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SBODN's March event with Michael Eckhardt
Citation preview
Update: 03/03/141© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Achieving Escape Velocity
Note – first 29 slides are the “annotated”version from March 3, 2014 – slides 30-57 are the “clean” version
Video: 10-Minute Video Clip of Michael Eckhardt'sExecutive Overview for Silicon Valley tech companies:
“Strategic Marketing of Breakthrough Products + Services”
Chasm Institute Palo Alto, CA
Also – a 10-min. YouTube video clip of Michael Eckhardt:
Update: 03/03/142© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
2014 Edition
Escape Velocity KeynoteFree Your Company’s Future From The Pull Of The Past
... a focused session for SBODN, by Chasm Institute’s Managing Director, Michael Eckhardt, who will provide OD consultants (internal or external) -- with strategy tools + frameworks from his company’s newest book, Escape Velocity -- to help executives and other stakeholders drive disruptive market innovation in new breakthrough areas during 2014-2016, while also continuing to succeed in their existing mature markets.
For: South Bay Organizational
Development Network
March 3, 2014
Keynote Speaker:
Michael EckhardtManaging Director
Update: 03/03/143© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Update: 03/03/144© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Many technology-based companies have enjoyed success in their mature mainstream markets for 5 or 10 or even 20+ years – these include Microsoft, IBM, Oracle, Nokia, as well as HP and Intel.
To remain competitive, however, these companies must accomplish two challenging objectives simultaneously:
maintain + protect their mature mainstream businesses
while achieving “Escape Velocity” with breakthrough market initiatives fueled by new customer expectations / new business models / new innovations
---------------
The “Escape Velocity” session provides OD leaders + experts with:
a briefing on the specific strategies and tactics needed to achieve a sustainable + profitable entry with new market innovations, while remaining competitive in their mature business. As the March 3rd session will describe, this requires dramatically different executive coaching / skills / mindset / metrics / actions.
Escape Velocity examples:Successes – IBM (from hardware to software + services); Apple (from desktops to mobile ecosystem)Failures – Nokia (from basic mobile phones to smart phones); Kodak (from analog to digital)Currently in Process – Oracle (from on-premise to cloud); Adobe (from installed s/w to online s/w)
“Escape Velocity” Is Only Important If YouWant to Remain Competitive in the Future
Update: 03/03/145© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Professional Background of Program Leader
Michael Eckhardt – Managing Director at Chasm Institute, is a veteran of Hewlett-Packard, Pepsico, and Price Waterhouse.
An MBA graduate of Harvard Business School and Wall Street JournalAward winner, Michael Eckhardt is a recognized expert in both strategic innovation & high-tech market success. He provides clients: in Silicon Valley, the US, and Europe / Asia-Pacific with strategy workshops & practical market-centric innovation tools for gaining (+ sustaining) leadership positions in highly-competitive markets
Michael Eckhardt has worked with over 90 technology-based businesses in 19 countries. Founded in 1993, our clients include: Intel, Cisco, Adobe, HP, AT&T Wireless, SAP, Agilent Technologies, Micron, LMC Data Systems, NetApp, Autodesk, Plantronics, Mentor Graphics, and other high-tech leaders.
His 3 primary areas of focus are: accelerating market success, predicting customer reaction to new product intro’s, and achieving “Escape Velocity” / driving profitable innovation.
Michael Eckhardt and his Chasm Institute senior team have worked on market strategy for winning products, services and solutions in North America and worldwide. GeoffreyMoore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributedto several of Moore’s best selling high-tech strategy books, including the newest book entitled Escape Velocity – Free Your Company’s Future From The Pull Of The Past.
Chasm Institute provides these advanced workshops to executives + teams:
“Go-to-Market Success ” “Accelerating Sales thru Marketing”“Achieving Escape Velocity” “Winning in Mature Markets”
... for more information please visit Michael Eckhardt’s LinkedIn site or click on: www.chasminstitute.com
Global Thought Leadership.Proven Impact.
Update: 03/03/146© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
September 2013: Outgoing CEO Steve Ballmer was brutally honest at Microsoft’s financial analysts meeting Thursday, admitting that the software giant has allowed the booming mobile market to pass it by.
“Mobile devices, we have almost no share,” Ballmer said during the speech. “I don’t know whether to say that with enthusiasm or kind of uncomfortable tension, but I’m an optimistic guy.”
Despite his buoyant attitude, Ballmer did say during a Q&A session that he regretted decisions made early in his reign as CEO.
“If there’s one thing I guess you would say I regret, I regret that there was a period in the early 2000s when we were so focused on what to do around Windows (our mature product line), that we weren’t able to redeploy talent / resources to the new category called smart phones,” he said.
“That would probably be the thing I would tell you I regret the most, because the time we missed was during the period we were working on what became Vista, and I wish we’d had our resources differently deployed, let me say, during the early 2000s. It would have been better for Windows and better for our success in other (newer) mobile categories, like smart phones and tablets.”
Is Achieving “Escape Velocity” Important ?
Note: article edited for clarity + brevity
Update: 03/03/147© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Many technology-based companies have enjoyed success in their mature mainstream markets for 5 or 10 or even 20+ years – these include Microsoft, IBM, Oracle, Nokia, as well as HP and Intel.
To remain competitive, however, these companies must accomplish two challenging objectives simultaneously:
maintain + protect their mature mainstream businesses
while achieving “Escape Velocity” with breakthrough market initiatives fueled by new customer expectations / new business models / new innovations
---------------
The “Escape Velocity” session provides OD leaders + experts with:
a briefing on the specific strategies and tactics needed to achieve a sustainable + profitable entry with new market innovations, while remaining competitive in their mature business. As the March 3rd session will describe, this requires dramatically different executive coaching / skills / mindset / metrics / actions.
Escape Velocity examples:Successes – IBM (from hardware to software + services); Apple (from desktops to mobile ecosystem)Failures – Nokia (from basic mobile phones to smart phones); Kodak (from analog to digital)Currently in Process – Oracle (from on-premise to cloud); Adobe (from installed s/w to online s/w)
“Escape Velocity” Is Only Important If YouWant to Remain Competitive in the Future
Our newest book
1990
1995
2001
2006
Chasm Institute “Escape Velocity” expertise is based on:• our 500+ engagements with Silicon Valley clients• our 5 best-selling strategy books for tech companies• our global Thought Leadership on driving profitable innovation
Update: 03/03/149© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers... these 5 powers are the engines for driving Escape Velocity
Category Power
Company Power
Market Power
Offer Power
Execution Power
Chasm Institute has analyzed Escape Velocity examplesand “Best & Worst” practices from many of these companies:
Update: 03/03/1411© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers
Category Power
Company Power
Market Power
Offer Power
Execution Power
Growth rates of your major categories
Status relative to your reference competitors
Market share in strategic target segments
Net differentiation of your flagship offers
Ability to drive changes to tipping points
Align these 5 to achieve escape velocity
Update: 03/03/1412© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers... Which of these 5 powers does Gxxxxx PLS have today?
Category Power
Company Power
Market Power
Offer Power
Execution Power
Update: 03/03/1413© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of PowersHow much power does Gxxxxx PLS have today?
Category Power
Company Power
Market Power
Offer Power
Execution Power
Are we in hot high-growth categories, or do we have category envy?
Are we leveraging our crown jewels and allocating our resources to create sustainable competitive advantage?
Are we winning in key target markets and are we winning them fast enough?
Do our core offers set the bar, or are we playing a lot of catch-up?
Can we make stuff happen and make it stick, or are we continually pushing the reset button?
Update: 03/03/1414© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Where are key parts of our PLS portfolio competing on the Tech Market Model ?
Once we’ve gained accurate answers to the above question, we can then move forward in 2014-2015 with greater certainty + less risk :
(1) about what we should and should not do in the market
(2) based on the specific market stage we are competing in.
?
?
?
? ?
??
?
Category Power... will change across the Tech Market Model
Update: 03/03/1415© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Competitor 2*
Competitor 1*
Competitor 3*
YOU*
*
Competitive Set
Create unmatchable capability via your core vector of innovation
Redefine pecking order for the category by setting a new standard
Over-invest to the point that competitors cannot or will not follow
Leverage your crown jewels to amplify your power
Company PowerThe Escape Velocity Model
Core
Update: 03/03/1416© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1 Target Customer
2 Compelling Reasonto Buy
3 Whole Product
4 Partners & Allies
5 Sales Strategy
6 Pricing Strategy
7 Competition
8 Positioning / Messaging
9 Next Target
Target Customer Definition / Size & Growth Forecast
Customer Motivation Analysis
Whole Product Completeness
Partner Alignment
Sales Channel Readiness (direct sales force and / or indirect)
Customer ROI / Partner Financials / PLS Financial Goals
“Most Dangerous Competitor ” Prioritization
Viral Power – into Adjacent Targets
Fit - to -TMM + 7-C ’s Scoring
Market Power, Offer Power, Execution PowerThe 9-Point Market Strategy Framework
Update: 03/03/1417© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers... Different Responsibilities for Different Management Levels
Category Power
Company Power
Market Power
Offer Power
Execution Power
Key Business Teams + Marketing Teams
C-Level Execs +Board of Directors
VP’s + Group Directors
Update: 03/03/1418© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Three Investment HorizonsWhere Category Power Initiatives Gets Stuck
Horizon 1ROI in 0 to 12 mos
Horizon 2ROI in 12 to 36 mos
Horizon 3ROI in 36 to 72 mos
Current Categories
Meet Performance Commitments
Break-Out Categories
On-board next generation for future growth
Future Category Options
Develop options for future growth
Do well here
Do well here too
Sticking point
Update: 03/03/1419© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Innovation Incubation ModelIt’s Not a Funnel. It’s an Hourglass!
Horizon 3
Horizon 2
Horizon 1
Update: 03/03/1420© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Race to Material Revenues Rules of Thumb for Publicly Held Enterprises
• 5% - 10% of Total Revenue = Revenue Materiality• This is the exit threshold from H2 to H1
• 0.5% - 1% of Total Revenue = On the Expense Radar• This is the entry threshold from H3 to H2
• Horizon 2 Journey• Grow one order of magnitude in 12 quarters
• Be more than half way after 8 quarters
• Else fold back into the base business and move on
Horizon 2 is not a stable stateMust race to get through, or die
Update: 03/03/1421© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Meeting the Horizon 2 ChallengeNew Prescriptions in Five Key Areas
• Number of H2 Initiatives
• Planning & Budgeting
• Organizational Structure
• Metrics
• Talent & Compensation
Based on venture capital ideas Adapted to enterprise realities
Very sensitive issues
OUR 9-POINT PLANFOR Achieving ESCAPE VELOCITY
PLS Executive Overview
1 Target Customer
2Compelling Reasonto Buy (the category)
3 Whole Product
4 Partners & Allies
5 Sales Strategy
6 Pricing Strategy
7 Competition
8 Positioning / Messaging
9 Next Target
Business Objective for this Gxxxxx PLS 9-Point Plan:
22
Key PLS Initiative or Solution:
TMM Stage: [ ] Early [ ] Mid [ ] Late
Time Period for this Plan: from to
Update: 03/03/14© 2014 Chasm Institute Contact: Angela Martinez [email protected] rights reserved. Contents may not be reproduced in any form without prior written permission.
Update: 10/24/1323© 2013 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Achieving Escape Velocity... how can we gain momentum + minimize friction ?
Do we have the right team of people -- with the right skills and motivation to complete this Escape Velocity initiative ?
Does this team have available to them the product, services, partnerships, and other resources needed for success ?
Is the timeline realistic for bringing this product / solution / initiative to market, in order to meet the window of customer opportunity ?
Are there any “speed bumps” or barriers that we need to address immediately ?
Can we bring our product or solution to market at a price which will make it competitive in the eyes of our target customers ?
Will the forecast Return On Investment (ROI) make this a successful project based on internal metrics ?
Is the organization aligned and focused with a “Will to Win” with this initiative ?
Bottom Line -- Are there any steps we can take now to increase the probability of success as we go to market ?
8 Key Criteria for Driving Successful Escape Velocity Results
Update: 03/03/1424© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Initial excitement by visionary customers
1
Disparate pilot projects yielding
weak traction
2
Highly focused demand ... only
15% of sales reps can sell here
3
The winners from Tornado will dominate profits + margin share
game here
5-a
Industry + category consolidation accelerates
5-c
45% growth rate for the category – crucial
market share war begins4
Steady market:70% to 90% of
sales = repurchase by existing customers
5-b
5-d
Displacement by newer category
The Tech Market Model 2.0What are 8 Key Patterns in high-tech ?
1 Target Customer
2Compelling Reasonto Buy (the category)
3 Whole Product
4 Partners & Allies
5 Sales Strategy
6 Pricing Strategy
7 Competition
8 Positioning / Messaging
9 Next Target
Business Objective for this Plan:Major Escape Velocity challenges to overcome:
25Update: 03/03/14
Key PLS Initiative or Solution:– Needs Major Attention
– Caution: Still Needs More Focus
– On Plan
© 2014 Chasm Institute Contact: Angela Martinez [email protected] rights reserved. Contents may not be reproduced in any form without prior written permission.
Due Date 02 / 28 / 2014 03 / 31 / 2014 04 / 30 / 2014
9-Point Dashboard2014 Performance-to-Plan
Action:
Owner:
Action:
Owner:
Action:
Owner:
Action:
Owner: Action:
Owner:
Action:
Owner:
Action:
Owner: Action:
Owner:
Action:
Owner:
Action:
Owner:
Action:
Owner:
Update: 03/03/1426© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Chasm Institute provides:
... tech-based companies with workshops,tools + consulting to drive product line success by leveraging --
► our best-selling books, authored byChasm Institute Chairman Geoffrey Moore
► and our 15+ years of work in Silicon Valley
Chasm Institute helps:
tech companies drive profitable growth
key managers operationalize their strategy
teams in product management, R&D,marketing + sales achieve market success
Update: 03/03/1427© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Here are 5 ways to engage with Chasm Institute:
1.5 days
3 to 4 months
Ideal for helping CEO’s and senior managers accelerate resultsin their strategic growth initiatives
Ideal for
o product +business teams seeking
to gain new tools / methods
o management retreats or off-site planning meetings
Books+
Blogs
KeynoteSpeeches
ExecutiveBriefing
Sessions
ActionWorkshops
Break-OutGrowth
Projects
60 mins
4 hrs
Ideal for key conferences + trade show events
Ideal for senior leadershipplanning meetings
Update: 03/03/1428© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Chasm Institute provides workshops + tools for helping tech-based companies achieve product and service success in tough, highly competitive markets
Workshops are based on these best-selling business books by Chasm Institute’s Chairman Emeritus, Geoffrey Moore:
Chasm Institute LLCPalo Alto, California
Tel: 650-537-6742Fax: 650-599-9338
Angela MartinezPrograms [email protected]
Michael EckhardtManaging [email protected]
For More Information on Chasm InstituteWorkshops For Your Business Team:
Update: 03/03/1429© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Chasm Institute Copyright Notice
• Copyright ©2014, Chasm Institute LLC. All rights reserved.
• This presentation is provided to you solely for informational purposes and does not constitute conveyance of any intellectual property rights.
• Chasm Institute LLC has created materials, methodologies and practices that are proprietary. All intellectual property associated with these works and any derivative works that come as a result of any Client engagement shall remain the property of Chasm Institute LLC.
• This presentation may not be reproduced or redistributed, in whole or in part, without the prior consent of Chasm Institute LLC.
Update: 03/03/1430© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
2014 Edition
Escape Velocity KeynoteFree Your Company’s Future From The Pull Of The Past
... a focused session for SBODN, by Chasm Institute’s Managing Director, Michael Eckhardt, who will provide OD consultants (internal or external) -- with strategy tools + frameworks from his company’s newest book, Escape Velocity -- to help executives and other stakeholders drive disruptive market innovation in new breakthrough areas during 2014-2016, while also continuing to succeed in their existing mature markets.
For: South Bay Organizational
Development Network
March 3, 2014
Keynote Speaker:
Michael EckhardtManaging Director
Update: 03/03/1431© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Update: 03/03/1432© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Many technology-based companies have enjoyed success in their mature mainstream markets for 5 or 10 or even 20+ years – these include Microsoft, IBM, Oracle, Nokia, as well as HP and Intel.
To remain competitive, however, these companies must accomplish two challenging objectives simultaneously:
maintain + protect their mature mainstream businesses
while achieving “Escape Velocity” with breakthrough market initiatives fueled by new customer expectations / new business models / new innovations
---------------
The “Escape Velocity” session provides OD leaders + experts with:
a briefing on the specific strategies and tactics needed to achieve a sustainable + profitable entry with new market innovations, while remaining competitive in their mature business. As the March 3rd session will describe, this requires dramatically different executive coaching / skills / mindset / metrics / actions.
Escape Velocity examples:Successes – IBM (from hardware to software + services); Apple (from desktops to mobile ecosystem)Failures – Nokia (from basic mobile phones to smart phones); Kodak (from analog to digital)Currently in Process – Oracle (from on-premise to cloud); Adobe (from installed s/w to online s/w)
“Escape Velocity” Is Only Important If YouWant to Remain Competitive in the Future
Update: 03/03/1433© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Professional Background of Program Leader
Michael Eckhardt – Managing Director at Chasm Institute, is a veteran of Hewlett-Packard, Pepsico, and Price Waterhouse.
An MBA graduate of Harvard Business School and Wall Street JournalAward winner, Michael Eckhardt is a recognized expert in both strategic innovation & high-tech market success. He provides clients: in Silicon Valley, the US, and Europe / Asia-Pacific with strategy workshops & practical market-centric innovation tools for gaining (+ sustaining) leadership positions in highly-competitive markets
Michael Eckhardt has worked with over 90 technology-based businesses in 19 countries. Founded in 1993, our clients include: Intel, Cisco, Adobe, HP, AT&T Wireless, SAP, Agilent Technologies, Micron, LMC Data Systems, NetApp, Autodesk, Plantronics, Mentor Graphics, and other high-tech leaders.
His 3 primary areas of focus are: accelerating market success, predicting customer reaction to new product intro’s, and achieving “Escape Velocity” / driving profitable innovation.
Michael Eckhardt and his Chasm Institute senior team have worked on market strategy for winning products, services and solutions in North America and worldwide. GeoffreyMoore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributedto several of Moore’s best selling high-tech strategy books, including the newest book entitled Escape Velocity – Free Your Company’s Future From The Pull Of The Past.
Chasm Institute provides these advanced workshops to executives + teams:
“Go-to-Market Success ” “Accelerating Sales thru Marketing”“Achieving Escape Velocity” “Winning in Mature Markets”
... for more information please visit Michael Eckhardt’s LinkedIn site or click on: www.chasminstitute.com
Global Thought Leadership.Proven Impact.
Update: 03/03/1434© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
September 2013: Outgoing CEO Steve Ballmer was brutally honest at Microsoft’s financial analysts meeting Thursday, admitting that the software giant has allowed the booming mobile market to pass it by.
“Mobile devices, we have almost no share,” Ballmer said during the speech. “I don’t know whether to say that with enthusiasm or kind of uncomfortable tension, but I’m an optimistic guy.”
Despite his buoyant attitude, Ballmer did say during a Q&A session that he regretted decisions made early in his reign as CEO.
“If there’s one thing I guess you would say I regret, I regret that there was a period in the early 2000s when we were so focused on what to do around Windows (our mature product line), that we weren’t able to redeploy talent / resources to the new category called smart phones,” he said.
“That would probably be the thing I would tell you I regret the most, because the time we missed was during the period we were working on what became Vista, and I wish we’d had our resources differently deployed, let me say, during the early 2000s. It would have been better for Windows and better for our success in other (newer) mobile categories, like smart phones and tablets.”
Is Achieving “Escape Velocity” Important ?
Note: article edited for clarity + brevity
Update: 03/03/1435© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Many technology-based companies have enjoyed success in their mature mainstream markets for 5 or 10 or even 20+ years – these include Microsoft, IBM, Oracle, Nokia, as well as HP and Intel.
To remain competitive, however, these companies must accomplish two challenging objectives simultaneously:
maintain + protect their mature mainstream businesses
while achieving “Escape Velocity” with breakthrough market initiatives fueled by new customer expectations / new business models / new innovations
---------------
The “Escape Velocity” session provides OD leaders + experts with:
a briefing on the specific strategies and tactics needed to achieve a sustainable + profitable entry with new market innovations, while remaining competitive in their mature business. As the March 3rd session will describe, this requires dramatically different executive coaching / skills / mindset / metrics / actions.
Escape Velocity examples:Successes – IBM (from hardware to software + services); Apple (from desktops to mobile ecosystem)Failures – Nokia (from basic mobile phones to smart phones); Kodak (from analog to digital)Currently in Process – Oracle (from on-premise to cloud); Adobe (from installed s/w to online s/w)
“Escape Velocity” Is Only Important If YouWant to Remain Competitive in the Future
Our newest book
1990
1995
2001
2006
Chasm Institute “Escape Velocity” expertise is based on:• our 500+ engagements with Silicon Valley clients• our 5 best-selling strategy books for tech companies• our global Thought Leadership on driving profitable innovation
Update: 03/03/1437© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers... these 5 powers are the engines for driving Escape Velocity
Category Power
Company Power
Market Power
Offer Power
Execution Power
Chasm Institute has analyzed Escape Velocity examplesand “Best & Worst” practices from many of these companies:
Update: 03/03/1439© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers
Category Power
Company Power
Market Power
Offer Power
Execution Power
Growth rates of your major categories
Status relative to your reference competitors
Market share in strategic target segments
Net differentiation of your flagship offers
Ability to drive changes to tipping points
Align these 5 to achieve escape velocity
Update: 03/03/1440© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers... Which of these 5 powers does Gxxxxx PLS have today?
Category Power
Company Power
Market Power
Offer Power
Execution Power
Update: 03/03/1441© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of PowersHow much power does Gxxxxx PLS have today?
Category Power
Company Power
Market Power
Offer Power
Execution Power
Are we in hot high-growth categories, or do we have category envy?
Are we leveraging our crown jewels and allocating our resources to create sustainable competitive advantage?
Are we winning in key target markets and are we winning them fast enough?
Do our core offers set the bar, or are we playing a lot of catch-up?
Can we make stuff happen and make it stick, or are we continually pushing the reset button?
Update: 03/03/1442© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Where are key parts of our PLS portfolio competing on the Tech Market Model ?
Once we’ve gained accurate answers to the above question, we can then move forward in 2014-2015 with greater certainty + less risk :
(1) about what we should and should not do in the market
(2) based on the specific market stage we are competing in.
?
?
?
? ?
??
?
Category Power... will change across the Tech Market Model
Update: 03/03/1443© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Competitor 2*
Competitor 1*
Competitor 3*
YOU*
*
Competitive Set
Create unmatchable capability via your core vector of innovation
Redefine pecking order for the category by setting a new standard
Over-invest to the point that competitors cannot or will not follow
Leverage your crown jewels to amplify your power
Company PowerThe Escape Velocity Model
Core
Update: 03/03/1444© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1 Target Customer
2 Compelling Reasonto Buy
3 Whole Product
4 Partners & Allies
5 Sales Strategy
6 Pricing Strategy
7 Competition
8 Positioning / Messaging
9 Next Target
Target Customer Definition / Size & Growth Forecast
Customer Motivation Analysis
Whole Product Completeness
Partner Alignment
Sales Channel Readiness (direct sales force and / or indirect)
Customer ROI / Partner Financials / PLS Financial Goals
“Most Dangerous Competitor ” Prioritization
Viral Power – into Adjacent Targets
Fit - to -TMM + 7-C ’s Scoring
Market Power, Offer Power, Execution PowerThe 9-Point Market Strategy Framework
Update: 03/03/1445© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Hierarchy of Powers... Different Responsibilities for Different Management Levels
Category Power
Company Power
Market Power
Offer Power
Execution Power
Key Business Teams + Marketing Teams
C-Level Execs +Board of Directors
VP’s + Group Directors
Update: 03/03/1446© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Three Investment HorizonsWhere Category Power Initiatives Gets Stuck
Horizon 1ROI in 0 to 12 mos
Horizon 2ROI in 12 to 36 mos
Horizon 3ROI in 36 to 72 mos
Current Categories
Meet Performance Commitments
Break-Out Categories
On-board next generation for future growth
Future Category Options
Develop options for future growth
Do well here
Do well here too
Sticking point
Update: 03/03/1447© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Innovation Incubation ModelIt’s Not a Funnel. It’s an Hourglass!
Horizon 3
Horizon 2
Horizon 1
Update: 03/03/1448© 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Race to Material Revenues Rules of Thumb for Publicly Held Enterprises
• 5% - 10% of Total Revenue = Revenue Materiality• This is the exit threshold from H2 to H1
• 0.5% - 1% of Total Revenue = On the Expense Radar• This is the entry threshold from H3 to H2
• Horizon 2 Journey• Grow one order of magnitude in 12 quarters
• Be more than half way after 8 quarters
• Else fold back into the base business and move on
Horizon 2 is not a stable stateMust race to get through, or die
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Meeting the Horizon 2 ChallengeNew Prescriptions in Five Key Areas
• Number of H2 Initiatives
• Planning & Budgeting
• Organizational Structure
• Metrics
• Talent & Compensation
Based on venture capital ideas Adapted to enterprise realities
Very sensitive issues
OUR 9-POINT PLANFOR Achieving ESCAPE VELOCITY
PLS Executive Overview
1 Target Customer
2Compelling Reasonto Buy (the category)
3 Whole Product
4 Partners & Allies
5 Sales Strategy
6 Pricing Strategy
7 Competition
8 Positioning / Messaging
9 Next Target
Business Objective for this Gxxxxx PLS 9-Point Plan:
50
Key PLS Initiative or Solution:
TMM Stage: [ ] Early [ ] Mid [ ] Late
Time Period for this Plan: from to
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Update: 10/24/1351© 2013 Chasm Institute Contact: Angela Martinez [email protected]
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Achieving Escape Velocity... how can we gain momentum + minimize friction ?
Do we have the right team of people -- with the right skills and motivation to complete this Escape Velocity initiative ?
Does this team have available to them the product, services, partnerships, and other resources needed for success ?
Is the timeline realistic for bringing this product / solution / initiative to market, in order to meet the window of customer opportunity ?
Are there any “speed bumps” or barriers that we need to address immediately ?
Can we bring our product or solution to market at a price which will make it competitive in the eyes of our target customers ?
Will the forecast Return On Investment (ROI) make this a successful project based on internal metrics ?
Is the organization aligned and focused with a “Will to Win” with this initiative ?
Bottom Line -- Are there any steps we can take now to increase the probability of success as we go to market ?
8 Key Criteria for Driving Successful Escape Velocity Results
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Initial excitement by visionary customers
1
Disparate pilot projects yielding
weak traction
2
Highly focused demand ... only
15% of sales reps can sell here
3
The winners from Tornado will dominate profits + margin share
game here
5-a
Industry + category consolidation accelerates
5-c
45% growth rate for the category – crucial
market share war begins4
Steady market:70% to 90% of
sales = repurchase by existing customers
5-b
5-d
Displacement by newer category
The Tech Market Model 2.0What are 8 Key Patterns in high-tech ?
1 Target Customer
2Compelling Reasonto Buy (the category)
3 Whole Product
4 Partners & Allies
5 Sales Strategy
6 Pricing Strategy
7 Competition
8 Positioning / Messaging
9 Next Target
Business Objective for this Plan:Major Escape Velocity challenges to overcome:
53Update: 03/03/14
Key PLS Initiative or Solution:– Needs Major Attention
– Caution: Still Needs More Focus
– On Plan
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Due Date 02 / 28 / 2014 03 / 31 / 2014 04 / 30 / 2014
9-Point Dashboard2014 Performance-to-Plan
Action:
Owner:
Action:
Owner:
Action:
Owner:
Action:
Owner: Action:
Owner:
Action:
Owner:
Action:
Owner: Action:
Owner:
Action:
Owner:
Action:
Owner:
Action:
Owner:
Update: 03/03/1454© 2014 Chasm Institute Contact: Angela Martinez [email protected]
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Chasm Institute provides:
... tech-based companies with workshops,tools + consulting to drive product line success by leveraging --
► our best-selling books, authored byChasm Institute Chairman Geoffrey Moore
► and our 15+ years of work in Silicon Valley
Chasm Institute helps:
tech companies drive profitable growth
key managers operationalize their strategy
teams in product management, R&D,marketing + sales achieve market success
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Here are 5 ways to engage with Chasm Institute:
1.5 days
3 to 4 months
Ideal for helping CEO’s and senior managers accelerate resultsin their strategic growth initiatives
Ideal for
o product +business teams seeking
to gain new tools / methods
o management retreats or off-site planning meetings
Books+
Blogs
KeynoteSpeeches
ExecutiveBriefing
Sessions
ActionWorkshops
Break-OutGrowth
Projects
60 mins
4 hrs
Ideal for key conferences + trade show events
Ideal for senior leadershipplanning meetings
Update: 03/03/1456© 2014 Chasm Institute Contact: Angela Martinez [email protected]
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Chasm Institute provides workshops + tools for helping tech-based companies achieve product and service success in tough, highly competitive markets
Workshops are based on these best-selling business books by Chasm Institute’s Chairman Emeritus, Geoffrey Moore:
Chasm Institute LLCPalo Alto, California
Tel: 650-537-6742Fax: 650-599-9338
Angela MartinezPrograms [email protected]
Michael EckhardtManaging [email protected]
For More Information on Chasm InstituteWorkshops For Your Business Team:
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