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Phases of the Hype Cycle

expectations

Supplier proliferation

Activity beyond early adopters

Mass media hype begins

Early adopters investigate

Negative press begins

Supplier consolidation and failures

Second/third rounds of

High-growth adoption phase starts: 20 to 30 percent of the potential audience has adopted the innovation

First-generation products, high price, lots of customization needed

Startup companies, first round of venture capital funding

venture capital funding

Methodologies and best practices developing

Less than 5 percent of the potential audience has adopted fully

Third-generation products, out of the box, product suites

R&D

Second-generation products, some services

Technology

Peak of Inflated

Trough of

Trigger

Expectations

Disillusionment

time

Slope of Enlightenment

Plateau of Productivity

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