Technology Adoption

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Technology Adoption
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Technology Adoption Life Cycle
Early Majority
Late Majority
Innovators
Early Adopters
Laggards
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Technology Adoption Life Cycle
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The Chasm
The Early Market
The Mainstream Market
The Chasm
Skeptics
Pragmatists
Technology Enthusiasts
Visionaries
Conservatives
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In the Chasm! The Battle for Power

• Emerging value chain fights existing value chains
  for right to exist
• The gorilla game!
• Who gets to set the de facto standards? Dominant
  Design!
• Proprietary architecture vs. open systems!

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Market Development Model
Put the technology on the map
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Market Development Model
EarlyMarket
Chasm
Form the first persistent value chain. Remember
the way to a mass-market is always through a
niche market!
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Market Development Model
EarlyMarket
Bowling Alley
Chasm
Scale for volume! Fight for market share!
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Market Development Model
Tornado
EarlyMarket
Bowling Alley
Chasm
Dominant Design! Serve an established market!
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As Main Street Matures . . .
Technology Adoption Life Cycle
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Implications

• Four phases of development in technology-enabled
  markets
• Each phase demands a different response
• Examine impact on
• Differentiated offerings
• Execution focus
• Value chain focus

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Generate volumes and experience so products
become reliable and cheap to meet demands of
conservatives
The Adoption Stairway
Find a niche. Serve this market well! Gain bulk
of revenue by serving pragmatists ideally by
becoming market leader and setting de
facto standards
Capture interest of visionaries Make them
satisfied customers Serve as good references for
pragmatists
Seed enthusiasts with new products Help them
educate visionaries
Leave skeptics to their own devices
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Value Disciplines the Life Cycle
Operational Excellence Customer Intimacy
Product Leadership Operational Excellence
Product Leadership Only
Product Leadership Customer Intimacy
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New Points of Differentiation!
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Conventional wisdom

• Most companies focus on matching and beating
  their rivals along the same dimensions.
• They think like their competition does.
  Competitive convergence. RED OCEAN strategy.
• Where is the element of surprise????? You need to
  create new spaces. BLUE OCEAN strategy.