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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

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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

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    141 views19 pages

    Escape Velocity Illustrations

    Uploaded by

    Geoffrey Moore
    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

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    of 19

    HarperCollins Paper & eBook format Release Date: Sept 6, 2011

    Category Maturity Life Cycle

    Indefinitely elastic middle

    Revenue Growth

    A
    Emerging Categories

    B
    Growth Categories

    C
    Mature Categories

    D
    Declining Categories

    End of Life

    Technology Adoption Life Cycle

    Time

    Fault Line!

    Figure 2.1

    Portfolio Management The Growth/Materiality Matrix


    High Growth Low Growth

    Material

    Growth 2 1 3 4

    Mature

    Not Material

    Emerging

    Declining

    Figure 2.2

    Typical Portfolio Pattern


    High Growth Categories Material to Current Financials
    2 1 3 4

    Low Growth Categories

    Not Material

    Figure 2.3

    Managing a Portfolio
    The Three Horizons Model
    High Growth Businesses Todays revenue growth + tomorrows cash flow Current Businesses Generate todays cash flow
    Horizon 1 0 to 12 months Horizon 2 12 to 36 months

    Accumulated Total Returns

    Horizon 3 36 to 72 months

    Growth Options Options on future high-growth businesses

    Expected Window of Returns


    Figure 2.4

    Three Horizons Model Mapped to Growth/Materiality Matrix


    High Growth Horizon 1 Material Horizon 0
    Figure 2.5

    Low Growth

    Not Material

    Horizon 3

    Horizon 2

    Goals, Metrics, and the Three Horizons


    Different Metrics for Each Horizon
    TIME FRAME
    Driving Goal Key Performance Indicators

    HORIZON 1 (0 - 12 mos)
    Maximize Economic Returns Revenue vs. plan Bookings Contribution margin Market share Wallet share

    HORIZON 2 (12 - 36 mos)


    Become a Going Concern Target accts vs. plan Sales velocity Deal size Segment share Time to tipping point

    HORIZON 3 (36 - 72 mos)


    Create a Category Name-brand customers Deal size Name-brand partners PR buzz Flagship projects

    Opex
    7

    Timex
    Figure 2.6

    Capex

    Achieving Escape Velocity


    Focus on Competitive Separation
    An Unmatchable Offer Gain bargaining power by getting separation from your competitive set Failure to separate means lower revenues or profit margins or both

    *
    Competitor 1

    * YOU * Competitor 3

    Competitor 2

    Competitive Set

    Figure 3.1

    Two Business Architectures


    Complex Systems vs. Volume Operations
    Sweet Spot Sweet Spot

    Effectiveness

    Complex Systems

    Volume Operations

    100

    Complexity 101 102

    Volume

    103 104 105 106 Number of Customers Small Business Figure 3.2

    107

    108

    109 Societal Entitlements

    Government Programs

    Enterprise

    Consumer

    9-Point Market Strategy Framework


    Key sponsor

    1. Target Customer 2. Compelling Reason to Buy


    Core problem

    Complete solution

    3. Whole Offer 4. Partners and Allies


    Needed for whole product

    Function of whole product complexity

    5. Sales Strategy 6. Pricing Strategy


    Value based

    Legitimate alternatives

    7. Competition 8. Positioning
    Differentiation

    Next growth segment

    9. Next Target

    Figure 4.1

    Return on Innovation
    Differentiation Neutralization

    Failed Attempts

    Optimization

    Waste

    Figure 5.1

    The Six Levers


    Free Resources Trapped in Context Tasks
    1. 2. 3. 4. Centralize. Bring operations under a single authority to reduce overhead and create a single point of control to manage mission-critical risk. Standardize. Reduce the variety and variability of processes delivering similar outputs to eliminate costs and minimize risks. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost components, or otherwise cost- and resource-reduce. Instrument. Characterize the remaining processes in terms of the variability of key parameters and develop monitor-and-control systems to manage their performance. 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.

    5.

    6.

    12

    Figure 5.2

    Price/Benefit Sensitivity
    How Customers Internalize Value

    HI Price Sensitivity COST PERFORMANCE

    CONVENIENCE LO LO

    PREMIUM

    HI Benefit Sensitivity
    Figure 5.3

    Value Disciplines and Price/Benefit Sensitivity


    HI Price Sensitivity Product Leadership HI Benefit Sensitivity
    Figure 5.4

    Operational Excellence

    Customer Intimacy LO LO

    Creating the Unmatchable Offer


    The Core/Context Model
    Core Unmatchable Differentiation Mission Critical Context Neutralizing Innovations

    Enabling

    Figure 2.1

    The Arc of Execution


    Complex Systems Enterprises
    Playbooks

    Deploy

    Projects

    Products

    Invent

    Optimize

    Figure 6.1

    The Arc of Execution


    Volume Operations Enterprises
    Partners

    Deploy

    Products

    Processes

    Invent

    Optimize

    Figure 6.2

    Catalyzing Escape Velocity


    The Tipping Point Role of Programs

    Transition Program
    

    Deploy
    

    Transition Program

    Tipping Point

    Tipping Point

    Invent

    Optimize

    Figure 6.3

    Four Modes of Execution


    Execution Mode

    Invention
    Visionary Inventor

    Deployment
    Pragmatic Deployer

    Optimization
    Conservative Optimizer

    Transitions
    Pragmatic Orchestrator

    Type of Leader

    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

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