This document discusses disruptive innovation and how new technologies are adopted. It covers several key points: 1) Disruptive technologies often target non-consumers or new uses before addressing mainstream markets. Personal computers disrupted minicomputers by targeting consumers for uses like word processing. 2) New technologies must cross the "chasm" between early adopters and the early mainstream majority. Value chains and compelling reasons to buy are needed to achieve widespread adoption. 3) The technology adoption life cycle shows innovators are followed by early adopters, early majority, late majority, and laggards. Pragmatists often decide when a technology becomes mainstream. 4) Case studies of digital amplifiers

1. Disruptive Innovation
and Chasm

2. The Innovator’s Dilemma
Minicomputer vs PC
Performance
Time
Sustaining innovations
to minicomputers
Disruptive
technology:
personal
computers
60% on
$500,000
45% on
$250,000
20~40%
on $2,000

3. Performance
Time
Chat rooms
Wireless e-mail
Disruptive Technology: Voice Recognition Technology
Toy robots
Path taken
by IBM
Word Processing
Wireline e-mail
Standard phrases
Non-consumers are the ideal initial target

4. Non-consum
ers
or Non-
consum
ing
occasions
Differentmeasure
OfPerformance
Time
New-market disruption:
Compete against non-
consumption
Low-end disruption
Address over-served customers with
a lower-cost business model
Performance
Time
Bring a better product into an
established market
Two strategies for asymmetric competition

5. Innovators Early
Adopters
Early
Majority
Late
Majority
Laggards
If Bill Gates can, then I can!
Technology Adoption Cycle - Classic Model

6. Innovators Early
Adopters
Early
Majority
Late
Majority
Laggards
Pragmatists cast the deciding vote
Skeptics:
No way!
Conservatives:
Hold on!
Visionaries:
Get ahead!
Pragmatists:
Stick with the herd!
Techies:
Try it!
Technology Adoption Life Cycle

7. Early
Market
Crossing the Chasm: Value chain required
Put the technology on the map
Chasm
Chasm Model (Geoffrey Moore, 1991)
Text

8. Early
Market
Chasm
Value Chains form in Niche Markets
Chasm crisis is over.
Bowling Alley
Whole Product
Market Development Model

9. Visionaries Pragmatists
Intuitive Analytic
Support revolution Support evolution
Contrarian Conformist
Break away from the pack Stay with the herd
Follow their own dictates Consult with their colleagues
Take risks Manage risks
Motivated by future opportunities Motivated by present problems
Seek what is possible Pursue what is possible
Early Adopters vs. Early Majorities

10. Whole Product
Compelling reason to buy (CRTB)
• Problem solving
• Proven reliability by mass production
• Advantage that can be quantified - low BOM, high value-add
• Integration – minimize the components
• Education and technical support
• Make the user a hero
• Reported to the top-managements

11. Early
Market
Chasm
Tornado
Scale for volume
Fight for market share
Bowling Alley
Market Development Model

12. The Bowling Alley
• New product gains acceptance from niches within the mainstream
market
• Each niche requires expertise in that vertical market, and potentially
leads to access to related markets.

13. Whole
Product
App 1
App 1
App 1
App 3App 2
App 2
Seg 1
Seg 2 Seg 1
Seg 1
Seg 3
Seg 2
Customer
References
The Beachhead
Bowling Alley Market Development

14. Early
Market
Chasm
Tornado
Main Street
Serve an established market
Bowling Alley
Market Development Model

15. The Tornado
• Period of mass-market adoption when the general marketplace
switches over to the new technology
• Driven by application that provides compelling benefits to mass
market: the “killer app”
• Requires strong operational excellence to keep up with demand

16. Product Category
Life Cycle
As Main Street Matures . . .
Technology Adoption Life Cycle
Ends with
technology assimilation
Ends with next
discontinuous innovation
Grow profit
margins here
Grow market
share here and here

17. Main Street
• Market growth stabilizes
• Focus on cross-selling and upgrading to existing customers

18. Case Study

19. Digital Amplifier
Pulsus Technologies
• Global leader of the DPMA (digital pulse modulation amplifier) technology
- First 2 ch DDC (Digital-to-Digital Converter, Sept. 2000)
- First 5.1ch DDC with built-in digital preamplifier (May 2001)
• Most popular digital amplifier solution among the major customers
- Five of the top ten home theater manufactures has adopted Pulsus solution. Globally >60% Market Share in DDC
market.
• Competition
- de Facto Industry standard – sold at higher price than competitions
- TI, ST, Philips, Apogee, Tripath

20. Class-D Amplifier

21. Early Adopters
Early Majority
LaggardLate Majority
Innovator

22. CRTB
So what is compelling reason to buy(CRTB)?
• BOM
• Solving problems - slim line home theater
• Support - 같이 밤세우기
• Make the user a Hero - 승진

23. Digital-to-Digital Converter

24. DDC (Digital to Digital Converter)
• 완전 디지털 앰프의 핵심 부품. PCM 입력 신호를 증폭이 가능한 PWM 펄스로 직접 변환
• 차후의 모든 오디오 시스템의 DAC (Digital-to Analog Converter) 를 대체하리라고 예상됨
펄서스 DDC 현황
• 2채널, 2.1 채널, 5.1채널, 7.1채널, 0.5W ~ 100W의 다양한 솔류션 보유
• 샘플레이트 컨버터를 내장하여 192kHz/24bit, 96kHz/24bit, 48kHz/24bit, 44.1KHz/16bit PCM 다양한
신호에 모두 대응
• SNR up to 105dB, THD 0.1% 이하의 고성능을 저가에 실현
• 프리앰프 및 이퀄라이저 기능 내장
• 0.13-0.35 micron process

25. Pulsus 5.1 Ch Digital Amplifier
Block Diagram - Lower BOM
Audio
Decoder
PS9702
6ch
DDC
volume
Tone cont.
graphic EQ
bass-
management
6 Ch
switching
power
stage
30W
50W
100W
2ch PCM
6ch
PWM
6ch PCM
ADC
USB
(IEEE1394)
interface
LPF
LPF
LPF
LPF
LPF
LPF
Optional
Analog
6ch PCM
Analog
input
Amplified PWM
5.1ch encoded
Input
MP3, AAC
(SPDIF)
5.1ch decoded
USB
(IEEE1394)

26. Solution for Innovator
Support
Inside of the Taekwang Mutech 301 (35W x 6ch)

27. Solution for Early Adopter
Solving Problems
Inside of the digital amplifier reference set (Sony)
PS9818

28. Make the User a Hero
“1년 동안 부숴버린 스피커가 500개가 넘습니다.”
권오석(41·사진) LG전자 음향팀 책임연구원은 ‘디
지털 음색’을 만들어가는 음향기술 전문가. 2001년
부터 LG전자가 만든 모든 홈시어터와 탁상용 차량
용 오디오가 그의 손끝을 거쳤다.
가전업계에서는 권 연구원과 같은 사람을 ‘마이스
터(거장)’ 또는 ‘골든 이어(황금귀)’라고 부른다. 음질
을 듣고 제품 수준을 평가하기 때문이다.
동아일보 2005.11.13

30. Pulsus Inside
GVG