The Chasm Group, LLC G.L.Ruff & Company

Transcription

1 The Chasm Group, LLC G.L.Ruff & Company Overview of Our Services and Capabilities: The Seven Critical Questions We Help Answer for Our Clients Greg Ruff Principal G.L.Ruff & Company G.L Ruff & Company: The Chasm Group:

2 The Chasm Group, LLC The Chasm Group was founded in 1992 to provide strategic counsel and implementation for building market leading technology-based businesses Focus market development, growth strategy and execution advisory services for technology businesses Approach facilitative style: participating and leading small jointteams to produce superior results in short time-frames Team: Sr. operational executives leading change through modelsbased insight coupled with analytic validation Publications: Crossing the Chasm (1992/2001), Inside the Tornado (1995), Living on the Fault Line (1999), {Geoffrey Moore}, The Gorilla Game (1997- Tom Kippola), The Chasm Companion (2002- Paul Wiefels) History: 1500 engagements with leading high-technology businesses around the world 2

3 G.L.Ruff & Company G.L. Ruff & Company was founded in 1995 as a market change focused strategy consulting firm. As a Chasm Group Affiliate since 1998, we share methodologies, personnel and practices. G.L.Ruff & Company s practices also specialize in helping clients: Understand market environments, dynamics and opportunities for creating new value and new bases of competition for both start-ups and new ventures or repositioning strategies within established companies Select market opportunities that provide the greatest potential for market leadership and company valuation Change the rules of market competition to create decisive competitive advantage Develop dynamic strategies and processes that sustain competitive advantage and company value G.L. Ruff & Company consultants have provided strategic counsel to over 250 client organizations in industries ranging from semiconductors to Internet services. Our greatest strength lies in our ability to discover and develop new market opportunities that change the rules of competition and create new, compelling value for our client's customers, and increased market valuations for our clients. 3

4 The Chasm Group Difference: Interactive, Experience-Based Results Time Experience Invasive Traditional Consulting Models Analysis Facilitative Theory Cost 4

5 The vast majority of our work for clients from start-ups to Fortune 50 s revolves around answering one or more of the Seven Key Strategic Questions for Sustainable Success 1. What s New? - What key drivers will impact our business going forward and what are the implications? 2. What s our Business? - Are we positioning ourselves in the right categories? Should we enter, exit, re-allocate resource? 3. What is our Competitive Advantage? - How can we increase competitive advantage in categories where we compete? 4. What is our Growth Strategy? - What is the winning market development strategy to increase growth and profitability of the business? What tactics best support the strategy? 5. Are We Making the Most of our Resources? - Can we allocate our resources better to achieve our goals? 6. Are We Structured to Win? - How should we organize to succeed? 7. What Needs to Change? - Can we achieve the change? Do we have the right leadership and skill-sets in place? 5

6 #1 What s New? What strategy led to the success to date? What uniquely defines us to our customers? What has changed such that this strategy is no longer optimal? What is the likely forecast for the future? How will this change manifest itself in day-to-day business dynamics? What are the implications for growth and shareholder value contribution? Chasm Group/G.L.Ruff & Company Services Strategic Review Review Situation Assessment, market market and and internal internal asset asset review review Industry Value Value Chain Chain and and Category Mapping Primary stakeholder, market, market, analyst analyst and and channel research Initial Initial Strategy, Business Plan Plan and and Investor Presentation development for for start-ups 6

7 #2 Is The Power of our Category Changing? Do We Have an Optimal Portfolio and/or Technology Mix? Optimal Positioning? What are the investable categories? Are any categories changing or consolidating? Is power waning or increasing? Is a new category influencing or co-opting our position? How do we want to proceed? Entry, exit, resource allocation? Market Position (1) Gorilla Chimp Monkey Oval indicates size of Investable Category #2 #3 #5 #7 #11 #8 A B C Portfolio Category Chasm Group/G.L.Ruff & Company Services Portfolio Analysis Investment Framework Business Strategy Make vs. Buy Analysis Post-Merger Integration #1 #5 #10 #4 #9 7

8 #3. Can We Improve Upon Competitive Advantage? How Can We Increase Advantage? What are our competitors doing? How will players likely behave? What lasting competitive advantage can we create? How can we maintain and grow our advantage? Do we have a winning strategy? Is it focused enough to win? Is it powerful enough to win? Are we aligned with the proper players? Is it clear who we have to beat and how? Is the team on the same page? Chasm Chasm Group/G.L.Ruff Group/G.L.Ruff & Company Company Services Services Competitive Competitive Analysis Analysis Identify Identify Strategic Strategic Scenarios Scenarios Facilitate Facilitate Executive Executive Team Team Decision Decision Operational Excellence Customer Intimacy Leadership Discontinuous Innovation Early Market Offer Advantage Economizers BIC, Motel 6, Pier 1 Pleasers 7-11, Nordstrom s Reassurers Duracell, Dole, Tumi, P&G Flashers Priceline, Pixar, RIM Customer Advantage Delighters Kinko s, Swatch, Southwest Airlines Enchanters, Harley Davidson, Four Seasons, Wilson Sonsini Excellers REI, Porsche, Le Creuset Addicters Mileage Plus, Home Shopping NW Industry Advantage Performers Walmart, Dell, GE, Citicorp Dominators Goldman Sachs, Coke, Visa, Disney Eradicators Cisco, Microsoft, Intel, SAP Disrupters Enron, Amazon, AOL Time Warner Category Advantage Reinventers Fed Ex, EDS, Charles Schwab Niche-carvers Chrysler, IDG, Silicon Valley Bank AARP Innovators Palm, Nokia, Sony, Cuisinart Sorcerers ebay, Yahoo, Qualcomm Identify and Optimize Competitive Strategy Chasm Tornado Main Street Bowling Alley Technology Adoption Life Cycle Map the Best Approach at Each Stage Total Assimilation 8

9 4. What is the Optimal Market Development Strategy to Drive Growth? Source of money To fulfill the compelling reason to buy Function of whole product integration complexity For the customer's money Next move 1. Target Customer 2. Compelling Reason to Buy 3. Whole 4. Partners and Allies 5. Distribution 6. Pricing 7. Competition 8. Positioning 9. Next Target Source of demand Needed for whole product Function of all other factors listed Relative to competition A comprehensive comprehensive market market entry entry plan plan requires requires synergy synergy among among all all nine nine elements elements 9

10 #4. What Programs Must we Put Into Place to Achieve Success? Management Sales Sales & Services Services $ METRICS Partners Communications 10

11 #5 How Can We Best Optimize Resources? Do Do we we know what is is operationally core to to our our strategy? What percentage of of resources go go to to improve core? Do Do we we tie-up resources in in low-return activities? Which activities are are core and require focus? Which are are not not core and need other handling? Can we we restructure our our processes to to optimize investment into into core by by reducing context? Mission Critical Control Supporting Entrust Core Engage Make Partner Context Disengage Outsource Contract 11

12 #6- How Can We Organize Better to Succeed? Systems Strategy Shared Values Staff Target Customers Solution Sales Services Solution Architecture ( Marketing) Generation Generation Generation Unit Unit Unit Platform Architecture ( Development) Technology Data Gathering Platform Skills Style Data Source Data Source Data Source Data Source Structure Solution Organization Model Organization Model Do we have the right systems/processes? Do we need to change our style of operation? Are we maintaining our core shared values? Does the strategy require a change in structure? Do we have the necessary skills and staff? 12

13 #7 Can We Achieve the Change? Where is resistance coming from? Individual Who has the charter? Cultivation Competence Subjective Insight Organization Culture Objective Data Collaboration Control Are we resourced correctly? Group Signal Alerts? Tracking? 13

14 Illustrative Recent Engagements Client - Project Remote systems management and monitoring start-up Business Model and /Market Strategy Top-10 enterprise IT infrastructure company Expanded Portfolio Strategy Middleware Vendor Platform Strategy Large, diversified test and measurement company Portfolio Rationalization and Market Share Strategy Systems management software start-up Spin-out Strategy Data Quality Software Vendor Business and Platform Strategy Venture-backed security software company Strategic Planning Large computer, software and services company Marketing and Go-to-market Best Practices A world-wide leader in web services and application server technology - Positioning Engagement Led the evaluation of addressable business opportunities and selection of the target market, business model and strategy development for this new start-up that acquired over 45 major recurring revenue customers in its first eight months of operation Established investment/divestment criteria at portfolio level for multiple product lines. Drove decision for acquisition/divestment of two product areas. Repositioned several key product areas. Led two internal teams in creating market-development strategy and action plans. Evaluated and selected optimal positioning and platform-based strategy to transition from a point product to platform company. Developed platform strategy, transition strategy and go-to-market plans resulting in creating a new platform leader and a 1200% increase in Market Cap. Developed portfolio investment framework and portfolio strategy for executive team of a $ 6B business spanning 5 operating divisions. Worked with key divisional leadership in semiconductor and software business groups to create optimized go-to-market strategy focused on increasing share in key segments. Worked with managed services business start-up management team to define and spin out a new software business, creating two successful and fundable start-ups that were later acquired at significant premiums Identified and prioritized key business units within the client company and developed a platform strategy for their flagship Data Quality product that has allowed them to grow consistently. Facilitated Executive team development of strategic planning, including market segmentation, whole product creation, partner strategy, channel rationalization and positioning. Identified opportunities for standardizing on go-to-market processes and best practices within marketing. Developed company-specific content for a standard framework and rolled-out the framework at several key executive off-sites and individual product team working sessions. Repositioned a major application-sever business. Led client activities resulting in market development strategy, repositioning and go-to-market plans. Share price increased 12x. 14

15 Representative Clients 15