A wonderful explanation of how it is so easy to get it dead wrong as markets change, dead wrong in strategy, dead wrong in the selection of critical success factors and dead wrong in who you select as your CEO.

Easy to understand and vivid in its descriptions. If you are into high-tech and you want all the bananas get into this now.

9 of 9 found the following review helpful:


You're nuts if you market high-tech without this book  Feb 22, 2000 By J. G. Heiser
Moore applies the technology acquisition curve and product life cycle management to the high-tech market, which is characterized by discontinuous innovations (changing paradigms) and market upheavals. He uses actual case studies of high-tech successes and failures to illustrate his model. Effectively utilizing some of the most profound writers in marketing, he weaves in important concepts from Levitt, Davidow, and Treacy & Wiersema.

If you are in high-tech, this is an essential book to read. You might not be in a tornado, but you won't know if you don't read the book. It explains a lot that you won't learn in business school.

15 of 17 found the following review helpful:


Prosper in High Technology Markets after Crossing the Chasm  Jun 16, 2001 By Donald Mitchell "Jesus Loves You!"
Inside the Tornado is the 1995 sequel to the 1991 book, Crossing the Chasm. Inside the Tornado repeats the arguments of Crossing the Chasm, and adds three new stages of how to manage a business during the lifecycle of a technology. While Crossing the Chasm was primarily about marketing with some strategy emphasis, this book reverses the emphasis. I recommend the 1999 paperback version because it contains a new introduction that serves better as a helpful afterword to the book, as Mr. Moore suggests, in updating it for the Internet.

In Crossing the Chasm, Mr. Moore successfully argues that new technologies first attract customers who love technology, and will try anything. If you succeed with that group, you will next attract visionary customers who will want to use the technology to steal a march on their competitors. After that comes the chasm, getting into broad acceptance. Many technologies never make it. The method to cross is described in Inside the Tornade as the bowling alley. You pick a few key segments that may reflect the needs of other segments. By providing custom solutions for these segments, you create a ricochet effect into striking good solutions for other niches. The analogy is to the way that after the bowling ball first hits the one and three pins (for right handers) and then continues on to take out the five pin, those three pins hit the pins behind them, which in turn go backward to take out the pins in the final row, until you have a strike.

The tornado is the period of mass market acceptance. This is when there is a lot of demand as everyone who decides about infrastructure adopts the new standard simultaneously. You have to standardize, get your costs down, and ship at low prices. Your strategy is just the opposite of the bowling alley period. The metaphor here is to the tornado in the Wizard of Oz that sweeps Dorothy, Toto, and her house from Kansas to Oz.

Then comes Main Street, when the market demand is now filled and you are looking at "aftermarket development, when the base infrastructure has been deployed and the goal now is to flesh out its potential." You once again focus on segments, and create custom solutions.

The final period is End of Life, when "wholly new paradigms come to market and supplant the leaders who themselves had only just arrived." In essence, you start a new technology cycle. The best companies (like Intel) will do this to themselves.

The book also describes the importance of becoming the gorilla who will have about 50 percent market share and earn 75-80 percent of industry profits as a result of dominating the tornado period. Gorillas are made during the tornado. Oracle is described as an example.

During the bowling alley your company needs to be very good at product leadership and customer intimacy, during the tornado you need to shift to product leadership combined with operational excellence, and in Main Street the focus is on operational excellence and customer intimacy. This thinking will remind you of the book, The Discipline of Market Leaders, and the work of Dr. Adizes. Most companies will not be agile enough to make these transitions. Examples abound in the book. Apple's example will hit home with you, I'm sure.

As to the Internet, things are different. In the original book, the Internet is only mentioned three times. In the introduction here, Mr. Moore says that the "Internet market tornado, however, is so powerful that it has sucked all four models into its vortex." Companies are succeeding simultaneously in different parts of the Internet space at the same time with each of the strategies outlined here.

In the future, I think technologies will evolve more like the Internet has. During these evolutions, I think that business model discontinuities will be more important than technology discontinuities. While you can only put technology discontinuities in during parts of the cycle (never during the tornado), business model shifts can occur at any stage. Also, it is easier to shift business models than to shift technologies. Business model shifts affect your own operations more than customers, while technologies have a large impact on customers. My current work is focused on how the two need to interact with one another, which is not addressed here.

After you have read this excellent book, I suggest that you consider the organizational planning issues required to create such a multi-faceted effectiveness. For example, you may find it easier to have two organizations. One will focus on creating custom solutions, while another focuses on mass market solutions. In that way, you can hedge your bets with predicting the timing of each phase.

May you always focus your attention on the most important activities required by the markets you serve!

5 of 5 found the following review helpful:


WOW!  Jun 11, 2007 By Eric Kassan
Granted I haven't yet read the predecessor to this book, Crossing the Chasm, but this is the best business book I have read focusing on the external aspects of business. Most business books focus internally - what you and/or your company needs to do. This book takes the approach that what one does has a dependency on what's going on with the market.

The market, as defined in Crossing the Chasm, and repeated here, is divided into five sections/phases - Innovators (techies), Early Adopters (visionaries), Early Majority (pragmatists), Late Majority (conservatives), and Laggards (skeptics). Each of these groups has it's own needs that must be addressed. The predecessor deals with the "chasm" between the Early Adopters and the Early Majority. This book focuses on the tornado that occurs when a company/product gains traction with the Early Majority.

This book also borrows the concepts of "value disciplines" from "The Discipline of Market Leaders" and applies it to the various sections. There are three, somewhat mutually exclusive, disciplines - product leadership, operational excellence, and customer intimacy. It shows how initially the keys to success are focusing on product leadership and customer intimacy. Then, in the tornado, product leadership and operational excellence are key. Then, on main street, operational excellence and customer intimacy are critical.

The big challenge for people and for companies is, as with a manual transmission, shifting gears. This book does a fantastic job of explaining the changes needed at the different times, as well as how to determine when one reaches those times.


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