There's nothing automatic about corporate growth, particularly in the information technology industry; build it and they will come is a myth. In the real world there is either a structured, process-driven growth cycle, or stagnation-and stagnation is automatic. Inherent to growth cycles are barriers, real-world business challenges that put some software companies out of business and spur others on to break through those barriers to higher levels of success. Overcoming those barriers is the very definition of growth; when you break through a barrier, you've achieved growth.
You're a software or information technology company, prosperous in 2005, which means that you have a good product, you've made some smart decisions and you've already broken through some growth barriers. You're successful. Now what?
Any company, regardless of age or size can experience barriers to growth: if you find it hard to develop and maintain market momentum; are tied to your entrepreneurial management style and unable to scale; have reached a level of revenue or income and stagnation is settling in; or if your revenue is generated from one product, service, client, or industry, then you're at the next growth barrier, you need to be able recognize it, and you need to prepare to cross it. This overview discusses the typical growth barriers that confront many IT and software companies, and how external consultants can be used effectively to break through those barriers.
Strategy Constrained
At this point your company or product is in the early stages of its evolution. You've landed a handful of key accounts, and you're encouraged by your early success. Now you need a plan, a strategy, a concrete agenda that will move your information technology company from being a collection of talented people with a common goal, to being a team with a common goal and a battle-tested strategy for achieving that goal.
This stage is characterized by:
By delivering guidance on corporate strategy, a marketing strategy consultant may be able to help a company like yours to:
Capital Constrained
You've taken your software company or product as far as you can on your savings. Or perhaps you've made a few key sales that have kept you afloat. In order to move your company on to the next phase of development you need an infusion of capital to hire skilled employees, make key acquisitions and fuel your growth. Technology is your specialty, not prospectus writing for venture capitalists.
This stage is characterized by:
Through road-show ready business plan development and introduction to network of VCs and angel investors, a strategy consultant may be able to help a company like yours to:
Skills Constrained
Typically a company finds themselves at this stage of development with a great product built on sound technology aimed at a particular industry, and their first round of financing secured. They also find themselves with a weak or non-existent positioning statement, a reactive product management process, exhausted or ineffective sales skills, and a strictly opportunistic business development strategy. Company growth is limited in part by the notion that the product will sell itself because it is superior to any other on the market-indeed, it may be the only offering. Revenue growth is limited because the product is defined in terms of its functionality, not its value to the customer.
The offering, and by extension the company, is still being defined by technologists; it has yet to be married with a solid business development plan, marketing or sales acumen. More worrisome is that the very success of your company has brought you to the attention of major players who do have personnel and strategies dedicated to driving you out of the market; they view you as a threat. Your days of flying under the radar are over.
This stage is characterized by:
Through sales, marketing, product management and business development acumen, a sales and marketing strategy consultant may be able to help a company like yours to:
Process Constrained
A company at this stage of development is typically successful, no longer a start-up, is being run by a management team, has been accepted in the market, and is competitive. However, fundamental product development and sales and marketing management processes have not yet been accepted within the foundation of the corporate culture. This means that the solution to most situations are human-based, usually hand-crafted by the management team; the foundation of proven processes is absent.
This stage is characterized by:
By introducing repeatable, best-of-breed processes for sales, marketing and product management, a sales and marketing strategy consultant may help a company like yours to:
Innovation Constrained
Organizations at this stage of development have achieved a great deal of success; processes are ingrained, product development is streamlined, and sales and marketing systems are in place. But by definition the market keeps shifting: your product is being eclipsed by younger companies with products that perhaps even capitalize on your R&D and experience; your market may be saturated to the point that the double-digit growth rates your investors have come to take for granted are a thing of the past. You need a new product or a new market or both.
This stage is characterized by:
By introducing fresh thinking about new markets, products, and channels, a business strategy consultant may be able to help a company like yours to:
Ash Seha is a partner at the launch factory llp, a consultancy specializing in the launch factory llp companies. Their expertise, garnered from such IT highflyers as i2, webMethods, SAP, and Baan, is focused on breaking the growth bariers that stand between the launch factory llpand their revenue and marketshare goals.
Barrington South Lincoln Stretch rentals .. Lockport Chicago limo O’HareWe all know that nothing runs without a plan, and... Read More
A menu is the foundation of any restaurant; Guests will... Read More
If ever there were an industry where we want zero... Read More
Businesses tend to avoid doing their annual business plan thinking... Read More
How often does your company make a quantum leap forward?... Read More
Storytelling and writing a business plan actually go hand in... Read More
If you are in the parking business and own or... Read More
The boom of the dot-com era in 1999 brought the... Read More
To Grow (Catapult) Your Business That's Why.When it's in your... Read More
Diversify - to make diverse, give variety, to balance, to... Read More
You know you need a business plan. You probably realize... Read More
Writing a business plan can be tricky when all the... Read More
Microsoft Business Solutions Great Plains serves mid-size and large clients... Read More
"I don't need a business plan."Neither did Alice in Wonderland."Would... Read More
Every decade we seem to come up with a buzz-word... Read More
( * - the word 'product' can be substituted to... Read More
People often ask "What makes a good business plan? Or,... Read More
Every business experiences slower periods. For some, they sell more... Read More
By cranking up others development to meet your business needs,... Read More
Writing a Business Plan these days is tough, venture capitalists... Read More
These may sound like no brainers, but you'd be surprised.... Read More
How you finance the expansion of your business is important.... Read More
What gets measured gets done.How do you keep your business... Read More
Many very successful business owners may never have had a... Read More
Growth through acquisition should not be considered an option reserved... Read More
Downers Grove limo Chicago ..Business seems to drop, slow or even stop during the... Read More
Many of us are discouraged by the networking events that... Read More
I am not a big fisherman, but I do enjoy... Read More
So what makes a vision successful? Everyday companies try to... Read More
When you start your program to purchase your "ideal" company,... Read More
By cranking up others development to meet your business needs,... Read More
Every decade we seem to come up with a buzz-word... Read More
This will make some people angry as hell, but it's... Read More
Every new business owner knows that a business plan is... Read More
Strategic planning and consulting is the strategy roadmap to manage... Read More
You have heard that there is extra money on the... Read More
Have you ever done a SWOT analysis? No, it's not... Read More
I recently took an organizational behavior class where my professor... Read More
Is your business growing as fast and effectively as it... Read More
You have invested a lot of time and energy on... Read More
There's nothing automatic about corporate growth, particularly in the information... Read More
"Bozo" ? A clown with a forlorn look, always finding... Read More
Many companies are reluctant to dive into outsourcing ocean because... Read More
Does the competition drive you crazy?Are they relentless about taking... Read More
Imagine an office without a desk, or lights, a computer,... Read More
Microsoft Great Plains does wonderful ERP job for horizontal markets... Read More
One of the key challenges for any business is to... Read More
Q: A key investor in my business has suggested that... Read More
If you own the mid-size business and actively work in... Read More
Microsoft Business Solutions Great Plains serves mid-size and large clients... Read More
Strategic Planning |