The objective of this text is to summarise the key concepts which underpin Crossing the Chasm to provide a context to consider its key strengths and arguable limitations. It is argued that whilst the text extracts and develops the practical and commercial value from the technology adoption life cycle, it nevertheless leaves key stages underdeveloped in respect of a new technology’s journey from brainwave to market saturation.
Key Concepts
From Fad to Market Saturation
The central theme developed by Moore is that to successfully bring a technology product to market and to achieve success in terms of market share, the hurdles that must be overcome can be mapped and understood. From this strategies can be distilled, some of which may be counter intuitive. Ignorance of these hurdles and strategies seal the fate of the failed launches of innovative technology and the success of the winning few.
Moore’s specific focus is discontinous innovations (i.e. innovations whose adoption by definition requires a significant change in behaviour of the user) and transitional stages along the technology adoption life cycle (fig.1).
Fig 1.
Moore plots the journey through the bell curve, pointing out that each segment of the curve possesses its own psychological and social characteristics (fig 2). In fact it is argued that the groups are distinguished precisely by their characteristic response to a discontinuous innovation based on new technology. This recognition of qualitative differences between the segments, Moore argues, requires a marketing strategy and selling proposition attune to the specific segment.
Fig 2.
Fig 2.
The Chasm
Having developed the proposition that there are ‘cracks’ between the different segments of the bell curve, Moore points to the ‘chasm’ between early adopters and the early majority – visionaries and pragmatists. Moore relies upon his assertion that the pragmatists are by definition self referencing within their bell curve segment as giving rise to the chasm. They will only buy if other early majority players have bought (providing the comfort of an established market where ‘whole products’ are available – i.e. ancillary support and integration strategies), but the other referenced pragmatists will by definition display similar characteristics. Therefore to cross the chasm the obvious circularity of buyer behaviour amongst a self referencing group needs to be interrupted.
The Chasm walls
Moore uses a further tool to crystallise the nature of challenge faced when attempting to ‘cross the chasm’. The competitive-positioning compass (fig 3).
Fig 3.
Whilst at first blush this model seems perhaps impenetrable – when analysed sequentially it represents a further level of detail on his analysis of the technology production life cycle.
Fig4.
Fig4.
Therefore crossing the chasm challenges the company to (in some cases counter intuitively) move from a target customer segment occupied by visionaries to one occupied by pragmatists. It represents a move from a supportive but demanding (in terms of customisation) market to a sceptic but lucrative mainstream market who demand whole products (support and ancillary products) and a choice between competitors, i.e. an established market.
Therefore it is necessary, Moore argues to move from a product centric position to a market centric strategy. This may require tactical alliances (which are distinguished from strategic alliances – perhaps due to no more than over and misuse of the latter phrase). To Moore, the only reason to form a ‘tactical alliance’ is to accelerate the formation of the ‘whole product’, the key to developing share in mainstream market segment (i.e. the early majority).
The Chasm Crossing
Appreciating the transformation (or perhaps maturing) of the selling proposition is only one aspect of the crossing strategy. It is necessary to focus on a niche area with the sole objective of winning that market (as defined by Moore) over and driving out the competition. From here entry can be made into neighbouring niches as the product is adopted through the early majority mainstream market. Moore concedes that the decision as to which niche (or how to define the niche) is a matter for ‘informed intuition’ rather than ‘analytical’ decision making. Most companies fail, it is argued as they loose focus due the range of opportunities available. Once focussed on the niche (Moore provides a suggested approach to identifying this niche), then focus turns to making the buying (and not the selling) easier, resorting to well known business propositions aimed at distilling a clear selling proposition and easily digested reason to buy.
Therefore it is necessary, Moore argues to move from a product centric position to a market centric strategy. This may require tactical alliances (which are distinguished from strategic alliances – perhaps due to no more than over and misuse of the latter phrase). To Moore, the only reason to form a ‘tactical alliance’ is to accelerate the formation of the ‘whole product’, the key to developing share in mainstream market segment (i.e. the early majority).
The Chasm Crossing
Appreciating the transformation (or perhaps maturing) of the selling proposition is only one aspect of the crossing strategy. It is necessary to focus on a niche area with the sole objective of winning that market (as defined by Moore) over and driving out the competition. From here entry can be made into neighbouring niches as the product is adopted through the early majority mainstream market. Moore concedes that the decision as to which niche (or how to define the niche) is a matter for ‘informed intuition’ rather than ‘analytical’ decision making. Most companies fail, it is argued as they loose focus due the range of opportunities available. Once focussed on the niche (Moore provides a suggested approach to identifying this niche), then focus turns to making the buying (and not the selling) easier, resorting to well known business propositions aimed at distilling a clear selling proposition and easily digested reason to buy.
Darren Maw
Naked Chasm Jumpers
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