies

Crossing the Chasm and Competing Technologies (Adopted from Toral Patel: “Crossing the Chasm and Entering the Tornado”) Crossing the Chasm 1m38 Lecture by: Djadja.Sardjana@gmail.com http://www.slideshare.net/djadja 1 24 January 2010 IMTelkom MM-Biztel

The Early Market “Pragmatists” and “Conservatives” Dominated by early adopters The Chasm and insiders: “Techies” and The Mainstream “Visionaries” Market The “chasm” is the gulf that exists between the two distinct market-places for market- A particular technologies…. technologies…. 2 24 January 2010 IMTelkom MM-Biztel

The Early Market “Pragmatists” and “Conservatives” Dominated by early adopters The Chasm and insiders: “Techies” and The Mainstream “Visionaries” Market Why do we want to get there? 3 24 January 2010 IMTelkom MM-Biztel

The Early Market “Pragmatists” and “Conservatives” Dominated by early adopters The Chasm and insiders: “Techies” and The Mainstream “Visionaries” Market 4 24 January 2010 IMTelkom MM-Biztel

The Technology Adoption Life Cycle “High Tech Marketing Model” Early Early Late Innovators Adopters Majority Majority Laggards Techies Visionaries Pragmatists Conservatives Luddites 5 24 January 2010 IMTelkom MM-Biztel

The Technology Adoption Life Cycle “High Tech Marketing Model” The Tornado hits! Technology Technology as a fad as the future Early Early Late Innovators Adopters Majority Majority Laggards Techies Visionaries Pragmatists Conservatives Luddites 6 Early Market Mainsteam Market 24 January 2010 IMTelkom MM-Biztel

The Technology Adoption Life Cycle “High Tech Marketing Model” Competing Technology Early Early Late Innovators Adopters Majority Majority Laggards Techies Visionaries Pragmatists Conservatives Luddites 7 24 January 2010 IMTelkom MM-Biztel

The Technology Adoption Life Cycle “High Tech Marketing Model” Early Early Late Innovators Adopters Majority Majority Laggards Techies Visionaries Pragmatists Conservatives Luddites 8 24 January 2010 IMTelkom MM-Biztel

The Technology Adoption Life Cycle “High Tech Marketing Model” The Chasm Early Early Late Innovators Adopters Majority Majority Laggards Techies Visionaries Pragmatists Conservatives Luddites 9 24 January 2010 IMTelkom MM-Biztel

Why is there a chasm? • Technology are discontinuous innovations • They are languishing in the early market (i.e., used mostly by the “Techies” and “Visionaries”) but desperately want to cross the chasm into the mainstream market • Few applications have so far been able to cross and achieve the high-volume opportunities offered by the mainstream Technology market (i.e., the “Pragmatists” and “Conservatives”) • The Technology market will not evolve in one continuous, smooth movement 10 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? Early Market Mainstream Market • Consists of the Innovators • Consists of an Early Majority (“Techies”) and the Early (“Pragmatists”) and a Late Adopters (“Visionaries”) Majority (“Conservatives”) • For the Visionaries, technology• For the Pragmatists, improving is a change agent and the the existing delivery of people using it are the Technology is the priority – champions of change they want “evolution not revolution” • Visionaries like a project • Pragmatists require integrated, orientation and will therefore turn-key solutions – price is a start out with a pilot project big issue • Visionaries want to set the • Pragmatists would like to wait standards until a platform or application becomes the de facto standard The Chasm exists between the Early and Mainstream Markets. 11 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? The situation: • Visionaries are not considered to be good references by the Pragmatists, but…. • Good references are a pre-requisite for investment in technologies by the Pragmatists! The Technology market demands that: • New systems integrate with old ones • New systems are technically supported • People are trained to implement new systems • All systems conform to a common standard 12 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? • Pragmatists expect extensive references from other Pragmatists. They do not accept Visionaries as being suitable referees because…. • …. they perceive such referees as being more interested in the technology (what they can do) than the Technology process (what they should do) • Technology Pragmatists don’t care about technology revolutions or paradigm shifts– they are too busy trying to make the wheels of conventional Technology go round Pragmatists hate discontinuous innovations! 13 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? • Visionaries build from the ground up – but Pragmatists know that the new paradigm has to work with the existing infrastructure and practices • Pragmatists see Visionaries as overtly project orientated – they come, the see, they conquer…. they leave! • Pragmatists are usually committed to their profession and their institution, they are in Technology for “the long run” and must live with their ICT decisions 14 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? (a) Technology Bermuda Triangle (b) Economics (c) Legislation Wilnfried Holz, President and CEO, Siemens Health 15 24 January 2010 Technologies IMTelkom MM-Biztel

Why is there a Chasm? (a) Technology: Deloitte & Touche. The Emerging European Telematics Industry: Market Analysis. • Pragmatists want to hear about “up and running”, turn- key applications that have been integrated into mainstream Technology, not pilot projects • Pragmatists trust “brand” – mergers and consolidations are required • Pragmatists need standards because they need guaranteed interoperability - Visionaries want to set the standards! 16 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? (b) Economics: • Governments continue to concentrate largely on pilot projects (Example: WiMAX in Indonesia) • Firm insistence that evidence base of cost-effectiveness must be established as a prerequisite to large-scale implementation • But there is practically no evidence base for cost- effectiveness! 17 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? (c) Legislation: • Technical and security standards • Protecting electronic patient information • Professional standards • Licensing and credentialing of Technology providers • Malpractice liability defence and insurance • Lack of reimbursement for telematics services • Infrastructure planning and development 18 24 January 2010 IMTelkom MM-Biztel

Why is there a Chasm? (c) Legislation: • Technical and security standards • Protecting electronic patient information • Professional standards • Licensing and credentialing of Technology providers • Malpractice liability defence and insurance • Lack of reimbursement for telematics services • Infrastructure planning and development 19 24 January 2010 IMTelkom MM-Biztel

Can we avoid the chasm? chasm? • We can never completely remove the chasm – no one can! • But we can develop chasm-crossing strategies and find strategic locations at which to cross 20 24 January 2010 IMTelkom MM-Biztel

There are active efforts in four key areas about the chasm We need to: (1) Identifying Chasm-Crossing Opportunities – through Chasm- market research & analysis, feasibility studies and business plan development And narrowing that chasm by: (2) Developing Technology Integration Strategies – for technology vendors to integrate and improve their products and services (3) Building Economic Evidence – through cost-benefit / effectiveness studies (4) Removing Legislative and Regulatory Barriers – through legal and risk services, research, lobbying and advocacy 21 24 January 2010 IMTelkom MM-Biztel

(1) Identifying Chasm-Crossing Chasm- Opportunities • Identifying new markets or market sectors for clients • Gathering information and intelligence on those markets • Improving the client’s knowledge and understanding of the market as an essential prerequisite to…. • Introducing clients to key potential purchasers • Creating routes to market 22 24 January 2010 IMTelkom MM-Biztel

(2) Developing Technology Integration Strategies • Assessing the needs of the market in terms of the services they require • Evaluating the best technologies • Helping clients to build the solutions that their market wants

(3) Building Economic Evidence • Cost-benefit / effectiveness studies that provide evidence for the economic sustainability of technologies

(4) Removing Legislative and Regulatory Barriers • Providing legal and risk management services to both technological vendors and users • Advocating the safe and responsible use of technology through workshops, symposiums and presentations

In Summary • Technology Manager need works with its clients and partners to create the knowledge and understanding of the market-place that is essential to achieve routes to markets and “cross the chasm” • Technology Manager specifically need addresses the three core areas that both the users and vendors of technologies must tackle in order to make that crossing: o turning technologies into solutions; o building the economic evidence base; and o addressing legal, professional and risk issues. Youtube Crossing the Chasm 2m51 26 24 January 2010 IMTelkom MM-Biztel

Lecture IMTelkom MM-Biztel: Crossing The Chasm And Competing Technologies

by Djadja Sardjana

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