A Roadmap to Business Growth & A Prosperous Future

For more than three months, JR Andersen, CEO of the mid-sized software company Andersen High Tech (AHT) and his board of directors have been in a state of uncertainty. Growth in the business is “OK” at eight percent however the market has grown at a rate of 15 percent per year rate. With nearly half of the growth coming from price hikes in the unit of the primary product line has been lower than five percent. However, margins have been increasing quite nicely, along with bonuses to management and bonuses, so the situation isn’t too bad.

Or do they?

With growth rates for business that are below market rates, AHT is losing customers and thus market share. In the simplest terms it is a loss of opportunities.

Competitors are growing sufficient critical mass in order to build the next product more quickly or even better. The biggest competitor of AHT has been awarded three bids that have “leading edge” requirements, leaving JR concerned about the next product he will launch.

In the case of JR and his team what would you do to avoid this dilemma? My experience suggests that the solution lies in the marketing strategy, not in the realm of technology.

To boost your company’s business growth, your current strategies and priorities should be focused on:

– Identifying hidden opportunities Your potential business growth strategies are hidden within your current strategy for development and enhancement of your products.

– Applying discipline to your product It is essential to determine and implement the proper combination of business and technical elements to manage your products effectively.

Finding niches in your customers You have to identify customers with specific needs that you are able to provide better than other companies could.

About six months ago JR began this path. Here’s his route to success in business growth:

Find the hidden gold of your portfolio and getting rid of your R&D black hole in your investment

AHT had a vast “portfolio” of products and product enhancements that were in the process of being developed. As with many other companies I’ve encountered AHT’s pipeline contained many smaller, incremental projects but only a few truly creative ones.

To solve his R&D issue, JR decided that he required to break his projects into three categories:

1. New products that are major: More than 10% of a company’s revenues within three years.

2. Significant product enhancementsare The term “substantial” refers to a significant addition to capabilities for customers.

3. All other.

JR knew that there were just four new products being developed including two at the beginning of the process. He was shocked to discover only seven significant improvements, and more astonished to discover the number of “all other” projects.

The next step was that JR required to know the resources allocated in each class. Since there was the absence of a central system for tracking resources system, this was a difficult task for JR’s team. They needed to visit each product group and functional group multiple times before they could obtain the required information. Everyone was amazed to find just 20 percent of staff members were assigned to new major products, and an additional 15 percent for enhancements. other 65 percent of resources working with “all other.”

The solution was simple. Use the resources of “all other” and add them to development of new products or enhancements to the product. This not only increased the confidence of launch dates, but it also opened the door to possibilities for the development of new products.

Applying Product Discipline

As he was looking over the AHT project for product development, JR first drew them out on a calendar with the dates of their launch. He then asked his engineers and managers a few questions. They asked:

What time are the interim reviews scheduled? Who is in the group?

Do you have the ability to show me the exact customer requirements that prompted any technical tasks?

For existing products Do the plans for new products align with the corporate goals?

What are the capabilities and backgrounds of people who work in the roles of product managers?

As with many other companies, he observed that AHT did not address these issues on a regular basis, meaning there were many responses which he didn’t like to be hearing. After conversations with vice presidents at the following team meeting JR as well as his team of executive managers agreed that they needed to pay more concentration and attention.

Discovering Niches and Segments

Then, JR dug into the product’s plan of AHT’s with the most growth-oriented goal. He identified the sales objective as well as the marketing communications plan and the plans for product enhancements. However, the analysis of competitors was not very strong. More importantly, the description of the target customer and their applications was not included. That is, there was there was no explanation of why customers would purchase AHT’s product or what customers would be interested.

I’ve seen this happen at numerous businesses. The value proposition is either not clear enough or is too broad, and without any real benefits for the customer. The process of creating a strong value proposition means being specific in terms of benefits that impact the customer’s bottom line.

JR immediately realized that the most efficient location to search for revenue growth was to look for incremental sales and potential customers who were not AHT’s main products. JR requested his sales, marketing engineers, customer service and marketing managers to thoroughly identify and record every benefit enjoyed by customers currently and then find other similar customers.

Business Growth’s Bottom Line

Following six months of focused work, JR and his board are feeling much better. The revenue growth in the last quarter of the year was 17%. Also, the most recent launch of a product was timed. The entire business now has an optimistic outlook and employees are buzzing with enthusiasm. It took two brand new product managers, as well as lots of attention from the executive however, the value proposition idea has taken the lead. The sales VP even was convinced when it was his turn to win a coveted important account following a presentation of AHT important benefits of their products (rather that their technological capabilities).

The schedule for product launches includes the launch of six new products as well as fifteen enhancements on the way All with solid leadership support. There is no “black hole.”

I hope that your business isn’t battling the same issues that were faced by JR and his team at AHT. If it is looking for a solution, consider JR’s blueprint to business growth. Discover the untapped opportunities, employ the discipline of a product, and find your niche market.

B2B Marketing expert Bill Gilbert, has vast experience in shifting high tech and telecom companies, like yours, away from technical orientation to a brand driven by customers. For more free business growth tips on how to drive a compelling value proposition, proactively manage new product development, and exploit product portfolios to systematically build brands check out Bill’s blog at: [https://www.theodysseyonline.com/newchip-reviews]

By jamesmonica839

Leave a Reply

Your email address will not be published.

You May Also Like