4. The Technology Adoption Life Cycle
• Innovators Technology enthusiastic
• The Early Adopters Visionaries
• The Early Majority Pragmatists
• The Late Majority Conservatives
• Laggards Skeptics
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
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5. Innovators – Technology Enthusiasts
• Primary Motivation:
- Learn about new technologies for their own sake
• Key Characteristics:
- Strong aptitude for technical information
- Like to alpha-test new products
- Can ignore the missing elements
- Like to demonstrate their own expertise
• Challenges:
- Want unrestricted access to top technical people
- Want no-profit price(preferably free)
Picture source from Baidu
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6. Early Adopters – The Visionaries
• Primary Motivation:
- Gain dramatic competitive advantage via revolutionary breakthrough
• Key Characteristics:
- Great imaginations for strategic applications
- Attracted by high-risk high-reward propositions
- Will commit to supply the missing elements
- Perceive order-of-magnitude gains – so not price-sensitive
• Challenges:
- Want rapid time-to-market
- Demand high degree of customization and support
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Picture source from Baidu
7. Early Majority – Pragmatists
• Primary Motivation:
- Gain productivity improvements via evolutionary change
• Key Characteristics:
- Astute managers of mission-critical applications
- Understand real-world issues and tradeoffs
- Focus on proven applications
- Like to go with the market leader
• Challenges:
- Insist on good references from trusted collogues
- Want to see the solution in production at the reference site
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8. Late Majority – Conservatives
• Primary Motivation:
- Avoid falling too far behind market norms
• Key Characteristics:
- Better with people than technology
- Risk averse
- Price sensitive
- Highly reliant on a single, trusted advisor
• Challenges:
- Need completely pre-assembled solutions(software in a box)
- Need value-added services but do not want to pay for them
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9. Laggard – Skeptics
• Primary Motivation:
- Maintain the status quo
• Key Characteristics:
- Good at debunking marketing hype
- Disbelieve productivity-improvement arguments
- Believe in the law of unintended consequences
- Seek to block purchases of new technology
• Challenges:
- Not a customer
- Can be formidable opposition to early adoption
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11. Disruption Can Be Played in Different Ways
• Go ahead of the herd for competitive advantage
• Go ahead of the herd to address a painful problem
• Stick with the herd as it transitions to new infrastructure
• Go after the herd for less disruption and a lower price
Key Zones for start ups
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13. Crossing the Chasm B2B Markets
• Target a “beachhead” segment
• Highly focused approach to rekindling the frame
• Niche market with an intractable problem, not solvable by conventional means
• Process owner is under pressure to find a solution
• Pragmatist are willing to consider disruptive approach
• Commit to provide the “whole product”
• Bring all the ingredients with you
• Complete solution to the intractable problem
• Typically involves products and services from partners and allies
• Lead vendor takes responsibility for ensuring customer success
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14. Crossing the Chasm - B2C Markets
• Digital Services
• Light to deploy, focus on user experience
• The Lean Start-up
• Minimum viable product, rapid agile learning
• Leap to the tornado
• Critical Success Factors: The Four Gears Model for Digital Consumer
Adoption
• Acquire traffic
• Engage users
• Convert: Monetize their engagement
• Enlist the faithful
Tornado or Bust
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Digital B2C consists of low-risk, high data decisions- Just the opposite of the chasm!
16. Classic Approach to Building Momentum
• Begin with Engage
• Confirm you have something people want and like
• The move to Acquire
• Find the levers that have the most leverage
• Then Enlist with Engage
• Get your most engaged customers to evangelize your offer
• Then Monetize
• Gently ease in – don’t pop the clutch and stall the car!
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17. Slowest Gear Theory
• Thesis
• Prior to the tornado
• At any given point in time
• One of the four gears is slowing the other three down
• Examples
• Bing - Acquisition
• LinkedIn - Engagement
• WhatsApp - Monetization
• Groupon - Enlistment
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19. After the Chasm
• The Bowling Alley
• The Tornado
• Main Street
The Chasm
The Tornado
The Bowling Alley
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Main Street
End of Life
Total assimilation
Early Market
20. Bowling Alley and the Tornado
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Bowling Tornado
Focus on pragmatist and end users; enter the mass market later in the
sales cycle
Ignore pragmatist and end users, focus on meeting the demands of the
majority consumers
Emphasize the ROI, so that consumers have an urgent desire to buy Ignore ROI. Focus on the reliable social infrastructure
Decomposition the whole product into a single application commodity Making the whole product into a general commodity
Use Value-added Sales Channel to Ensure Product Channel Reduce costs and increase circulation to meet the gigantic demand in
the market
Increase profits with value-added prices Use competitive prices to gain more market share
Avoiding the Competition and Strive for More Market Share Dare to compete and gain larger market share, attack competitors
ruthlessly
Develop product in vertical and market segment Develop products horizontally and globally
21. Principles in Tornado
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• Tornado
1. Attack the competitors ruthlessly
2. Enlarge your sales channels as much as you can
3. Ignore the end customers
4. Make the price for the market(be the first one to lower price)
5. Merchandise the product
6. Don't keep updating products
7. Don't deny the tornado’s coming and don't try to control it
8. After service
22. Market Share in Tornado
• Zu erst • Daan nach
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Market Share 1 in the Tornado
Grilla 1st Black Grilla 2nd Black Grilla Monkey
Market Share 2 after the Tornado
Grilla 1st Black Gorilla 2nd Black Gorilla Monkey
23. Implication for Strategy
• Strategic partnerships – whole product
• Competitive advantage – Product leadership, operational excellence,
customer intimacy
• Positioning – how we fit into the current market structure, Gorilla
• Organization leadership – a strong leadership, centralized, iron fisted
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25. Open Discussion
• Which phase are we at? Is it possible to reach a conclusion on which
phase are we at?
Before or after the chasm?
For all products?
For the whole country?
• What kind of partnership are we seeking(if we are at certain phase)?
Service/ISV/… to make a “whole product”
• Paradox in lowering product price in the Tornado:
Is it possible to acquire larger market share and more channels?
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26. Case Study
• List all the products that you can think of from Microsoft
Hardware
Software
Services
Other
• Analyze it with any of the bullet point we’ve mentioned today
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