Revenue in America: Scaling businesses in the US

325M Sharon Park Drive
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www.visionandexecution.com
MODULE 3
Revenue in America
Scaling businesses in the US
presented at CCICE
March 28, 2014
Patrina Mack
Managing Partner

© 2003 - 2014 Copyright Vision & Execution
OPTIMIZING YOUR PRODUCT
FOR LAUNCH
Patrina Mack, Managing Partner
4/2/2014

4/2/2014
• Describe one of yours
– Why did you ―need‖ it?
– Why did you choose it over others?
– How long did it take you to make
your decision to buy?
– What price did you pay?
– What influences affected your buying decision?
– How do you feel owning it?
– Would you buy it again?
• Now describe your worst product experience
– Answer all of the above + what you did and how you felt
Your Favorite Products
What does
this tell
you about
designing
products?

4/2/2014
Question for Your Company
Has your team thought of
everything that your favorite
product company thought of
to win you as a customer?

4/2/2014
Finding a Market Worthy of Investment
• Problem
– Not defining a sizeable enough market
• Solution
– 3 mandatories of market viability
• Large & growing
• Clear customer need & willingness to pay
• Opportunity you can fulfill—defensibly

4/2/2014
• Why would anyone buy this
general type of product or service?
• Why will someone buy our
product/service?
• Why will we meet our volume and
profit goals?
• If this new product was not
available, what would someone do
instead?
– Buy something else?
– Make something?
– Do nothing?
Solution
What is Your Value Proposition?

4/2/2014
Validate Your Market Opportunity
• Total addressable market size + the segments
• Market & growth trends
• Tech, regulations, environmental trends
• Your ―ecosystem‖ & differentiated value
• Purchasing characteristics/process
– By segment
• Most receptive geographic region
• Customers buying expectations
– From where / from whom / in what form?
• Target market developmental stage

4/2/2014
Prioritize for Maximum Market Opportunity
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Market size
Market growth
Likelihood to adopt
Key features
Segment 1
Segment 2
Segment 3
Segment 4
Region 1
…Channel 1
Region 2
…Channel 2
Region 3
…Channel 3
Region 4
…Channel 4

4/2/2014
Customer Input Matters at Every Stage
 Ethnographic
research
 Concept
evaluations
 Strategic client
requirements
 Sales/account
management
 Support
 Demand
validation
 Feature
Prioritization/
Trade-offs
 Prototype
evaluations
 Working
prototype
evaluations
 Process
engineering
 Usability/
human factors
Customers
 Beta test
 Pilot program
 User groups
 Bug data
 Feature request
button
 Customer
satisfaction
CONTINUOUS PROCESS OF INDUSTRY RESEARCH, COMPETITIVE
ANALYSIS, COST / BENEFIT ANALYSIS & METRICS
DELIVERYVISION DEFINE DEVELOP

4/2/2014
Deliver a Superior Customer Experience
• Problem
– Not creating value for customers by
failing to deliver the ―whole‖ product
• Solution
– Develop the product from customer
need and market demand
• Not just because it’s new technology

4/2/2014
Create a Compelling Customer Experience
• Design for the whole product
– Deliver on external customer needs
• Customers
• Channels/partners
– Deliver on internal customer needs
• Marketing
• Development
• Manufacturing
• Operations
• Sales
• Finance
Cross-
functional
Requirements
Create
Compelling
Customer
Experiences

4/2/2014
Best Practices: Cross-Functional Teams
• Fully cross-functional
team delivers a
complete product
– Needs of external
customers met
– Needs of ―internal
customers‖ met
– Global requirements
embedded in initial
design
Marketing
Engineering
Finance
Operations/
Manufacturing
Prof.
Serv.
Sales
Global
Team
Lead
Regional GMs
Business Dev
Partners
Product Marketing
Corporate Marketing
Channel Marketing
Billing
Reporting
SLA Management
Engineering
QA
Documentation
Beta Program
Infrastructure
Support
Sourcing
Account Mgmt
Regional Leads

4/2/2014
“Whole” Products Deliver Solutions
What ―gaps‖ in
functional considerations do
you have in creating a
―whole‖ product
for your company?

4/2/2014
Pace Development to Adoption
• Understand what the
minimum feature set is to
gain initial trial
• Understand what the
minimum feature set is to
gain widespread adoption
• Build a product roadmap
• Get customer agreement
with your roadmap
• Understand how to prioritize
maintenance vs. Version 2.0
CUSTOMER’SRATE
OFADOPTION
TIME
= YOUR ABILITY TO DELIVER
= CUSTOMER’S ABILITY TO ABSORB

4/2/2014
Process Has its Place
• Problem
– Missed customer expectations
– Is late to market
– Has cost over-runs
• Solution
– Apply a disciplined product development process to
deliver a product or service that:
• Satisfies the customer’s entire ownership experience
• Is on time
• Is on budget

4/2/2014
Market &
product
strategy vision
 Platform
strategy
 Segmentation
strategy
 MRDs
 Market plan
Product concept
proposal /
business case
 Preliminary
technology
assessment
 Risk analysis
Complete beta
test
 Complete
customer
service /
support &
logistics
testing
Implement
pre-launch
marketing
deliverables
 Implement
pre-launch
training
deliverables
 Production/
distribution plan
 Integrated test plan
 Systems integration
Alpha testing
 Beta test plan & exit
criteria
 Documentation
 Customer service &
support plan
 Manufacturing plan
 Launch plan
 EOL & migration
plan
 3rd party contracts
Ongoing product
support
 Achieve or exceed
program
objectives
(metrics capture)
Achieve product
support / value
objectives
(customer
feedback
mechanism)
 Execute end-of-
life plan
PRD including
“glocalization”
requirements
 Engineering
response
 Architecture
& HL system
design
 Technology
assessment &
readiness
report
 Third-party
LOI
Vision
Define
Business
Define
Product
Develop
Product
Test
Product
Deliver
Product
Sustain
Product
 Announce
product
 Transition to
sustaining duties
& disband the
product delivery
team
Implement post-
launch marketing
deliverables
 Implement post-
launch training
deliverables
 Localize software
 Must-Do for Startups
Product Development Lifecycle
Approval for
Development
Approval
for Release
Concept
Approval
Approval
for EOL
Approval
for Beta

4/2/2014
Anticipate Options for Growth
Extend Business
EnrichProduct
Core
Product

CASE STUDIES – FREQUENT
MISTAKES AND LESSONS
LEARNED
Scott Trappe, Executive Consultant
4/2/2014

B2B Case Study: Company and Product
• ~275 person software firm; started 15+ years ago
• Many existing products, designed for and sold to
IT departments in big organizations—banks,
insurance, defense contractors, govt. agencies
– Most sales are in-country via direct sales force
– Some international sales through resellers
• New Product: finds software bugs at any point in
the development process, doesn’t need test cases
– Technology created at the leading university in the
country, firm invested $$$ to commercialize
4/2/2014

Situation Analysis: Competitive Environment
4/2/2014
Global Software Test
$32B
ASQ
$2.2B
SQAM
$412M
Market Size Top Firms by Sales
1.
2.
3.
4.
5.
* Apple & Microsoft include this
functionality in their dev tools
*

• Spending on
developer tools
falling because of
Open Source tools
• IT departments are
shifting testing $ to
cloud-based services
• Development is
increasingly for web
and mobile apps 4/2/2014
$600
$800
$1,000
2004 2007 2010 2013
C, C++
Java
VB
JS
Obj-C
PHP
Python
2012 2015
Situation Analysis: Customer Behavior

The Options
A. Don’t enter U.S. Market
B. Be the low-price leader
C. Convince buyers that the product is better
D. None of the Above
4/2/2014

Our Recommendations
• Reposition as a security-testing solution
– Explain security implications of existing errors
– Add new defect categories
– Support web/mobile languages
• Offer as a service
– Use security consultants as service providers
– Allow users to try in bite-sized pieces
– Move towards cloud-hosted offering
4/2/2014

B2C Case Study: Company and Product
• ~300 person software firm
• Dominates the market for enterprise document
rights management (DRM) in its home country
– Products sold via direct sales force
– Conventional license (upfront fee, annual maintenance)
• New Product: DRM for consumers
– Control access to documents you share in the cloud
(and by ―cloud‖ we mean ―Dropbox‖)
– Subscription fee $10/month (on top of Dropbox fees)
– Launched at RSA Data Security Conference in 2013
4/2/2014

Situation Analysis: Competitive Environment
4/2/2014
Yahoo! Flickr
SugarSync
Box
Google
Docs
Amazon
Cloud Drive
Apple
iCloud
ShareFile
Egnyte
Zoho
Hightail
(YouSendIt)
Microsoft SkyDrive
Syncplicity
Intralinks VIA
Dropbox for Business
EMC
Syncplicity
Citrix
ShareFile
Hightail Enterprise
(YouSendIt
Workstream)
HomePipe
(TappIn)
GlobalSCAPE
TappInAccellion
File Sync
Oracle Ovum
Google
Drive
BitTorrent Sync
2003 2004 2005 2007 2008 2010 2011 2012 2013
OfficeDrop
Symantec
Norton Zone
TIBCO Vault
SkyDrive Pro
SalesForce Files
LogMeIn
Cubby
EMC
Syncplicity
IBM Connections
Novell Filr
WatchDox
WatchDox Sync
OpenText Tempo Box
Dropbox

Situation Analysis: Jobs to be Done
Survey Question: What do you use the cloud for?
Share photos and videos with family and friends
Access my e-mail when I travel
Send files too large for e-mail
Store music and movies
Backup my desktop/laptop hard drive
Access files on any device, anywhere, anytime
Collaborate with a distributed team
Electronic Signature / Secure Delivery

What Might be the Problem?
A. Consumers already think
their documents are secure
B. Consumers don’t want to
pay (95%+ of Dropbox
accounts are free)
C. Consumers don’t need
DRM services
D. All the above
4/2/2014

Our Conclusions
• No paying consumer DRM market exists
• Small and medium businesses in some industries
are looking for:
– Secure way to get/send documents to clients
– Easily collaborate with partners, vendors, customers
securely
• Target one or two specific segments
– Focus on collaboration aspects
– Make cloud-based (no software to install)
4/2/2014

Takeaways
• Understand the current market environment
– Find industry research reports, business stories to
understand trends, market size, competitive landscape
– Lurk in forums, chat rooms to find out user needs
• Validate your product concept with potential users
– User studies (surveymonkey.com, aytm.com)
– Pretotyping
• Segment the market to determine which buyers
you can afford to reach profitably (sales channel)
4/2/2014

SCALING SALES AND SUPPORT
FOR RAPID ADOPTION
Brian Mellea
4/2/2014

Now let us turn to selling
• By now Engineering has created a great product
• Marketing told you:
– What to sell
– Who to sell to
– How to sell it
– What to price it at
• So now, it’s easy to sell
• Right?
4/2/2014
Wrong!

What I’m going to talk about
• Selected lessons from helping companies
sell
– Direct
– Online
• Not an encyclopedia
4/2/2014

You need answers
• To these questions
– Why buy?
– Why buy now?
– Why buy us?
– Why buy more?
• And online and direct sales people trained
to answer them!
4/2/2014

Let’s talk about
4/2/2014
B2B sales
B2C sales

B2B sales
4/2/2014
Before
Product Software for
IT to increase
agility, reduce
costs
Problem Customers
didn’t believe
this large
company’s
claims
Then
IT stories of “eating the
dogfood”.
But a new problem:
Sales couldn’t explain.
Sales was embarrassed.
IT was called.
Sales overwhelmed IT!
After
Sales training.
1 to Many
Sales comfortable.
Increased sales.
Company credibility
up.
Thought leader.

B2B sales
• What we are
finding works
in the US
– Telling stories
4/2/2014

Let’s talk more about telling stories
4/2/2014
Sales people sell
through telling
stories.
Stories need to be in
the language of the
buyer.

We don’t have any stories
4/2/2014

Selling Playbook
4/2/2014
Playbook Platform
Standard rep trajectory
Improvement from
deliberate practice and
timely coaching and
feedback
$ /
Rep
# Months
$perRep+
50%+
Months

B2C Case study
After
Sell fewer features
Sold by phone to school
administrators & PTA
presidents.
Via PTA tradeshows, principal
associations
Results: Reference customers
+ first sales
4/2/2014
Before
Product Online software that assists parents,
schools, and nonprofits to organize
volunteer activities. Dozens and
dozens of features.
Sales
channel
Market through mothers’ groups.
Telesales to close.
Reach Via Moms

Lesson
• Find the many ways people find out about
products and services like yours
• Ways = sales channels
• Work to get access
4/2/2014

Try, try, try again
• Continually testing
online campaigns
4/2/2014
Go to
school
online
Go to
school
online

Invest in web tools
• Training in Google
Analytics
• Buy the next level up from
Google Analytics
– User testing services
• Build website for A/B
testing
4/2/2014

Make friends on the web
• Analytics give you partial
answers
• People will appear
– Reach
– Reward
– Reciprocate
4/2/2014

SCALING SUPPORT
4/2/2014

Scaling Support
4/2/2014

Scaling Support depends upon Stage
4/2/2014
Online Group Collaboration SW: Just
launched. Customers = eager early, vocal
adopters
Product New w warts, limited FAQs
Problem You’re so vulnerable. Early customers can love or
kill your product
Challenge Companies use engineers. Wrong skill set. Wrong
personality.
Better Hire a woman. One who can write documentation.

Scaling Support depends upon Stage
4/2/2014
Consumer digital video camera
Stage = widespread customer base. Less
techie. Less tolerant. Less patient.
Product 3rd Generation
Problem Scale to a call center. CEO => India
Challenge Too small for vendors
Hard to train
Better Staff local
Think out of box
Process, then outsource

Takeaways
• B2B
– Tell stories to sell, don’t sell
– Train Your Reps
• B2C
– Test, test, test
– Tools matter
– Only with friends on the web can you scale
• Support
– Fit with the stage of your customers, not the stage of your company
– 1:16
– Support is part of your product or service
4/2/2014

In closing…
• Key Principles for Scaling Revenue
– Define a large market you can dominate
– Understand what drives your customer to buy and your channel to sell
– Consider the entire ―ownership‖ experience and how emotional the
decision making process is
– Remember good process gets to market faster, on budget, especially when
you focus on the minimal viable feature set
– Remember that sales and support are ―product features‖ and you must
deliver the experience customers expect and need
4/2/2014

How to reach Vision & Execution
• Phone: +1 650 233 0256
• eMail: info@visionandexecution.com
• Twitter: @visionexecution
• Blog: www.visionandexecution.com/blog
• For a copy of this presentation visit
SlideShare
4/2/2014

Revenue in America: Scaling businesses in the US

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