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Geoffrey Moore is an author, speaker and advisor as well as a venture partner at Mohr Davidow Ventures (MDV). Recognized as a leading business advisor, Geoffrey divides his time between consulting on strategy and transformation challenges with senior executives and on developing mental models to support his advisory practice. With this intent in mind he has written his newest book published by HarperCollins in September of 2011: Escape Velocity: Free Your Company’s Future from the Pull of the Past, the result of his years of experience working with large enterprises in his former role as a Managing Director at TCG Advisors. Recognized as well for his expertise in market development and business and investment strategies, as a Venture Partner at Mohr Davidow Ventures he also serves as an advisor to MDV portfolio companies by drawing upon best practices derived from his extensive experience working with technology startups over the last two decades. Geoffrey has made the understanding and effective exploitation of disruptive technologies the core of his life's work. His books, Crossing the Chasm, Inside the Tornado, The Gorilla Game, Living on the Fault Line and Dealing with Darwin are best sellers and required reading at leading business schools. Highly regarded as a dynamic public speaker, he integrates a speaking practice with his advisory work. He is a founder of both The Chasm Group and TCG Advisors. Earlier in his career, he was a principal and partner at Regis McKenna, Inc., a leading high tech marketing strategy and communications company, and for the decade prior, a sales and marketing executive in the software industry. He holds a bachelor's degree in literature from Stanford University and a doctorate in literature from the University of Washington. To find out more about Geoffrey Moore please visit: More information about Geoffrey Moore: http://www.geoffreyamoore.com More information about the Escape Velocity Book: http://www.escapevelocitybymoore.com Geoffrey Moore on Twitter: http://www.twitter.com/geoffreyamoore Geoffrey Moore on Google Plus: http://gplus.to/geoffreyamoore
Citation preview
HarperCollins
Paper & eBook format
Release Date: Sept 6, 2011
2
Time
Rev
enue
Gro
wth
GrowthCategories
MatureCategories
DecliningCategories
Indefinitely elastic middle
End of Life
Fault Line!
EDCBA
Technology AdoptionLife Cycle
Category Maturity Life Cycle
EmergingCategories
Figure 2.1
3
Portfolio ManagementThe Growth/Materiality Matrix
HighGrowth
LowGrowth
Material
NotMaterial
Emerging
MatureGrowth
Declining
1
2 3
4
Figure 2.2
Typical Portfolio Pattern
High GrowthCategories
Low GrowthCategories
Material to Current Financials
Not Material
1
2 3
4
Figure 2.3
Managing a Portfolio The Three Horizons Model
Horizon 10 to 12 months
Horizon 212 to 36 months
Horizon 336 to 72 months
Current Businesses
Generate today’s cash flow
High Growth Businesses
Today’s revenue growth + tomorrow’s cash flow
Growth Options
Options on future high-growth businesses
Expected Window of Returns
Acc
umul
ated
Tot
al R
etur
ns
Figure 2.4
Ho
rizo
n 2
Horizon 1
Horizon 3“H
ori
zon
0”
Three Horizons Model Mapped to Growth/Materiality Matrix
HighGrowth
LowGrowth
Material
NotMaterial
Figure 2.5
7
Goals, Metrics, and the Three HorizonsDifferent Metrics for Each Horizon
TIME FRAMEHORIZON 1
(0 - 12 mos)
HORIZON 2
(12 - 36 mos)
HORIZON 3
(36 - 72 mos)
Create aCategory
Maximize Economic Returns
Become aGoing Concern
DrivingGoal
Key Performance
Indicators
Revenue vs. plan
Bookings
Contribution margin
Market share
Wallet share
Target accts vs. plan
Sales velocity
Deal size
Segment share
Time to tipping point
Name-brand customers
Deal size
Name-brand partners
PR buzz
Flagship projects
“Opex” “Timex” “Capex”
Figure 2.6
8
Achieving Escape VelocityFocus on Competitive Separation
Competitor 2*
Competitor 1*
Competitor 3*
YOU*Gain bargaining power by getting separation from your competitive set
*
Competitive Set
Failure to separate means lower revenues or profit margins or both
COREAn
Unmatchable Offer
Figure 3.1
Two Business ArchitecturesComplex Systems vs. Volume Operations
ComplexSystems
VolumeOperations
SweetSpot
SweetSpot
Complexity Volume
Eff
ectiv
ene
ss
SmallBusiness
GovernmentPrograms
SocietalEntitlements
Enterprise Consumer
100 101 102 103 104 105 106 107 108 109
Number of Customers
Figure 3.2
1. Target Customer
2. Compelling Reason to Buy
3. Whole Offer
4. Partners and Allies
5. Sales Strategy
6. Pricing Strategy
7. Competition
8. Positioning
9. Next Target
Key sponsor
Complete solution
Function of wholeproduct complexity
Legitimate alternatives
Next growth segment
Core problem
Needed for whole product
Value based
Differentiation
9-Point Market Strategy Framework
Figure 4.1
FailedAttempts
Waste
Return on Innovation
Differentiation Neutralization
Optimization
Figure 5.1
12
The Six LeversFree Resources Trapped in Context Tasks
1. Centralize. Bring operations under a single authority to reduce overhead and create a single point of control to manage mission-critical risk.
2. Standardize. Reduce the variety and variability of processes delivering similar outputs to eliminate costs and minimize risks.
3. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions.
4. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost components, or otherwise cost- and resource-reduce.
5. Instrument. Characterize the remaining processes in terms of the variability of key parameters and develop monitor-and-control systems to manage their performance.
6. Outsource. Drive processes out of the enterprise entirely to further reduce overhead, variabilize costs, and minimize future investment. Incorporate vendor use of monitor-and-control systems into Service Level Agreement.
Figure 5.2
Price/Benefit SensitivityHow Customers Internalize Value
Pri
ce S
ensi
tivi
ty
Benefit SensitivityHI
HI
LO
LO
PREMIUM
PERFORMANCECOST
CONVENIENCE
Figure 5.3
Value Disciplines andPrice/Benefit Sensitivity
Pri
ce S
ensi
tivi
ty
Benefit SensitivityHI
HI
LO
LO
Pro
duct
Le
ader
ship
Customer Intimacy
Operational Excellence
Figure 5.4
Creating the Unmatchable OfferThe Core/Context Model
CoreUnmatchableDifferentiation
ContextNeutralizingInnovations
MissionCritical
Enabling
1 2
3 4
Figure 2.1
The Arc of ExecutionComplex Systems Enterprises
Playbooks
Projects Products
Figure 6.1
Invent
Deploy
Optimize
The Arc of ExecutionVolume Operations Enterprises
Partners
Products Processes
Figure 6.2
Invent
Deploy
Optimize
Catalyzing Escape VelocityThe “Tipping Point” Role of Programs
Deploy
Invent Optimize
TransitionProgram
TransitionProgram
TippingPoint
TippingPoint
Figure 6.3
Four Modes of Execution
Execution Mode Invention Deployment Optimization Transitions
Type of LeaderVisionary Inventor
Pragmatic Deployer
Conservative Optimizer
Pragmatic Orchestrator
Core Competence Creativity Competitiveness Control Collaboration
Core Attribute Spontaneous Tough-minded Prepared Empathetic
Decision Style Intuition Experimentation Deliberation Consensus
Functions Most in Alignment
R&D, Creative Services
Sales, Engineering
Finance, Operations
HR, Marketing, Customer Suppt
Figure 6.4
![Spring 2011: [F&S, Chapter 6]. Q; What velocity, v, do I need to just escape the gravitational pull of the planet? (the escape velocity)](https://img.dokumen.tips/doc/110x75/56649c885503460f9494131d/spring-2011-fs-chapter-6-q-what-velocity-v-do-i-need-to-just-escape.jpg)
