crossing the chasm - inbay.co.uk · crossing the chasm –again! paul wiefels managing director &...

of 24/24

Post on 16-May-2018

220 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

  • CROSSING THE CHASM AGAIN!

    Paul WiefelsManaging Director & Co-Founder

    The Chasm Group, LLC

  • AGENDA

    Catching Waves

    Building Strategy

    Fundamentals of Market Development

    Crossing the Chasm Again

  • THE IMPACT OF DISRUPTIVE INNOVATION

    REMAINS POWERFUL AND PERSISTENT

    Data Science

    Social Networks

    Cloud Computing

    Smart Phones

    Internet of Things

    Deploying software applications globally

    Connecting 1-to-1 with anyone anywhere

    Adding a resource in a sharing economy

    Making a transactional decision in real time

    Optimizing real-world systems in real time

    Massive leverage comes from catching these waves

    Scarce & expensive now becomesubiquitous & cheap

  • TECH LEADERS WHO MISSED THEIR NEXT WAVE

    Burroughs Sperry Control Data Unisys

    MSA McCormick & Dodge Cullinet Cincom ADR

    DEC Data General Wang Prime Tandem

    Daisy Calma Valid Apollo Silicon Graphics Sun

    Atari Osborne Commodore Casio Palm Sega

    WordPerfect Lotus Ashton Tate Borland

    Informix Ingres Sybase BEA Siebel Systems PeopleSoft

    Nortel Lucent 3Com Banyan Novell

    Netscape MySpace Inktomi Ask Jeeves Yahoo!

    Blackberry Motorola Nokia Sony

    All of these companies thought they were doing the right thing.

  • BUILDING STRATEGY

  • MARKET FOCUSED STRATEGY IS 3-DIMENSIONAL

    Market Strategy

    Where should we compete?

    How should we compete?

    How will we win?

    Analysis of existing & emerging markets, profit streams, competitive intensity, etc. leading to choice of where and where not and why

    What to offer?How to offer?How to differentiate?Source of competitive advantage?Source of innovation?

    Business model?Market model?Revenue model?Resources to compete?Criteria for success?

  • UNDERSTAND YOUR FUNDAMENTAL SOURCE OF

    ADVANTAGE

    ProductLeadership

    OperationalExcellence

    CustomerIntimacy

    DiscontinuousInnovation

    Absence of 4th value discipline revealed by

    Clayton Christensens The Innovators Dilemma

    Treacy & WiersmaThe Discipline of Market Leaders

    Optimize R&D to gain

    performance advantage

    Optimize production and delivery systems to gain a cost advantage

    Use disruptive technology

    to create first mover advantage

    Create differentiated customer experience

    to gain customer loyalty advantage

  • KEY SUCCESS FACTORS FOR CUSTOMER-

    FOCUSED MARKETING

    Identify target markets based on customer definitions

    Compelling reason to buy - Understanding met and unmet needs

    How does your value-add fit in?

    What is your current market development orientation? What are your strengths? Relevance? Why should someone walk?

    What is the magic link between you and your prospects?

    What is your elevator pitch? How do you differentiate in a meaningful way?

    What is the support?

    How do you demonstrate the support?

    What is your validation process?

  • THE DIFFUSION OF INNOVATION

    The Technology Adoption Life Cycle

  • THE EVOLUTION OF DISCONTINUOUS

    INNOVATIONS

    Electric Car

    Digital Homes

    Video Phones

    Gasoline Powered Car

    DVD Players and DVRs

    Conference Calling

    Electric/gas Hybrid

    Content on Demand

    Video Conference e.g.Skype

    Discontinuous Continuous

    Discontinuous innovations require an infrastructure to prosper and proliferate.

  • ORCHESTRATING THE SOLUTION:

    BUILDING THE VALUE CHAIN

    All these linkages are requiredfor a new technology wave to succeed.

    Products &Consumables

    Technology

    Applications

    Sales & Support

    Consulting

    CustomerService

    End Users

    Technical Buyers

    EconomicBuyers

    Product Providers Service Providers Customers

  • THE DYNAMICS OF DISCONTINUOUS INNOVATION

    ADOPTION

    TechiesTry It!

    PragmatistsStick with the Herd!

    ConservativesMove Only

    when Necessary!

    SkepticsNo Way!

    VisionariesMove Ahead of the Herd!

  • TECHNOLOGY ADOPTION LIFE CYCLE

    Pragmatists create the dynamics of high-tech market

    development.

    They cast the deciding vote!

  • DISCOVERING THE CHASM Visionary market saturates; or visionaries abandon category

    All visionaries have bought Too easy for fast-followers to catch up

    Pragmatists see no reason to start yet Too early for anything to be in production No related birds of a feather reference groups have yet formed (beyond those of visionaries)

    Mainstream Market

    Early Market

  • MODEL BREAKS DOWN AT KEY TRANSITION

    Visionaries vs. Pragmatists

    Adventurous

    Early buy-in attitude

    Think big

    Independent of the herd

    Spend first

    First-use capability

    Think Pragmatists are pedestrian

    Prudent

    Wait-and-see

    Manage expectations

    Part of the herd

    Spend next

    Staying power

    Think Visionaries are reckless

    Pragmatists don't trust visionaries as references.

  • CROSSING THE CHASM

    The Problem 80% of many solutions100% of none

    Pragmatists won't buy 80% solutions

    Conventional solution (leading to failure) Committing to the most common

    enhancement requests

    Never finishing any one customer's (customer segment) wish-list

    The Correct solution (leading to success) Focus on a single customer segment and

    build whole product for that segment

    Use experience and product to move to similar segments

    The Beachhead segment

  • Buyer behavior creates market dynamics

    Disruptive innovations typically launch in the Early Market

    Continuous innovations often launch on Main Street

    Markets are not homogenous. Winning strategies will change from inflection point to inflection point. Typically, the previous strategy will need to be significantly modified

    both in concept and execution if it is to be useful for the next phase.

    THE GUIDEPOSTS: MARKET DEVELOPMENT

    MODEL

  • BEYOND THE CHASM: THE CATEGORY MATURITY

    LIFE CYCLE

    Technology AdoptionLife Cycle

    B

    GrowthMarket

    C

    MatureMarket

    D

    DecliningMarket

    Fault Line!

    E

    End of Life

    A

    Indefinitely elastic middle

    period

    Market Growth

    Time

    AcquirePower

    UtilizePower Divest

    DecliningPower

    The A-B-C-Ds Of Portfolio Management

  • CROSSING THE CHASM 2.0

    Disruptive technologies

    Adoption chasm

    B2B focus

    Complex Systems model

    Vertical marketing

    Scale linearly

    Disruptive business models

    Monetization chasm

    B2C or B2B2C focus

    Volume Operations model

    Viral marketing

    Scale exponentially

    1.0 2.0

  • DISRUPTIVE BUSINESS MODELS 2.0 businesses extend 1.0 technology adoption

    The Internet is ubiquitous, low-cost, and consumer friendly

    There is no technology chasm to cross

    2.0 businesses disrupt legacy business models Service subscription displaces product license

    Advertising displaces subscription

    Self-service displaces intermediaries

    Two chasms to crossat different times! Cross a popularity chasm to create sustainable community

    Cross a monetization chasm to create investor returns

    Do so in that sequence

  • TWO CHASMS TO CROSS

    The Popularity Chasm Must achieve exponential critical massand fast!

    Cant spend a lot of money to do so

    This is an impossible business problem to solve

    Thus, ask kids to solve it.

    The Monetization Chasm Must translate social energy into economic returns

    Must not alienate community in so doing

    This is a difficult business problem to solve

    Adults can be helpful here

  • FINAL THOUGHTS

    There are still chasms Like most reality shows, most entrants dont make it to the Finish line

    Crossing has become much more complex Three-dimensional intersections

    Looking both ways no longer good enough

    Focus is still the scarce resource Must reduce number of variables

    Must get the investment sequence right

    Its about making the right decisions. And about making the right bets.

  • Q & A