Sunday, October 02, 2011

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).


  • 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?


  • 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%)


  • 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

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