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.
32. The
Railway
Bubble
Railway
Stock
in
Britain
The
value
of
railway
stock
grew
4
fold
from
1826
to
1846
Many
companies,
heavy
over-‐investment
The
bubble
burst
1846
36. Theory of Predicting the Future
Anderson’s Grand Unified Theory of Predicting the Future
All important technologies go through four states, or at least four
stages, in their lives. Each stage can be seen as a collision, with
something else. The stages are:
1. Critical Price
2. Critical Mass
3. Displace another technology
4. Become nearly free
41. Technology Adoption Life Cycle
The talent of the company that made the
product in the early days may become wrong
when the product matures
The organisational structure of companies
need to change when the company moves
from technology to products/services
42. Organisations which design
systems ... are constrained to
produce designs which are copies
of the communication structures
of these organisations
Conway’s Law
43. To whom does the designer report to?
A programmer?
46. Technology
Life
Cycle
When
will
the
early
majority
pragmatics
start
buying
a
product?
The
value
of
the
product
is
sufficiently
great
or
good-‐enough
47. Technology
Life
Cycle
Early
in
the
cycle,
technology
is
important
When
technology
becomes
good
enough
Value
becomes
more
important
Design
becomes
more
important
Technology
is
no
longer
the
variable
that
controls
purchases
Improvements
loose
their
glamour
Customers
are
looking
for
things
like
value
convenience,
productivity,
ease-‐of-‐use,
low-‐cost,
reliability
Emotions
48.
49.
50. Life
Cycle
of
Technology
The
move
from
Technology
to
Commodity
The
need-‐satisfaction
curve
of
technology
51.
52. The
Market
of
Commodites
• What
happens
when
a
market
becomes
mature?
– Karaoke
Capitalism
takes
over
• Red
oceans
– All
the
industries
in
existence
today
—the
known
market
space
– Industry
boundaries
are
defined
and
accepted,
and
the
competitive
rules
of
the
game
are
known
53. Creating
Blue
Oceans
• Strategy
for
creating
new
markets
– Make
the
competition
irrelevant
• Blue
oceans
denote
all
the
industries
not
in
existence
today—the
unknown
market
space,
untainted
by
competition
54. Instead
of
focusing
on
beating
the
competition,
you
focus
on
making
the
competition
irrelevant
by
creating
a
leap
in
value
for
your
buyers
and
your
company,
thereby
opening
up
new
and
uncontested
market
space
Value Innovation