SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Technology Management Class7: Technology Adoption Cycles, Chasms John A. Hengeveld

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Subjects to Hit today SRC Software Timberline Software Technology Papers Crossing the Chasm – part 1.

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 SWOT Okay, so you have strengths, weaknesses, opportunities and threats… SO WHAT?? Translate these abstract ideas into strategic options and agenda for action. Start by listing the SWOT items Look for options in the following chart

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 List of SWOT elements Strengths: –S1: Raw mindpower –S2: Good Looks –S3: Access to airplane tickets Weaknesses: –W1: Poor social skills –W2: Bad breath Opportunities: –O1: Growth in market for dentistry –O2: Growth in the market for male models –O3: The redhead down the street Threats: –T1: The body builder who lives with redhead down the street –T2: Eroding stock market

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 SWOT for strategic option development Strengths Weaknesses Threat Opportunity S1,O1: Enter career in dentistry S1,O2: Become agent S1-2,O3: Forget career - love S2,O1: Become tooth model S2:O2: Start Victors Rumor S3, O1: Traveling dentist W1-2,O1: Dental SW W1,O2: Become talent lawyer W1,O3: Cirano? W2:O2: Become model W2: O3: Invest in breath mints ST Strategies: Usually premptive strategies of some sort WT Strategies: Usually divest strategies

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Classical: Technology Adoption Cycle Innovators Early Adopters Early Majority Late Majority Laggards

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 What constitutes a market A set of actual or potential customers For a given set of products or services Who have a common set of needs or wants, and Who reference each other when making a buying decision

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Early Markets Innovators – Technology Enthusiasts –Have the latest and greatest –Don’t look to make money Early Adopters – Visionaries: –Dreamers buying for a higher purpose –Project orientation – buyer control –Management of expectations –Must have tangible economic benefit

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Mainstream Markets Early Majority: Pragmatists – –Care about the product –Support –Whole Product –Quality –Price matters, somewhat –Risk is a bad thing –They are the entry point to mainstreet –They are brand loyal.

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Mainstream Markets Late Majority: The Conservative –Safe –Bundled –And DISCOUNTED!!!

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Chasm Group: Technology Adoption Cycle Innovators Early Adopters Early Majority Late Majority Laggards

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Strategies for Crossing the Chasm D-Day analogy –Beachhead –Grow from there The challenge is to select the niche.

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Chasm Crossing Scenario Analysis 1.Header Information 1.User 2.Technical Buyer 3.Economic Buyer 2.A day in the life before 1.Scene or situation 2.Desired outcome 3.Attempted approach 4.Interfering Factors 5.Economic consequences 3.A day in the life after 1.New approach 2.Enabling factors 3.Economic rewards

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Market Development Strategy Checklist Target customer Compelling reason to buy Whole product Partners and allies Distribution Pricing Competition Positioning Next Target customer

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Method: Goal: Choose only 1 beachhead Rate each show stopper 1-5 Reject all that have a showstopper problem Then evaluate the nice to haves. Can you choose 1 segment?? –If so, now the hard work begins –If not, scale back, decide NOT to cross now and look for a proper segment

SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Bowling pin analogy Aim for the first pin Allow references for the first pin to start to conquer others. Critical… target the market… not the product.