Review: Geoffrey Moore's Making a Business in Software

Geoffrey Moore wrote one of my favorite book, Crossing the Chasm (can't believe I didn't do notes on the book).

Innovation

• Differentiation (Core)
• Neutralization (Context): The market moved, but you didn't (getting back into the competitive set)
• Optimization (Context): get the cost down

Core vs Context: Core is processes that amplify differentiation, Context is everything else which support the business (the necessary evil)

Innovation Waste

• Differentiation that didn't go far enough (people like to play safe, but Steve like to go far)
• Neutralization projects that go beyond good enough
• Unaligned Innovation

There is never a game-over. Sun is the dot in dot com? IBM controls the PC market? Kodak moment?

Markets

• Niche (Bowling Alley) -> Early Adopters -> Mainstream Market (Tornado)
• Growth -> Mature -> Decline

Buyers (Performance, Relationship, Value)

• Early: Performance (75%)
• Growth: Performance (50%), Relationship, Value (25%)
• Mature: Value (60%), Relationship (25%)
• Decline: Value (75%)

Models

• Product Leadership (Performance): Disruptive (Google), Solution (Autodesk), Product (Apple), Platform (Microsoft)
• Customer Intimacy (Relationship): Line Extention (HP), Design (IDEO), Marketing (IBM), Experiencial (Facebook)
• Operation Excellence  (Value): Value Engineering (TSMC), Integration (SAP), Process (Dell), Business model (Salesforce)

Winning in Solution Innovation (B2B)

• Target Customer: Pragmatist (follow majority's choice) manager in target niche
• Compelling reason to buy: Fix a problem (top 3 problems) business process
• Whole Product: End-to-end solution
• Partners and Allies: Solution complementers
• Distribution: Direct sales
• Pricing: Value-based
• Competition: Horizontal offerings
• Positioning: Niche market focus
• Next Target Customer: Adjacent niche market

Definite Separation

• Pick a core (laser-focus)
• Go really far (beyond reason)
• Optimize Context
• Small Competitiveness: Agility