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Nail It Then Scale It!Key Elements of Strategy ThatReally MatterNordic Software SummitStockholm13 th Feb 2020Paul WiefelsManaging DirectorChasm Group LLC

Agenda Success Means Setting Context Setting Strategy Setting Execution 2020 The Chasm Group, LLC“You've got to think about big things whileyou're doing small things, so that all the smallthings go in the right direction.” – Alvin Toffler“The main thing is to keep the main thing, themain thing.” – Jim Clark, Co-founder, Netscape

Enterprise Software Success FormulaLessons from TCG’s Benchmark of Market-Leading, High Growth CompaniesBig Vision for Customer’s World – Built on Business IssuesDemand Generation: ’Why Change Now?’ and MerchandisingCustomer Outcome-Based Success StoriesRepeatable, Scalable & Integrated G-T-M focused onLand & Expand to Right LogosBuild Amazing Consumer-Grade Product EcosystemSource: 2017 TCG Proprietary Research (n 50) 2020 The Chasm Group, LLC3

The Left Brain Bit Start Here.MarketStrategy 2020 The Chasm Group, LLCWhere shouldwe compete?How shouldwe compete?Analysis of existing &emerging markets, profitstreams, competitivepressure, etc., leading tochoice of where andwhere not–and whyWhat to offer?How to offer it?How to differentiate?Source of competitiveadvantage?Source of innovation?How will wewin?Business model?Market model?Resources to compete?Criteria for success?4

Set Your Course: These guys knew a lot of about fishing but not a lotabout sailing.MARKET DYNAMICS TODAY 2020 The Chasm Group, LLC5

Set Your Context: Digital Transformation Is Where The Is.Digital Capabilities have become core to business strategy.FIRSTMechanical ProductionSECONDMass ProductionTHIRDAutomated ProductionFOURTHDigital Business TransformationWater & steam powerDivision of labor & electricitySemiconductors & softwareCloud, big data, AI/ML, IoT, Mobile1784: First mechanical loom1870: First assembly line1969: First programmable logiccontrollerTODAY93%CEOs expect digital todisrupt their businessThey will invest 2 Trillionin digital transformation through 2022.Y2K Investment was 350 BillionWhere do you play? What do you contribute? How do you align? 2020 The Chasm Group, LLCSource: IDC; TCG analysis6

Set Your GPS: Play for “Power” Not Simply PerformanceVisionStrategyCategory PowerGrowth rate of your investable categoryCompany PowerStatus relative to reference competitorsMarket PowerMarket share in strategic target segmentsOffer PowerNet differentiation of your flagship offerExecution PowerAbility to drive changes to tipping pointsExecution 2020 The Chasm Group, LLC

Set Your Identity: Mission, Vision, Values Make it meaningful Increase quality of life (or at least someone’s job) Right a wrong (or at least eliminate a compromise) Make it compelling to others Try not to make it about you. Make it a mantra Think different Keep it real Chances are you’re not going to earn a Nobel prize for softwareDisclaimer: Most people don’t care about your mission, vision, and values. But, you should. But, not obsessively. 2020 The Chasm Group, LLC8

Set Your Strategy. Be Prepared to Evolve It.(And beware of chasms that can swallow you )Key sponsor 1. Target Customer2. Compelling Reasonto BuyKey motiveComplete solution 3. Whole OfferManages sales & 4. Partners and Alliesfulfillment complexity 5. Sales ModelFill in the gapsLegitimate alternatives 6. Competition7. PositioningMaps to all the above 8. Monetization Model9. Next Move 2020 The Chasm Group, LLCCore differentiationNext growth segment

Context: Why Are We So Powerful As Consumers AtHome and So Lame As Employees At Work?The new standard for UI/UX71% of employees want their companies to provide them with thesame level of technology as they use in their personal lives.-- 2016 Study by Salesforce 2020 The Chasm Group, LLC10

Change is a Big Ask. A Big Ask Means You must offer them a reward big enough to justify their effort,and do an exceptional job of execution to validate that effort.Reasons to SwitchExistingSolutionProblems withCurrentSolutionPotential ofNew SolutionSwitching CostsChange AnxietyNewSolutionReasons to Stay 2020 The Chasm Group, LLC11

Rewards Must Be Felt At All Levels.Customer Senior LeadersCustomer Frontline OperatorsVision, yes. But tangible, demonstrable, quantifiable value to justify change. 2020 The Chasm Group, LLC12

Set Your Navigation Plan: Reframe The Conversation.Sell the problem, not the solution. Position around buyers.Show & share domain knowledge.'You know me get my problems you speak my language.’ValuePropositionMarket Trends &Prospect Pain“Why change now?" Provocation attached to trends, segment‘challenges, and acute pain.‘You made me think differently about my challenges and why I needchange now’“Why You?“ -- Compelling value proposition & simple value propaimed at ‘ideal’ segments, not the ‘market.’'That is a better way and it’s worth doing.’Relevant customer stories to validate.‘I see how they solved problems like mine and why they chose you’ 2020 The Chasm Group, LLC13

The Right Brain Bit: Change The Conversation From“What” To “Why.”‘How’ and ‘what’ are only heard if ‘why’ is relevant.“Why” influences decision-making.“I believe what you believe.”WHY— Why you should careHOW— How we differentiate ourselvesWHAT— What we do or make“What” affects cognition. decision-making.“I recognize what you’re selling.” 2020 The Chasm Group, LLC14

Finish Here.HOWDetailWHATWHYElevatorPitchOver-simplified versionof who we are, why wematter; not specific toindustry or solution;the ‘hook’ 2020 The Chasm Group, LLCCompetitivePositioningRelative positionin marketlandscape;how/where wefitCore ValueStatementSummarizesbusiness need &core value; sets upproduct / dmessages byfunction &industry; tailoredbut consistentTechnologyCriteria &DifferentiationOutlines the technology orinnovation foundationunder solutions; definesevaluation criteria, mayunderpin differentiation15

Build For Tomorrow: Advance Your Skills & Capabilities1. Describe, position, and demonstrate your offering to help customers understand what you are and what youaren’t. What you aren’t is just as important.2. Build effective business cases to help customers make their buying decision.3. Manage customer expectations effectively, honestly to maximize success, avoid dissatisfaction and defections.4. Create a repeatable sales process. Close deals in a (relatively) predictable set of steps and timeline.5. Migrate from one-off projects – to repeatable playbooks – then later to standardized offers.6. Support customers through ups and downs, while expanding their use of your offerings.7. Manage contract renewals and expansions effectively. No surprises.8. Introduce new offers in an expanding portfolio, to extend lifetime value with major customers. 2020 The Chasm Group, LLC16

[email protected] 2020 The Chasm Group, LLC