Initial reference customer selection for high technology products

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.

Citation

Tomas Gomez‐Arias, J. and Montermoso, J.P. (2007), "Initial reference customer selection for high technology products", Management Decision, Vol. 45 No. 6, pp. 982-990. https://doi.org/10.1108/00251740710762035