Marketing Disruptive Technologies - Reading geek night download
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Off the back of Rogers' diffusion of innovations and Geoffrey Moore's Crossing the Chasm discover how to leverage your technology and sell to the mass market.
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Marketing Disruptive Technologies - Reading geek night download
- 1. 09.08.16 Presented by Ruben Bell
- 4. Early Adopters Innovators Market Share 100% Early Majority Laggards Late Majority
- 6. So what the hell is a ‘disruptive technology’? The world’s largest taxi company owns Zero vehicles The world’s largest accommodation provider owns Zero real estate The world’s most valuable retailer has Zero inventory The world’s most popular media owner creates Zero content
- 7. Figure out which market you want to be in Find out who your market really is Value map your market Segment 1 Application 1 Segment 1 Application 1 Segment 1 Application 2 Segment 1 Application 2 Segment 1 Application 1 Segment 1 Application 3 Whole Product Customer references Understand your market Segment your market
- 8. Understand your market Founded in 2005 and floated in 2015 Targeted businesses but specifically law firms and investment firms that handled sensitive information Became HIPAA compliant As of 2014 40% of the Fortune 500 were paying Box customers
- 9. Find out what your customer’s goals are Look at your potential customer’s business, what are they trying to achieve? Don’t just look at what your customers want from your product. Where are they going? How does your product fit in to their value chain?
- 10. Complete your product and ways of working Core product Core product Core product V0.1 V1.0 V2.0
- 11. V2MOM Complete your product and ways of working
- 12. Awareness Consideration Purchase Service Loyalty Managed touchpoint Earned touchpoint ATL Advertising WO M Brand Online display Search PPC White papers Landing page/Initial contact Reputation 3rd Party links Direct contact Store/Branch/ Representation Agent/Broker Available information Commercial process Delivery Communit y Implementatio n review Add-ons Account Management Cross-selling F2F interactions Feedback loop Loyalty/Reward program Partnership program [Digital touchpoints] [Digital touchpoints]
- 13. The Lego customer experience wheel
- 14. Success stories Large market completely new business model ‘on-demand’ Focused on small businesses with simplified pricing and low- risk implementations Employed feedback loops to develop the product Minimised barriers to adoption with pricing based on a per- user basis but also functionality tiers Exceptional cross-selling with revenue from top 100 customers growing 600% over 6 years Became disillusioned with waterfall and stopped development for 3 months to train 200 engineers across 30 teams in agile development
- 15. Success stories Targeted an increasingly prevalent issue as X86 servers were built with more and more power but software developments weren’t keeping up Enabled IBM to sell more of their increasingly powerful hardware by solving IBM’s end-user issues Such a large customer provided a great point of reference and provided the comfort the pragmatists needed to purchase ESX Delivered tangible benefits
- 16. Not so successful stories Good technologically Picked up by technology enthusiasts No clear use-case No real product launch No defined message Prolonged release far too long until eventually interest started to wane
- 17. Cool concept, but what problem was it solving and at what price? Lack of developed content A large number of users didn’t like having to wear/dish out glasses to watch TV Rushed technology meant that content and producers were often immature resulting in a large swathe of poor quality content for early adopters Useless as a storytelling tool Not so successful stories
- 18. On the precipice Technically just across the chasm Revenue has increased from just over $200m in 2011 to over $4bn in 2015 Tesla Model 3 due to break the ‘early adopter’ phase of electric car consumerism Now execution of orders in 2017 (US) and 2018 (UK) will be key
- 19. Riding the energy trend ‘supercapacitators’ are the new source of power for battery powered devices Launched in February of this year at a retail of $149 the product claims to be able to charge devices such as mobiles, laptops, cordless appliances and even electric vehicles in under 5 minutes Pre-sales in 70 countries Series A investment of +$20m Aims to replace the lithium-ion battery inside mobile phones eventually On the precipice
- 20. Docker is creating an entirely new industry ‘containers’ These containers simplify development and deployment in line with agile methodology All the big cloud providers support docker and adoption is speeding up A new way to build applications Lego-like plugin architecture Secured a large number of well-known users and contributors On the precipice
- 21. A few simple tricks The Car Marketing and process audit What are you doing with feedback Don’t oversell and underdeliver
Editor's Notes
- Okay so let me first put out a disclaimer – I’m not here to sell you anything
- As IT folk we’ve never been that great at blowing our own trumpet and on occasion we might have been seen to appear a bit like this Fortunately for all of us nowadays we’re much closer to this But for now let’s just put it down to somewhere inbetween
- As IT folk we’ve never been that great at blowing our own trumpet and on occasion we might have been seen to appear a bit like this Fortunately for all of us nowadays we’re much closer to this But for now let’s just put it down to somewhere inbetween
- A sociological model describing the adoption or acceptance of a new product or innovation Extension of ‘The Diffusion Process’ coming from amongst others Everett Rogers the son of a farmer Illustrated as a classical normal distribution or ‘bell curve’ Demographic and psychographic profiles of each group was originally specified by the North Central Rural Sociology Committee – a sub committee for the study of diffusion of farm practices – why might you ask – well, originally the purpose of the diffusion of innovation’s study was to track the purchase patterns of hybrid seed by corn farmers The original report summarised as such: Innovators – had larger farms, were more educated, more prosperous and more risk-orientated Early adopters – Younger, more educated, leaned towards being community leaders, less prosperous Early majority – More conservative but open to new ideas, active in the community and most importantly – an influence on their neighbours Late majority – Older, less educated, fairly conservative and less socially active Laggards – Very conservative, had small farms and capital, oldest and least educated. Not content with accepting Roger’s corn model Geoffrey Moore came along in the 1970s and noticed that as an adoption model for ‘high tech’ marketing there was something missing – a credibility gap Moore purported that a ‘chasm’ separates the early market and only upon crossing this chasm can organisation truly experience mass market growth Technology enthusiasts will buy anything – they will buy for buying’s sake and make up only about 2% of the market Visionaries are crucial because they will invest and take risks in the search for great reward. They are comfortable with technology and will constantly challenge you which in turn should help you evolve your product or service Pragmatists have the money – these are people that are looking for measurable incremental gains – they want the ROI. These people like to buy from market leaders because they know all the complementary products in the market will be built around these leaders. Critically they will always always reference their peer group before purchasing Conservatives – Is where you can continue to make additional revenue where technology is not longer state-of-the-art Skeptics – They don’t believe that IT will ever bring office productivity and will only buy your technology once the rest of the market has and they are forced to adapt. They will also do so because the cost and servicing costs will likely have fallen too.
- A sociological model describing the adoption or acceptance of a new product or innovation Extension of ‘The Diffusion Process’ coming from amongst others Everett Rogers the son of a farmer Illustrated as a classical normal distribution or ‘bell curve’ Demographic and psychographic profiles of each group was originally specified by the North Central Rural Sociology Committee – a sub committee for the study of diffusion of farm practices – why might you ask – well, originally the purpose of the diffusion of innovation’s study was to track the purchase patterns of hybrid seed by corn farmers The original report summarised as such: Innovators – had larger farms, were more educated, more prosperous and more risk-orientated Early adopters – Younger, more educated, leaned towards being community leaders, less prosperous Early majority – More conservative but open to new ideas, active in the community and most importantly – an influence on their neighbours Late majority – Older, less educated, fairly conservative and less socially active Laggards – Very conservative, had small farms and capital, oldest and least educated. Not content with accepting Roger’s corn model Geoffrey Moore came along in the 1970s and noticed that as an adoption model for ‘high tech’ marketing there was something missing – a credibility gap Moore purported that a ‘chasm’ separates the early market and only upon crossing this chasm can organisation truly experience mass market growth Technology enthusiasts will buy anything – they will buy for buying’s sake and make up only about 2% of the market Visionaries are crucial because they will invest and take risks in the search for great reward. They are comfortable with technology and will constantly challenge you which in turn should help you evolve your product or service Pragmatists have the money – these are people that are looking for measurable incremental gains – they want the ROI. These people like to buy from market leaders because they know all the complementary products in the market will be built around these leaders. Critically they will always always reference their peer group before purchasing Conservatives – Is where you can continue to make additional revenue where technology is not longer state-of-the-art Skeptics – They don’t believe that IT will ever bring office productivity and will only buy your technology once the rest of the market has and they are forced to adapt. They will also do so because the cost and servicing costs will likely have fallen too.
- Now, to some the term ‘disruptive’ infuriates them, they don’t believe in revolution – only evolution and okay I can understand that but some recent advancements are undeniable. Essentially, a ‘disruptive technology’ or innovation creates a new market and value network eventually disrupting the existing market. Has anyone ever heard the term ‘unicorn companies’? Well a unicorn company is a start-up company valued at over $1bn A decacorn is those valued at over $10bn and a Hectocorn is $100bn Uber: Ford has a market capitalisation of $55bn, Uber is $50bn AirBnB: Worth more than Marriott with a market cap of just over $21bn, Expedia and Starwood What’s really interesting is that these companies might be worth more than some of their traditional competitors but in fact they’re making a lot less money – so why are they valued so much more highly? Well it’s mainly due to their rates of growth Uber: 40% - each quarter!!! AirBnB’s revenue increased 113% from 2014 to 2015 Alibaba – almost 40% year on year for the past 5 years Facebook has about 12% of the $186bn global digital advertising market and posted advertising revenue growth of 57% in the first quarter of this year But remember, not all innovations are disruptive, but all disruptions are innovative.
- So what does crossing the ‘chasm’ really mean Well it is essentially accessing the ‘mass market’ Walt Disney said ‘do what you do so well that they will want to see it again and bring their friends
- So what does crossing the ‘chasm’ really mean Well it is essentially accessing the ‘mass market’ Walt Disney said ‘do what you do so well that they will want to see it again and bring their friends
- So what does crossing the ‘chasm’ really mean Well it is essentially accessing the ‘mass market’ The earlier you are in the life cycle the more time you should be spending on the problem and less time on the solution
- The lean startup methodology focusses on a ‘minimum viable product’ when it comes to approaching the pragmatists you better have been listening These people don’t just want a core product they what the entire feature set Use the feedback you get – there is almost nothing as important as feedback! Vision Values Methods Obstacles Measures
- The lean startup methodology focusses on a ‘minimum viable product’ when it comes to approaching the pragmatists you better have been listening These people don’t just want a core product they what the entire feature set Use the feedback you get – there is almost nothing as important as feedback! Vision Values Methods Obstacles Measures
- Not to be confused with customer lifecycle the customer journey is about evaluating and designing customer experiences Customer journey Defining touch points Enhancing the experience at each touch point Lego’s Executive Flight Customer experience
- Not to be confused with customer lifecycle the customer journey is about evaluating and designing customer experiences Customer journey Defining touch points Enhancing the experience at each touch point Lego’s Executive Flight Customer experience