Chapter 7

Chapter 7

Summary:
Many products are designed to meet a list of criteria. Each product on the market today will meet more than one need of customers. The first part of this chapter identifies that markets are segmented and when looking at both the segment and the technology, it shows technology becoming lumpy. What one segment is looking for may not be important to another segment, but the technology is available to both.

The chapter discusses how the technology barriers can be challenged as new demands from the segments arise. The book goes to say that what one segment wants may be pushed over to another segment. One segment cannot be looked at without regard for the other technologies.
Once the customers are segmented and the technology develops, then companies can begin to look at new future technologies and see where improvements can be made for each segment. Constraints for each segment can lead to the investment options and drive the organization toward development of new technology for each segment.

Then the chapter discusses how companies can position themselves to cross over to new markets. Since the development in one area of technology may lead to developments and improvements in another market segment, then the market for the new product design may be appropriate for a larger market. There may be a barrier to creating new technology that appeals to all segments, but carefully shifting the position can lead to more opportunities.

The section on identifying scouting options was a reverse notion of identifying potential uses for a new technology. It takes the potential for new emerging technology and the backing into the market segment that may be willing to purchase a portion or a modification of the original technology. This brings to mind the developments in technology that were originally designed for one purpose, but were marketed and sold for another purpose, altogether. Many times this type of development comes accidentally, but this outlines options for creating and developing a process for enhanced technology development, rather than relying on mistakes, or happenstance.

Thoughts:
A couple quotations from the book I have thought about a lot. “Technologies per se are not what a customer will pay for.”
This suggests that maybe technology is involved in products even without customers being fully aware of what technologies are there. Customers are buying new products without a full understanding of what technology is being integrated. This may be a good thing, or a bad thing, I am not sure. What I do know from this chapter, it becomes more and more important for customers needs and wants to be fully understood as technology advances and can do more. Customers may not even know what the fully want and the technology may develop sooner, or later than customers want.

“We in no way suggest that the future applications for new technologies will ever be a predictable or orderly affair.”
This is really encouraging and somewhat exciting to me as I think about what technologies will evolve and develop over time. There are many new technologies and they are becoming more and more applicable to more people. Even people who are resistant to new technologies are using more and more of the latest technologies, sometimes without even knowing that is what they are using.

For me, it seems that these lumpy markets are everywhere and can exist in nearly all products. Cars, phones, computers, navigation systems, dvd players, televisions…it seems possible to argue that it carries over to more non-tech products like shoes, furniture, flowers, services even.
As a person who currently works in technology this means that it will never be predictable and there will always be a place for changes and improvements. Challenges will be constantly changing as new technologies develop. There will also be challenges when managers in IT try to match new technologies with customer needs and they can be lumpy in many ways.


Discussion Question:

What other examples exist for a good explanation of lumpy markets besides the laptop or PC?