1. Focus on the business model
SVS places considerable emphasis on development of the right business model. This is a unique and distinguishing characteristic of highly successful Silicon Valley businesses, and one which we pay close attention to. Many companies do a great job of putting their products into beta for market feedback, but never test the validity or viability of their basic model in the marketplace. The business model is the form that business functions (which we describe as ‘architecture’) must follow.
2. Determine the optimal business strategy
Building successful market strategy is iterative: it begins with listening, then developing, then testing and finally refining. Many business executives, operating under considerable pressure (or perhaps just attention deficit disordered), attempt to skip some of these essential steps. Failure inevitably ensues. Solutions in search of markets result in stillborn businesses, lost investments, ruined careers. SVS coaches a four-step method for market strategy development. This process continues throughout the life of the business.
3. Think in terms of whole product solutions
Customers need solutions to critical problems (otherwise, your business offer may not be sufficiently compelling). Thinking in terms of the whole product means thinking about how to add value to the product in order to add value for the customer. Whole product thinking informs both product development and sales and marketing. Whole product thinking begins before the sale and extends beyond fulfillment. This, too, is a continuous process.
4. Define the business architecture.
Most companies view their architecture in one dimension – that is, if they think about their architecture at all. We believe all business functions operate in three theoretical and practical dimensions:
> Vertical structures support the operational elements of the business. Most companies view this structure as business units, like sales, finance, operations, marketing, etc. In fact, most companies think of only their vertical structure when they visualize their architecture. This is a mistake.
> Horizontal processes involve people, and constitute the dynamic opportunities in the business. Companies typically think of people as vertically oriented within business units, but Silicon Valley success models show that optimum results occur at the intersections of vertical structure and horizontal process.
> Interplay effectiveness – the intersection between structure and process - fuels business success. What Silicon Valley success stories all share is an architecture which allows and promotes interplay effectiveness.
5. Plan effective go-to-market tactics
SVS emphasizes go-to-market tactics that flow from and are consistent with the broader corporate and market strategies. Strategy is everything, but strategy without execution is impotent and wasteful. Execution is everything, but execution wrongly directed is catastrophic. Developing ‘iterative executables’ is all about learning from actions and refining subsequent actions to get better results.