Business Strategy for Software Executives
March 27, 2006
Blueprint to a Billion
A study of billion-dollar companies identifies seven essentials for turning a breakthrough innovation into exponential growth.
By David G. Thomson
Microsoft, Oracle, BEA, Google, Symantec along with many examples in other industries such as Staples, Genentech, Starbucks and Nike are members of an elite group of companies that managed to turn breakthrough innovations into billion-dollar businesses. What did these and other high-growth companies do to achieve such a goal? What blueprint do they follow to produce such results?
It took three years of in-depth research to answer these questions. The result is the first quantitative assessment of the success pattern across a distinct group of 387 “Blueprint Companies” – the 5% that have IPO-ed since 1980 and grown to $1 billion revenue. They represent America’s highest growth companies: they achieved exponential revenue growth and returns.
What does it take to become a billion-dollar company? I realized the answer would not come from qualitative approaches focusing on innovation or organization lifecycles but from a quantitative and fact-based analysis of America’s high growth companies. I started my journey in the technology sector including the software industry but quickly found this common pattern across all industries. The analysis had to hinge on what is often overlooked: revenue performance. Every company can innovate and invest, even over-invest in order to grow. However, not every company can create stellar revenue growth.
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New Podcast on Offshoring Best Practices
Sand Hill Group’s M.R. Rangaswami will discuss highlights from the new study on software vendor offshoring trends, and will be joined by product development experts to discuss the latest strategies, challenges and best practices. Click here to listen.
For a full replay of the offshoring Webinar including perspective from offshorers and vendors, visit http://www.persistentsys.com.
Every Friday, SandHill.com editors will bring together the most important news of the week. The inaugural SandHill.com Software News Summary looks back at a tough week for Microsoft, Ellisonís talk of subscriptions and more open source developments.
Spring rain dampened the end of a gloomy week in Redmond. By Friday, Microsoft had delayed not only the release of Vista, but also Office. Both are now slated for debut in 2007. Redmond also announced a shakeup of its Platform and Services Division, placing Steve Sinofsky in charge of Windows. Read this Software News Summary …
Last week, SandHill.com readers gave their opinions about whether Sarbanes-Oxley regulations go too far.
Give us your opinion and see the results >>
The list of twenty fast-growth software companies exhibiting as part of the Software Showcase at Software 2006 might surprise you. Find out more about these innovative vendors in this weekís SandHill.com Radar profile.
IEEE head questions expanding H-1B visa program.
Read the most important enterprise software industry news of the week >>
Proofpoint receives $20 million.
Monitor the latest software venture capital deals >>
Cadre Technologies buys LDS.
Size up last week's software M&A deals >>
Active Reasoning names William Winters as CEO.
See who's made it to the top in our list of recent software executive appointments >>
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“Microsoft is not about greed. It's about innovation and fairness." – Bill Gates
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