© 2014 The Chasm Group, LLC

Achieving Escape VelocityTransforming Visionary Ideas into Mainstream Businesses

© 2014 The Chasm Group, LLC

The New Normal – Speed and Change

• Speed of technology advances

• Device and platform proliferation

• Evolving consumer

• More big data, better data analytics

• The Internet of Things

• Speed to success, speed to failure

• Systems of engagement on fire

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© 2014 The Chasm Group, LLC

WHAT’S HOT•Consumer hardware

– Wearables– Car tech– Home Connectivity/Automation– 4K TVs

•Consumer software– Drafting established platforms/categories– App Stores: Microsoft, Salesforce, Apple…

WHAT’S NOT3

© 2014 The Chasm Group, LLC

What Do Speed and Change Mean To You

EARLY STAGE•How do you quickly create a new category, or re-invent one?•How do you challenge incumbents?

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Move fast but not haphazardlyEmploy compasses and modelsFocus and discipline

THE NEWRULES

ESTABLISHED MAINSTREAM•How do you balance current and future businesses?•How do you neutralize competitive upstarts?•How do you make the right acquisitions?

© 2014 The Chasm Group, LLC

“If you don’t know where you’re going, you’ll end up someplace else”

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© 2014 The Chasm Group, LLC

1. Target Consumer

2.Compelling Reason to Buy

3.Whole Product

4.Partners & Allies

5.Sales Strategy

6.Pricing Strategy

7.Competition

8.Positioning / Messaging

9.Next Target

Key sponsor

Complete solution

Manages sales & Fulfillment complexity

Legitimate alternatives

Next growth segment

Key motive

Fill in the gaps

Maps to all the above

Core differentiation

Market Development Strategy Checklist

© 2014 The Chasm Group, LLC

Product – Market Fit: Three Core Strategic Questions

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© 2014 The Chasm Group, LLC

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© 2014 The Chasm Group, LLC

Energy Savings Consistent Home ComfortSelf learning

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Nest Labs Product - Market Fit: Three Core Strategic Questions

COMPELLING REASON TO BUY

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WHOLE PRODUCT SOLUTION

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Consumers, not contractors– Design and coolness matters

Easy to buyEasy to useEasy to installEasy to upgrade over webBeautifully designed

TARGET MARKET

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© 2014 The Chasm Group, LLC

Energy-Conscious Consumers

Easy to buy, install, use, upgrade

Website, retail partnerships

Honeywell Prestige

Smoke/ carbon Monoxide detectors

Easy energy savings, Easy home comfort

None required

Parity with reference competitor

Self learning

Nest Labs: Market Development Strategy Checklist

1. Target Consumer

2.Compelling Reason to Buy

3.Whole Product

4.Partners & Allies

5.Sales Strategy

6.Pricing Strategy

7.Competition

8.Positioning / Messaging

9.Next Target

© 2014 The Chasm Group, LLC

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© 2014 The Chasm Group, LLC

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© 2014 The Chasm Group, LLC

Product – Market Fit: Three Core Strategic Questions

Health/Fitness Enthusiasts Dieters Coolness factor

Monitors activity levelso Monitors my sleep…YAWN Requires new habits Requires daily input (food/sleep) Kludgy smartphone programming Uncomfortable to wear

Data > Automated actionable insights

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COMPELLING REASON TO BUY

2

WHOLE PRODUCT SOLUTION

3

TARGET MARKET

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© 2014 The Chasm Group, LLC

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© 2014 The Chasm Group, LLC

“That’s been one of my mantras – focus and simplicity. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.””

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© 2014 The Chasm Group, LLC

The Four Gears for Web-Based Businesses

ACQUISITION

StarterMotor

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© 2014 The Chasm Group, LLC

Four Gears to Drive Sustained Growth

ACQUISITION

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© 2014 The Chasm Group, LLC

Growth is a Process

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© 2014 The Chasm Group, LLC

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What Do You Think?

Andrew Salzmanasalzman@chasmgroup.com

(415) 812-1925