Sbodn event escape velocity with michael eckhardt

964 views

Published on

SBODN's March event with Michael Eckhardt

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
964
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Sbodn event escape velocity with michael eckhardt

  1. 1. Update: 03/03/14 1© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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's Executive 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: 03/03/14 2© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. 2014 Edition Escape Velocity Keynote Free 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 Eckhardt Managing Director
  2. 2. Update: 03/03/14 3© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Update: 03/03/14 4© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 You Want to Remain Competitive in the Future
  3. 3. Update: 03/03/14 5© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 Journal Award 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. Geoffrey Moore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributed to 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: 03/03/14 6© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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
  4. 4. Update: 03/03/14 7© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 You Want 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
  5. 5. Update: 03/03/14 9© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 examples and “Best & Worst” practices from many of these companies:
  6. 6. Update: 03/03/14 11© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 12© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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
  7. 7. Update: 03/03/14 13© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. The Hierarchy of Powers How 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: 03/03/14 14© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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
  8. 8. Update: 03/03/14 15© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 Power The Escape Velocity Model Core Update: 03/03/14 16© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. 1 Target Customer 2 Compelling Reason to 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 Power The 9-Point Market Strategy Framework
  9. 9. Update: 03/03/14 17© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 18© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Three Investment Horizons Where Category Power Initiatives Gets Stuck Horizon 1 ROI in 0 to 12 mos Horizon 2 ROI in 12 to 36 mos Horizon 3 ROI 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
  10. 10. Update: 03/03/14 19© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Innovation Incubation Model It’s Not a Funnel. It’s an Hourglass! Horizon 3 Horizon 2 Horizon 1 Update: 03/03/14 20© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 state Must race to get through, or die
  11. 11. Update: 03/03/14 21© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Meeting the Horizon 2 Challenge New 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 PLAN FOR Achieving ESCAPE VELOCITY PLS Executive Overview 1 Target Customer 2 Compelling Reason to 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 amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission.    
  12. 12. Update: 10/24/13 23© 2013 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 24© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 begins 4 Steady market: 70% to 90% of sales = repurchase by existing customers 5-b 5-d Displacement by newer category The Tech Market Model 2.0 What are 8 Key Patterns in high-tech ?
  13. 13. 1 Target Customer 2 Compelling Reason to 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 amartinez@chasminstitute.com All 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 Dashboard 2014 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: 03/03/14 26© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 by Chasm 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
  14. 14. Update: 03/03/14 27© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 results in 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 Keynote Speeches Executive Briefing Sessions Action Workshops Break-Out Growth Projects 60 mins 4 hrs Ideal for key conferences + trade show events Ideal for senior leadership planning meetings Update: 03/03/14 28© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 LLC Palo Alto, California Tel: 650-537-6742 Fax: 650-599-9338 Angela Martinez Programs Manager amartinez@chasminstitute.com Michael Eckhardt Managing Director meckhardt@chasminstitute.com For More Information on Chasm Institute Workshops For Your Business Team:
  15. 15. Update: 03/03/14 29© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 30© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. 2014 Edition Escape Velocity Keynote Free 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 Eckhardt Managing Director
  16. 16. Update: 03/03/14 31© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Update: 03/03/14 32© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 You Want to Remain Competitive in the Future
  17. 17. Update: 03/03/14 33© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 Journal Award 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. Geoffrey Moore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributed to 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: 03/03/14 34© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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
  18. 18. Update: 03/03/14 35© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 You Want 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
  19. 19. Update: 03/03/14 37© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 examples and “Best & Worst” practices from many of these companies:
  20. 20. Update: 03/03/14 39© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 40© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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
  21. 21. Update: 03/03/14 41© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. The Hierarchy of Powers How 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: 03/03/14 42© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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
  22. 22. Update: 03/03/14 43© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 Power The Escape Velocity Model Core Update: 03/03/14 44© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. 1 Target Customer 2 Compelling Reason to 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 Power The 9-Point Market Strategy Framework
  23. 23. Update: 03/03/14 45© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 46© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Three Investment Horizons Where Category Power Initiatives Gets Stuck Horizon 1 ROI in 0 to 12 mos Horizon 2 ROI in 12 to 36 mos Horizon 3 ROI 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
  24. 24. Update: 03/03/14 47© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Innovation Incubation Model It’s Not a Funnel. It’s an Hourglass! Horizon 3 Horizon 2 Horizon 1 Update: 03/03/14 48© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 state Must race to get through, or die
  25. 25. Update: 03/03/14 49© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission. Meeting the Horizon 2 Challenge New 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 PLAN FOR Achieving ESCAPE VELOCITY PLS Executive Overview 1 Target Customer 2 Compelling Reason to 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 Update: 03/03/14© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All rights reserved. Contents may not be reproduced in any form without prior written permission.    
  26. 26. Update: 10/24/13 51© 2013 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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: 03/03/14 52© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 begins 4 Steady market: 70% to 90% of sales = repurchase by existing customers 5-b 5-d Displacement by newer category The Tech Market Model 2.0 What are 8 Key Patterns in high-tech ?
  27. 27. 1 Target Customer 2 Compelling Reason to 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 © 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com All 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 Dashboard 2014 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: 03/03/14 54© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 by Chasm 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
  28. 28. Update: 03/03/14 55© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 results in 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 Keynote Speeches Executive Briefing Sessions Action Workshops Break-Out Growth Projects 60 mins 4 hrs Ideal for key conferences + trade show events Ideal for senior leadership planning meetings Update: 03/03/14 56© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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 LLC Palo Alto, California Tel: 650-537-6742 Fax: 650-599-9338 Angela Martinez Programs Manager amartinez@chasminstitute.com Michael Eckhardt Managing Director meckhardt@chasminstitute.com For More Information on Chasm Institute Workshops For Your Business Team:
  29. 29. Update: 03/03/14 57© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com 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.

×