The goal of competing in a technology-intensive industry is to have your technology in the hands of the right customers, doing what those customers want to achieve. Pioneers often burn out, not because they did not have good technology. Rather because they did not understand that they must have the technology performing certain functions for the right customers. The trick to success is having the right functionality for the right customers.

A powerful tool to use in understanding both the competitive interactions and the dynamics of market development is a three-dimensional mapping of an industry. This analysis is done by mapping an industry onto the dimensions of customer segments, functions or benefits sought by those customers, and the technology alternatives available in providing those functions. What we have found in studying many technologies and industries is that the company who is first with a technology most often is wrong with the customer groups and benefits. Also, competitors rarely go after the same customers, but rather take their technologies after a different group of customers who want different functions. Using the cube, we can explain why some companies succeeded while others failed.

The cube also lays open the risk a company with a new technology faces. Rarely is a company beaten by a "better" technology. Rather, companies are beat by a company that goes after a better cell on the cube. For innovators, then, the challenge is to be in the right cell at the right time. The opportunity space on the cube, however, is larger than any one company can cover. By using our experience in mapping and analyzing the cube, we can help companies decide where and how to play for the highest probability of success. We can also help companies develop strategies that will allow them to play in more cells.