Posts Tagged ‘buyer adoption’

Confused on What Adoption Really Means?

August 6th, 2014

We created a visual primer on the major types of adoption. Enjoy!

4 Leading Questions

April 22nd, 2014
  1. What is the difference between adoption and marketing? Difference between product adoption and problem adoption? How does this change the idea of implementation, staging adoption, customer experience, project success?
  2. As a buyer, How do you go about identifying underlying root problem causation from visible pain? What is the hardest thing about diagnosing problems within your organization? How do good vendor partners assist in that process? How do mediocre vendors hurt that process? In  a couple of words, what is the difference between selling and decision support? Continue reading “4 Leading Questions” »

Disruption and Adoption Are Confusing the Real Issue

February 3rd, 2014

It starts with the dreaded question in the pitch meeting. Usually slide #2 of your supposed 5 slide deck. “I think I get what you do, how are you going to build a market?”

You, at that point, will discuss the extrapolated X number of companies that fit the target, talk about your percentage that of the available that you would like to have within Y years, and then talk about all of the mechanics that you plan on driving to get  that percentage at Z cost per customer in acquisition costs. Numbers are actually irrelevant since the person who asked the question won’t really believe your answer; they just want to see if you understand the variables to the formula.

What is really hidden in the question is the assumption about how expensive it is to build and develop a market. They are looking for your Go-to-market strategy, but really they are looking for your built-in short-cuts. They are looking for ways that you can short-circuit the standard investment model for building a market.

Continue reading “Disruption and Adoption Are Confusing the Real Issue” »

Key to Your Buyer Adoption Problem

January 14th, 2014

The key to buyer adoption is to understand the context of the target buyers’ needs as “what tangible business problems the product will be able to assist them in solving?” For uneducated and unaware buyers, how do they know they need your product? If they only “know” their pain and are struggling to figure out the underlying problem causing that pain, how do they make the leap to your solution? Especially if it is an unique, disruptively differently innovation pre-market? Word-of-mouth? Sales relationships one-by-one? Carpet-bombing email campaigns? PR? Search?

The premise is that you will find them, they will become aware of your company, they will connect the dots to their issues, and get everyone involved in the decision on board to buy. Compound that with getting industry standard language, cohesion amongst emerging “lesser” competitors, critical mass of satisfied customers and you realize building a market for your disruptively innovation is long, costly, risky, and difficult.

The real challenge for your buyers is that buying your technology is not necessarily the same as solving their operational  problem. Continue reading “Key to Your Buyer Adoption Problem” »

Innovator’s Dilemna

December 15th, 2013

The biggest challenge for truly disruptive technology companies is how to fund their market adoption. “Do we bootstrap it or do we raise funding?” I admit it was much easier almost 15 years ago when I was raising money in the dot-com era. There was a lot of investments getting done on concept, but not anymore. Rule of thumb these days seems to be that entrapenuers are responsible for design and prototype, while angel investors fund on proof-of-concept and early market validation. Series A seems to be primarily for funding adoption. Now, there are always exception to the rule; either the founder has prior experience , the technology is sufficiently complex and expensive, or there is sufficient differentiation to drive displacement within an existing market sufficient to reduce risk for the investors that they will fund earlier. But, for most early stage technology companies, funding is tied to business performance. In reality, the management team needs to plan for bootstrapped growth to survive until you thrive.

It has been surprising to me to see how many technology companies that still believe that investors generally invest in your technology innovation. It is even more surprising to find how many of those same companies think their buyers do the same. When we talk to the investors and the buyers, the conversation is about adoption; investors are focused on how to drive market adoption, buyers are focused on their problem adoption. The key to understanding how to help the business grow, solve the buyers problem, and mitigate the investors risk is simply understanding the inverse relationship between disruptive technologies and adoption. The more disruptive the technology, the harder the adoption. The harder the adoption, the more risky to buy for the buyer and the investor. The harder it is to buy and invest, the harder it is for the business to survive, let alone thrive, and reach wealth creation for the founders.

So here are my Top 5 Myths /Misconceptions for Disruptive Technology Companies

1. Market Adoption Takes 18-36 Months – Look, the reality is that new markets don’t just form. They are expensive to build. Truly new concepts are even harder. In reality, markets are an aggregation of buyers. Markets for when a critical mass of buyers starts to use the same language to self-identify with a a category. After a while, new buyers will use that language to find the category and the vendors in that category. The misconception is that it takes a long time to build a critical mass of buyers. It takes a long time for the buyers to ADOPT your solution language, but they are discussing business problems today. Investors look for short-cuts that lower their investment costs in building the market. That is why they look for sales relationships, OEM deals, ready made buyer relationships, competitors who have already invested in building the category, etc. Anything to shorten the time it takes to get in front of the buyers and get the critical mass of sales. They know it is expensive to pioneer a market.

Continue reading “Innovator’s Dilemna” »