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Crossing the Chasm What’s New? What’s Not?. Disruptive Innovation What Makes High-Tech Marketing Different? High Risk Unproven products and promises Incompatible.

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Presentation on theme: "Crossing the Chasm What’s New? What’s Not?. Disruptive Innovation What Makes High-Tech Marketing Different? High Risk Unproven products and promises Incompatible."— Presentation transcript:

1 Crossing the Chasm What’s New? What’s Not?

2 Disruptive Innovation What Makes High-Tech Marketing Different? High Risk Unproven products and promises Incompatible and incomplete infrastructure Social resistance to change Low Data No product history No company track record No best practices 2

3 The Technology Adoption Life Cycle The Challenge Facing Every Disruptive Innovation 3 Innovators Early Adopters (Visionaries) Early Majority (Pragmatists) Late Majority (Conservatives) Laggards

4 Innovators - Technology Enthusiasts 4

5 Early Adopters - The Visionaries 5

6 Early Majority - Pragmatists 6

7 Late Majority - Conservatives 7

8 Laggards - Skeptics 8

9 How High-Tech Markets Develop The Technology Adoption Life Cycle 9 Innovators Early Adopters (Visionaries) Early Majority (Pragmatists) Late Majority (Conservatives) Laggards CHASM EARLY MARKET TORNADO BOWLING ALLEY MAIN STREET

10 Life-Cycle Metrics that Matter Tracking Performance Relative to the Chasm Early Market One or more flagship customers making big-bet commitments In the Chasm Cannot support yet another big-bet commitment Pragmatists still holding back from entering the market Taking the Beachhead Nailed a high-pain segment-specific use case Getting strong word-of-mouth support within target segment In the Bowling Alley Additional use cases coming on board, viral in adjacent segments Inside the Tornado Horizontal “killer app” -- hyper-growth in the category On Main Street Hyper-growth subsides – pecking order established Customers seek sustaining innovation going forward 10

11 Crossing the Chasm Two Key Principles Target a “beachhead” segment Highly focused approach to “rekindling the flame” Niche market with an intractable problem, not solvable by conventional means Process owner is under pressure to find a solution Pragmatists are willing to consider disruptive approach Commit to provide the “whole product” Bring all the ingredients with you Complete solution to the intractable problem Typically involves products and services from partners and allies Lead vendor takes responsibility for ensuring customer success 11

12 Crossing the Chasm What’s New? End User IT! 12 Digital Services Light to deploy, focus on user experience The Lean Start-Up Minimum viable product, rapid agile learning In consumer use cases, leap to the tornado Critical Success Factors: The Four Gears Acquire Engage Convert Enlist

13 13 ENLISTMENT ACQUISITION ENGAGEMENT CONVERSION Starter Motor + = Virality o = Retention - = Churn Tipping Point for B2C Markets The Four Gears Model Performance Gear Performance Gear Power Gear Power Gear

14 Four-Gears Metrics that Matter Tracking Performance Relative to the Tornado Acquire Rate of gaining new users Engage Average length, depth, and frequency of user engagement Convert Percentage of total users that participate in business model Enlist + Virality (New customers coming from existing customers – high NPS) - Churn (Existing customer defecting – “de-enlisting” –low NPS) 14

15 Slowest Gear Theory Thesis Prior to the tornado At any given point in time One of the four gears is slowing the other three down Actions Required Identify the slowest gear Focus everyone on speeding it up Maintain attention on the other three gears Repeat every quarter until The tornado happens Or you run out of gas 15

16 Crossing the Chasm What’s Not New? Enterprise IT! 16 Taking the Enterprise Digital Heavy to deploy, focus on end-to-end systems Crossing the Chasm Minimum viable whole product (add partners and allies) Bowling alley strategy Critical Success Factors Pre-chasm ─ Breakthrough projects with top-tier customers Post-chasm ─ High value use cases with compelling reasons to buy

17 1.Target Customer 2.Compelling Reason to Buy 3.Whole Product 4.Partners and Allies 5.Sales Channel 6.Pricing 7.Competition 8.Positioning 9.Next Target Key sponsor Complete solution Manages sales & fulfillment complexity Legitimate alternatives Next growth segment Key motive Fill in the gaps Maps to all the above Core differentiation Target Market Initiative Framework A Checklist for Crossing the Chasm Planning 17

18 The New Examples Salesforce VMware Aruba Lithium Rocket Fuel Infusionsoft Mozilla Box Workday 18 Target Market Whole Product Partners & Allies Positioning

19 19 New Examples from the Room

20 20 Key Takeaways

21 twitter.com/geoffreyamoore 21 Thank You


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