| There's nothing automatic about corporate growth, | | | | technology aimed at a particular industry, and their |
| particularly in the information technology industry; | | | | first round of financing secured. They also find |
| build it and they will come is a myth. In the real world | | | | themselves with a weak or non-existent positioning |
| there is either a structured, process-driven growth | | | | statement, a reactive product management process, |
| cycle, or stagnation-and stagnation is automatic. | | | | exhausted or ineffective sales skills, and a strictly |
| Inherent to growth cycles are barriers, real-world | | | | opportunistic business development strategy. |
| business challenges that put some software | | | | Company growth is limited in part by the notion that |
| companies out of business and spur others on to | | | | the product will sell itself because it is superior to any |
| break through those barriers to higher levels of | | | | other on the market-indeed, it may be the only |
| success. Overcoming those barriers is the very | | | | offering. Revenue growth is limited because the |
| definition of growth; when you break through a | | | | product is defined in terms of its functionality, not its |
| barrier, you've achieved growth. | | | | value to the customer. |
| You're a software or information technology | | | | The offering, and by extension the company, is still |
| company, prosperous in 2005, which means that you | | | | being defined by technologists; it has yet to be |
| have a good product, you've made some smart | | | | married with a solid business development plan, |
| decisions and you've already broken through some | | | | marketing or sales acumen. More worrisome is that |
| growth barriers. You're successful. Now what? | | | | the very success of your company has brought you |
| Any company, regardless of age or size can | | | | to the attention of major players who do have |
| experience barriers to growth: if you find it hard to | | | | personnel and strategies dedicated to driving you out |
| develop and maintain market momentum; are tied to | | | | of the market; they view you as a threat. Your days |
| your entrepreneurial management style and unable to | | | | of flying under the radar are over. |
| scale; have reached a level of revenue or income and | | | | This stage is characterized by: |
| stagnation is settling in; or if your revenue is | | | | - An attractive market |
| generated from one product, service, client, or | | | | - A compelling product |
| industry, then you're at the next growth barrier, you | | | | - Adequate financial resources |
| need to be able recognize it, and you need to | | | | - An inability to develop market momentum |
| prepare to cross it. This overview discusses the | | | | Through sales, marketing, product management and |
| typical growth barriers that confront many IT and | | | | business development acumen, a sales and marketing |
| software companies, and how external consultants | | | | strategy consultant may be able to help a company |
| can be used effectively to break through those | | | | like yours to: |
| barriers. | | | | - Recruit and manage skilled personnel |
| Strategy Constrained | | | | - Craft compelling product and company positioning |
| At this point your company or product is in the early | | | | - Create effective sales vehicles and sales strategy |
| stages of its evolution. You've landed a handful of | | | | - Recruit and manage appropriate and motivated |
| key accounts, and you're encouraged by your early | | | | alliance partners |
| success. Now you need a plan, a strategy, a | | | | Process Constrained |
| concrete agenda that will move your information | | | | A company at this stage of development is typically |
| technology company from being a collection of | | | | successful, no longer a start-up, is being run by a |
| talented people with a common goal, to being a team | | | | management team, has been accepted in the |
| with a common goal and a battle-tested strategy for | | | | market, and is competitive. However, fundamental |
| achieving that goal. | | | | product development and sales and marketing |
| This stage is characterized by: | | | | management processes have not yet been accepted |
| - Perpetual realignment of company strategy | | | | within the foundation of the corporate culture. This |
| By delivering guidance on corporate strategy, a | | | | means that the solution to most situations are |
| marketing strategy consultant may be able to help a | | | | human-based, usually hand-crafted by the |
| company like yours to: | | | | management team; the foundation of proven |
| - Define untapped solution areas | | | | processes is absent. |
| - Make technological platform decisions | | | | This stage is characterized by: |
| - Select appropriate geographic markets | | | | - Market acceptance |
| - Write actionable business plans | | | | - Ability to compete with established players |
| Capital Constrained | | | | - All actions are hand-crafted, typically by the senior |
| You've taken your software company or product as | | | | management team |
| far as you can on your savings. Or perhaps you've | | | | By introducing repeatable, best-of-breed processes |
| made a few key sales that have kept you afloat. In | | | | for sales, marketing and product management, a |
| order to move your company on to the next phase | | | | sales and marketing strategy consultant may help a |
| of development you need an infusion of capital to | | | | company like yours to: |
| hire skilled employees, make key acquisitions and fuel | | | | - Introduce effective and repeatable product |
| your growth. Technology is your specialty, not | | | | management, marketing and sales processes |
| prospectus writing for venture capitalists. | | | | - Reduce day-to-day reliance on senior management |
| This stage is characterized by: | | | | resources |
| - Inability to fund business strategies | | | | Innovation Constrained |
| - Decision-making based upon short-term cash-flow | | | | Organizations at this stage of development have |
| issues rather than long-term strategy | | | | achieved a great deal of success; processes are |
| Through road-show ready business plan development | | | | ingrained, product development is streamlined, and |
| and introduction to network of VCs and angel | | | | sales and marketing systems are in place. But by |
| investors, a strategy consultant may be able to help | | | | definition the market keeps shifting: your product is |
| a company like yours to: | | | | being eclipsed by younger companies with products |
| - Author compelling investment prospectuses | | | | that perhaps even capitalize on your R&D and |
| - Define immediate and long-term financial | | | | experience; your market may be saturated to the |
| requirements | | | | point that the double-digit growth rates your |
| - Execute successful finance road shows | | | | investors have come to take for granted are a thing |
| Skills Constrained | | | | of the past. You need a new product or a new |
| Typically a company finds themselves at this stage | | | | market or both. |
| of development with a great product built on sound | | | | |