Lecture IMTelkom MM-Biztel on Crossing The Chasm And Competing Technologies

1. Crossing the Chasm and
Competing Technologies
(Adopted from Toral Patel: “Crossing the Chasm and Entering the Tornado”)
Crossing
the Chasm
1m38
Lecture by:
Djadja.Sardjana@gmail.com
http://www.slideshare.net/djadja
1 24 January 2010 IMTelkom MM-Biztel

2. The Early Market
“Pragmatists” and
“Conservatives”
Dominated by early adopters The Chasm
and insiders: “Techies” and The Mainstream
“Visionaries” Market
The “chasm” is the gulf that exists between
the two distinct market-places for
market-
A particular technologies….
technologies….
2 24 January 2010 IMTelkom MM-Biztel

3. The Early Market
“Pragmatists” and
“Conservatives”
Dominated by early adopters The Chasm
and insiders: “Techies” and The Mainstream
“Visionaries” Market
Why do we want to get there?
3 24 January 2010 IMTelkom MM-Biztel

4. The Early Market
“Pragmatists” and
“Conservatives”
Dominated by early adopters The Chasm
and insiders: “Techies” and The Mainstream
“Visionaries” Market
4 24 January 2010 IMTelkom MM-Biztel

5. The Technology Adoption Life Cycle
“High Tech Marketing Model”
Early Early Late
Innovators Adopters Majority Majority Laggards
Techies Visionaries Pragmatists Conservatives Luddites
5 24 January 2010 IMTelkom MM-Biztel

6. The Technology Adoption Life Cycle
“High Tech Marketing Model”
The Tornado hits!
Technology Technology
as a fad as the future
Early Early Late
Innovators Adopters Majority Majority Laggards
Techies Visionaries Pragmatists Conservatives Luddites
6 Early Market Mainsteam Market
24 January 2010 IMTelkom MM-Biztel

7. The Technology Adoption Life Cycle
“High Tech Marketing Model”
Competing
Technology
Early Early Late
Innovators Adopters Majority Majority Laggards
Techies Visionaries Pragmatists Conservatives Luddites
7 24 January 2010 IMTelkom MM-Biztel

8. The Technology Adoption Life Cycle
“High Tech Marketing Model”
Early Early Late
Innovators Adopters Majority Majority Laggards
Techies Visionaries Pragmatists Conservatives Luddites
8 24 January 2010 IMTelkom MM-Biztel

9. The Technology Adoption Life Cycle
“High Tech Marketing Model”
The Chasm
Early Early Late
Innovators Adopters Majority Majority Laggards
Techies Visionaries Pragmatists Conservatives Luddites
9 24 January 2010 IMTelkom MM-Biztel

10. Why is there a chasm?
• Technology are discontinuous innovations
• They are languishing in the early market (i.e., used mostly
by the “Techies” and “Visionaries”) but desperately want to
cross the chasm into the mainstream market
• Few applications have so far been able to cross and
achieve the high-volume opportunities offered by the
mainstream Technology market (i.e., the “Pragmatists”
and “Conservatives”)
• The Technology market will not evolve in one continuous,
smooth movement
10 24 January 2010 IMTelkom MM-Biztel

11. Why is there a Chasm?
Early Market Mainstream Market
• Consists of the Innovators • Consists of an Early Majority
(“Techies”) and the Early (“Pragmatists”) and a Late
Adopters (“Visionaries”) Majority (“Conservatives”)
• For the Visionaries, technology• For the Pragmatists, improving
is a change agent and the the existing delivery of
people using it are the Technology is the priority –
champions of change they want “evolution not
revolution”
• Visionaries like a project • Pragmatists require integrated,
orientation and will therefore turn-key solutions – price is a
start out with a pilot project big issue
• Visionaries want to set the • Pragmatists would like to wait
standards until a platform or application
becomes the de facto standard
The Chasm exists between the Early and Mainstream Markets.
11 24 January 2010 IMTelkom MM-Biztel

12. Why is there a Chasm?
The situation:
• Visionaries are not considered to be good references
by the Pragmatists, but….
• Good references are a pre-requisite for investment in
technologies by the Pragmatists!
The Technology market demands that:
• New systems integrate with old ones
• New systems are technically supported
• People are trained to implement new systems
• All systems conform to a common standard
12 24 January 2010 IMTelkom MM-Biztel

13. Why is there a Chasm?
• Pragmatists expect extensive references from other
Pragmatists. They do not accept Visionaries as being
suitable referees because….
• …. they perceive such referees as being more interested
in the technology (what they can do) than the Technology
process (what they should do)
• Technology Pragmatists don’t care about technology
revolutions or paradigm shifts– they are too busy trying to
make the wheels of conventional Technology go round
Pragmatists hate discontinuous innovations!
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14. Why is there a Chasm?
• Visionaries build from the ground up – but Pragmatists
know that the new paradigm has to work with the existing
infrastructure and practices
• Pragmatists see Visionaries as overtly project orientated –
they come, the see, they conquer…. they leave!
• Pragmatists are usually committed to their profession and
their institution, they are in Technology for “the long run”
and must live with their ICT decisions
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15. Why is there a Chasm?
(a) Technology
Bermuda
Triangle
(b) Economics (c) Legislation
Wilnfried Holz, President and CEO, Siemens Health
15 24 January 2010
Technologies IMTelkom MM-Biztel

16. Why is there a Chasm?
(a) Technology:
Deloitte & Touche. The Emerging European
Telematics Industry: Market Analysis.
• Pragmatists want to hear about “up and running”, turn-
key applications that have been integrated into
mainstream Technology, not pilot projects
• Pragmatists trust “brand” – mergers and consolidations
are required
• Pragmatists need standards because they need
guaranteed interoperability - Visionaries want to set the
standards!
16 24 January 2010 IMTelkom MM-Biztel

17. Why is there a Chasm?
(b) Economics:
• Governments continue to concentrate largely on pilot
projects (Example: WiMAX in Indonesia)
• Firm insistence that evidence base of cost-effectiveness
must be established as a prerequisite to large-scale
implementation
• But there is practically no evidence base for cost-
effectiveness!
17 24 January 2010 IMTelkom MM-Biztel

18. Why is there a Chasm?
(c) Legislation:
• Technical and security standards
• Protecting electronic patient information
• Professional standards
• Licensing and credentialing of Technology providers
• Malpractice liability defence and insurance
• Lack of reimbursement for telematics services
• Infrastructure planning and development
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19. Why is there a Chasm?
(c) Legislation:
• Technical and security standards
• Protecting electronic patient information
• Professional standards
• Licensing and credentialing of Technology providers
• Malpractice liability defence and insurance
• Lack of reimbursement for telematics services
• Infrastructure planning and development
19 24 January 2010 IMTelkom MM-Biztel

20. Can we avoid the chasm?
chasm?
• We can never completely remove the chasm – no
one can!
• But we can develop chasm-crossing strategies
and find strategic locations at which to cross
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21. There are active efforts in four key
areas about the chasm
We need to:
(1) Identifying Chasm-Crossing Opportunities – through
Chasm-
market research & analysis, feasibility studies and
business plan development
And narrowing that chasm by:
(2) Developing Technology Integration Strategies – for
technology vendors to integrate and improve their
products and services
(3) Building Economic Evidence – through cost-benefit /
effectiveness studies
(4) Removing Legislative and Regulatory Barriers – through
legal and risk services, research, lobbying and advocacy
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22. (1) Identifying Chasm-Crossing
Chasm-
Opportunities
• Identifying new markets or market sectors for
clients
• Gathering information and intelligence on those
markets
• Improving the client’s knowledge and
understanding of the market as an essential pre-
requisite to….
• Introducing clients to key potential purchasers
• Creating routes to market
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23. (2) Developing Technology
Integration Strategies
• Assessing the needs of the market in terms of
the services they require
• Evaluating the best technologies
• Helping clients to build the solutions that their
market wants

24. (3) Building Economic Evidence
• Cost-benefit / effectiveness studies that provide
evidence for the economic sustainability of
technologies

25. (4) Removing Legislative and
Regulatory Barriers
• Providing legal and risk management services to
both technological vendors and users
• Advocating the safe and responsible use of
technology through workshops, symposiums and
presentations

26. In Summary
• Technology Manager need works with its clients and
partners to create the knowledge and understanding of
the market-place that is essential to achieve routes to
markets and “cross the chasm”
• Technology Manager specifically need addresses the
three core areas that both the users and vendors of
technologies must tackle in order to make that crossing:
o turning technologies into solutions;
o building the economic evidence base; and
o addressing legal, professional and risk issues.
Youtube
Crossing
the Chasm
2m51
26 24 January 2010 IMTelkom MM-Biztel