This document discusses crossing the technology adoption chasm. It outlines the technology adoption life cycle, which includes innovators, early adopters, early majority, late majority, and laggards. The "chasm" refers to the gap between early adopters and early majority, as the latter group needs proven applications and references. To cross this chasm, the document recommends targeting a niche market, developing a complete product, defining a competitive positioning, and using direct sales and market-leading pricing to launch into the mainstream market. The key is focusing on capturing references among early majority customers rather than sales.

1. Crossing the chasm
Carlos
Morales
Zurich
Lean
Startup
Marketing and selling disruptive products to
mainstream customers
19.08.2013

2. Summary
Technology Adoption life cycle
Problem: The chasm
Solution: Crossing the chasm!

3. Mission
Customers attitude toward technology
becomes significant in a marketing strategy.
It gives clear guidance on how to address them.

4. Technology Adoption life cycle

5. Different behaviors
Innovators = Technology Enthusiasts
Early Adopters = Visionaries
Early Majority = Pragmatists
Late Majority = Conservatives
Laggards = Skeptics

6. Innovators – Technology Enthusiasts
●
Primary Motivation:
–
●
Learn about new technologies
Key Characteristics:
–
Strong technical aptitude
–
Like to test new products
–
Can ignore any missing elements
–
Do like to help
–
Want no-profit pricing (preferably free)

7. Early Adopters – The Visionaries
●
Primary Motivation:
–
●
High motivated driven by a revolutionary breakthrough
Key Characteristics:
–
Strategic thinkers, not from technology itself
–
Attracted by high-risk, high-reward propositions
–
Want rapid time-to-market
–
Demand high degree of customization and support

8. Early Majority – Pragmatists
●
Primary Motivation:
–
●
Gain incremental and predictable progress
Key Characteristics:
–
Risk free, via evolutionary changes
–
Focus on proven applications
–
Insist on good references from trusted colleagues
–
Want to see the solution in production at the reference site

9. Late Majority – Conservatives
●
Primary Motivation:
–
●
Against discontinuous innovations
Key Characteristics:
–
If it works, they stay
–
Risk averse
–
Highly reliant on a single, trusted advisor
–
Need assembled solutions

10. Laggards – Skeptics
●
Primary Motivation:
–
●
Maintain status-quo
Key Characteristics:
–
Disbelieve productivity-improvement arguments
–
Seek to block purchases of new technology
–
Not a customer

11. Problem : The chasm

12. Pragmatists don’t trust visionaries
as references
New & revolutionary
Standard
Unique functionality
Third party supporters
Horizontal references
Willing to take risk
Want rich tech-support
Revolutionary processes
Tolerate bugs
Vertical references
Little risk
Great quality of support
Enhance established processes
Bug free

13. Solution: Crossing the chasm!

14. Analogy to an invasion
To enter the mainstream market is an act of aggression. The companies who
have already established relationships with your target customer will resent
your intrusion and do everything they can to shut you out. The customers
themselves will be suspicious of you as a new and untried player in their marketplace. No one wants your presence. You are an invader.
Target the point of attack
Assemble the invasion force
Define the battle
Launch the invasion

15. Target the point of attack
Target a specific market niche as your point of
attack and focus all your resources on
achieving the dominant leadership position in
that segment.
Segmentation!

16. Assemble the invasion force
Create the whole product. This includes the core
plus everything else you need to achieve your
reason to buy.
Differentiation!

17. Define the battle
The market-centric value system that must be the
basis for the value of customers. What is your
competition and how you differentiate.
Positioning!

18. Launch the invasion
Distribution: select your distribution channel with which
pragmatist is comfortable (direct sales is preferred)
Pricing: Set pricing at the market leader price point,
reinforcing your claims to market leadership and build
a high reward for the channel into the price margin.

19. Conclusions

20. Market-driven instead of sales-driven
The consequences of being sales-driven during the
chasm period are, to put it simply, fatal.
The sole goal of the company during this stage must be
to capture a reference base in a mainstream market.