Technology Adoption – How Technology Markets Evolve
When you’re selling a cutting-edge technology, it is crucial that you know the way people integrate technology to their lives since it is the energy source driving market growth.
Established markets resist change. In 1900 many people owned horses and buggies. Most technologies require individuals to change their behavior to embrace the advantages of the applied technology. Markets don’t grow until people believe the possibility together with your new technology over-shadow the potential risks and energy of change.
The greater “discontinuous” an innovation, the more it requires the marketplace to consider it. Discontinuous innovations are new ideas, products, services, etc. that need us to alter our current behavior to something very different and new – the car, telephone or pc. By comparison, continuous innovation does not need a change of behavior, since it is just an easy method to do what we should happen to be doing – the automated gearshift, the mobile phone or generation x of word processing programs. A brand new technology representing a discontinuous innovation is a which has the finest possibility to build a fortune. It’s also the toughest type of innovation to market since it means you need to convince individuals to dramatically change their behavior.
The laws and regulations of physics educate us that it requires lots of energy to beat inertia. Human inertia is exactly what keeps individuals from adopting your brand-new technology. It requires lots of energy to obtain individuals to change their behavior. So if you wish to sell into an earlier market, you have to find and employ market energy.
S-curve Adoption Theory
The S-curve adoption model helps you determine who’ll adopt when, so that you can focus profits efforts and harness the power produced by market evolution. It may also help you discover new possibilities and approach prospects before your competitors does.
S-curve adoption theory has three concepts:
1. Typically, innovations move very gradually into niches, then mushroom in to the mainstream. Early markets frequently develop gradually – the greater “discontinuous” the innovation, greater it’s that people learn how to put it on. The vehicle was around for 3 decades before you decide to saw lots of on the highway.
2. It often takes the equivalent here we are at an item to achieve 10% acceptance because it gives achieve 90% acceptance. Prevalent market adoption frequently happens very rapidly. Within the 14 years between 1914 and 1928, household adoption from the automobile increased from 10% to 90%.
3. When a new technology reaches 50% market transmission, it begins to noticeably change up the economy and productivity. Propelled through the incredible productivity from the set up-line revolution pioneered by Henry Ford in 1914 by installment financing provided by Vehicle in 1920, the wide-scale adoption from the automobile fueled the booming economy from the Roaring Twenties.
Since technology markets have a tendency to consolidate because they grow, early share of the market is essential towards the lengthy-term viability of the solution as well as your company. As technologies mature, the marketplace has a tendency to get rid of most of the smaller sized players in support of a couple of major alternatives. This can help the marketplace to standardize on a single approach, making while using technology much simpler. When the market has selected an industry leader – Microsoft ‘office’, ‘cisco’ Routers, I-phones – it’s nearly impossible to unseat them. The advantages of market leadership are longer product lifecycles, repeat business and economies of scale, which serves to strengthen their market dominance with time.