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