Mar 22, 2024
Crossing the Chasm & Tech Adoption Revisited w/ Geoffrey Moore
AZ TRT S05 EP11 (226) 3-17-2024
Things We Learned This Week
• Crossing the Chasm book (1990) has become part of the lexicon for Tech Industry knowledge, mass influence on Tech CEOs last 25 years, constant references
• Chasm – early market vs. mainstream market
• 5 Stages of Adoption – Innovators, Early Adopters, Early Market Pragmatists, Late Majority, Laggards
• Win tech ‘primaries’, win some ‘beachheads’ & create whole niche market – get mainstream market to create momentum to the point everyone wants the product
• Legacy Co’s fail to make tech turn, because they lose money in short term shifting to new disruptive tech away from mature industry that brings in bulk of profits $
Guest: Geoffrey Moore
http://www.geoffreyamoore.com/
https://www.linkedin.com/in/geoffreyamoore/
https://twitter.com/geoffreyamoore
Bio:
Managing Director, Geoffrey
Moore Consulting
Venture Partner, Wildcat Venture Partners
Chairman Emeritus, TCG Advisors, Chasm
Institute and The Chasm
Group
Member of the Board of Directors of several pre-IPO
Companies
Books – Crossing the Chasm, Zone to Win, Inside the Tornado, The Infinite Staircase, Escape Velocity & more…
Geoffrey Moore is an author, speaker, and advisor who splits his
consulting time between start-up companies in the Wildcat Venture
Partners portfolios and established high-tech enterprises, most
recently including Salesforce, Microsoft, Autodesk, F5Networks,
Gainsight, Google, and Splunk.
Moore’s life’s
work has focused on the market dynamics surrounding disruptive
innovations. His first book, Crossing the Chasm, focuses on the
challenges start-up companies face transitioning from early
adopting to mainstream customers. It has sold more than a million
copies, and its third edition has been revised such that the
majority of its examples and case studies reference companies come
to prominence from the past decade. Moore’s most recent work is
the, The Infinite Staircase, a bold new book, high-tech’s
best-known strategist makes a seminal contribution to the search
for meaning in a secular era.
Two questions fundamental to human
existence have always been the metaphysical “where do I fit in the
grand scheme of things?” and the ethical “how should I behave?”
Religion is no longer a source of answers for many people, and
nothing has replaced it.
Irish by heritage, Moore has yet to meet a microphone he didn’t like and gives between 50 and 80 speeches a year. One theme that has received a lot of attention recently is the transition in enterprise IT investment focus from Systems of Record to Systems of Engagement. This is driving the deployment of a new cloud infrastructure to complement the legacy client-server stack, creating massive markets for a next generation of tech industry leaders.
Moore has a bachelors in American literature from Stanford University and a PhD in English literature from the University of Washington. After teaching English for four years at Olivet College, he came back to the Bay Area with his wife and family and began a career in high tech as a training specialist. Over time he transitioned first into sales and then into marketing, finally finding his niche in marketing consulting, working first at Regis McKenna Inc, then with the three firms he helped found: The Chasm Group, Chasm Institute, and TCG Advisors. Today he is chairman emeritus of all three.
Notes:
Crossing the Chasm book
Crossing the Chasm, Take Two: Growing to Scale in B2B2C Markets
Crossing the Chasm (1990) has become part of the lexicon for Tech Industry knowledge, mass influence on Tech CEOs last 25 years, constant references
5 Stages of Adoption – Innovators, Early Adopters, Early Market Pragmatists, Late Majority, Laggards
Disruptive Innovation – is created & early adopters put the tech on the market
Chasm – early market vs. mainstream market.
Win tech ‘primaries’, win some ‘beachheads’ and create whole niche market – get mainstream market to create momentum to the point everyone wants the product – FOMO (Fear Of Missing Out)
i.e. – EV niche, the mainstream streaming video
Tornado phase – run like hell to keep up with demand.
1999 – Salesforce – enterprise software in cloud, SAAS mass adoption by 2010
Mid market could not afford Oracle Cloud early on, with SAAS everyone can afford.
Legacy Co’s fail to make tech turn, because they lose money in short term shifting to new disruptive tech away from mature industry that brings in bulk of profits $
All companies are Tech companies now, and everyone needs to read Geoffrey Moore’s work.
Zone To Win book about Mature Industries invest in new tech – form new second operating model for new tech model within a mature company, meanwhile old model continues asa separate division selling current long term product
Go out of business if do not make tech transition, disrupted so much by new tech, as old tech becomes obsolete (think VCRs)
Apple, under Steve Jobs, did great R&D. Had first Mover Advantage disruptive technologies. Rare to be disruptive company – most are disrupters.
Good enough, fast enough – get in the game, catch up and convince clients you’re part of future.
Talent costs money, startups attract talent. Very hard for legacy companies to attract talent because talent wants to work on new tech.
Nokia lost way with disruptive smart phone. Blackberry, Blockbuster disappeared quick because of disruptive tech. Blackberry had Keypad – was disruptive tech and blown out also by smart phone spin off of new R&D tech.
Kodak had digital film, invented it but could not move off of print film (legacy biz) and lost market share. Amazon has constantly disrupted itself and evolved.
Fuji could not move off print film, but saved by coloring techniques.
Infinite Staircase – book, passion project of Geoffrey
Philosophical book – complexity and emergence stitch all the science stories of Big Bang Creation of the Universe to BRT podcast in 2022 and Moral Questions of life, Where do traditional values come from now? Let’s hope AI does not take over
Flashback to: Seg. 2 of 3/6/2022
MB on Disruption in Business & The Innovator's Dilemma book by Clayton Christensen
Clayton Christensen’s book, “The Innovator’s Dilemma”
Tech Disruption – technology changes and a small company startup can up-end big tech companies. Hence, disruption - the power of disruption, why market leaders are often set up to fail as technologies and industries change and what incumbents can do to secure their market leadership for a long time.
Innovator’s Dilemma – how can big companies stay up with tech changes and pivot without hurting core business? All businesses (including tech companies) have trouble with disruption.
Example: Blockbuster – rented movies, DVDs, lost market share to Red Box (vending movie rental), then both disrupted by streaming movies.
Music industry went from records to cassettes to CDs to streaming (Napster).
MySpace taken out by Facebook in social networks.
Yahoo search taken out by Google (controls 75% of the search market)
Kodak afraid to get out of film business and passed on digital film, lost market share.
To solve the Innovator’s Dilemma, big companies acquire smaller tech companies; have in house R&D to be ready for next tech wave.
Steve Jobs of Apple was very influenced by Innovator’s Dilemma and took this idea seriously.
If you do not try to put your company out of business (w/ disruption / new tech), someone else will.
Jobs was not afraid to innovate, and cannibalize his own company and products to stay relevant.
Apple created iPhone, and now computer is in your pocket
Peter Thiel – “Zero to One” book - Great innovation is not A to B to C, it is vertical, jumps curves.
Current smart phones have more computing power than a computer 20 years ago.
Guy Kawasaaki (former Apple) Talk - “12 Lessons From Steve Jobs”
Full Show: HERE
Tech Topic:
https://brt-show.libsyn.com/category/Tech-Startup-VC-Cybersecurity-Energy-Science
Best of Tech:
https://brt-show.libsyn.com/size/5/?search=best+of+tech
Investing Topic:
https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
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