1. Two Roads Converged Accelerating Market Adoption for Electric Vehicles Silicon Valley Leadership Group Driving Charged & Connected June 6, 2013

2. EV Market Development Strategy Should it be B2B or B2C? 2 Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth; Then took the other...

3. Road #1 Crossing the Chasm A B2B Market Development Model 3

4. The Technology Adoption Life Cycle How Disruptive Innovations Get Assimilated 4 Innovators Early Adopters (Visionaries) Early Majority (Pragmatists) Late Majority (Conservatives) Laggards CHASM EARLY MARKET TORNADO BOWLING ALLEY MAIN STREET

5. Implications for Market Development Adapt Your Tactics to Your Adoption Stage Deliver competitive advantage Project orientation Focus on performance Fix a broken process Solution orientation Focus on performance/price Improve productivity Product orientation Focus on price/performance Reduce costs Systems orientation Focus on price/TCO 5

6. Time Revenue Growth Growth Market Mature Market Declining Market Indefinitely elastic middle End of Life Fault Line! E DCBA Technology Adoption Life Cycle 6 Category Maturity Life Cycle Putting Technology Adoption in Perspective Emerging Market (pre-Tornado) Catch Next Wave

7. Time Revenue Growth Technology Adoption Life Cycle 7 Category Maturity Life Cycle Putting Technology Adoption in Perspective How you can tell: MS:Is there an established market pecking order? T:Is there a land grab under way displacing the Old Guard? BA:Is there a segment of the market that has fully converted? X:Are there lots of seminars and conferences? EM:Has a market darling emerged? Where is Electric Vehicle Adoption?

8. Four Chasm-Crossing Success Factors 1.Accessible, Well-Funded Target Customer Pragmatists in pain, able to buy in bulk 2.Compelling Reason to Buy Broken mission-critical business process 3.Feasible Whole Product End-to-End solution for the broken process 4.Bowling Alley Potential Adjacent markets that would adopt after this one 8 Do We Have Beachhead Segments in Mind?

9. Road #2 Spinning up a Tornado: A B2C Market Development Model 9

10. 10 ENGAGEMENT ACQUISITION ENLISTMENT MONETIZATION Spinning Up a Tornado The Four Gears Model

11. 11 ENGAGEMENT ACQUISITION ENLISTMENT MONETIZATION Starter Motor Spinning Up a Tornado The Four Gears in Action

12. 12 ENGAGEMENT ACQUISITION ENLISTMENT MONETIZATION Spinning Up a Tornado The Four Gears Model

13. 13 ACQUISITION MONETIZATION Key Metrics for the Four Gears Performance vs. Power Performance Gears How many vehicles? How many owners? How much vehicle revenue? How much ARPU?

14. 14 ENGAGEMENT ENLISTMENT Key Metrics for the Four Gears Performance vs. Power Power Gears How much social media? How many referrals? How many miles driven? What percent of total miles?

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. 16 ENGAGEMENT ACQUISITION ENLISTMENT MONETIZATION An Alternative to Crossing the Chasm The Four Gears Model What is the slowest gear today for Electric Vehicle Adoption?

17. How Do We Work Both Roads in Tandem? Crossing the Chasm Top-down approach Segment market development, targeting specific enterprises Direct sales to the economic buyers Pay-as-you-go model Biggest risk: Getting stuck in a niche, losing out to a gorilla The Four Gears Bottom-up approach Land and expand, targeting end users Viral adoption leveraging digital communities Become profitable late in the game Biggest risk: Not getting real traction, running out of funding 17 What are your ideas?

18. Q&A Geoffrey Moore & Mike Calise 18

19. gmoore@geoffreyamoore.com twitter.com/geoffreyamoore http://linkd.in/YnBwig 19