Escape Velocity Illustrations
Geoffrey Moore is an author, speaker and advisor as well as a venture partner at Mohr Davidow Ventures (MDV). Recognized as a leading business advisor, Geoffrey divides his time between consulting on strategy and transformation challenges with senior executives and on developing mental models to support his advisory practice. With this intent in mind he has written his newest book published by HarperCollins in September of 2011: Escape Velocity: Free Your Company’s Future from the Pull of the Past, the result of his years of experience working with large enterprises in his former role as a Managing Director at TCG Advisors. Recognized as well for his expertise in market development and business and investment strategies, as a Venture Partner at Mohr Davidow Ventures he also serves as an advisor to MDV portfolio companies by drawing upon best practices derived from his extensive experience working with technology startups over the last two decades. Geoffrey has made the understanding and effective exploitation of disruptive technologies the core of his life's work. His books, Crossing the Chasm, Inside the Tornado, The Gorilla Game, Living on the Fault Line and Dealing with Darwin are best sellers and required reading at leading business schools. Highly regarded as a dynamic public speaker, he integrates a speaking practice with his advisory work. He is a founder of both The Chasm Group and TCG Advisors. Earlier in his career, he was a principal and partner at Regis McKenna, Inc., a leading high tech marketing strategy and communications company, and for the decade prior, a sales and marketing executive in the software industry. He holds a bachelor's degree in literature from Stanford University and a doctorate in literature from the University of Washington. To find out more about Geoffrey Moore please visit: More information about Geoffrey Moore: http://www.geoffreyamoore.com More information about the Escape Velocity Book: http://www.escapevelocitybymoore.com Geoffrey Moore on Twitter: http://www.twitter.com/geoffreyamoore Geoffrey Moore on Google Plus: http://gplus.to/geoffreyamoore
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Escape Velocity Illustrations
- 1. HarperCollins Paper & eBook format Release Date: Sept 6, 2011
- 2. 2 Time RevenueGrowth Growth Categories Mature Categories Declining Categories Indefinitely elastic middle End of Life Fault Line! EDCBA Technology Adoption Life Cycle Category Maturity Life Cycle Emerging Categories Figure 2.1
- 3. 3 Portfolio Management The Growth/Materiality Matrix High Growth Low Growth Material Not Material Emerging MatureGrowth Declining 1 2 3 4 Figure 2.2
- 4. Typical Portfolio Pattern High Growth Categories Low Growth Categories Material to Current Financials Not Material 1 2 3 4 Figure 2.3
- 5. Managing a Portfolio The Three Horizons Model Horizon 1 0 to 12 months Horizon 2 12 to 36 months Horizon 3 36 to 72 months Current Businesses Generate today’s cash flow High Growth Businesses Today’s revenue growth + tomorrow’s cash flow Growth Options Options on future high-growth businesses Expected Window of Returns AccumulatedTotalReturns Figure 2.4
- 6. Horizon2 Horizon 1 Horizon 3 “Horizon0” Three Horizons Model Mapped to Growth/Materiality Matrix High Growth Low Growth Material Not Material Figure 2.5
- 7. 7 Goals, Metrics, and the Three Horizons Different Metrics for Each Horizon TIME FRAME HORIZON 1 (0 - 12 mos) HORIZON 2 (12 - 36 mos) HORIZON 3 (36 - 72 mos) Create a Category Maximize Economic Returns Become a Going Concern Driving Goal Key Performance Indicators Revenue vs. plan Bookings Contribution margin Market share Wallet share Target accts vs. plan Sales velocity Deal size Segment share Time to tipping point Name-brand customers Deal size Name-brand partners PR buzz Flagship projects “Opex” “Timex” “Capex” Figure 2.6
- 8. 8 Achieving Escape Velocity Focus on Competitive Separation Competitor 2 * Competitor 1* Competitor 3* YOU* Gain bargaining power by getting separation from your competitive set * Competitive Set Failure to separate means lower revenues or profit margins or both CORE An Unmatchable Offer Figure 3.1
- 9. Two Business Architectures Complex Systems vs. Volume Operations Complex Systems Volume Operations Sweet Spot Sweet Spot Complexity Volume Effectiveness Small Business Government Programs Societal Entitlements Enterprise Consumer 100 101 102 103 104 105 106 107 108 109 Number of Customers Figure 3.2
- 10. 1. Target Customer 2. Compelling Reason to Buy 3. Whole Offer 4. Partners and Allies 5. Sales Strategy 6. Pricing Strategy 7. Competition 8. Positioning 9. Next Target Key sponsor Complete solution Function of whole product complexity Legitimate alternatives Next growth segment Core problem Needed for whole product Value based Differentiation 9-Point Market Strategy Framework Figure 4.1
- 11. Failed Attempts Waste Return on Innovation Differentiation Neutralization Optimization Figure 5.1
- 12. 12 The Six Levers Free Resources Trapped in Context Tasks 1. Centralize. Bring operations under a single authority to reduce overhead and create a single point of control to manage mission-critical risk. 2. Standardize. Reduce the variety and variability of processes delivering similar outputs to eliminate costs and minimize risks. 3. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions. 4. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost components, or otherwise cost- and resource-reduce. 5. Instrument. Characterize the remaining processes in terms of the variability of key parameters and develop monitor-and-control systems to manage their performance. 6. Outsource. Drive processes out of the enterprise entirely to further reduce overhead, variabilize costs, and minimize future investment. Incorporate vendor use of monitor-and-control systems into Service Level Agreement. Figure 5.2
- 13. Price/Benefit Sensitivity How Customers Internalize Value PriceSensitivity Benefit Sensitivity HI HI LO LO PREMIUM PERFORMANCECOST CONVENIENCE Figure 5.3
- 14. Value Disciplines and Price/Benefit Sensitivity PriceSensitivity Benefit Sensitivity HI HI LO LO Product Leadership Customer Intimacy Operational Excellence Figure 5.4
- 15. Creating the Unmatchable Offer The Core/Context Model Core Unmatchable Differentiation Context Neutralizing Innovations Mission Critical Enabling 1 2 3 4 Figure 2.1
- 16. The Arc of Execution Complex Systems Enterprises Playbooks Projects Products Figure 6.1 Invent Deploy Optimize
- 17. The Arc of Execution Volume Operations Enterprises Partners Products Processes Figure 6.2 Invent Deploy Optimize
- 18. Catalyzing Escape Velocity The “Tipping Point” Role of Programs Deploy Invent Optimize Transition Program Transition Program Tipping Point Tipping Point Figure 6.3
- 19. Four Modes of Execution Execution Mode Invention Deployment Optimization Transitions Type of Leader Visionary Inventor Pragmatic Deployer Conservative Optimizer Pragmatic Orchestrator Core Competence Creativity Competitiveness Control Collaboration Core Attribute Spontaneous Tough-minded Prepared Empathetic Decision Style Intuition Experimentation Deliberation Consensus Functions Most in Alignment R&D, Creative Services Sales, Engineering Finance, Operations HR, Marketing, Customer Suppt Figure 6.4