The CHASM - Diffusion Model: Innovation Management
According to Molony 16% rule once one have reached 16% absorption of any innovation, one must change the messaging and media strategy from one based on Scarcity to one based on Social Proof in order to accelerate through the CHASM.
I have been working with the plastics industry for many years focusing automotive sector. I have found that Innovation adaption takes a very long time as a rigorous COST- BENEFIT analysis of the idea takes place with the OEMs. There are very few OEMs who would take the risk and become the Early Adapter. Mostly in my experience are either Early Majority or Late Majority. The discussion generally starts with OEMs asking for proof of success in the form of either samples or in the form of reference or presentation. Many seek guarantee of success from the supplier.
Even after being successful in selling the idea and penetrate into the application, there always exist a fear of competition working with the OEM to reduce the overall cost through lower price offering for a me-too kind of a product.
Therefore once successful a supplier should make or create a considerable momentum to make the transition from across the CHASM. In order to make the journey across the CHASM a market penetration of 15 - 20% is generally required.
The messaging therefore needs to be adapted from Scarcity to Social Proof like - showing samples, Examples, Presentations , Tech Shows etc.
SOme of the pictures below illustrates the concept of CHASM which is explained in the book Crossing the CHASM by Geoffrey A Moore
I have been working with the plastics industry for many years focusing automotive sector. I have found that Innovation adaption takes a very long time as a rigorous COST- BENEFIT analysis of the idea takes place with the OEMs. There are very few OEMs who would take the risk and become the Early Adapter. Mostly in my experience are either Early Majority or Late Majority. The discussion generally starts with OEMs asking for proof of success in the form of either samples or in the form of reference or presentation. Many seek guarantee of success from the supplier.
Even after being successful in selling the idea and penetrate into the application, there always exist a fear of competition working with the OEM to reduce the overall cost through lower price offering for a me-too kind of a product.
Therefore once successful a supplier should make or create a considerable momentum to make the transition from across the CHASM. In order to make the journey across the CHASM a market penetration of 15 - 20% is generally required.
The messaging therefore needs to be adapted from Scarcity to Social Proof like - showing samples, Examples, Presentations , Tech Shows etc.
SOme of the pictures below illustrates the concept of CHASM which is explained in the book Crossing the CHASM by Geoffrey A Moore
The CHASM - Diffusion Model: Innovation Management very useful blog post!!!
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