1. h:\share\rabino\information and marketing strategy.ppt 1 “Crossing the Chasm” by Geoffrey Moore Technology Adoption Life Cycle Innovators Early Adoption Early Majority Late Majority Laggards Psych Profile: Tech has central interest in their life Tech has central interest in their life Practical wait & see Waiting for the established standard The “cracked” model is more accurate.

2. h:\share\rabino\information and marketing strategy.ppt 2 Innovators Early Adopters Early Majority Late Majority Laggards When a hot new technology product cannot be readily translated into a major new benefit Home Banking.

3. h:\share\rabino\information and marketing strategy.ppt 3 In the High Tech Industries the Innovators are the technology enthusiasts (e.g., VCE, Camcorders). Early Adopters – (or visionaries) – provide insight to match an emerging technologies to a strategic opportunity. (E.g. Henry Ford assembly line they did not look for improvement. Rather they looked for a breakthrough. The Early Adopters communicate the deliverable to the next group: (Price sensitively, ease of use.) Laggard – are the skeptics. Entering the mainstream – or how to “start a fire” is the challenge. The strategy is not to become a sales driver, (vs. a niche strategy) because we need to capture the Reference Base. The key: select a strategic segment with entry points to a bigger segment. Apples || segment (originally – school children).

4. h:\share\rabino\information and marketing strategy.ppt 4 It reflects dissociation between the 2 groups – (Innovators & Early Adopters). There exists an opportunity to lose momentum and to miss transition to the next stage. e.g., PC based home banking (In the transition from Innovators to Early Adopted). The second crack (between Early Adopters and Early Majority) is even more important. The transition requires a need for a strategic leap. E.g. LAN’s launch has been attempted several times in the early eighties until the development of Novel software running on IBM PC hardware with interface cards that fitted into existing IBM PC slots.

5. h:\share\rabino\information and marketing strategy.ppt 5 Successful Crossings: Apple Tanden (Desktop Publishing) Application Niche Approach (Automatic Teller Machine)