In the early days of product development, the technology is inferior and lacking in performance. The focus is very much on the technology itself. The users are enthusiast who like the idea of the product, find use for it, and except the lack of performance. Then as the product becomes more mature, other factors become important, such as price, design, features, portability. The product moves from being a technology to become a consumer item, and even a community. In this lecture we explore the change from technology focus to consumer focus, and look at why people stand in line overnight to buy the latest gadgets.

1. LECTURE L06
DIFFUSION OF TECHNOLOGY

2. Why is it that good products can fail and inferior – “good enough”
products can succeed?
What are the customers really buying?

3. Menlo Park
1876-1881
Tomas Edison

4. Edison Phonograph Victor Talking Machine’s Victrola

6. Enrico Caruso
1873-1921

7. Edison’s ideas for the phonograph
1. Letter writing and all kinds of dictation
2. Phonographic books, which will speak to blind people
3. The teaching of elocution.
4. Reproduction of music.
5. The "Family Record” ... and of the last words of dying persons.
6. Music-boxes and toys.
7. Clocks that should announce... time for going home, going to meals, etc.
8. The preservation of languages
9. Educational purposes
10. Connection with the telephone
http://memory.loc.gov/ammem/edhtml/edcyldr.html

8. Edison Phonograph Victor Talking Machine’s Victrola

9. Phonograph conclusion:
Customers wanted music by their favourite singers - the stars
Disk are more convenient

10. Porn Industry
Licensing Issues
Betamax standard tape was 60
minutes while VHS was 2 hours

11. Betamax conclusion:
Customers wanted to record and/or rent movies
Legal issues also played some part
And the Porn Industry was forced to adopt VHS

12. Development started 1978
Release 1983
Sold 100.000 machines
Featured preemptive multi-
tasking OS with Graphical
User Interface

13. Lisa conclusion:
The vision was right
Technology just was not there
Too many features

14. Customer Motivations
Customer are not always buying products for the reason
the inventor thinks

16. VisiCalc

17. Technological change is relatively easy

18. It’s the social, organisational and cultural change that is hard

19. Technology Adoption Life Cycle - The Law of
Diffusion of Innovation
Diffusion of Innovation

20. TECHNOLOGY
CONSUMER
Technology Adoption Life Cycle - The Law of
Diffusion of Innovation

21. In the early days
The innovators and technology
enthusiasts drive the market
They demand technology
Small percentage of the market
In the later days
The pragmatists and conservatives
dominate; they want solutions and
convenience
The big market
Technology Adoption Life Cycle - The Law of
Diffusion of Innovation

22. In the early days
THEY BUY FOR THE
WHY
In the later days
THEY BUY FOR THE
WHAT
Technology Adoption Life Cycle - The Law of
Diffusion of Innovation

23. VISIONARIES
WHY
Technology Adoption Life Cycle - The Law of
Diffusion of Innovation

24. Innovations that will transform the world

25. Self-driving car

27. MOOC - massively open online courses

29. Why is Apple so
successful when other
companies fail?

30. APPLE WAS IRRELEVANT AND
ALMOST BACKRUPT IN 1997
IN 2012 IT WAS THE MOST
VALUABLE COMPANY
IN THE WORLD

34. image:
cultformac

35. AAPL Apple stock from 1997 to now

36. Brain NEO CORTX: RATIONAL,
ANALITICAL THOUGHT, LANGUAGE
LIMBRIC SYSTEM: FEELINGS, TRUST, LOYLTY,
BEHAVIOUR, DECISION MAKING
REPTILIAN: INSTINCTS,
HUNGER, DANGER

37. Start with Why: How Great Leaders Inspire Action
Simon Sinek

39. FORMULA FOR SUCCESS?
1. Strong funding
2. Right people
3. Market conditions
Is this all it takes?

40. Samuel Pierpont Langley

42. Technology Adoption Life Cycle
VISIONARIES

43. Source:
Geoffrey
A.
Moore:
Crossing
the
chasm
Crossing the Chasm
The
change
in
customers
as
technology
matures
Crossing
the
chasm
–
or
the
Tipping
point

45. What triggers the tipping point?

46. What caused the tipping point for the iPod?
Apple
said
it
sold
a
record
22.7
million
iPods,
which
commands
a
70%
share
of
the
U.S.
market
for
music
players.
(source:
LA
times)

48. Apple
iPod
Sales

51. NEXT
BECOMING INVISIBLE