Inside The Tornado by Geoffrey A. Moore

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Inside The Tornado by Geoffrey A. Moore

• From standard diffusion theory (Everrett Rogers),
  the types of customers over the life cycle of
  diffusion are
• Innovators or Technology enthusiasts
• Early adopters or Visionaries
• Early majority or Pragmatists
• Late Majority or Conservatives
• Laggards or Skeptics

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The Chasm v-p gap or the growth phase

• Visionaries
• intuitive
• support revolution
• contrarian
• break away from the pack
• follow their own dictates
• take risks
• motivated by future opportunities
• seek what is possible

• Pragmatists
• analytic
• support evolution
• conformist
• stay with herd
• consult with their colleagues
• manage risks
• motivated by present problems
• pursue what is probable

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Success factors for crossing the chasm

• Pragmatists want 100 solution to their problem
  or the whole product
• the minimum set of products and services
  necessary to ensure that the target customer will
  achieve his or her compelling reasons to buy
• Segment the market
• do put all your eggs in one segments basket

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Choosing a segment

• Is the segment well funded and accessible to
  sales force?
• do they have a compelling reason to buy?
• can we deliver (albeit with partners) deliver a
  whole product to fulfill that reason to buy?
• Is there entrenched competition that will make it
  impossible for us?
• will a win in this segment allow us to leverage
  to others?

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sample bowling alley

• regulatory submissions
• pharmaceuticals
• medical equipment regulatory submissions
• food processing regulatory submissions
• manufacturing pharmaceuticals
• manufacturing medical equipment
• pharmaceutical RD

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Success principles in the bowling alley

• Pick on someone your own size
• Focus on end user or economic buyer

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Getting buy-in

• Solve an important problem for end user
• demonstrate that the problem is because of
  current technology
• show how you solution is a technology fix to
  their systemic problem
• exhibit mastery of their application
• ask for business, having overcome resistance

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The tornado signals

• what pragmatists do
• when it is time to move, let us all move together
• let us all pick the same vendor for the new
  paradigm
• once we start, let us move fast and get it over
  with to minimize end user nuisance

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Lessons from Oracle

• Attack the competitor ruthlessly
• expand your distribution as fast as possible
• ignore the customer

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Lessons from HP in the PC printer markets tornado

• Just ship
• Extend distribution channels
• Drive to the next lower price point
• If you refuse or neglect to supply any channel
  with your product, you leave that flank
  unprotected

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Intel and Microsoft lessons

• Only the paranoid survive
• recruit partners to create a powerful whole
  product
• Institutionalize this whole product as market
  leader
• commoditize the whole product by designing out
  your partners

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TORNADO MISTAKES

• Tornado forces are bigger than any one companys
  ability to control, so dont try.
• Dont introduce discontinuity during a tornado
• Tornadoes design service out, not in
• Dont bet on preventing a tornado

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