fbpx

How to market disruptive innovations: technology adoption life cycle.

arcadia brands2019-08-25

Tech startups, are here and there. It is now becoming buzzwords, and more young adults are opt to either work for startups, or build their own startups. Most of the solutions from technology startups are designed to be disruptive, which means that tech startups have stripped all of the less important features, selling just the essential features to mass markets; also helping to increase those features gradually along the way to suit the market’s needs.

So, how does one market these disruptive innovations?

About 25 years ago, Geoffrey Moore introduced the Diffusion of Innovation model. It was developed to suit today’s startups display and called the Technology Adoption Lifecycle, which was described as the ‘entrepreneurial bible’ by Tom Byers from the Stanford Tech Venture Program. The framework helps tech startups to identify which stage they are in, and how to market to those in their current category.

But before we move on to the framework, it would be best to have your business numbers at hand, your total addressable market (TAM). If you would like to know more about TAM, you can read about it on my previous article here.

Technology Adoption Lifecycle – Crossing the Chasm

Why it’s described as crossing the chasm is because, empirical evidence shows that only a few tech startups have passed the gap between early adopters to early majority. This is where most startups fail.

The linear framework is divided into four parts, in which tech startups are required to address the first part only to move on towards the next. Each part describes the market penetration of the product, below are the explanations by Everett Rogers from his book, Diffusions of Innovations

Innovators

During my thesis research interview, a respondent of mine described it clearly with the statement – “Finding the first few customers is easy as there will always be a crazy guy out there who will buy your product”. These are amongst your first customers, 2.5% of the total addressable market, the people who are amongst the most aversely risked and willing to try your product before anyone else in the market.

Early Adopters

13.5% of your market consists of opinionated leaders, younger in age and have a higher social and financial status. Some argue that influencers are in between these groups and the early majority

Early Majority

This group consists more of various individuals that have connections with the early adopters, even having the same or similar financial and social status, but a much lower opinionated leadership as compared to early adopters.

Late Majority

This is the general market, groups of people who are more likely to be skeptical of any sort of innovation available in the market, and have minimum levels of opinionated leadership.

Laggards

The oldest groups of age tend to fall into this one, who are more likely to follow traditions and are less likely to adapt to innovations. Most of their source of information comes from their friends and family.

So, which stage is your business in? Have you ‘crossed the chasm’? If you have, let us know how you did so, share your journey with us!

Comments

Recent posts.

email tiles | arcadia brands

7 Fool-proof email marketing tips. 

hustle macbook | arcadia brands

Remote working increases productivity by 30%, here’s how you can reap the benefits in your business. 

arcadia brands | designer chair

The 3 problems we face when adjusting to working remotely, and how to solve them. 

apple devices | arcadia brands

Top 10 Tips for Choosing a Web Designer for Your Business. 

Subscribe to receive insightful articles.

Sign up to receive interesting and engaging articles about branding, design & productivity.

PASSION IS THE FORCE THAT DRIVES OUR SUCCESS


Arcadia Brands believes in a team orientated approach, where a collection of the most passionate brand & creative experts come together to offer unique solutions to our clients.

Our process of delivering high-level brands involves 4 key phases of brand identity, brand personality, brand equity and brand loyalty. Each client’s unique requirements are met at the highest level as we have a complex understanding of brand delivery.

Founded in 2012, we have been serving creative brand design and web development projects to various groups of clients, including publicly listed companies and SMEs worldwide. With a core team of 20 experts, our design studios are located in Kuala Lumpur, Malaysia, Birmingham, England and Ontario, Canada.

Brand identity is how a business wants to be perceived by consumers, reflecting the value the company is trying to bring to the market and to appeal to its customers.

Brand personality is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that consumers enjoy.

Brand equity refers to a value premium that a company generates from a product with a recognisable name, when compared to a generic equivalent.

Brand loyalty is a pattern of consumer behaviour where consumers become committed to brands and make repeat purchases from the same brands over time.


“Top notch results from the best brand artisans! Arcadia Brands has it all, 100% recommended”

AMBER CHIA



arcadia.brands / all rights reserved / crafted by arcadia.design


newsletter subscription

Sign up to receive interesting & engaging articles about branding, design & productivity.


Used in accordance with our privacy policy.

arcadia brands

Ask us anything!

We love answering questions about our company, branding and design.


Information submitted will be used in accordance with our privacy policy.