Inside The Tornado by Geoffrey A. Moore From standard diffusion theory (Everrett Rogers), the types of customers over the life cycle of diffusion are: Innovators or Technology enthusiasts Early adopters or Visionaries Early majority or Pragmatists Late Majority or Conservatives Laggards or Skeptics

The Chasm: v-p gap or the growth phase Visionaries intuitive support revolution contrarian break away from the pack follow their own dictates take risks motivated by future opportunities seek what is possible Pragmatists analytic support evolution conformist stay with herd consult with their colleagues manage risks motivated by present problems pursue what is probable

Success factors for crossing the chasm Pragmatists want 100% solution to their problem or the whole product the minimum set of products and services necessary to ensure that the target customer will achieve his or her compelling reasons to buy Segment the market do put all your eggs in one segment’s basket 1. p. 21 p.23

Choosing a segment Is the segment well funded and accessible to sales force? do they have a compelling reason to buy? can we deliver (albeit with partners) deliver a whole product to fulfill that reason to buy? Is there entrenched competition that will make it impossible for us? will a win in this segment allow us to leverage to others? pp 22-23

sample bowling alley regulatory submissions pharmaceuticals medical equipment regulatory submissions food processing regulatory submissions manufacturing pharmaceuticals manufacturing medical equipment pharmaceutical R&D p.40

Success principles in the bowling alley Pick on someone your own size Focus on end user or economic buyer

Getting buy-in Solve an important problem for end user demonstrate that the problem is because of current technology show how you solution is a technology fix to their systemic problem exhibit mastery of their application ask for business, having overcome resistance

The tornado : signals what pragmatists do when it is time to move, let us all move together let us all pick the same vendor for the new paradigm once we start, let us move fast and get it over with to minimize end user nuisance

Lessons from Oracle Attack the competitor ruthlessly expand your distribution as fast as possible ignore the customer

Lessons from HP in the PC printer market’s tornado Just ship Extend distribution channels Drive to the next lower price point If you refuse or neglect to supply any channel with your product, you leave that flank unprotected

Intel and Microsoft lessons Only the paranoid survive recruit partners to create a powerful whole product Institutionalize this whole product as market leader commoditize the whole product by designing out your partners p. 86

TORNADO MISTAKES Tornado forces are bigger than any one company’s ability to control, so don’t try. Don’t introduce discontinuity during a tornado Tornadoes design service out, not in Don’t bet on preventing a tornado