Tag Archives: Go-To-Market

How Do You Bridge The Supply Demand Gap?

Interview with Jim Hogan, CEO, SView LLC

Situation: The rapid evolution of mobile devices creates new opportunities to build mobile enterprise application businesses. However for businesses there is no clear path to mobilizing business applications. How do you bridge the gap between supply and demand in mobile enterprise apps?

Advice:

  • There are three legs to the stool of a successful SMB business model: developer platform, go to market strategy, and licensing and maintenance sales strategy. There is a consolidation play available for a small company that can generate traction in all three.
  • As to developer platforms, Microsoft originally got traction for Windows by being maniacal about building great developer relationships. Over time they leveraged this and just got better and better.
    • There are several platforms available that show promise, including Rhomobile, Mobile Nation HQ, and Appcelerator.
    • All are small now – in the $1-20 million revenue range. Their principal challenge is identifying a viable go to market strategy.
    • Another platform that shows promise is IBM’s Eclipse IDE.
  • Next is go to market strategies. Yahoo recently launched a search engine for mobile apps in Yahoo for Mobile. This is important to the creation of a viable market place for apps regardless of platform. If a viable platform developer can do a deal to generate a market for business apps this will go a long way to developing a successful go to market strategy.
  • The third leg, development of a long-term licensing and maintenance sales strategy, will most likely occur through acquisition of a company with the first two pieces. The lead would be an initial developer platform but could spin off to others.
    • Apple has started looking into this play with its iCloud strategy; the challenge for Apple will be making it enterprise-friendly.
    • Who else could do this? RIM and Microsoft both have a long history serving business customers, huge customer bases and  and the marketing capabilities to support mobile business applications. The wild card may be HP – currently the largest hardware purveyor in the enterprise and consumer space, and with the new WebOs platform from their purchase of Palm
  • It will be fascinating to watch how this market develops.

You can contact Jim Hogan at jahogan@jahogan.net

Key Words: Mobile, Device, Enterprise, Application, App, Opportunity, Scalable, B2C, Gap, Supply, Demand, Developer, Platform, Go to Market, Licensing, Maintenance Sales, Rhomobile, Mobile Nation HQ, Appcelerator, Microsoft, Yahoo, RIM, HP, Palm

How do You Fund a New Venture in a Mature Market? Seven Strategies

Interview with Chuck Gershman, Founder and Former CEO, Bay Microsystems

Situation: Following a consolidation of equipment suppliers, the broadband network market has matured with a few large players. This potentially reduces diversity and creativity because barriers to entry are now enormous. How do you fund a new venture in a mature market?

Chuck Gershman’s Advice:

  • If you can get the venture off the ground, the opportunity is tremendous because competition for new approaches in a mature market is limited. Large players don’t move quickly. Their incentive is to change slowly to lengthen product life cycles.
  • The downside is fewer financiers interested in the space because of the barriers to entry, and because the likely exit is an M&A play at low multiples.
  • Given this, how do you attract investors?
    • In the hardware space, you must demonstrate a convincing go-to-market strategy with modest investment and a moderate cost of market penetration. If the cost of success is high, it requires too much investment and risk before you can accurately assess the possibility of success.
    • You must be able to show a substantial total available market.
    • You must be able to show that your capability meets the needs of the market.
    • You must be able to show that the customer base will respond en masse. This is critical!
    • With fewer investors willing to look at your product and technology, it takes more time and work to find interested investors.
  • Investors invest on perceived risk, so the task is to show that the risk is manageable.
    • In the past, investors were convinced by a committed strategic customer that would finance bringing the product to market.
    • In the current market, an effective strategy is to develop an early customer who is a strategic investor in your company from Day 1. This raises the likelihood of an exit, and appeal to investors, but reduces downstream options and ROI.
    • Another strategy is to pursue a creative IPO exit. For example, launching the IPO on a smaller foreign exchange. This reduces the long-term payout to founders, but may increase appeal to investors who prefer an IPO to an M&A exit.

You can contact Chuck Gershman at charlesg_98@yahoo.com

Key Words: Mature Market, Diversity, Opportunity, Investor, Go-To-Market, Risk Assessment, Strategic Partner, Strategic Investor, Exit, M&A, IPO