AI represents a transformational moment for many industries, forcing us to rethink several core beliefs about what we should be building and how we should be building it.
I would argue that it is also potentially changing how we think about our industries from what we may believe to be a “Crossing the Chasm” moment to more of an “Innovators Dilemma” challenge.
Let me explain.
"Crossing the Chasm" by Geoffrey Moore is a seminal work on marketing strategies for high-tech products. The book focuses on the critical challenge of transitioning from early adopters to the mainstream market, a phase Moore terms "the chasm." This gap represents a significant hurdle for companies, as early adopters are typically visionaries willing to embrace new technologies. At the same time, the mainstream market consists of pragmatists who require proven value and reliability before making a purchase. Moore argues that successful companies must focus on a specific niche market, or "beachhead," to gain traction and establish a solid customer base. By doing so, they can leverage this success to expand into adjacent markets. The book emphasizes the importance of understanding the different customer segments within the Technology Adoption Life Cycle and tailoring marketing strategies accordingly to cross the chasm and achieve widespread adoption effectively.
Many technology-driven industries are at their “Crossing the Chasm” moment today. One might argue that the AI industry is itself at that moment.
In "The Innovator's Dilemma", Clayton Christensen explores why successful companies often fail when faced with disruptive technologies. Christensen argues that established firms are typically focused on optimizing their existing business models and serving their best customers, making them vulnerable to new entrants introducing disruptive innovations. These innovations initially cater to niche markets but eventually reshape entire industries. The book highlights the importance of embracing experimentation, understanding customer needs beyond current demands, and creating separate business units to explore disruptive technologies. Christensen's work provides a strategic framework for companies to navigate innovation challenges and maintain market leadership in a rapidly changing environment.
Generative AI is causing some industries to suddenly shift from their “Crossing the Chasm” moment to facing an “Innovators' Dilemma.” This creates a significant point of inflection for these industries and opens the doors for the Davids to beat the Goliaths.
So, is your industry at its "Crossing the Chasm" moment or its "Innovators Dilemma" moment?
Great opportunity and great risk lie in getting this right or wrong.
Thoughts welcome.
#AI #CrossingTheChasm #InnovatorsDilemma #Inflection #Caution
Mark Ruddock
Thoughts of an internationally experienced growth stage CEO and Board Member.
Thoughts of an internationally experienced growth stage CEO and Board Member
Mark Ruddock
Thoughts of an internationally experienced growth stage CEO and Board Member.
Experienced international CEO with three exits and over 20 years of experience at the helm of VC-backed technology and fintech startups. I've founded companies and come in as a later-stage CEO to help existing companies scale. My experience spans multi-country online financial services, mission-critical enterprise software and consumer-focused mobile applications.
Currently CEO of Kontent.ai, the industry's first CMS with native AI capabilities, kontent.ai helps the world's leading organizations generate an unparalleled return on their content by enabling them to create, manage, distribute, and optimize their content at scale with unprecedented speed oversight, and security.
Before that, I was CEO of Nuula (formerly known as BFS Capital), which Nav acquired. At Nuula, we believed there was a better way to help run your small business — so we built it. Nuula is a mobile application that gives small business owners instant access to critical business metrics and innovative financial products anytime, anywhere. It provides small business owners with the tools, content, and capital they need to be successful in a modern, competitive market.
Prior to that interim CEO of 4finance. Agreed to take on an interim role to help clarify strategy, accelerate the critical transformation of the business and set the company on a course for the next growth phase.
Before that, I was Managing Director, International at Wonga, responsible for overseeing all businesses outside of the UK, including consumer lending businesses in Canada, Spain, Poland and South Africa and our eCommerce and product financing business BillPay in Germany. Prior to that was CEO of Wonga Canada.
Prior to that, I was EO Viigo. When Viigo was acquired by Blackberry in 2010, the company had hundreds of partners, won numerous awards, including “PC Magazine’s Editors Choice“, the “Most Promising New Company of the Year” from the CNMA, and the “Wireless Leadership Award” from RIM, signed marquee enterprise customers such as Oppenheimer, UBS, BAT and Scotts and been downloaded over 3MM times, becoming one of the most popular BlackBerry apps of all time.
I started my career as the Founder and CEO of INEA. A software company that was a strategic partner to many of the world's leading financial institutions, INEA had deployments in over 44 countries. Backed by RBC, Ventures West, APAX and Edgestone, the company was acquired in June 2005 by Cartesis. Cartesis was subsequently acquired by Business Objects in 2007, which was later acquired by SAP.
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