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What the traffic will bear
- Publisher
- Emerald Publishing
- Copyright
- Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
- ISSN
- 0025-1747
- DOI
- 10.1108/00251740710762035
- Publisher site
- See Article on Publisher Site
Abstract
Purpose – The purpose of this paper is to show that high technology companies often find it challenging to select their first reference customer. This is a challenging decision because such clients are not simply an immediate source of revenue, but also a source of learning, a technology test bench and a powerful promotional tool. This paper aims to explore not only the factors that make such decisions strategically crucial, but also the motivations for a client organization to assume such a risk and the characteristics of such organizations. Design/methodology/approach – Theoretical and case studies. These ideas are illustrated with examples in both hardware and software, with a longer examination of HP's adoption of AMD's Opteron technology for its server line. Findings – The choice of the first customer is a strategic decision, not just a tactical one. It has implications in terms of revenue generation, technology development, business development and industry focus, and it can be decisive in the success of a new technology. Originality/value – This is one of the first papers to address the selection of the initial reference customer in high technology industries.
Journal
Management Decision – Emerald Publishing
Published: Jun 26, 2007
Keywords: Innovation; Customer orientation