Michael Durr & Associates
Marketing Perspective

One of the characteristics of the computer industry is its affection for labeling its own advances. In the last two decades we've seen an continuous parade of generations, milestones and phases. Every year seems to lead multiple lives as the proclaimed year of several technologies.

You'll notice that all of these defined advances or changes relate to technology. But while the changes in technology were occurring, equally fundamental changes have been taking place in the market itself. Understanding these market changes is key to business success.

Not many years ago, success in the computer industry was slanted toward a production/sales model. If you could produce the product, and it worked, all that was needed for success was an aggressive sales force. Gradually, the market matured and products with similar functions became available from a variety of competitors. Vendors also faced competition from an increasingly broad installed based.

The result of this movement was a series of shifts in the computer marketplace. We have classified these shifts as the Innovation Era, the System Era, and the Business Era. The table below is a profile of the marketplace and shows the changes that have taken place with each era.

Eras of Change in the Computer Marketplace©

Era	Innovation Era	System Era	Business Era
Years	1978-1988	1989-1994	1995-2000
Technology	Revolutionary	Mostly incremental (continuous)	Incremental (continuous)
	(discontinuous)
Consumer
Who buys	End user	Manager, technical	Manager, non-technical
Motivation	Self-gratification	Stability	Business model support
Purchase criteria	Product features	Reliability, manageability	Manageability, migration,
		migration, cost	cost, reliability
Risk attitude	Pioneer spirit	Limit risk (test system mania)	Avoid risk (bottom line mania)
Change attitude	Change is good	Change is necessary	Manage change
Attitute toward	Hope it works	Interconnect	Consolidate and manage
networking
Growth attitude	None	Growth necessary	Growth resistance
View of technology	Gee whiz	Technology supports business	Technology enables business
Market
Market	Nascent	Immature	Mature
Marketing message	You gotta come to us	Our technology is great	Here's the business application
Competition	None	Uncontrolled	Controlled and focused
Product alternatives	None	Few	Many
Battleground	Production	Sales	Marketing

The Business Era reflects many changes. Most technology advances should be classed as incremental. Products will be based on refinements of existing technologies rather than radical innovation, such as we saw in the 1980s when the first business-grade PCs, LANs and office software appeared. In fact, today products often do better if they are not radical departures from existing technologies.

Money was made in the Innovation Era by relying on sales to consumers who were willing to try something new. Innovative companies kept looking for the breakthrough that would move their products into the mainstream with its virtually infinite buying power.

Now in today's Business Era, the upstarts of computing have made the breakthrough – they are the mainstream. Mainstream acceptance, however, has come at a price. Purchasing criteria are stiffer and competition is heavier. In essence, the rules of the game have changed, which means that strategies and tactics have to change accordingly.

Heavy competition and large installed bases have moved the market to a new battleground. Differentiating a product and cost-effectively demonstrating its desirability to a mass market is a marketing function. Marketing is the new battleground.

For programs aimed at today's Business Era marketplace, contact us for more information. Michael Durr & Associates has a full line of services to support your company's activities in Product Marketing, Reseller Channels, and Investor Marketing.

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Michael Durr Biography

Michael Durr is a writer and marketing consultant for computer companies. He began work in the computer field in 1982 as managing editor of Personal Computer Age magazine, one of the first publications focused on the fledgling desktop PC market.

Mr. Durr wrote his first book on computer networking in 1984 (Networking IBM PCs: Que). That same year he became a marketing consultant for Novell Inc. Early in 1985, he became an employee at Novell, then a $3 million company. During his five years with Novell, he was promoted to Director of Strategic Marketing and was instrumental in guiding Novell to $450 million in revenue and dominance of the worldwide networking market.

Since leaving Novell at the end of 1989, Mr. Durr has been a marketing consultant to a wide range of companies in the computer industry. Client companies have included IBM, Compaq, Apply, Banyan, Consumers Software/Microsoft, Motorola, Attachmate, Legato, Palindrome, Firefox/FTP, Frye Utilities, Kodak, ONEAC, nStor, McKinsey Company, and the Burton Group.

As Chief Analyst for Michael Durr & Associates, Mr. Durr has provided ongoing research and analysis of the computer marketplace in the form of both private studies and reports available to the general public. The people surveyed are typically users, network managers, or resellers. Published reports include ISDN: A User Survey and Analysis; Remote Access: Markets, Trends and Technology; and the Worldwide Market for ISDN Products. These reports are available through Electronic Trend Publications (San Jose, CA)

Mr. Durr is an active analyst of technologies and product trends. He has been a frequent contributor to numerous publications including Network World, LAN Magazine, LAN Times, Datamation, Communications Week, and Selling Networks. Mr. Durr is the author of five books on networking technology and implementation, including Network PCs, Third Edition (Que).

As an industry consultant, Mr. Durr brings a unique perspective to his analyses. For over 14 years he has stayed at the forefront of technical analysis, consumer analysis, and computer marketing. The combination of expertise and experience in these three areas is key to success in the computer marketplace. Typically consumers lag technology trends by up to two or more years. While consumers value new technology for providing a competitive edge for their companies, they will no longer buy solely on innovation. Consumers demand a clear business rationale, an accessible entry/adoption point, and a long term strategy. Developing a marketing program that is cost-effective and that meets these criteria requires a thorough understanding of technology, consumers, and marketing – skills that Mr. Durr is uniquely capable of providing.

Mr. Durr has a bachelors degree in business and technical communication from California State University. He has a masters degree in marketing communication from the same university.