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Magic S-curve

    Ir.	
  Hendrik	
  C.	
  de	
  Lange	
  
Patent	
  A2orney	
  and	
  Founder	
  of	
  
            Octrooifabriek	
  
             16-­‐03-­‐2012	
  
The S-curve


•  Represents	
  natural	
  growth	
  
•  Represents	
  market	
  penetraHon	
  
The S-curve formula
                                                              !!"#
 !! =                                                             !!(!!!! ) !
                                                !!!
t0	
     	
     	
  =	
  Hme	
  of	
  the	
  Hpping	
  point,	
  when	
  a	
  market	
  
      	
   	
  	
  	
  	
  penetraHon	
  of	
  50%	
  is	
  reached	
  
α	
   	
   	
  =	
  accelerator	
  
Nmax	
   	
  =	
  Saturated	
  marked	
  volume	
  
Global internet hosts

Within	
  40	
  years,	
  the	
  global	
                                                     1.4	
  Billion	
  


number	
  of	
  internet	
  hosts	
  	
  
reached	
  50%	
  of	
  its	
  	
  
market	
  potenHal	
  	
  	
  
	
  	
  

      1960	
     1970	
     1980	
     1990	
     2000	
     2010	
     2020	
     2030	
          2040	
  
Facebook users
                                                          1	
  billion	
  




               Within	
  6.4	
  years,	
  Facebook	
  
               reached	
  50%	
  of	
  its	
  global	
  	
  
               market	
  potenHal	
  	
  
2004	
           2012	
                        2020	
  
Tweets per second	
  
Within	
  6	
  years	
  from	
  Twi2ers	
  introducHon,	
  
	
  the	
  total	
  number	
  of	
  tweets	
  	
                                                                                                            9000	
  

per	
  second	
  will	
  reach	
  	
  
50%	
  of	
  its	
  market	
  	
  
PotenHal	
  	
  
	
  

    01-­‐01-­‐05	
     01-­‐01-­‐07	
     01-­‐01-­‐09	
     01-­‐01-­‐11	
     01-­‐01-­‐13	
     01-­‐01-­‐15	
     01-­‐01-­‐17	
     01-­‐01-­‐19	
       01-­‐01-­‐21	
  
Kickstarter projects	
  
Within	
  4.4	
  years	
  from	
  Kickstarters	
  introducHon,	
  
the	
  annual	
  number	
  of	
  projects	
  	
            9000	
  

will	
  reach	
  50%	
  of	
  its	
  market	
  	
  
potenHal*	
  	
  
	
  


            2006	
            2008	
           2010	
           2012	
            2014	
      2016	
     2018	
  


*Because	
  of	
  only	
  three	
  datapoints,	
  	
  
the	
  esHmated	
  market	
  potenHal	
  is	
  of	
  indicaHve	
  value	
  only	
  	
  	
  
	
  
Some remarks	
  
•  Only	
  one	
  new	
  datapoint	
  can	
  dramaHcally	
  change	
  
             	
  the	
  predicted	
  market	
  potenHal	
  and	
  the	
  Hme	
  	
  
             	
  to	
  reach	
  the	
  point	
  of	
  50%	
  market	
  potenHal.	
  
•  Although	
  the	
  data	
  sets	
  all	
  perfectly	
  fit	
  on	
  the	
  	
  
	
  	
  	
   	
  S-­‐curve,	
  the	
  predicHve	
  value	
  is	
  of	
  indicaHve	
  	
  
             	
  nature	
  only	
  
	
  
	
  
Thank you	
  

Thank	
  you	
  for	
  your	
  a2enHon!	
  
                      	
  
                      	
  
    Hendrik	
  C.	
  de	
  Lange	
  	
  
          Octrooifabriek	
  
   www.octrooifabriek.nl	
  	
  

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Magic S-curve Growth Formula Explained

  • 1. Magic S-curve Ir.  Hendrik  C.  de  Lange   Patent  A2orney  and  Founder  of   Octrooifabriek   16-­‐03-­‐2012  
  • 2. The S-curve •  Represents  natural  growth   •  Represents  market  penetraHon  
  • 3. The S-curve formula !!"# !! = !!(!!!! ) ! !!! t0      =  Hme  of  the  Hpping  point,  when  a  market            penetraHon  of  50%  is  reached   α      =  accelerator   Nmax    =  Saturated  marked  volume  
  • 4. Global internet hosts Within  40  years,  the  global   1.4  Billion   number  of  internet  hosts     reached  50%  of  its     market  potenHal           1960   1970   1980   1990   2000   2010   2020   2030   2040  
  • 5. Facebook users 1  billion   Within  6.4  years,  Facebook   reached  50%  of  its  global     market  potenHal     2004   2012   2020  
  • 6. Tweets per second   Within  6  years  from  Twi2ers  introducHon,    the  total  number  of  tweets     9000   per  second  will  reach     50%  of  its  market     PotenHal       01-­‐01-­‐05   01-­‐01-­‐07   01-­‐01-­‐09   01-­‐01-­‐11   01-­‐01-­‐13   01-­‐01-­‐15   01-­‐01-­‐17   01-­‐01-­‐19   01-­‐01-­‐21  
  • 7. Kickstarter projects   Within  4.4  years  from  Kickstarters  introducHon,   the  annual  number  of  projects     9000   will  reach  50%  of  its  market     potenHal*       2006   2008   2010   2012   2014   2016   2018   *Because  of  only  three  datapoints,     the  esHmated  market  potenHal  is  of  indicaHve  value  only        
  • 8. Some remarks   •  Only  one  new  datapoint  can  dramaHcally  change    the  predicted  market  potenHal  and  the  Hme      to  reach  the  point  of  50%  market  potenHal.   •  Although  the  data  sets  all  perfectly  fit  on  the            S-­‐curve,  the  predicHve  value  is  of  indicaHve      nature  only      
  • 9. Thank you   Thank  you  for  your  a2enHon!       Hendrik  C.  de  Lange     Octrooifabriek   www.octrooifabriek.nl