CEO Advisor Newsletter March 2022
Top 10 Reason Tech Companies Fail
- When you evaluate the management practices of hundreds of technology companies, here are the primary reasons they fail.
- Evaluate your own management decisions and practices and seek help from a business advisor to address your specific needs.
- 1. Lack of Strategy and Market Focus
- Emerging technology companies often do anything possible to generate Revenue, and in the process try to be all things to all people. Worried about losing business they avoid segmenting the market and refuse to focus on two to five key vertical markets. As a result, the company is unable to effectively serve any market segment effectively. Management and the sales team is spread too thin and the company is suddenly swamped with support problems and many competitors.
- 2. Undifferentiated Products
- Most technology products and services that fail do so because of a lack of product differentiation. Successful companies differentiate their product(s) from all other products on the market. Differentiation is possible on the bases of five fundamental factors: function, time utility, problem solved, price and positioning. These five elements are critical to uniquely positioning your products and services to achieve sales traction, success and profits.
- 3. Poor Market Research
- Many companies routinely perform the wrong type of market research. Surveys of customers alone do not provide the quantitative and qualitative information that is needed. Because your target audience often relies as much on perceptions as on facts, qualitative research intended to identify existing needs has equal or greater value in assessing, planning and executing a company's marketing strategy.
- 4. Excessive Product Releases
- Technology products are generally used over an extended period of time, are integrated with complementary products and impose learning costs on customers. Customers require time to implement and recover their investment in technology products. The rapid introduction of new and improved features can make a customer regret a previous purchase, delay all new purchases, and agonize over similar purchases in the future. Additionally, the time and costs related to excessive product development can delay product launches and delay sales opportunities and Revenues.
- 5. Incomplete Products or Lack of Integrations
- Customers view products very differently than the technology companies that create or supply them. Technology companies tend to try to sell products on the basis of price, special features and technical specifications. These technical factors are often favored by the engineers who typically run technology companies. Integrations with other critical software applications are critical to your sales. The problem is that most customers consider factors such as product support, key integrations and company reputation to be more important.
- 6. Failure to Establish the Right Competitive Barriers
- Traditional barriers to competition are of little value in the technology industry. Patents can be effective but are very expensive, divulge trade secrets and take years to come to fruition. Conventional techniques are mostly designed to prevent market entry and tend not to work in technology-based businesses. The most effective competitive barriers in technology are the perceptions held by customers and prospects of product differentiation, customer support and first to market with a specialization in a market segment.
- 7. Using Price Alone to Drive Market Penetration
- It is easy to misinterpret the role price plays in the market. And it is a mistake to believe that a technology product or service would be widely used and purchased if its price was low enough. Price is a function of value and utility, and products and services should be positioned and marketed accordingly.
- 8. Improper Marketing
- Marketing is both an art and a science. Positioning, pricing, sales strategy, target vertical markets and other factors contribute to the success or failure of your products and services and corresponding sales. A well-crafted Marketing Plan and Budget is critical to success. Improper marketing or lack of marketing can be a product killer or cripple your company as a whole.
- 9. Sales Mismanagement
- There's more to sales management than most companies realize. Specific skills are required to effectively manage each type of sales channel and those skills must be developed internally starting with an effective direct sales force. Unique management challenges exist for each primary type of sales channel: Direct Sales, Online Sales, Dealers, OEMs, Strategic Partners and Value-added Resellers (VARs). Seek a business advisor to assist you in optimizing your sales strategy as a critical factor in your success.
- 10. Misinterpretation of the Technology Adoption Lifecycle Model
- The primary technology adoption lifecycle model describes the market acceptance of new products in terms of Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. The process of adoption over time is illustrated as a classic normal distribution or "bell curve".
- Because the technology adoption model is expressed in terms of a standard bell curve, it means statistically, a random sample of any given market or population must contain: 2.5% Innovators, 13.5% Early Adopters, 34% Early Majority, 34% Late Majority, and 16.0% Laggards. So no matter what industry you tend to be in, there will always be a sequence of adoption by different types of buyers.
- To further evaluate your management decisions, grow your business to the next level and increase your sales, margins, profits and value of your company, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by email at mhartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
CEO Advisor, Inc. Advises Crypto Firm DAIM on Growth, Strategy and Funding
- CEO Advisor, Inc. (www.CEOAdvisor.com), a growth and strategy, growth capital and M&A advisory firm, is advising Digital Asset Investment Management, LLC (DAIM), a leading Cryptocurrency/Digital Asset investment firm in Newport Beach, CA. With over 12,000 Cryptocurrencies, Registered Investment Advisors, Wealth Managers, Corporations and High Net Worth Investors need the hands-on expertise and advice to navigate the maze of potential investment strategies.
- DAIM is the first of its kind licensed Registered Investment Adviser for Bitcoin and Digital Assets only, providing unparalleled human service desired by its clients. Bryan Courchesne, CEO of DAIM states, “Cryptocurrencies represent an unique investment opportunity the likes of the Internet in the late 1990s. The major difference lies in the very different nuances of each Cryptocurrency and the need for in-depth research and expertise. Our clients have a significant advantage over self-directed investments on Coinbase.”
- CEO Advisor, Inc. is advising the company on all aspects of strategy, growth, growth capital and scaling the business nationwide. The business consulting firm’s strategy, sales, marketing, financial and operational experience will provide the additional expertise and management support to accelerate growth.
- Mark Hartsell, President of CEO Advisor, Inc., states, “DAIM is a pioneer in providing one-to-one professional advice on Cryptocurrencies and Digital Assets investing. Stock Brokers, Wealth Managers and individual investors are challenged by the vast array of Digital Assets today. Bryan and the DAIM team are providing an invaluable service with in-depth research, an investment / trading platform and professional advice on this extremely hot space.”
- About DAIM
- Digital Asset Investment Management, LLC provides unparalleled hands-on service and advice based on each client’s goals. DAIM is fully licensed and experienced in managing complex Digital Asset investments. As the first licensed Registered Investment Adviser for Bitcoin and other Digital Assets, DAIM has the expertise needed to maneuver the many investment alternatives. Contact DAIM at 120 Newport Center Drive, Newport Beach, CA 92660, by phone at (949) 298-7582, by email at hq@DAIM.io, or visit the firm at www.DAIM.io.
- About CEO Advisor, Inc.
- CEO Advisor, Inc. provides growth consulting, growth capital and mergers and acquisition advisory services to effectively meet the specific needs of small to mid-size companies in the software, technology, media, healthcare, professional services and other industries. CEO Advisor's mission is to advise CEOs, presidents, business owners and principal executives with the needed expertise and focus, coupled with hands-on advice to grow your business to the next level and realize your life’s dream through a successful exit.
- Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.