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Formulating a strategy
involves asking the question, "What business shall we be
in?", understanding the industry structure, finding your
competitive advantage, and determining how you will compete.
Innovators, adopters and incumbents each need specialized strategies
in order to navigate through an innovation.
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| Innovators |
The challenge for innovators
is to grow a new industry. Growing an industry involves establishing
partnerships, seeding the market, encouraging partners and service
providers to build on your platform. This might include certification
programs, developer programs and user programs.
In short, innovators need to become a de facto standard.
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| Adopters |
The challenge for adopters is to
acquire adequate experience with an innovation without committing
too heavily to a platform that fails to become the standard.
This can involve pilot programs and small experiments.
| Incumbents |
The challenge for incumbents is
to maintain their current market position, continue to provide service
to their high end customers, and continue to be attentive to a threat
from below. Incumbents need to take the threat seriously enough
to determine potential markets for the innovation, possibly in a
small business unit.
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