This was required reading at a course in Technology Entrepreneurship I took in grad school.  I enjoyed reading and found it very enlightning as I had been working in the software industry as a software engineer, but didn't have much insight into the marketing, sales, and life cycle of technology adoption.

The adoption or diffusion of any technology will follow a pattern similar to a bell-shaped curve with the following stages:

• innovators
  
• early adopters
  
• early majority
• late majority
• laggards

Companies generally face problems crossing the chasm between the early adopters and early majority.  Moore discusses the characteristics of each market segment, product positioning, market strategy, price, etc.

Another related book, but looking at the innovation problem from a different perspective is The Innovator's Dilemma.

For a book on high tech that was first published nearly two decades ago to feel so relevant today is a testament to the ideas and writing of Geoffrey Moore. Its frankly pretty amazing how Moore seems like he's discussing the various success and failures of the social networks and their adoption issues (friendster, myspace, and facebook).

The genius of this book is not the discussion of how technology adoption follows a normal distribution. The genius is in Moore's research around how to increase your chances for taking a technology or idea from its early nascent days to mainstream success. The key as Moore lays it out is in the attitudinal differences between members of the Early Adopters and the Early Majority. The early adopters he argues are typically Technologists and Visionaries, and can see the possibilities of what a technology represents. They are more willing to play with immature technologies (in the case of Technologists, it's a geek thing we wouldn't understand, in the case of visionaries, it's about pushing what's possible further along). In order to continue to grow the business beyond this early set of customer you have to prove your value to the pragmatists that make up the Early Majority who want to go with a proven leader. This is the chasm, to shift from the Early Adopters to the Early Majority if you will. This is where a great number of companies falter and don't last.

The key per Moore, and frankly it jives really well with my admittedly anecdotal experience, is to focus on a small segment, while keeping your end goal in mind. To do this, you have to pick the right segment to focus your efforts on in order to build out the product. Moore argues that in order to know whether your segment is the right size or is truly a segment, you have to a small enough community that can generate word of mouth completely on its own. To me this is sound advice no matter the truth of whether technology adoption occurs this way or not, as it forces companies to focus on a relatively small group of customers with common concerns, which in and of itself is a great thing. It means that the service/product is going to get developed completely for a group of people instead of trying to be all things to all people.

Moore has a great analogy, to describe this strategy. He calls it D-Day. Your end goal is the liberation of Europe. In order to do this, you need first to get a foothold in Europe. To do this you must gather all of your resources and position them to come out of the early adopter market (England) and send them onto a focused point (Normandy) in a rapid manner in order to cross the chasm (English Channel), and ultimately to success (mass market appeal).

There are tons of other great insights in this book (from understanding the need for a larger ecosystem of companies to define a value chain, to positioning yourself relative to your competition).

Complete review of this and other interesting non-fiction can be found at www.cosmicwanderlust.com