Winning the Hardware Software Game Winning the Hardware-Software Game - 2nd Edition

Using Game Theory to Optimize the Pace of New Technology Adoption
  • How do you encourage speedier adoption of your product or service?
  • How do you increase the value your product or service creates for your customers?
  • How do you extract more of the value created by your product or service for yourself?


technology adoption

  • When Large Benefits Are Not Enough to Convince Users to Adopt New Technology Systems


    Cognitive Dissonance

    Implications for New Technology Adoption


    A recent article in Science Daily, “Why 'Scientific Consensus' Fails to Persuade,” describes how peoples’ prior beliefs and values affect how they evaluate and interpret new information (emphasis mine).

    "We know from previous research," said Dan Kahan, "that people with individualistic values, who have a strong attachment to commerce and industry, tend to be skeptical of claimed environmental risks, while people with egalitarian values, who resent economic inequality, tend to believe that commerce and industry harms the environment"…

    [T]he study also found that the American public in general is culturally divided on what "scientific consensus" is on climate change, nuclear waste disposal, and concealed-handgun laws.

  • Who Is the Smart Grid Technology Leader?


    One of the hot technology trends over the past many months has been development of the smart grid (SG).  Reading Smart Grid News and other industry, and even mainstream, publications reveals an enormous amount of coverage of smart grid (SG) developments, both technical and commercial. Most of the coverage seems to be focused in two areas, smart meters and the standards-setting process.

  • Why Did Apple Block Potential Profits from Pre Users?

    The latest battle in the Smartphone Wars was won by Apple, who blocked users of the Palm Pre from being able to access iTunes. Since Apple makes a profit on every sale from iTunes, why would Apple want to cut off the potential profit source associated with Palm Pre users buying content on iTunes?

  • Will Adoption of Electronic Medical Records Live up to the Promise?

    Proponents of electronic medical records (EMR) claim their full-scale adoption will lower the costs of providing healthcare, improve the quality of healthcare, and save lives.

    For example, in 2009, ABC News reported

    In the latest step toward the computerization of Americans' medical information, President-elect Barack Obama said in a speech Thursday that the government will push for electronic health records for all Americans within five years in order to save both dollars and lives.

    "To improve the quality of our health care while lowering its cost, we will make the immediate investments necessary to ensure that, within five years, all of America's medical records are computerized," Obama said in a speech from George Mason University in Fairfax, Va. "This will cut waste, eliminate red tape and reduce the need to repeat expensive medical tests."

    "But it just won't save billions of dollars and thousands of jobs; it will save lives by reducing the deadly but preventable medical errors that pervade our health-care system," he said.

    Will electronic medical records actually live up to these promises?

    An analysis was undertaken to examine all the various plusses and minuses – in terms of costs, quality of care and efficiency of care – electronic medical records are expected to achieve and have been found to have achieved with their implementation in the US.

    This blog entry provides a summary of the actual/expected gains and losses found and answers the question posed above as to whether or not adoption and use of EMR systems will reduce medical errors.

    A full copy of the report is available here for download.

  • Will Redbox Decimate the Value of the Market for Home Movies?

    Is Redbox Unbeatable?

    Will Redbox Cause the Value of the Home Movie Market to Plunge?


    A recent article in the NYT, “Movie Studios See a Threat in Growth of Redbox” by Brooks Barnes, discusses Redbox, the latest phenomenon in the home movie market. Redbox “rents movies for $1 a day via kiosks” located “in spots like supermarkets, Wal-Mart Stores and fast-food restaurants… The kiosks hold about 500 DVDs and focus on new mainstream releases.The Illinois-based company started with 12 kiosks in 2004, and by December, there will be 22,000 Rebox machines.The kiosks currently “process about 80 transactions a second on Friday nights.”

  • Will Smartphone-Enabled on-the-Spot Price Comparisons “Upend” Stores’ Business Models?

    Price Dispersion

    Has the Internet Caused Price Dispersion to Decrease?

    What Determines Retail Price?

    How Big Is e-Commerce?



    A recent article in the WSJ, “iPhone-Wielding Shoppers Strike Fear Into Retailers” by Miguel Bustillo and Ann Zimmerman, discusses the increasing incidence of in-store shoppers using their smartphones to compare in-store prices to prices available from other retailers on the Internet, and it claims that such consumer behavior “is threatening to upend the business models of the biggest store chains in America.”