Geoffrey Moore: Innovation and market separation key for IT
By siliconindia staff writer   |   Thursday, 21 April 2005, 19:30 IST
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PHOENIX: Innovation and product segregation within a vector was discussed at length here at the TiE Silicon Valley event yesterday. Geoffrey Moore, venture partner and author spoke at the event on the topic “Complex Systems or Volume Operations: What kind of Software Company are you trying to build?” Moore in his usual style captured the audience’s attention with his subtle sense of humor that delivers deep insight. As the key speaker for the night, Moore led the group with his Market Development Model and fifteen types of innovation. The packed house of over hundred professionals witnessed some deep insight yet witty remarks by Moore. Driving the point that innovation is the key market, Moore emphasized on investing in innovation even at the product maturation stage. He elucidated fifteen types of innovation an organization (software company to be specific) could build at every stage of the company’s growth. While acknowledging that investment innovation is not cost effective, he pointed out that its better to spend on innovation and get market separation than be lost out after maturation. Moore suggested market separation couldn’t be achieved without innovation. While emphasizing on innovation and segregation Moore was quick to point out the importance of cost efficiency while driving innovation. While Moore gave many examples of organizations such as iPod by Apple, have carved a niche and achieved market segregation, he suggested extending the line of products could also help achieve market segregation like Symantec. To achieve segregation and yet retain the basic business model Moore suggests focus on a single vector, market performance, and value separation. Bottom line was to focus on strategy, structure, system and staff. The evening was hosted by Prashant Shah, TiE charter member and was followed up with questions and answers on the applicability and viability of the model in various sectors and across borders. The Indus Entrepreneurs (TiE), Silicon Valley chapter, sponsored the event.

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