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Derek PettingaleProduct Marketing Manager APAC / Schneider Electric – Solar Business2012 Conference Chair / ProductCamp Va...
Geoffrey MooreResume                                       Publications Geoffrey Moore is an author,                    ...
Technology Adoption Life Cycle                                                                                     Main St...
To Cross the Chasm…               Focus on Bowling Alley Market DevelopmentFirst Find the Lead Target Segment (The Lead P...
Tornado Market Development Key Principles    Attack the competition ruthlessly.       Market share is king, it’s a zero...
Tornado Market Development    Recruit partners to create a powerful whole product.       Institutionalize this whole pro...
The Tornado vs. the Bowling Alley                           Strategy and Tactics Pivot              Bowling Alley         ...
Main Street vs. the Tornado                       Strategy and Tactics Pivot Again!                 Tornado               ...
Bowling Alley – Tornado – Main StreetEconomic Buyer                         Infrastructure Buyer              End-UserVert...
But Does Crossing the Chasm Really Apply Anymore? THE Internet, Mobile & Wireless, Moore’s Law Free Software and Social ...
Is the Tornado Really a Growth Stairway?Porter’s 5 Forces                 Strategy Pivot                       Tornado1. C...
The New Reality of Crossing the Chasm                1.0                                                2.0 Disruptive Te...
Derek PettingaleProduct Marketing Manager APAC / Schneider Electric – SolarBusiness2012 Conference Chair / ProductCamp Van...
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PCV 2012 Revisting the Technology Adoption Life Cycle - Crossing the Chasm and Beyond

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Revisting the Technology Adoption Life Cycle - Crossing the Chasm and Beyond. Discussing Geoffrey Moore's ideas in the new 2.0 world. Does Crossing the Chasm Really Apply Anymore? Is the Tornado Really a Growth Stairway? Crossing the Chasm 2.0

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PCV 2012 Revisting the Technology Adoption Life Cycle - Crossing the Chasm and Beyond

  1. 1. Derek PettingaleProduct Marketing Manager APAC / Schneider Electric – Solar Business2012 Conference Chair / ProductCamp VancouverChair Product Management Peer Group / BCTIAhttp://ca.linkedin.com/in/derekpettingale
  2. 2. Geoffrey MooreResume Publications Geoffrey Moore is an author,  Escape Velocity, 2011 speaker and advisor as well as a  Dealing with Darwin, 2006 venture partner at Mohr Davidow  Living on the Faultline, 2001 Ventures (MDV).  The Gorilla Game, 1999 He is a founder of both The Chasm  Inside the Tornado, 1995 Group and TCG Advisors. Earlier in his career, he was a principal and  Crossing the Chasm, 1990 partner at Regis McKenna, Inc., ProductCamp Vancouver 2012
  3. 3. Technology Adoption Life Cycle Main Street Pragmatists Do Not Trust Visionaries as Reference Base However Pragmatists Adopt as a Herd Based on Adoption Tornado by Other Pragmatists in Their Industry SALES Pragmatists Conservatives Bowling Sunset Alley The Chasm Tech VisionariesEnthusiasts Early Early Majority Late Majority Laggards Adopters ProductCamp Vancouver 2012
  4. 4. To Cross the Chasm… Focus on Bowling Alley Market DevelopmentFirst Find the Lead Target Segment (The Lead Pin)  Target market segmentation – find the right customers.  Has a compelling reason to buy – the whole product.  Is not currently well served by any competitor.  The objective is to become #1 in segment (dominant share).  i.e. 40% share of segment’s available new business in next 12 months. Then dominate the next segment – usually in the same vertical.Key Principles  Never attack a segment whose current expenditures on your category product exceed your current revenue – don’t bite off more than you can chew.  Focus market developments on the end-user community (solve a business problem), not on the technical community (who will just slow things down by finding all your technical issues).  Gain support of Economic Buyer to solve his business problem (lower or remove his cost). ProductCamp Vancouver 2012
  5. 5. Tornado Market Development Key Principles  Attack the competition ruthlessly.  Market share is king, it’s a zero sum game.  Ignore the customer  Focus on the infrastructure people.  Expand your distribution channels as fast as possible, refuse none, fill every shelf.  Tornados will be served, by you or someone else.  Relentlessly drive to the next lowest price point.  Hit every price point in the category, and then go lower.  Just ship  Operational excellence, quality and yield, no returns. ProductCamp Vancouver 2012
  6. 6. Tornado Market Development  Recruit partners to create a powerful whole product.  Institutionalize this whole product as the market leader.  Finally, commoditize the whole product by designing out your partners. Respect forces greater than your own  Tornado forces are bigger than any company.  Do not try to control them, don’t hold something back.  Do not introduce discontinuity during a Tornado.  Focus on continuous improvement.  Tornados design service out, not in.  Do not try to prevent a Tornado.  Distribute your development bets and switch to the gorilla’s team if you picked the chimp. ProductCamp Vancouver 2012
  7. 7. The Tornado vs. the Bowling Alley Strategy and Tactics Pivot Bowling Alley Tornado1. Focus on the economic buyer and the 1. Ignore the economic buyer and the end end user; approach the infrastructure user; focus exclusively on the buyer late in the sales cycle. infrastructure buyer.2. Emphasize return on investment as the 2. Ignore return on investment. Focus on compelling reason to buy. timely deployment of reliable infrastructure.3. Differentiate your whole product for a 3. Commoditize your whole product for single application. general-purpose use.4. Partner with a value-added distribution 4. Distribute through low-cost, high channel to ensure customized solution volume channels to ensure maximum delivery. market exposure.5. Use value-based pricing to maximize 5. Us competition-based pricing to profit margins. maximize market share.6. Avoid competition to gain niche market 6. Attack competition to gain mass market share. share.7. Position your products within vertical 7. Position your products horizontally as segments. global infrastructure. ProductCamp Vancouver 2012
  8. 8. Main Street vs. the Tornado Strategy and Tactics Pivot Again! Tornado Main Street1. Sell to the infrastructure buyer. 1. Sell to the end user. Focus on need for timely deployment of Focus on the end user’s experience, reliable infrastructure. seeking to gratify their individual needs.2. Commoditize your whole product for 2. Differentiate the commoditized whole universal use. product with +1 campaigns targeted at specific niches.3. Distribute through low-cost, high 3. Continue to distribute through the same volume channels and advertize heavily to channels, but now focus on ensure maximum market exposure. merchandising to communicate +1 marketing message. 4. Celebrate +1 value propositions to gain4. Drive price points ever lower to maximize market share. margins above the low-cost clone. 5. Compete against your own low cost5. Attack other competitors to gain market share. offering to gain margin share. 6. Position yourself in niche markets, based6. Position yourself horizontally as standard global infrastructure. on the individual preferences of the end users. ProductCamp Vancouver 2012
  9. 9. Bowling Alley – Tornado – Main StreetEconomic Buyer Infrastructure Buyer End-UserVertical Markets Horizontal Markets Secondary Markets Product Leadership + Product Leadership + Operational Excellence + Customer Intimacy Operational Excellence Customer Intimacy ≠ But Not Operational Excellence ≠ But Not Customer Intimacy ≠ But Not Product LeadershipEvent-Driven Process Driven Process Driven (External/Internal) (Internal) (External)Key Disciplines Key Disciplines Key Disciplines Business Knowledge • Systems Engineering  Convenience Engineering Application Engineering • Sales Management  Marketing Communications Recruiting • New Hire Integration  Staff Development Revenues within Target • Cash Flow  Margin Enhancement ProductCamp Vancouver 2012
  10. 10. But Does Crossing the Chasm Really Apply Anymore? THE Internet, Mobile & Wireless, Moore’s Law Free Software and Social Media are Everywhere Global Warming, Green Values Exponential Growth in Number of Shareholders Credit & Financing Options are Everywhere Government Market Intervention Consumerization, Globalization, Segmentation ProductCamp Vancouver 2012
  11. 11. Is the Tornado Really a Growth Stairway?Porter’s 5 Forces Strategy Pivot Tornado1. Competitors2. Suppliers3. New Entrants4. Buyers5. Substitutes Tornado Macro Market Force Tornado Bowling Alley Macro Market Forces 1. Market Intervention 2. Commodity Price Change ProductCamp Vancouver 2012
  12. 12. The New Reality of Crossing the Chasm 1.0 2.0 Disruptive Technologies  Disruptive Business Models Adoption Chasm  Monetization Chasm B-2-B Focus  B-2-C Focus Complex Systems Model  Volume Operations Model Vertical Marketing  Viral Marketing Scale Linearly  Scale Exponentially ProductCamp Vancouver 2012
  13. 13. Derek PettingaleProduct Marketing Manager APAC / Schneider Electric – SolarBusiness2012 Conference Chair / ProductCamp VancouverChair Product Management Peer Group / BCTIAhttp://ca.linkedin.com/in/derekpettingale ProductCamp Vancouver 2012

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