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TMCVocabulary

TMC Vocabulary

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Compiled by Chris Halliwell, TMC Director

Chris HalliwellTeam process for product and market strategy development is grounded in a common vocabulary. The vocabulary helps frame the questions that must be answered and the decisions that must be made.

Adjacent Markets

Adjacent Market segments share common characteristics in application requirements and ecosystem, or Community, relationships.  These shared characteristics and relationships can be mapped in two-dimensional space, sometimes called a proximity map.  One popular form of a proximity map is to depict adjacent market segments as bowling pins, and to discuss market penetration strategy in terms of knocking over successive pins by taking advantage of adoption order as well as commonality of requirements or relationships.

Adoption Curve

The Adoption Curve plots the relative speed at which an innovation is accepted in a Community – or groups of related communities – over time.  When the number of individuals adopting a new idea is plotted on a frequency basis over time, the result is an S-shaped curve.  Adoption rate is measured by the length of time required for a certain percentage of the Community to adopt the innovation. Innovations with greater relative advantage versus current methods, less complexity and compatibility issues, more visible reference use, and less perceived risk experience a faster rate of adoption.

Augmented Product

Augmented Product elements are, by definition, unique to a particular supplier in the technology category. As the category matures, Augmented Product elements of the offering are services which dramatically reduce customer cycle times and cost of use. Since Augmented Product elements are only available from one supplier, their value is expressed as the cost to the customer (or a competitor) to duplicate the service. Augmenting elements allow the supplier to command a price premium, but as soon as an augmentation becomes available from a competitive supplier, it is becoming an Expected Product element.