Initial reference customer selection for high technology products

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.