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.
efficient cleaning crew Highland Park ..No matter what product or service you provide you will... Read More
As a business owner, you've likely created a hurricane plan... Read More
Richard L. Daft one of the country's recognized academic leadership... Read More
Business owners and entrepreneurs are, by nature, risk takers and... Read More
Business rises and falls on leadership. According to business guru,... Read More
There's nothing automatic about corporate growth, particularly in the information... Read More
When developing the competition section of your business plan, companies... Read More
Succession planning requires the owner of a small or medium-sized... Read More
If ever there were an industry where we want zero... Read More
If you own a mobile car wash business or auto... Read More
Many movies have been made about the tragic story of... Read More
"I don't need a business plan."Neither did Alice in Wonderland."Would... Read More
While writing an article recently on effective ways to bridge... Read More
Too much goal setting and strategic planning can leave you... Read More
Does your overall business strategy include the recruitment of college... Read More
Writing a business plan is no easy task, sure you... Read More
Have you been in a "brainstorming" session where each person... Read More
Microsoft Great Plains, former Great Plains Dynamics is excellent fit... Read More
A menu is the foundation of any restaurant; Guests will... Read More
So you've decided to write your own business plan because... Read More
Is your business growing as fast and effectively as it... Read More
Note to Northwest Airlines ? It's not about fuel costsFor... Read More
In Ohio: besides the 3-Cs you should look at Akron,... Read More
I am surprised how few sales professionals, independent consultants, and... Read More
Strategic planning and consulting is the strategy roadmap to manage... Read More
scheduled maid service Park Ridge ..In today's rapidly changing and highly competitive markets, many privately... Read More
One of the quintessential parts to any business is your... Read More
Microsoft Great Plains fits horizontal markets clientele and in case... Read More
Do you work in or own a business that's affected... Read More
Many cities have home pages on the Internet. Many of... Read More
Is there a 'magical' way to exponentially grow your business?It's... 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
Writing a business plan for a franchised outlet of a... Read More
Canada's lean leaders need to look beyond the horizon and... Read More
If you've ever listened to Warren Buffett talk about investing,... Read More
Note to Rite Aid and CVS: It's not about the... Read More
The day you decide to take the plunge and work... Read More
Writing a business plan to help you direct and manage... Read More
Why do so many companies languish and watch as their... Read More
Experts estimate that 90 percent of Australian businesses are overspending... Read More
No matter what business you plan to start in your... Read More
You know you need a business plan. You probably realize... Read More
Some analysts credit [Larry] Ellison with anticipating the consolidation in... Read More
If you're a solo professional like I am, you know... Read More
One of the most important initiatives in the domain of... Read More
Anyone who has been watching the Idaho Market Carefully for... Read More
No "meme" isn't a typo and Got Milk, the more... Read More
Human beings are rational agents. Rationality endorses one to take... Read More
With a heightened awareness of opportunity, ideas can often be... Read More
Strategic Planning |