The 5 C’s of Clairvoyant Companies

6 03 2016

Keys to successNo one is psychic at TechCoastAngels.  Yet, we believe there are keys to success for start-ups.  For the past couple of weeks, myself and 6 other angel investors from TechCoastAngels of Orange County have screened more than 120 entrepreneurs in preparation for the  “finals” of our fast pitch competition at TCA’s upcoming Celebration of Entrepreneurship event to be held on March 10.  We have listened to these entrepreneurs’ 60 second pitches which would be provoking enough to take a meeting with them and listen to their pitch decks. In my last blog, I shared the early pitch decks of 7 Unicorns courtesy of CB Insights.

For this blog, I want to put it all together and share what I see are the common themes that came out of the pitches and the pitch decks.  Now, while we have been focusing on start-ups, the principles enumerated in my 5 C’s of Clairvoyant Companies are equally applicable to on-going companies, large and small.

1.       Conveying the story.   The first “C” relates to conveying a story of what problem(s) the company is solving and telling a succinct story to entice the listener to ask for more information.   If it is a start-up, the entrepreneur has to put the listener in the shoes of the person having the problem and convey the solutions.  In the pitch deck (or business plan), the CEO (or presenter) provides the details on how he or she will execute on the plan and drive financial results.  Conveying the story clearly applies to ongoing companies as well, particularly if the company wants to attract new customers and brand itself in the market as something special.  Just think about the stories being conveyed by Nike and Under Armour or your favorite consumer or business product.

2.       Customer Clarity.   The second “C” relates to the target customers.  Who is the ideal customer?  Can you describe them and how do you find them?   If you think about Airbnb, the customers are both the person wanting to rent his property for a short period of time, to the other customer, a person wanting to rent a room or house.   The marketing and business plan should clearly indicate the problem the customer is facing and the solution offered.  Additionally, the company needs to present a cogent case for their marketing tactics to drive awareness, adoption and use.  Without clarity on the customer and how to find them and motivate them to action, financial success will not be achieved.

3.       Competencies of the Company.   This third “C” relates to the existing or needed competencies within the organization that can drive the financial results.  It also relates to the intellectual property (IP) that is required to support the business or product.    How do you acquire and sustain the competencies that are needed for success?  Do you hire software developers on your team to build the product or can you outsource that skill?   What is critical based on your strategy and your competition?

For an on-going company, this is equally as critical.   A competitive analysis and environmental scan may lead to the conclusion that skill sets that were once required are no longer required and new skills must be added.  That may lead the company to a training program, a partnership, or replacement of existing resources with new ones.

4.       Competitive Advantage and Moat.   This fourth “C” is pretty evident.  No company operates in a vacuum.  Both startups and on-going companies need to be aware of the existing and potential competition that exists.   A competitor in the future may not be apparent  today but may have the competencies, technology, leadership and resources to compete in a new and growing market.   Five years ago would GM or Lexus have considered that Tesla would be a competitor or that Google would enter the realm of cars with their automated car program?  A few short years ago, who would have thought that Red would be the camera of choice and used in three of the Academy Award nominees for best film?

With technology and apps changing so quickly, competition can change just as fast.  Technology is the new enabler helping young entrepreneurs compete with established companies and with each other.  Recall what Andy Grove, former Chairman of Intel said:  Only the Paranoid Survive.  Whether you are a startup or an established company, be paranoid and keep your eyes open.

5.       CEO vision and passion.    We at TechCoastAngels say that we have to like the horse (the business concept) but must LOVE the CEO (the jockey and her team.)  As we screened the candidates for our upcoming event, we looked for a CEO with passion and vision and who can relate to us, the investor.  We wanted to find someone who had a history of success, was decisive, yet approachable and coachable.   We believe we found those characteristics in each of the 12 finalists.

Think back to the great leaders of on-going businesses or coaches and CEOS of sports teams.   Who is your model for a CEO with vision and passion?  I personally thought Lee Iacocca was great when he resurrected Chrysler.  Jack Welch turned GE into a world class company with his vision to be #1 or #2 in his markets.   Steve Jobs showed the world a new vision for technology. And Alan Mullaly took Ford after the great recession to a new level of respect and performance.

What else did these CEO’s have in common?  They had the ability to execute a plan.  They were also the keys to establishing a culture in a company that was hard to replicate.  In many ways, they became the icon for their brands.  And they were highly regarded by their employees and feared by their competition.   In a startup it is perhaps hard to discern whether the CEO can execute, yet we can judge their past successes with other companies and who they select as operational execs, advisory board members, and board of directors.

As we near our Celebration of Entrepreneurship, I trust that these blogs and the ideas herein will help executives of start-ups be successful and also be used by executives of on-going companies to help them guide their companies to business success.  I would be glad to continue the dialog on what makes a successful company.  Feel free to reach me at dfriedman@clevelpartners.net and if you enjoyed this blog please like it, repost, and retweet it.





Celebrating Entrepreneurship

10 01 2016

EntrepreneurshipI was sitting at lunch with a few of my friends and thinking about the start of the New Year.  Of course, we all made resolutions to eat better, exercise more, and to enjoy life by having more balance and more fun. As we start this New Year, we wish people success and prosperity.

Wishing and hoping are not strategies for success.   A clear purpose and course of action properly executed is essential.  I mentioned TechCoastAngels’ upcoming conference on Celebration of Entrepreneurship (www.techcoastangelscelebration.com)  in March, 2016 at the Segerstrom in Orange County.   As a member of TechCoastAngels, entrepreneurship and start-ups are part of my daily life.  But why should this be important to everyone, particularly entrepreneurs and others in the entrepreneurial eco-system?   And is it entrepreneurship only that is critical or should corporate venture, i.e. internally generated new products and business funded by larger corporations, be considered critical as well?

First, entrepreneurship in the OC is happening.  While not at the scale of Silicon Valley, the OC/LA area and the San Diego area are pretty high on the list of both VC and angel funded companies.    Here are some examples.  In the OC, we have accelerators/incubators (for example KF, FastStart Studios, EvoNexus, Octane); University supported entrepreneur programs (Chapman’s Leatherby Center and UCI), angel groups (TechCoastAngels, Kieretsu), and a newly formed Institute for Innovation aka The Cove at the tech campus of the University of California at Irvine.   Clearly,  the infrastructure is in place for the entrepreneurial companies to flourish.

While invention and innovation are sometimes accorded to startups and venture investment, there is another area which cannot be shortchanged.   Corporate Venture, those companies funded by corporations who have accepted a strategy of growing by new products and services, is also rampant in the OC.  Witness the growth of Broadcom which focused on internal investments in wireless and mobility technologies.  Or Vizio, which has migrated from a big screen TV company to a broader consumer platform.    Or Edwards Life Sciences which continues to innovate in the medical device field.   And there are countless others.

Between innovation through start-ups and innovation from existing companies, Orange County has the pieces in place to become a hub of innovation.    From what we have seen, medical device, social media, software, and consumer services are being developed by many young entrepreneurs still in college and supported by the college community, yet there is a new group of “older generation” entrepreneurs that are also getting into the act by developing products and services.    Many of these new entrepreneurs are driven by the economy to strike out on their own after leaving corporate life.   Grandpad, a hardware and software platform funded in part by TechCoastAngels, is led by Scott Lien who left the corporate world to focus on helping seniors use technology in a more personal manner.   Parcel Pending, founded by Lori Torres, is focusing on automating the package delivery system and has traction in several geographic markets.  It’s another company funded by angel money in the OC.

Innovation and the ability to grow business are critical for the long term success of our national and local economy.   At our upcoming event you will be able to hear about how ideas were generated, ways companies have been able to grow, and hear from entrepreneurs and investors alike in how to build their companies or portfolios.  If you are an investor, it will be an eye opening venue for networking and hearing the investment pitches from more than X outstanding new companies. If you are an entrepreneur, perhaps the conference and discussions during the conference will spark some new ideas or help gel some of your thoughts on your existing business.

For others who might attend, consider this.   Entrepreneurship and intrapreneurship  are exciting.  You are never too old to feel the urge to create something new.   Innovation is infectious and fun.  Sure, it is very challenging and sometimes gut wrenching but as they say, the glory goes to those that try.  In that vein, I want to leave you with this inspirational poem called “if you think you can” by Walter Wintle, which epitomizes the ethos of the entrepreneur or intrapreneur.

If you think you are beaten, you are,
If you think you dare not, you don’t.
If you like to win, but you think you can’t,
It is almost certain you won’t.

If you think you’ll lose, you’re lost,
For out in the world we find,
Success begins with a fellow’s will.
It’s all in the state of mind.

If you think you are outclassed, you are,
You’ve got to think high to rise,
You’ve got to be sure of yourself before
You can ever win a prize.

Life’s battles don’t always go
To the stronger or faster man.
But soon or late the man who wins,
Is the man who thinks he can.

And maybe you, too will be the founder of a Unicorn or be an investor in a unicorn company and have a private island next door to Larry Ellison.   Hope to see you at the Segerstrom in March.





StreetSavvy Marketing Predictions for 2016

21 12 2015

prediction-forecast-crystal-ball-future-ss-1920-800x450It’s that time again when just about everyone has predictions for the New Year. In November, Forbes contributor Kimberly Whitler posted predictions from the C-suite.   Adam Davidi, from the Guardian, posted predictions on branding based on conversations with “experts.”   I am sure we will see predictions from Forrester, Gartner and others as well.

As a Managing Director at C-Level Partners, I don’t want us to be left out.  My colleague, Vince Ferraro, and I have been C-level executives in marketing and general management for many years. We now consult with companies on marketing and their go-to-market strategies.   We decided to look at “Big M” marketing, relating to predictions for how companies and brands go to market and how they interact with customers.  So without fanfare and any biased perspective, we share these predictions for Marketing for 2016.

Let me be candid.  While most of these are predictions based on our work with clients, with start-ups and in talking with our marketing colleagues, there are also some “aspirational trends” that we hope come true for the profession as well as we believe they are important for marketing professionals and the businesses they manage.  Some of these trends overlap and leverage each other.   To us, that will represent the power of good marketing.  In no particular order, our top sweet 16 are:

  1. Cognitive Commerce has begun. Marketers will use information on customers from their databases, the internet, and other sources to build stronger relationships, build predictive algorithms, personalize content, and deliver products and services to meet their specific needs.
  2. The distinction between offline and online will disappear as real time analytics will unite both camps. Marketers will consider all (omni) marketing channels to optimize their marketing programs based on cost, effectiveness, ROI and the satisfaction quotient from building relationships with customers.
  3. Branding will be from the inside out. Companies will not push the brand but the brand will be built on trust, engagement, referrals, authentic dialog, and transparency.
  4. Digital Marketing will cease to exist as a standalone part of marketing. There isn’t a need for separation anymore. World class marketers will know how to market in a digital world. Traditional and online marketing not only will coexist, but one will leverage the other and work better together.
  5. Advances in video broadcasting and continued growth in mobile devices will change TV marketing forever. Marketers will use new technologies to enable a more immersive experience and TV and other broadcast video usage will expand on all screens – laptops, desktops, tablets, smartphones, HDTVs and even screens in cars,( i.e. telematics).
  6. Content will be created specifically with video channels in mind. Further, there will continue to be a migration to mobile video which will become de rigor on a company’s website, in blogs, in training, and on Youtube.  Youtube channels for marketers will continue to expand.  In addition, the use of video podcasting and live streaming are also in a growth mode.  The world is clearly digital and going video and marketers will take advantage of that.
  7. Personalization will grow as its ROI is measured and as customers come to expect to be treated as individuals. We, at C-Level Partners, have written that there are now 7Ps of marketing and personalization is one of them.  Technology and marketing automation will enable this to happen.  This personalization will improve company branding and the ability to build stronger relationships with customers.
  8. Marketers will get back to basics. Solid, well planned marketing will trump the sexy marketing in the past.  The CMO and business leaders will focus on marketing as a strategic investment to generate profitable revenue.
  9. The human touch will return to marketing. How many of you love to listen to an automated customer service system saying that “your call is important to us…”  That’s bull!  Companies will realize that you are important and will show it by having more touch than tech or at least do a better job of integrating the two.  Being human will also apply to helping customers understand the value of the company’s products and determining what motivates buying behavior.  This is like getting back to the future… and I love it.
  10. Employee experience (EX) will be as important as customer experience (CX). Engaged employees are critical because at the front line – in retail, sales and customer service- they ARE the brand, or at least a fair representation of it.   Engaged employees also feel part of the company, behave like owners, and will be promoters of the company’s products and services.  According to our anecdotal evidence, only about 30% are engaged today.  Think Zappos, Starbucks, 1and1, and Jet for companies who provide both good EX and CX.
  11. Marketing and Data Science will be the new dynamic duo. This will be key to understanding the customer persona from many angles – demographics, psychographics, sentiments, and buying behavior.  Vince and I, both being engineers, can relate and understand this dynamic.  We expect to see the CIO and CMO becoming BFF’s.
  12. As a corollary to #11, data will be the new currency for the younger generation. Data will enable the ability to personalize the marketing message and make that message more meaningful and differentiated for a particular customer. But it doesn’t only apply to the younger generation; big data will be used to help understand buying behavior of all customers and couple that information with the dynamics of profitable revenue growth for the corporation.   The new marketer will be, must be, a datahead or recruit the right people in his/her organization who have the skills to analyze the myriad of data available from business and marketing systems.
  13. Marketers will provide more original insights into business. Marketers will not be mere curators of data and content.  The key word is  By having more insight into business, the CMO will be able to justify his/her seat at the executive table.  (This is a belief and expectation!)
  14. Customer success will be determined by a combination of satisfaction, retention, and referral. We have always believed that the combination of the three components will yield the most loyal customers.   In conjunction with this, customers themselves, through social media, will become the company’s best sales people. Technology to help build customer engagement will continue to evolve and become more sophisticated.
  15. Marketing and selling will be in an omni-channel world. Marketing execs will understand the buying persona of their customers and will use math and analytics to optimize the sales and distribution channels.  But the key here is that it will not be one channel vs. the other.  The marketer will blend online and offline, retail and wholesale, third party distribution and direct to ensure the buying experience matches the customer and to improve the profitability of the company.
  16. Chief Marketing Officers will evolve to become strategic businesspeople first and “marketing” executives second. This is our wish and expectation; therefore, we took the liberty to include it as one of our predictions.  The CMO will be the linking pin from the outside world of the customer to the inside world of production, manufacturing and operations.  He/she will have a unique view on building and capturing valued.  In the past, we have not seen this from most of our traditional marketing colleagues as many have been focused on one area e.g. advertising, digital, brand, and product.  The new marketing executive will be a generalist, a businessperson with a focus on top and bottom line growth, steeped in data analytics, change management, and growth levers, coupled with creative and innovative bent.  We may be wrong about this one for 2016, but we believe it will eventually take root over time.

We would be interested in hearing your thoughts on your sweet 16 predictions for 2016.  Let’s keep the dialog going at www.clevelpartners.net.   And feel free to contact me at dfriedman@clevelpartners.net or Vince at vferraro@clevelpartners.net for a complimentary discussion on how we can help you achieve value creation and profitable revenue growth.





The 7 Attributes of a Highly Successful Start-up CEO.

11 08 2015

I met Kirsten Mangers several years ago after she successfully sold her startup, Webvisible.   And over the years I have gained a strong appreciation for her abilities and most important, her style.   Kirsten is the founder of ChickLabs, an incubator that focuses on helping primarily women entrepreneurs.  She is also the CEO of Immunogum, a start-up in Newport, CA and one in which TechCoastAngels invested.entrepreneurial CEO

I was invited to a meeting at an entrepreneurial office called the VINE which is off the UC Irvine campus because I am an angel investor with TCA and one who works with startup CEOS in my consulting practice.   The key- and only- speaker, though, was Kirsten and she shared her thoughts on what makes a successful start-up CEO with a large cadre of young aspiring entrepreneurs.

I thought I would share some of those thoughts with my readers.  Clearly, the CEO is THE most important role in a company.  She is the quarterback of the business.  I want to point out, as well, that angel investors are looking at the CEO, his/her characteristics, trustworthiness, and credibility as a critical and sometimes the most important decision factor in making an investment.

Here are Kirsten’s Magnificent Seven attributes and roles for an entrepreneurial CEO.

  1. Chief sales person. Selling is required whether it is for sales of the company’s products or selling the business idea to investors. Pure and simple, it is the number one attribute.  If a CEO cannot get comfortable selling then he/she needs to find a strong complement or a replacement CEO.
  2. Culture Maven. The culture of a company attracts and retains great people.   Think about the culture of Google or Apple and you get somewhat different impressions.   But culture will help you succeed and be one of the differentiators to also-rans.
  3. Chief Strategist. As Louis Carroll said in Alice and Wonderland:  “if you don’t know where you are going, any road will take you there.”  CEOs need to set the direction and if necessary make the decisions to pivot the company.  Early startups will go through false starts and pivoting will be essential.
  4. Teacher, tutor, and mentor. Kirsten claimed to be a whiteboard fanatic.  Where there is a whiteboard, she could share ideas and interact with the staff on a regular basis and even get others to critique, comment, and debate those ideas.   This goes along with the concept that the CEO needs to be a visible leader and wander about with the team.
  5. You have to challenge yourself and others even with ideas that seem outrageous.   Why?  You stay fresh and there may be a kernel of insight into the new idea or someone else may see another path to success buried in that idea. Someone may say: that’s crazy but what if we did this?  Challenging prevailing wisdom and valuing the diversity of though among people is critical to engage your team.
  6. Chief Reporter and Scribe. This is the issue of transparency.   The CEO of a start-up needs to create an environment where everyone on the team feels that they understand and can contribute to the business’s success.   With normally smallish teams and fewer people, such discussions keep the team engaged and motivated.  I have personally witnessed employees banding together to find solutions to seemingly unsolvable problems.
  7. Chief Recruiter. To be successful, a strong team needs to be assembled and nurtured.  As Kirsten said, it all starts with people and finding the best people is the biggest challenge.  When she interviews someone, she has asked some interesting questions to probe the character, drive, and attitudes of the recruit.   One question I like is: if you were on a three hour flight and could sit next to one person, who would that person be and why?   From this answer you can determine motivation and quest for learning, both of which are critical in a start-up

These sage words of wisdom from Kirsten will help the aspiring entrepreneur be successful and potentially be as successful as Kirsten.

Let me know your thoughts.

david





Successful Management in Two Words.

3 04 2015

Rudyard Kipling in his poem, “IF,” (see http://www.poetryfoundation.org/poem/1757720) said:  “If you can keep you head about you while all about you are losing theirs…… then you will be a Man, my son!”

Management

I was talking with one of my mentees today regarding his question of how to stay on top of projects and tasks and making sure he doesn’t get overwhelmed, i.e. keeping his head about himself.  Clearly there is a relationship and an opportunity to quote Kipling.  My mentee is a student who is working with a team to develop a new product/service and is doing this through the Center for Entrepreneurship at Chapman University where I am a lead mentor.    Since I have many more years of experience, I shared some of my learnings and some of the tools I have used and developed.

I was taught in my early career about good management by a disciple of the late Harold Geneen who was the architect of the rise of ITT Corporation as a successful conglomerate. Over time, I developed my own spin and teach this and consult with others who want a simple powerful system to implement.  The basic principle is simply stated in two words:  FOCUS and PODFU.

Focus is pretty simple.  Make sure you know the two or three most important things to do.  Simple to say yet sometimes hard to do.   In fact, as an executive you should be even more myopic and focus on the ONE key thing that needs to get done.  When that is complete move on to the next item.   The reality is that you cannot get overwhelmed by trying to tackle too many tasks at one time.  This also entails discipline and priority setting.

Second, as a young entrepreneur, my mentee is working with other young entrepreneurs and has to learn leadership and management.  Leadership means that he needs to convey his vision and excite the team so they can be engaged and successful. Management means the ability to ensure what needs to get done, gets done and gets done on time.  And this is where PODFU comes in. The acronym is Plan, Organize, Delegate, and Follow-up. It sounds so simple yet is also surprising how many fail at this.

I suggested a few tools that he can use in his regularly scheduled project meetings.  This tool can be repurposed for operational and dashboard reviews as well. The tool is shown in the following Excel spreadsheet with the listed columns.

PODFU Chart

In the example there are four main objectives and supporting tasks to be completed by a variety of people.  In this case my mentee is trying to get a new product/service into the market and this template displays the format and the kinds of activities he and his team might undertake.  (Note:  this is notational only and not representative of his project.)  There is clarity in the metrics to determine if the milestone/task was complete, a time period, a person accountable (if you use the RACI system, the is the “A” in RACI), and a color chart indicating if the task is on target (GREEN), potentially may miss date (YELLOW), or will miss or has missed the due date (RED.)

In each meeting, those tasks due at the meeting date and ones that are due at the next meeting date are discussed. If the task is “green” then there is little reason to discuss it unless there is something that must be brought to the attention of the team.  If the task is yellow, the comments should summarize what will be done to get back on target.  If the task is red, the discussion might go deeper- we call this a deep dive- to see how we can complete the task and if the completion affects other tasks, how might the team get back on schedule.

Of course, there is more to managing and leadership than just a chart.  Yet this template presents a very powerful way to manage using only these two words:   FOCUS and PODFU.  This system can help managers be successful.

If you or your company wants to explore how this tool can be adapted to your unique needs, please contact me at dfriedman@prodigy.net, visit my LinkedIn profile at www.linkedin.com/in/davidfriedman, or call me at 949 439-4503.





Maintaining the Innovative Edge

12 02 2015

Exploding Innovation

I was having coffee at Dana Point Harbor in California with a friend and a former colleague of mine, Gary Wallace, who is a VP at Sirius Connected Car.   We were talking about business and the Feb 1, 2015 issue of Fortune magazine with a Unicorn on the cover.  The unicorn symbolizes start-ups that have cracked the $1 billion valuation mark, notwithstanding any sustainable revenue to support that valuation.  (Can you say Dotcom bubble?)

As we talked about these companies we focused on the concept of innovation.  Why were these companies successful in coming up with an idea and just as importantly, what happened to the high flyers, the innovators in the past that have gone “subterranean” and in many cases have died on the vine.   Since this is a blog and not a research tome, let’s look at some of the companies that were stars at one time but have lost their luster.  My goal in this blog is to provoke thought on how to be an innovator and to ensure that complacency doesn’t reign in the future.

Since Gary and I come from the technology world of networking, wireless, and computers, it was easy to find examples of these lost innovators.   And because I am an angel investor with TechCoastAngels in Southern California and lead mentor to start-ups through the Center for Entrepreneurship at Chapman University, I have a good perspective on innovation and what it takes to be successful. Gary, in turn, is a very successful tech executive and was one of the executives who helped build ATX/Agero into a telematics powerhouse.  He is very smart businessman with a tremendous breadth of knowledge.

We pondered if it was an issue of focus, execution, leadership, or a combination of things?  We talked about a few companies:  Nokia, Motorola, Blackberry, Northern Telecom, Jawbone.   I know the first four of them having dealt with them as an executive at telecom/wireless companies.  I know Jawbone because I was a huge fan of their headsets and Bluetooth speakers and the recent article in Fortune (same issue with the Unicorn) made me remember their previously fantastic products.

Nokia was a classic company that started in the rubber industry and through bold leadership became a telecom powerhouse and the darling of the wireless industry in the 90’s and early 2000’s with its Nokia 1100 and then the Nokia 3000 series phones.  Heck, I bought a bunch for my family.   Fast forward to 2013 and Nokia sold off its wireless phones to Microsoft.   Note from the graphic below courtesy of CNET the market shares today based on the operating systems.  And the subsequent chart on Global Smartphone market share tells a powerful story.

Smartphone platforms

Similarly, Blackberry which use to rule the “smart phone” world with its business oriented devices. Unfortunately, has lost its way and while it still produces phones it is focusing on applications and recently introduced the Blackberry Classic, harkening back to the glory days of the late 2000s.   Many people I know still like that classic design because all they do is email and text from the device.

Motorola in a sense invented cellular service.  Martin Cooper made the first private handheld call in 1973.   They came out with a brilliant design for a small clamshell phone called the Startac in 1996.  Great phone that was a must have.   In 2011 Motorola sold off its mobility division (cellular service) to Google and subsequently Google sold the division, sans its patent portfolio, to Lenovo.

Smartphone market share

Similarly Nortel, formerly Northern Telecom, once a power house in telecom infrastructure with nearly 100000 employees and a huge market cap on the Toronto Exchange, filed for bankruptcy in 2009.  They had great product and when I was an engineer I highly admired their technology.

Jawbone is a little different in that they still have a great technology and a superb well thought of CEO in Hosain Rahman.  They introduced several products that made the market but then other competitors came in to take share.  Currently they are pivoting to focus in part on the wireless fitness craze in competition with companies such as Fitbit (a relatively new Unicorn established in 2007).

When Gary and I talked we thought about our experiences with these companies and ruminated what they could have done differently.  Now this is not a scientific study by any means but here is what we thought resulted in the downfall.  And for context, remember Andy Grove’s cautionary words: Only the Paranoid Survive.

Could these companies have survived and changed?  I don’t have the answer but it is an interesting discussion.  By looking at what we believe were their failings, Gary and I posited that these four areas could have been changed.

  • This is the opposite of arrogance.  These companies relied on their past successes and thought that their view was the right view.  They became insular and lost touch with the customer.  From personal experience these companies except for Jawbone would not accommodate unique requirements.
  • Customer perspective. While these companies focused on their products they did not really listen to their customer wants and needs and did not accommodate their needs. Other competitors eager to take share were more accommodating.  Companies need to have a direct pipeline to their customers.  Engineers should visit customers.  Customer panels and advisory boards need to be implemented.  Lead users, i.e., innovators and early adopters, need to be identified and used in early product trials.
  • The telecom companies grew fast with introduction of new products and excellent technology.  But the leadership seemed to lose focus on execution.   I give credit to Nokia and Motorola for spinning off their mobility groups to Microsoft and Google to give those entities a better chance of survival.  Regardless of anything else the basic notion is that P=R-C where P is profit. Execution needs to be de rigeur for all companies through a solid business battle rhythm of managing the business, and tools such as balanced scorecards to help guide the way.
  • All the companies I mentioned and certainly those in the Fortune article achieved success through innovation.  Innovation takes place on several fronts and all characterized as “new.”  Newness and the pursuit of newness on several vectors give companies an advantage.  You can have a new product(Fitbit), new application in a market(think baking soda in toothpaste), new pricing ( Solar leasing, ATT’s Digital One Rate), new technology offering new benefits (drones, Space X, First Solar), new processes (Amazon, Tom’s shoes), new support systems, new branding, new partnerships, new eco-systems.  And the list goes on.

Achieving sustained success is very difficult.  Companies need to develop the right strategic imperatives, the right innovation centers, the right product development processes, the right customer interface processes.  Many companies can do this on their own but also many companies are so focused on today and execution they may need help from an outsider, sort of an alter ego, to help with guidance, advice and tools.    Feel free to comment on this blog or contact me to chat about your business needs.  My contact info is dfriedman@prodigy.net.





The iWATCH is coming! Innovation continues at Apple in a classic way.

12 09 2014

I collect watches and I have a nice selection.  The watches I collect are the “classic” styles.   Among those watches, I have a fondness for an old gold Longines that my father wore when he married my mom in the early 40s, a few Omegas (I like Speedmaster), a Rado, Cyma, and my favorite, a Tutima FX-UTC two time zone.  I liken the watches to jewelry for men and while many younger people have shed their watches because they can tell time (assuming they have to) with their smartphones.

Enter the i-Watch.  Let me say this- I want one.  And unfortunately I have to wait for a few months to get one.   I already told my son that he can buy it for me for my birthday.   I want the stainless steel black with Milanese band.  What I like about it is the simplicity and elegance.  It sort of looks like my Rado watches which I like- simple elegance with functionality.  See the following pictures.

 

iWATCJ

iWATCH

Rado Square

Rado Square

Rado Ceramic

Rado Ceramic

 

 

 

 

 

 

 

 

I don’t need edginess per se.  The functionality, the ability to mate it with my IPhone 5s and my iPad make it perfectly suited for me.  I like the fact that I can adjust the face to the persona I have each day.  For example, during the work week I would like to have a face that shows time and next appointments.  On the weekend, when the amateur athlete kicks in, I want to show energy and heart rate as I play tennis, swim, or workout.    And did I mention, it looks good too!!

I am an Apple shareholder and I really like where Apple is going.  What is next for them? I don’t know but I trust that they won’t relax on their laurels and I believe this product will continue to evolve.  Just for kicks, and thinking about the art of the possible, perhaps Apple will come out with a new i-Pen, a fountain pen (my preference since I collect classic fountain pens too) or gel pen that links with your iPad or iPhone or iMac so what you write is transcribed into a document and stored.  All voice commands by the way.   How about an i-Home, a totally home automation system a la NEST with more options?   And with Apple buying Beats, why not a series of i-MEDIA for total entertainment and control in your house?  Google has their car so why not have an Apple i-Car or maybe a manufacturer works with Apple to embed the i-Car concept into their new automobiles?  All this is possible Mr. Cook.  I believe that the smart people at Apple are already thinking about these ideas.  And that bodes well for their stock and for this economy.  Very exciting times indeed.