Strategy - Building environmental context

The best way to predict the future is to create it
— Peter Drucker

Strategy is an often used word that carries many overlooked connotations.  Everyone says they want to 'do more strategy', but then falter when they roll up their sleeves and look at what is really needed to 'do strategy'.  

Let's take a look back at a strategy and what it took to translate that vision into the reality of a product.

Apple’s strategy is really simple. What we want to do is we want to put an incredibly great computer in a book that you can carry around with you and learn how to use in 20 minutes. That’s what we want to do and we want to do it this decade. And we really want to do it with a radio link in it so you don’t have to hook up to anything and you’re in communication with all of these larger databases and other computers.
— Steve Jobs at the International Design Conference in Aspen in 1983

It certainly sounds like Steve was describing the modern iPad, and this was in 1983, the year before the Macintosh was launched, and at least 20 years before the era of mobile computing.  Turning this vision into a product roadmap was no simple task.  Just identifying the capabilities needed to enable this vision is daunting:

 
  • Small form-factor - industrial design and materials

  • High performance - computing power that fits within the desired form factor

  • Radio/mobile networking to allow connectivity beyond the device

  • Standards for interoperating with remote databases and computers

  • Sufficient battery life to make the device useful

  • Software designed to such an intuitive level that you could learn to use the device within 20 minutes.

Remember, this quote was at a time with the best selling computer was the Apple II and the IBM PC was growing in popularity.  How would you even go about delivering on a strategy of mobile computing before the term even existed?

Dependencies

Each of the capabilities mentioned had a significant dependency chain before it could be realized.  It is clear, looking back, that Apple was already moving in the direction needed for some of these areas. Other areas were moving with the broader technology and market cycles of the time.  

  • The Macintosh came out in 1984 and moved the standard on software design and user interaction.

  • Over the next decade, computer performance increased and internet connectivity protocols were embraced to enable remote interaction of data and services.

  • 2G networking gave way to 3G supporting higher bandwidths (relatively speaking) in the 1990's and Wi-Fi standards were adopted in 1997.

  • Moore's Law marched on; performance increased while power demands per processor-cycle dropped.

  • Battery technology improved

Whether each of these dependent technologies was being actively managed or not — only the Apple team knows— it is clear that as the capabilities came into being, Steve Jobs had a vision on how to bundle these technologies to create the type of device he touted in 1983.  

The iPhone was launched in 2007, and as they say, "the rest is history".

CONTEXT IS CRITICAL

How can your product strategy gain such context now, rather than in the future?  Each of the areas needed for this mobile strategy were articulated or implied in Steve’s statement.  By taking each area or capability, it is easy to list the brief history (where it's been), the current state (where it's at), the reasonable future state (where it's going) and then most importantly why it matters (...So What?).

For example (the 1983 view):

Standards for interoperating with remote databases and computers

Where It's been:

  1. Computers were stand-alone machines with discrete computing programs running on their own, local data.
  2. Relational Database Management Systems (RDBMS) do not have a standard query or access models.
  3. Relational Software, Inc. introduced the first commercially available implementation of SQL (Structured Query Language) for the VAX computer (Oracle V2) in 1979.
  4. TCP/IP was adopted as the stanadard for military computer netwroking in 1982.

Where it's at (1983):

  1. SQL on IBM platforms (System/38, SQL/DS, and DB2) is commercially availabale.
  2. ARPANET migrated to TCP/IP in 1983 (Jan 1).
  3. Multiple Remote Procedure Call (RPC) models and implementation are in existence.
  4. X.25 packet-switched networking provides large global coverage.
  5. Frame Relay networks are begining to be deployed to connect local area networks (LANs) to wide area networks (WANs)

Where it's going:

  1. Remote data access will contine to evolve, but standard data access will be acieved through some standardized implementation of SQL.
  2. TCP/IP will become the standard for computer networking; higher level protocols such as Frame Relay and X.25 will be implemented on top of TCP/IP
  3. Remote Procedure Call standards will be established to improve interoperablity.

So What?

  1. SQL standards must be implemented in data access models of products.
  2. Company engineers need to support definition and implementation of Networking standards built on-top of TCP/IP.
  3. Competing approaches for remote procedure calls and data transport across TCP/IP based networks must be monitored, or company must be involved in the definition of such standards.

This structure of looking at the context of the key attributes of the market and the product allow clear action to be taken (as demonstrated by the "So What" section of the breakdown.  Performing this level of analysis for your product and market takes time and effort.  This is the hard-work of establishing a strategic foundation.

The good news is that once this assessment of the market and product needs is completed for the first time, it is straight-forward to update it during your strategic planning cycle.

Start with 'Why?'

The "So What?" of the context clearly articulates why this area matters for the overall product roadmap, and what actions should be considered.   While I doubt Apple was worried too much about interoperating with remote databases in 1983, it is very evident that it was a focus for NeXT computer over the next decade as they created their valuable Enterprise Objects Framework (EOF).   Coupling EOF with the HTTP standards (built on top of TC/IP) gave rise to NeXT's WebObjects, the first object-oriented Web application server in 1996.

Of course, for any non-trivial strategy, there will be too many "So what's" so additional analysis will be required.  Starting with the question of "Why does this outcome or action matter?" will help prioritize the strategic focus for the company.   Parsing through the "So What's" from your mapping will lead to deeper analysis as you work to find proof-points for trends and opportunities for your product.  Once again, this is not glamorous work.  Your shorter list of hypothesis should be formally framed and then tested (if possible).  In today's information age, not seeking out some level of data to confirm or refute strategic hypotheses is only being lazy.  

As data is compiled and reviewed, it should reflect back to the "why".  Why does this data matter?  Why does this support the market trend we are anticipating?  Why does it identify a risk for our product?  Why? Why? Why?

Now, Start Doing, But don't forget 'Why'

At a certain point in your analysis, you need to stop asking questions and start deciding what to do about it.  Remember the context is putting the topography on your business map.  The prioritization and data collection of "why" is picking a path through the terrain.  Assessing your competitions’ capabilities and intentions, as well as your own capabilities informs you what obstacles you will need to overcome as you journey down this path. Now it is time to start taking steps toward your goal.  Too often, this is where companies set all of their prior thinking aside, make a rigid plan, and start executing.  But transitioning to executing can be perilous.  Whether you think of project execution as an OODA loop or a Shewhart cycle, it is key that you reflect back to the "Why" you are doing something on a regular basis.  

 

2CConsulingLLC can help you build context around your product and marketplace, as well as assist in turning that context into specific, actionable plans to realize your strategic goals.  Contact us today.