💾 Archived View for gmi.noulin.net › mobileNews › 5395.gmi captured on 2021-12-03 at 14:04:38. Gemini links have been rewritten to link to archived content
-=-=-=-=-=-=-
Gretchen Gavett
How many software companies really make it big, at least in terms of revenue?
McKinsey analyzed more than 3,000 software and online-services firms from a
22-year period, finding that fewer than a third reached $100 million in revenue
growth. Only a handful of companies reached the elusive $4 billion mark.
W150423_GAVETT_WHATREALLY
This data, combined with interviews with executives at 70 companies, led
researchers to three main findings: Growth trumps all, including margin and
cost structure; sustaining growth is really hard, even among companies with
early momentum; and that (don t fret!) there is a recipe for growth that
involves four key principles. They are:
Growth happens in three acts.
The first must contain five steps: Picking the right market; defining a
monitization model that makes room for scaling; focusing on rapid innovation;
being stealthy and maintaining a low profile while developing new products; and
creating the right incentives for senior leadership.
Succeeding in the second act requires a strategy that falls into one of three
buckets: having a robust model you can expand upon easily as is (this is a
rarity); expanding successfully into an adjacency; or transforming your product
into a platform.
Companies that have figured out how to master the transition from one act to
the next are the most successful.
Source: Grow Fast or Die Slow
Gretchen Gavett is an associate editor at the Harvard Business Review. Follow
her on Twitter @gretchenmarg.