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
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
PCV 2012 Revisting the Technology Adoption Life Cycle - Crossing the Chasm and Beyond
1. Derek Pettingale
Product Marketing Manager APAC / Schneider Electric – Solar Business
2012 Conference Chair / ProductCamp Vancouver
Chair Product Management Peer Group / BCTIA
http://ca.linkedin.com/in/derekpettingale
2. Geoffrey Moore
Resume 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. 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 Visionaries
Enthusiasts
Early Early Majority Late Majority Laggards
Adopters
ProductCamp Vancouver 2012
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. 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. 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. The Tornado vs. the Bowling Alley
Strategy and Tactics Pivot
Bowling Alley Tornado
1. 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. Main Street vs. the Tornado
Strategy and Tactics Pivot Again!
Tornado Main Street
1. 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 gain
4. Drive price points ever lower to
maximize market share. margins above the low-cost clone.
5. Compete against your own low cost
5. Attack other competitors to gain market
share. offering to gain margin share.
6. Position yourself in niche markets, based
6. Position yourself horizontally as
standard global infrastructure. on the individual preferences of the end
users.
ProductCamp Vancouver 2012
9. Bowling Alley – Tornado – Main Street
Economic Buyer Infrastructure Buyer End-User
Vertical 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 Leadership
Event-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. 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. Is the Tornado Really a Growth Stairway?
Porter’s 5 Forces Strategy Pivot Tornado
1. Competitors
2. Suppliers
3. New Entrants
4. Buyers
5. Substitutes
Tornado
Macro Market Force
Tornado
Bowling Alley Macro Market Forces
1. Market Intervention
2. Commodity Price Change
ProductCamp Vancouver 2012
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. Derek Pettingale
Product Marketing Manager APAC / Schneider Electric – Solar
Business
2012 Conference Chair / ProductCamp Vancouver
Chair Product Management Peer Group / BCTIA
http://ca.linkedin.com/in/derekpettingale
ProductCamp Vancouver 2012