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