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Crossing the Chasm
                 vs.
         Spinning Up the Web




Berkeley >Play
October 29, 2011
Venture Agenda:
High-Tech Market Development Models

      B-2-B Markets
       – Crossing the Chasm


      B-2-C Marke...
Crossing the Chasm
B-2-B High-Tech Market Development




                            2
Technology Adoption Life Cycle

                Pragmatists:                             Conservatives:
                Us...
The Whole Product


                      Outsourcing   Hardware



                Application
                          ...
Market Development Model
Offers Evolve with Whole Product Maturity
                                                Proven ...
Crossing the Chasm Framework
       A Playbook for B-2-B Market Development

       Pragmatist in Pain        1. Target Cu...
Spinning up the Web
B-2-C Digital Market Development




                              7
Identity Modification Life Cycle

                      Engagers:                           Reluctants:
                  ...
Brand/Identity Interactions*
Levels of Engagement & Commitment

              Level of Commitment                         ...
Spinning Up Volume Operations on the Web
Running Experiments in Tandem



              VIRALITY                    ACQUIS...
Spinning Up the Web
Metrics that Will Drive Your Programs
      Grow Acquisition
       – Rate of gaining new users (velo...
Critical Success Factors
Crossing the Chasm vs. Spinning up the Web




                             12
Critical Success Factors
What Venture Investors Look For

        Crossing the Chasm           Spinning Up the Web

     ...
Thank You
     gmoore@mdv.com

     #crossingthechasm




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Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 1 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 2 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 3 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 4 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 5 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 6 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 7 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 8 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 9 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 10 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 11 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 12 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 13 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 14 Geoffrey Moore Slide Set from the Berkeley Digital Media Conference Slide 15

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This slide set is from a speech Geoffrey Moore gave at the Berkeley Digital Media Conference on October 29, 2011. This is a link to the actual speech: http://www.youtube.com/watch?v=7RIHoUtyJQc
To find out more about Geoffrey Moore please visit:

More information about Geoffrey Moore:
http://www.geoffreyamoore.com

More information about the Escape Velocity Book:
http://www.escapevelocitybymoore.com

Geoffrey Moore on Twitter:
http://www.twitter.com/geoffreyamoore

Geoffrey Moore on Google Plus:
http://gplus.to/geoffreyamoore

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Geoffrey Moore Slide Set from the Berkeley Digital Media Conference

  1. Crossing the Chasm vs. Spinning Up the Web Berkeley >Play October 29, 2011
  2. Venture Agenda: High-Tech Market Development Models  B-2-B Markets – Crossing the Chasm  B-2-C Markets – Spinning up the Web  Comparing Critical Success Factors – Chasm vs. Web 1
  3. Crossing the Chasm B-2-B High-Tech Market Development 2
  4. Technology Adoption Life Cycle Pragmatists: Conservatives: Use it when it’s ready! Make sure it’s ready! Visionaries: Be the first mover! Skeptics: Never happen! Techies: Try it! Innovators Early Early Majority Late Majority Laggards Adopters Pragmatists’ view of whole product maturity drives the adoption of new technology.
  5. The Whole Product Outsourcing Hardware Application Software Engineering Complementary Core Complementary Services Offering Products Installation Peripherals and support Design Databases Minimum set of products and services to fulfill target customer's reason to buy.
  6. Market Development Model Offers Evolve with Whole Product Maturity Proven systems for cost- Standard products for conscious conservatives pragmatists with budgets Main Street Tornado Early Market Chasm Bowling Segment-specific Custom projects for Alley solutions for Visionaries pragmatists in pain
  7. Crossing the Chasm Framework A Playbook for B-2-B Market Development Pragmatist in Pain 1. Target Customer 2. Compelling Reason to Buy Broken m/c process Complete solution 3. Whole Product 4. Partners and Allies Ready to fill in the gaps Can manage complexity 5. Sales Channel 6. Pricing Rewards for all parties Current alternatives 7. Competition 8. Positioning Differentiating focus Next growth segment 9. Next Target And that’s how you grow a B-2-B market! 6
  8. Spinning up the Web B-2-C Digital Market Development 7
  9. Identity Modification Life Cycle Engagers: Reluctants: Check it out! Wait! Evangelists: Believe in it! Rejecters: Beware! Enthusiasts: Be 1st to try it! Innovators Early Early Majority Late Majority Laggards Adopters Engagers create the dynamics of digital market development
  10. Brand/Identity Interactions* Levels of Engagement & Commitment Level of Commitment Level of Engagement I will camp out all night I never imagined this was possible. to be first in line when you open. D You are reshaping my identity. I will go the extra mile You express my dreams, and I want to play a part in your world. C to do more to help your cause. I not only purchase your offers You are part of what I am. but display them proudly. B By choosing you, I express myself. I select your offers over others I respect what you do, and whenever they are available. A believe what you say. * Model developed in collaboration with Schireson Associates 9
  11. Spinning Up Volume Operations on the Web Running Experiments in Tandem VIRALITY ACQUISITION Starter Motor MONETIZATION ENGAGEMENT 10
  12. Spinning Up the Web Metrics that Will Drive Your Programs  Grow Acquisition – Rate of gaining new users (velocity & acceleration)  Grow Engagement – Average length, depth, and frequency of user engagement  Grow Virality – # of new customers coming from existing customers over time  Grow Monetization – Percentage & amount of participation, plus rate of change  Increase Promotional Productivity – Yield relative to acquisition, engagement, virality, monetization  Reduce Churn – Rate of losing existing users (velocity & acceleration)  Increase Lifetime Customer Value – DCF value to date, plus rate of change And that’s how you grow a B-2-C market! 11
  13. Critical Success Factors Crossing the Chasm vs. Spinning up the Web 12
  14. Critical Success Factors What Venture Investors Look For Crossing the Chasm Spinning Up the Web  Disruptive technology  Distinctive cool factor  Compelling reason to buy  Leveraged access to market  Customer domain expertise  Web-tech expertise  Whole product focus  User experience focus  Agile services-led offer  Agile data-driven product development development Different horses, different riders—same trail! 13
  15. Thank You gmoore@mdv.com #crossingthechasm 14
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This slide set is from a speech Geoffrey Moore gave at the Berkeley Digital Media Conference on October 29, 2011. This is a link to the actual speech: http://www.youtube.com/watch?v=7RIHoUtyJQc To find out more about Geoffrey Moore please visit: More information about Geoffrey Moore: http://www.geoffreyamoore.com More information about the Escape Velocity Book: http://www.escapevelocitybymoore.com Geoffrey Moore on Twitter: http://www.twitter.com/geoffreyamoore Geoffrey Moore on Google Plus: http://gplus.to/geoffreyamoore

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