The Product Evolutionary Cycle

1
The Product Evolutionary Cycle

• Based on An Evolutionary Approach to Product
  Growth Theory, by Gerard J. Tellis and Merle
  Crawford
• NOTE An alternative to the PLC

2
Evolutionary Theory

• CONCEPT Evolution is continuous change that is
• Cumulative Successive changes are based on
  previous forms
• Directed From simple to complex, towards
  increasing diversity, and towards increasing
  efficiency
• Generated by well-defined sources
• A generative force (mutations to genetic system)
• A selective force (environment competition for
  critical resources)
• NEW A mediative force (human intervention)
• Characterized by patterned change Five patterns

3
Change Patterns

• Cladogenesis Divergence of a new species from an
  evolutionary line, triggered by environment?NPD
• Anagenesis Pattern of species adaptation to
  environment (change towards complexity and
  numbers)? product modifications, modifications
  in other 3Ps, elsewhere in organization
• Adaptive Radiation Increasing variations adapted
  to particular niches (subspecies)?product
  variants for different segments, for example
• Stasigenesis Period of stability/little
  change?period of little change in products/
  business models
• Extinction Due to inability to cope with
  environmental change? product demise/failure

4
The Product Evolutionary Cycle

• Basic idea Firms are competing with others in a
  (changing) environment for needed resources, just
  like different species in the natural world.

5
The PEC The Generative Force

• Natural world Mutations
• Business world Actions that generate changes,
  similar to mutations
• Thinking not required
• New products, new channels, new business models,
  new production methods, etc.

6
The PEC The Selective Force

• The environment
• Natural world Changing climate, emergence of new
  species or changes in existing species
  (predators, prey, etc.), changing topography, and
  others
• Business World Changing political, cultural,
  natural, technological, competitive, consumer,
  b2b, cooperative and other environments

7
Management Implications

• PLC What stage are we in (as if we could tell),
  and what is appropriate at this stage?
• Focus on sales over time
• PEC What is going on in the environment, and
  what generative options might be appropriate?
• Focus on competitors and changes in environment