Systems of Use and Technology Adoption

Systems of Use
and
Technology Adoption
Drew Isaacs
Executive Director
Management of Technology Program
UC Berkeley
What I wish journalists would ask:
“Since technology is the basis for
almost all business transformation,
how does your program at Berkeley
stay current?”
What journalists actually ask:
“Now that tech is dead,
what are your students going to do?”
Courtesy of the Los Angeles Times
Over the broad sweep of history,
human endeavor has changed little.
Over the broad sweep of history,
human endeavor has changed little.
But the technology used in carrying out
those endeavors has changed
dramatically.
“To think that the information revolution is over
is like somebody in London in 1830 saying that
the industrial revolution is over because some
textile manufacturers in Manchester went broke.”
Alvin Toffler
What the journalist actually asked:
“Now that tech is dead,
what are your students going to do?”
Courtesy of the Los Angeles Times
It’s about addressing a pain.
Mobile wireless Internet use
Japan
Korea
Europe
USA
Source: Eurotechnology
It’s about addressing a pain.
X
It’s about addressing a pain.
Bringing technology to market
Technology
Bringing technology to market
Our Goals
Technology
Bringing technology to market
Our Goals / Their goals
Technology
Bringing technology to market
Our Goals / Their goals
Preexisting system of use
Technology
Bringing technology to market
Execution
Our Goals / Their goals
Preexisting system of use
Technology
How many people:
Own a cell phone?
A PDA?
How many people:
Own a cell phone?
A PDA?
How many people used their cell phone or PDA
during your commute today to:
• Send or receive e mails?
How many people:
Own a cell phone?
A PDA?
How many people used their cell phone or PDA
during your commute today to:
• Send or receive e mails?
• Pay bills or do your banking?
How many people:
Own a cell phone?
A PDA?
How many people used their cell phone or PDA
during your commute today to:
• Send or receive e mails?
• Pay bills or do your banking?
• Read the newspaper?
How many people:
Own a cell phone?
A PDA?
How many people used their cell phone or PDA
during your commute today to:
•
•
•
•
Send or receive e mails?
Pay bills or do your banking?
Read the newspaper?
Listen to music on a remote server?
Wireless Internet use
Japan
Korea
Europe
USA
Source: Eurotechnology
iMode subscribers in Japan
Wireless ARPU by country – voice vs. data
$60
$0.45
$50
$40
Data
$30
Voice
$20
$10
$0
Japan
US
Korea
China
2002 data – source c/o Sorrent team; monthly average total revenue per user
X
It’s about addressing a pain.
It’s about improving a pre-existing
system of use.
X
It’s about addressing a pain.
It’s about improving a pre-existing
system of use.
The value proposition is built around the improvement.
Value Propositions
What are the characteristics of a “must-have” value proposition?
• The new technology has enabled something which was previously
impossible.
Value Propositions
What are the characteristics of a “must-have” value proposition?
• The new technology has enabled something which was previously
impossible.
• Demonstrable cost savings.
Value Propositions
What are the characteristics of a “must-have” value proposition?
• The new technology has enabled something which was previously
impossible.
• Demonstrable cost savings.
• Dramatic and measurable improvement in productivity.
Value Propositions
What are the characteristics of a “must-have” value proposition?
• The new technology has enabled something which was previously
impossible.
• Demonstrable cost savings.
• Dramatic and measurable improvement in productivity.
A channel must start with one of these as the basis for the sale…
and a development team should start with one of these as the goal
of development.
Bringing technology to market
Execution
Our Goals / Their goals
Preexisting system of use
Technology
The pre-existing system of use defines what is not
likely to be adopted.
It also indicates what is possible…
33
34
35
“Fire” Web campaign results
• 10,000,000 serials created…
“Fire” Web campaign results
• 10,000,000 serials created…
• 1,120,000 unique customers logged into Fire site
• 450,000 provided personal information
• Average day: 140,000 serial entries
“Fire” page views vs. other sites (same period)
Newspapers
Yomiuri
Asahi
ZDnet
Nikkei
FIRE
Mainichi
Sankei
CNN
498,347 PV
357,825 PV
241,930 PV
213,999 PV
140,645 PV
126,615 PV
95,091 PV
31,871 PV
Portals
Yahoo News 1,311,176 PV
goo channnel
223,619 PV
MSN News
211,392 PV
FIRE
140,645 PV
LycosNews
91,325 PV
ISPs
So-net(Sony)
Nifty(Fujitsu)
Biglobe(NEC)
ocn
odn
dion
FIRE
live door
Just Net
AOL
621,833 PV
565,624 PV
358,926 PV
336,384 PV
216,375 PV
205,771 PV
140,645 PV
52,963 PV
47,053 PV
35,637 PV
Week day vs.Number
Week end
of entries
単位
(回)
300,000
March 1st to May 7th
250,000
200,000
Serial entry
150,000
100,000
50,000
First entry
火
月
日
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日
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火
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日
土
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水
火
月
日
土
金
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水
火
月
日
土
金
木
水
火
月
日
土
金
木
水
火
月
日
土
金
木
水
火
月
日
土
金
木
水
火
月
日
土
金
木
水
火
月
日
土
金
木
0
1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930 1 2 3 4 5 6 7 8
Fixed PC vs. mobile Internet use: 50/50
J-phone Ez-web
i-mode 35.4
PC 49.7
Market Share
of Mobile
Phone
0%
20%
40%
8.1
32.5
50%
60%
9.5
80%
6.7
Other
s
0.2
8.0
100%
Time of access
Number of
entries
12
35000
15 17
30000
21-23
10
25000
20000
15000
10000
5000
0
6 7
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1
Time
2
3 4 5
Method of access
25000
Mobile Phone
20000
PC
15000
10000
5000
0
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1 2 3 4 5
Time
Winners / Kirin market share by location
沖縄県
宮崎県
熊本県
佐賀県
高知県
香川県
山口県
岡山県
鳥取県
奈良県
大阪府
滋賀県
愛知県
岐阜県
山梨県
石川県
新潟県
東京都
埼玉県
栃木県
福島県
秋田県
岩手県
北海道
Winner ratio
Revenue Share
N=216,247(全当選者
数)
Personal data: gender
男性
FIRE Web
Campaign
女性
Female
16.5%
Male 83.5%
86.1%
Total Can
Coffee
0%
20%
40%
13.9%
60%
80%
100%
Personal data: age
10‘s
2.7%
20‘s
45.6%
FIRE Web
Campaign
Total Can
Coffer
40‘s
15.2%
30‘s
40.0%
41.0%
20.0%
50‘S
1.4%
9.8
%
14.0%
9.0%
Over
60’s
0.2%
1.1%
Personal data: coffee consumption
Less
than 1
2.9%
1~3
25.8%
FIRE
4~6
23.3%
More
than 7
48.0%
unknown
Total
Can
Coffee
11.9%
53.0%
17.0%
17.6%
※缶コーヒー市場データは、
「3ヵ月以内飲用経験者の1週間内飲用
頻度」
0.2%
Pre-existing systems of use:
…can be barriers to adoption, or aid adoption
…can be temporary or permanent
…can exist geographically or culturally
On pre-existing systems of use:
"The problem was that simply replacing steam engines
with electric motors didn't do much: businesses had to
rethink the whole concept.
On pre-existing systems of use:
"The problem was that simply replacing steam engines
with electric motors didn't do much: businesses had to
rethink the whole concept.
Traditional factories were compact, multistory
buildings -- the optimal design when power had to be
conveyed via shafts and belts from a steam engine in
the basement.
On pre-existing systems of use:
"The problem was that simply replacing steam engines
with electric motors didn't do much: businesses had to
rethink the whole concept.
Traditional factories were compact, multistory
buildings -- the optimal design when power had to be
conveyed via shafts and belts from a steam engine in
the basement.
Only when manufacturers realized the advantages of a
sprawling, one-story structure, with each machine
driven by its own motor -- in particular, the benefits of
having plenty of room to move people and materials
around -- did electrification really show what it could
do…
On pre-existing systems of use:
…and this took decades.
On pre-existing systems of use:
The mechanical power revolution of the 1880s…
On pre-existing systems of use:
The mechanical power revolution of the 1880s…
The information power revolution of the 1980s…
Systems of Use
and
Technology Adoption
Drew Isaacs
Executive Director
Management of Technology Program
UC Berkeley