Wednesday, September 18, 2013

CHASMS

We've been concerned lately about CHASMS or ABYSSES -- places that innovation 'gets stuck' for whatever reason.

Many are familiar with the Technology Adoption curve, built around Everett Rogers' famous S-curve.  Geoffrey Moore, in Crossing the Chasm, popularized the notion that there is a large chasm between the Early Adopters and the Main-Line users -- a chasm that needs to be crossed in order to develop a large customer base for any new innovation.

Think Cisco with routers, vs. 3Com and bridges.   Bridges connected users to a Local-Area-Network (LAN), and routers counnected LANs to each other to build a Wide-Area Network (WAN).  Many companies emerged in the early 1980s to build LAN technology; very few emerged building WANs.  Until the world had enough LANs, there was 'no need' for WANs.

Said differently, Cisco spent four years looking for commercial customers to little avail; academic institutions on the other hand loved their technology.  Once enough LANs were built, the WAN became an essential link, but it took quite a while.

Analogously, the IBM PC didn't exactly ignite a firestorm at Intel; after three years of sales and a vote of "Man of the Year" for the PC by Time Magazine, IBM still did not make Intel's TOP FIFTY list.

What concerns me today though is the fact that this CHASM that Moore describes is but one of several that get 'in the way' of corporate transformation from fundamental innovation.

Moore's CHASM is a MARKETING or CUSTOMER CHASM.  This one can be impacted by companies, to speed it up, or to ameliorate the issues, but it is seldom within full control of your company.

There are three others that could be titled:

1. A FUNDING CHASM
2. AN IMAGINATIVE CHASM
3. A CANNIBALISM CHASM

Each of these, by contrast with the CUSTOMER CHASM, are largely under your own control.  We will elaborate on each of these in succeeding posts

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