The document discusses several topics related to innovation and entrepreneurship: 1. It analyzes why VHS became dominant over the superior Betamax technology, citing factors like lower cost, greater availability of hardware and tapes, and a larger movie selection for renting. 2. It summarizes concepts from the book "Crossing the Chasm" regarding different types of technology adopters and the challenges of moving beyond early adopters to reach the early majority. 3. It discusses the importance of selling to "pragmatists" who prioritize reliability, support infrastructure and working with proven market leaders. 4. It analyzes four dimensions of service innovation: new service concepts, changes to the client

2. CREATIVE DESTRUCTION "The whole product" model : why VHS had thrashed Betamax? Yet another example VHS : 1. bigger choice of hardware at lower cost, 2. tapes : cheaper and more easily available (distribution) , 3.a lot more movies to rent, . Betamax : technology superiority (preferred by professional users) Book summary : http://www.parkerhill.com/Summary%20of%20Crossing%20the%20Chasm.pdf

3. 1.Early Adopters are the rare breed of visionaries "who have the insight to match an emerging technology to a strategic opportunity, … driven by a 'dream'. The core dream is a business goal, not a technology goal , and it involves taking a quantum leap forward in how business is conducted in their industry or by their customers… You can succeed with the visionaries, but that is not ultimately where the dollars are. Instead, those funds are in the hands of more prudent souls who do not want to be pioneers" The revised technology Adoption lifecycle

4. 2. The Early Majority are pragmatists… "they care about the company they are buying from, the quality of the product they are buying, the infrastructure of supporting products and system interfaces, and the reliability of the service they are going to get… They tend to be 'vertically' oriented, meaning that they communicate more with others like themselves within their own industry than do technology . The revised technology Adoption lifecycle

5. Advantages of selling to the pragmatists : “once a startup has earned its spurs with the pragmatist buyers within a given vertical market, they tend to be very loyal to it, and even go out of their way to help it succeed. When this happens, the cost of sales goes way down , and the leverage on incremental R&D to support any given customer goes way up. That's one of the reasons pragmatists make such a great market … "They like to see competition… Pragmatists want to buy from proven market leaders because they know third parties will design supporting products around a market-leading products… aftermarket…

6. The revised technology Adoption lifecycle The chasm : how to go beyond early adopters to early majority

10. http://www.youtube.com/watch?v=Z2X7eadOcDw&feature=channel http://www.youtube.com/watch?v=m6gaj6huCp0

11. Portrait of an entrepreneur : Elon Musk

13. MACHINES Raw Materials PRODUCT Manpower A Product Retailer CLIENT PHYSICAL MEDIUM CONTACT STAFF CLIENT SERVICE A Service « Service Design » leads to Innovation « SERVUCTION » (Eglier & Langeard)

14. The “Services Diamond” “ Excellence in services is by design , and not by mere happenstance” service interface The Innovators : 1/ Coordinate back office with service interface ( servuction). 2/ Change the level of involvement of the customer in the service interface ).

15. 4“dimensions” of service innovation , Hertog (2000) den Hertog, P. (Dec 2000), Knowledge-intensive business services as co-producers of innovation , International Journal of Innovation Management

18. 4 patterns of innovation , the influence of the client firm or final consumer on the innovation process gradually increases. 4“dimensions” of service innovation, Hertog (2000) #1 technological innovations are derived from hardware industries. These innovations from external suppliers are disseminated and implemented by service industry users , who in their turn satisfy the needs of their clients ( microwave ovens - > cafes and restaurants; cash registers & mobile phones -> many small firms which otherwise use little new technology).

19. 4“dimensions” of service innovation, Hertog (2000)

20. 4“dimensions” of service innovation, Hertog (2000)

21. 4“dimensions” of service innovation, Hertog (2000) Complex innovations affecting all actors in a value chain profoundly. But they may also be driven by regulations, resource constraints , and other dramatic changes that require innovation to take place across many elements of the value chain, implying completely new infrastructures, new types of knowledge and adaptation on the part of intermediate and final users.