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Strategy startups to enterprise

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Akash Pai
Akash Pai

This document discusses strategy and strategic planning. It defines strategy as setting choices that position a firm to earn superior long-term returns through uniqueness, value proposition, and sustainable advantage. Common strategic planning involves environmental scans, identifying customer types and needs, developing a value proposition to meet unmet needs, and testing product viability through minimal viable products and metrics like customer acquisition cost. Pivoting based on testing results and repeating the process is emphasized over traditional strategic planning models.

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Strategy, Strategic Planning, and other Stories Akash Pai Principal Product Manager Lead: Microsoft Bing Advertising @akashpai
Strategy
What is Strategy? Set of choices which position a firm, in an industry, to earn superior returns (financial or share) over the long run. It is: 1. Being unique 2. Value proposition which is distinguishable from competition 3. Sustainable competitive advantage
What is NOT a Strategy • Vision, aspiration • Best practice • Execution excellence Examples: 1. Being #1 or #2 or Best. 2. To merge or outsource
Common Strategic Planning Methodology? Traditional Strategic Planning Process is dead, long live Strategic Planning !
Vision, Strategy, Execution & Beyond Strategic Plans are Pivot ? useless, Planning is Planning everything Customer Focused Development Test Minimal Product Viable Viability Product
The MOST important Tenet
Now for some Best Practices …
Strategic Planning: Environmental Scan
Strategic Planning: Customer Types & Attributes • Customer Types: • End-users, influencers, & recommenders • Early adopter, early evangelists • Economic buyer & decision maker • Saboteurs • Define their attributes & pain points
Strategic Planning: Value Curve Analysis • Identify White Space • Key customer attributes on X-axis • Level of performance on Y
Strategic Planning: Value Proposition & Unmet Need Differentiate or Die ! Me-too is not a strategy
Strategic Planning: Access Feasibility
Strategic Planning: $ Pricing • Willingness to Pay – how to measure it? • Post the question to customer advisory board or key economic buyer • Will you install it for free? • Will you pay $x for it?
And if all of this is Too Much ….
Testing your Hypothesis
Minimal Viable Product
Test Product Viability? • A/B testing using Cohort analysis • Define KPIs and measure • SaaS products: acquisition, engagement, monetization, loyalty Metrics Best Practices Acquisition Customer Acquisition Cost LTV > 3 CAC LTV Time to recover CAC < 1 year K-factor Viral coefficient > 1 Viral cycle time Engagement Churn rate Identify customers at risk of Avg. session time churn; re-engage Dwell time DAU, MAU Monetization ARPU MRR Loyalty # comments, reviews Sentiment analysis
To Pivot or Not?
Repeat
Aligning Organizations behind Strategy • Strategy Maps & Balanced Scorecard
Further Reading

More Related Content

Strategy startups to enterprise

  • 1. Strategy, Strategic Planning, and other Stories Akash Pai Principal Product Manager Lead: Microsoft Bing Advertising @akashpai
  • 3. What is Strategy? Set of choices which position a firm, in an industry, to earn superior returns (financial or share) over the long run. It is: 1. Being unique 2. Value proposition which is distinguishable from competition 3. Sustainable competitive advantage
  • 4. What is NOT a Strategy • Vision, aspiration • Best practice • Execution excellence Examples: 1. Being #1 or #2 or Best. 2. To merge or outsource
  • 5. Common Strategic Planning Methodology? Traditional Strategic Planning Process is dead, long live Strategic Planning !
  • 6. Vision, Strategy, Execution & Beyond Strategic Plans are Pivot ? useless, Planning is Planning everything Customer Focused Development Test Minimal Product Viable Viability Product
  • 8. Now for some Best Practices …
  • 10. Strategic Planning: Customer Types & Attributes • Customer Types: • End-users, influencers, & recommenders • Early adopter, early evangelists • Economic buyer & decision maker • Saboteurs • Define their attributes & pain points
  • 11. Strategic Planning: Value Curve Analysis • Identify White Space • Key customer attributes on X-axis • Level of performance on Y
  • 12. Strategic Planning: Value Proposition & Unmet Need Differentiate or Die ! Me-too is not a strategy
  • 14. Strategic Planning: $ Pricing • Willingness to Pay – how to measure it? • Post the question to customer advisory board or key economic buyer • Will you install it for free? • Will you pay $x for it?
  • 15. And if all of this is Too Much ….
  • 18. Test Product Viability? • A/B testing using Cohort analysis • Define KPIs and measure • SaaS products: acquisition, engagement, monetization, loyalty Metrics Best Practices Acquisition Customer Acquisition Cost LTV > 3 CAC LTV Time to recover CAC < 1 year K-factor Viral coefficient > 1 Viral cycle time Engagement Churn rate Identify customers at risk of Avg. session time churn; re-engage Dwell time DAU, MAU Monetization ARPU MRR Loyalty # comments, reviews Sentiment analysis
  • 19. To Pivot or Not?
  • 21. Aligning Organizations behind Strategy • Strategy Maps & Balanced Scorecard

Editor's Notes

  1. Gory details to back of the envelope
  2. Is United a successful strategy? Its #2, but where is it compared to Southwest?
  3. Startup – fail fast and avoid planning. Enterprises have long strategic cycles. Is there a common ground?
  4. The process I believe in. I borrow from lean startups methodology and a traditional strategy approach. Strategic planning is NOT a 6/12 month exercise. It continuous improvement.
  5. Don’t plan in a vaccum! Get out there and TEST your hypothesis
  6. Based on my experience. I’ve collected a set of best practices which I found helpful over the years. Let me share these with you.
  7. Here are few example of what I’ve found helpful.
  8. Give example of NextMedium. Despite having all the support, it didn’t materialize.
  9. Great tool to use to define new opportunities
  10. Note, differentiation is not necessarily on features, it could be on scale, global reach, efficient use of channel, etc. And is there an unmet need? What is the problem that my product addresses
  11. Value Chain and how it maps to your companies strengths. The last part is key.
  12. I’m not going to talk through financial modeling. There are enough material on that.
  13. Business model canvas – great / best back of envelope business model.
  14. Till now, all we have is a hypothesis. We need to test it. Don’t be married to it AND please don’t spend time prettying it up. Rule of thumb – 12-15 slides MAX for strategy.
  15. We didn’t develop the backend for the ad marketplace. We just put in orders and had our team be the backend to complete the order.
  16. KPIs vary with product. For SaaS product, we have the customer acquisition, retention, monetization metrics. For other products, metrics vary. But measuring is key…
  17. Don’t ever be shy to change directions!
  18. 20 odd metrics to measure. And ones that get less attention: internal business process, learning and growth. These are key to the process.