In this article, we’ll take a look at two whole product models: Theodore Levitt’s Whole Product Model and Geoffrey Moore’s Simplified Whole Product Model. <\/p>\n\n\n\n\n\n\n\n
Levitt\u2019s Whole Product Model<\/strong><\/h2>\n\n\n\nOnce you have identified a target customer who has a compelling problem your product can solve, you need to make sure your target customer can buy the complete solution\u2014that is, the whole product. In Theodore Levitt’s “Whole Product Model”, a whole product is composed of four elements: 1) generic product, 2) expected product, 3) augmented product, and 4) potential product. <\/p>\n\n\n\n![\"\"\/](\"https:\/\/lh6.googleusercontent.com\/NATwqKrEPXnSm-5au44TuS5BeYNaGH80151ozz6r-a5IPoCV19AiMwQYav0kYlWQVAL-XxohvD3XmeTK6wJogYkxI2H3yAEfp27hCAifTZdFy0xOHe8ojVDri-Qak2FYrhA9Y6EK=s0\")
<\/figure>\n\n\n\n- The center ring is labeled the \u201cgeneric product,\u201d and represents the core technology, or the core product that you produce. <\/li>
- The next circle represents the \u201cexpected product,\u201d or the solution that your customer expects to get once your product is set up. <\/li>
- The third circle is called the \u201caugmented product,\u201d which represents the maximum capabilities of the product when combined with existing third-party add-ons. <\/li>
- The outer circle represents the \u201cpotential product,\u201d and represents the maximum capabilities of the system when combined with addons that could potentially be developed in the future.<\/em><\/li><\/ul>\n\n\n\n
Moore then introduces his own \u201cSimplified Whole Product Model,\u201d which focuses just on the elements of the whole product model that are relevant to crossing the chasm. Specifically, he leaves out augmented or potential products, which you won\u2019t be concerned with when introducing a new technology. We\u2019ll discuss Moore\u2019s simplified whole product model next.<\/p>\n\n\n\n
Geoffrey Moore\u2019s Simplified Whole Product Model<\/strong><\/h2>\n\n\n\n(Shortform note: Like Levitt, Moore refers to the core product as the \u201cgeneric product.\u201d Today, however, the term \u201cgeneric product\u201d has come to mean an un-branded low-priced alternative, so to avoid confusion, we will use the term \u201ccore product\u201d in place of Moore\u2019s \u201cgeneric product.\u201d)<\/p>\n\n\n\n
Moore presents his \u201csimplified whole product model\u201d as a pair of concentric circles with the outer ring divided into sectors, as shown below. The center represents the core product, and each sector represents one of the interfacing products or services that you add to it to assemble the whole product. Because of its shape, Moore also refers to this figure as a \u201cdonut diagram.\u201d<\/p>\n\n\n\n![\"\"\/](\"https:\/\/lh3.googleusercontent.com\/t9BX_J4mYZhjaV_WazjbCwqwfM5F9OWsFZOho4zWT9oe3HNfUhuKoZDoLT1FlzfDYEwn4U1A71G44tAiNVNDY0EvlYS-y_knQAVbVyvuVM6GDuPQiE4OIPoKcjGxjnxGhDPjBaMv=s0\")
<\/figure>\n\n\n\nFor example, if the core product is a smartphone, one sector would be electricity to charge the phone, another would be the operating system that runs on the phone, and another would be a data plan from a phone service provider.<\/p>\n\n\n\n
Shortform Commentary: Implications of Moore\u2019s Sectors on the Whole Product Model<\/strong><\/h3>\n\n\n\nTo derive Moore\u2019s simplified whole-product model from Levitt\u2019s whole product model, you first eliminate the outer two rings, leaving only the \u201cgeneric\u201d product in the center, surrounded by the \u201cexpected\u201d or \u201cwhole\u201d product. You then divide the remaining outer ring into sectors, reflecting the different interfaces or complementary products or services that your customer must have in order to make your product work.<\/p>\n\n\n\n
If we were to add the third ring, the augmented<\/em> ring, back into this model, the augmented ring could no longer be represented by a continuous circle\u2014any additional products or services that would fall into the augmented circle would interface with only certain segments of the second, the expected,<\/em> ring. <\/p>\n\n\n\nFor example, if the core product is a smartphone, its second ring might include an operating system, wifi capabilities, a camera, and a headphone jack. Its third ring might contain a wireless security system, consisting of cameras that would interface with the phone through wifi, and an app running on the phone\u2019s operating system, but would not interface, for example, with the phone\u2019s headphone jack. We might therefore end up with a diagram that looks more like this: <\/p>\n\n\n\n![\"\"\/](\"https:\/\/lh4.googleusercontent.com\/UwH6CwC7lkxuHseAs5dUup01gXxYMCs9vjZb5cw8jRWCrjkcOAjg1SxSxH41Bbth9XhHdr8ZOytqnfkBHKF2Vp0xT5jdkXbdt9hcahcieM1FFM3tk4op65sJLcp5q8Zv2RiOBBVL=s0\")
<\/figure>\n\n\n\nWhy Whole Products Matter<\/strong><\/h3>\n\n\n\nMoore notes that when you make a sale, you\u2019re typically only obligated to deliver the core product. However, while innovators and early adopters<\/a> are usually willing to take ownership of assembling the whole product for themselves, the early majority are not. As Moore points out, if you don\u2019t arrange for the whole product to be supplied, you\u2019re taking a serious risk: If your customer can\u2019t get the whole product set up easily, they may feel cheated. Moreover, because early-majority customers are sensitive to reputations, one dissatisfied customer who tarnishes your product\u2019s reputation can have a devastating effect on your sales.<\/p>\n\n\n\n(Shortform note: Regis McKenna also echoes this warning, in his book The Regis Touch<\/em>, asserting that a customer who is impressed with your product will likely tell two or three other people about it<\/a>, but a customer who is disappointed will probably vent his disillusionment to about 10 other people.)<\/p>\n\n\n\nHow to Identify Your Whole Product<\/strong><\/h3>\n\n\n\nTo identify your whole product, Moore advises that you draw a \u201cdonut diagram,\u201d and label the sectors with everything that your product depends on or has to interact with in order to solve your target customer\u2019s problem. For example, does it need electricity, fuel, or wifi? Does it need to \u201ctalk\u201d to other software or machines? <\/p>\n\n\n\n
Depending on how they intend to use your product, different customers may need different whole products. Thus, Moore advises that you focus only on the niche application of your chosen target customer. This allows you to keep the whole product as simple as possible, since you don\u2019t have the resources to supply a whole product for every conceivable application.<\/p>\n\n\n\n
<\/figure>\n\n\n\n- The center ring is labeled the \u201cgeneric product,\u201d and represents the core technology, or the core product that you produce. <\/li>
- The next circle represents the \u201cexpected product,\u201d or the solution that your customer expects to get once your product is set up. <\/li>
- The third circle is called the \u201caugmented product,\u201d which represents the maximum capabilities of the product when combined with existing third-party add-ons. <\/li>
- The outer circle represents the \u201cpotential product,\u201d and represents the maximum capabilities of the system when combined with addons that could potentially be developed in the future.<\/em><\/li><\/ul>\n\n\n\n
Moore then introduces his own \u201cSimplified Whole Product Model,\u201d which focuses just on the elements of the whole product model that are relevant to crossing the chasm. Specifically, he leaves out augmented or potential products, which you won\u2019t be concerned with when introducing a new technology. We\u2019ll discuss Moore\u2019s simplified whole product model next.<\/p>\n\n\n\n
Geoffrey Moore\u2019s Simplified Whole Product Model<\/strong><\/h2>\n\n\n\n
(Shortform note: Like Levitt, Moore refers to the core product as the \u201cgeneric product.\u201d Today, however, the term \u201cgeneric product\u201d has come to mean an un-branded low-priced alternative, so to avoid confusion, we will use the term \u201ccore product\u201d in place of Moore\u2019s \u201cgeneric product.\u201d)<\/p>\n\n\n\n
Moore presents his \u201csimplified whole product model\u201d as a pair of concentric circles with the outer ring divided into sectors, as shown below. The center represents the core product, and each sector represents one of the interfacing products or services that you add to it to assemble the whole product. Because of its shape, Moore also refers to this figure as a \u201cdonut diagram.\u201d<\/p>\n\n\n\n
For example, if the core product is a smartphone, one sector would be electricity to charge the phone, another would be the operating system that runs on the phone, and another would be a data plan from a phone service provider.<\/p>\n\n\n\n
Shortform Commentary: Implications of Moore\u2019s Sectors on the Whole Product Model<\/strong><\/h3>\n\n\n\n
To derive Moore\u2019s simplified whole-product model from Levitt\u2019s whole product model, you first eliminate the outer two rings, leaving only the \u201cgeneric\u201d product in the center, surrounded by the \u201cexpected\u201d or \u201cwhole\u201d product. You then divide the remaining outer ring into sectors, reflecting the different interfaces or complementary products or services that your customer must have in order to make your product work.<\/p>\n\n\n\n
If we were to add the third ring, the augmented<\/em> ring, back into this model, the augmented ring could no longer be represented by a continuous circle\u2014any additional products or services that would fall into the augmented circle would interface with only certain segments of the second, the expected,<\/em> ring. <\/p>\n\n\n\n
For example, if the core product is a smartphone, its second ring might include an operating system, wifi capabilities, a camera, and a headphone jack. Its third ring might contain a wireless security system, consisting of cameras that would interface with the phone through wifi, and an app running on the phone\u2019s operating system, but would not interface, for example, with the phone\u2019s headphone jack. We might therefore end up with a diagram that looks more like this: <\/p>\n\n\n\n
Why Whole Products Matter<\/strong><\/h3>\n\n\n\n
Moore notes that when you make a sale, you\u2019re typically only obligated to deliver the core product. However, while innovators and early adopters<\/a> are usually willing to take ownership of assembling the whole product for themselves, the early majority are not. As Moore points out, if you don\u2019t arrange for the whole product to be supplied, you\u2019re taking a serious risk: If your customer can\u2019t get the whole product set up easily, they may feel cheated. Moreover, because early-majority customers are sensitive to reputations, one dissatisfied customer who tarnishes your product\u2019s reputation can have a devastating effect on your sales.<\/p>\n\n\n\n
(Shortform note: Regis McKenna also echoes this warning, in his book The Regis Touch<\/em>, asserting that a customer who is impressed with your product will likely tell two or three other people about it<\/a>, but a customer who is disappointed will probably vent his disillusionment to about 10 other people.)<\/p>\n\n\n\n
How to Identify Your Whole Product<\/strong><\/h3>\n\n\n\n
To identify your whole product, Moore advises that you draw a \u201cdonut diagram,\u201d and label the sectors with everything that your product depends on or has to interact with in order to solve your target customer\u2019s problem. For example, does it need electricity, fuel, or wifi? Does it need to \u201ctalk\u201d to other software or machines? <\/p>\n\n\n\n
Depending on how they intend to use your product, different customers may need different whole products. Thus, Moore advises that you focus only on the niche application of your chosen target customer. This allows you to keep the whole product as simple as possible, since you don\u2019t have the resources to supply a whole product for every conceivable application.<\/p>\n\n\n\n