David Thomson - Blueprint to a Billion
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Transcript of David Thomson - Blueprint to a Billion
David G. Thomson
Best Selling Author
CHAIRMAN
BLUEPRINT GROWTH INSTITUTE
BLUEPRINT GROWTH INVESTORS
©David G. Thomson
Blueprint Companies
Number ofCompanies
31%36%37%
96%69%64%63%
4%
18.8M $4.1 T
Growth Companies below $1B revenue
Market Value
Number of Employees
11,000
©David G. Thomson
...only 4% could
$4.4 T
Revenue
Copyright Blueprint Growth Institute
$1B
ExponentialGrowth
Copyright Blueprint Growth Institute
Normalized Time(years)
4 years 6 years 12 years
Inflectionpoint
Revenue $ Millions
Blueprint of Exponential Growth
Growth in every economic sector
2
2
2
4
10
13
14
14
18
22Consumer Discretionary
Industrials
Information Tech
Financial
Health Care
Materials
Consumer Staples
Utilities
Energy
Telecom Services
Percent of Companies
©David G. Thomson
Change since 2004
(4%)
5%
5%
$Million
Up-and-Coming Exponential Growth Companies
©David G. Thomson
The Cycle of America’s Growth Companies
1993
1000
©David G. Thomson
200920031999
Number ofCompanies
250
800 Companies
…2016
1. Energy
2. Capital Goods
3. Software and Services
4. Health Care Equipment and Services
5. Technology Hardware
6. Consumer Services
7. Diversified Financials
8. Materials
9. Real Estate
10.Commercial Services
©David G. Thomson
These Industries Lead the Next Growth Cycle
Copyright Blueprint Growth Institute
• Create and Sustain a Breakthrough Value Proposition
• Exploit a High Growth Market Segment
• Marquee Customers™ Shape the Revenue Powerhouse
• Leverage Big Brother Alliances
• Become the Masters of Exponential Returns
• Management: Inside – Outside Leadership
• Board: Comprised of Essentials Experts
©David G. Thomson
Name of Conference and date
Name of Conference and date
Copyright Blueprint Growth Institute
benefits =product + location +experience
©David G. Thomson
Create and Sustain a Breakthrough Value Proposition
Copyright Blueprint Growth Institute
•Most Blueprint Companies grow in mature, not emerging markets•Utilize best management practices and technologies to stay close to the customer•Exponential growth requiresa portfolio of products/services •Partner with suppliers•Import ideas from other industries
Lessons from top CEOs
Copyright Blueprint Growth Institute
Marquee Customers Shape the Revenue Powerhouse
TM
product consumer x
value proposition shaper x
lighthouse reference =
Marquee Customers
©David G. Thomson
Copyright Blueprint Growth Institute
Leverage Big Brother Alliances
eBay AOL
little brother BIG BROTHER
Microsoft IBM
©David G. Thomson
Copyright Blueprint Growth Institute
Big Brothers
• Innovation for emerging markets• Fill critical gaps in portfolio• Outsource specialized functions• License brands
“ …we all realize for innovation and certain pieces of the portfolio we have to turn to someone else”
Little Brothers
• Access and scale into new markets• Credibility with customers• Access to partner’s innovation and product line• Market intelligence–Customer demand–Bottlenecks in current offerings–Evolution and emergence of new webs or business ecosystems
Create win-win relationship
Copyright Blueprint Growth Institute
Become the Masters of Exponential Returns
Earnings (EBIT)
Revenue
Hardware Business
Market Value
©David G. Thomson
$1B $4B
Fastenal A Different
Copyright Blueprint Growth Institute
Jon Shirley and Bill Gates Jim Wright and Joe Scarlett
MICROSOFT TRACTOR SUPPLY
©David G. Thomson
Management: Inside – Outside Leadership
Source: Microsoft Archives
Copyright Blueprint Growth Institute
Blueprint Leadership =Focus on relationships and products XDrive to innovate and explore X
Ability to manage the 7 Essentials
©David G. Thomson
Management: Inside – Outside Leadership
Copyright Blueprint Growth Institute
Board: Comprised of Essentials Experts
Community Member
Other
(Marquee) Customer Management
Investors
(Big Brother) Alliance
(Blueprint) CEO
©David G. Thomson
Copyright Blueprint Growth Institute
over 90% of Blueprint Companies leveraged
5 or more of the 7 Essentials
©David G. Thomson
Copyright Blueprint Growth Institute
Your Essentials for Turbulent Times
1.Deliver “Way Better Value”
• Redefine Customer Benefits
• Focus on the Value Zone
• Innovate and Test
• Fail Fast, Often and Cheap!
• “Quick and Dirty” to accelerate Customer
Feedback
Copyright Blueprint Growth Institute
Your Essentials for Turbulent Times
2.Exploit New Market Segments
3.Leverage Marquee Customers
4.Utilize Big Brother Alliances
• Move to Adjacent Market Segments or Geographies
• Form a Customer Advisory Board
• Encourage Customers to Sell for you!
• Fill a critical portfolio gap for a Big Brother Alliance Partner
• Leverage Partnerships to expand globally
Copyright Blueprint Growth Institute
Your Essentials for Turbulent Times
5.Masters of Exponential Returns
6. Inside - Outside Leadership
7.Board of Essentials Experts
• Streamline core business -expenses and processes
• Strive for positive cash flow
• Formalize and focus Inside-Outside Leadership
• Build a board of long term investors
• Leverage board to develop Marquee Customer and Big Brother
Alliance relationships
©David G. Thomson
#1 Create and Sustain a Breakthrough Value Proposition 3.6
#2 Exploit a High-Growth Market 3.7
#3 Marquee Customers Shape the Revenue Powerhouse 3.4
#4 Leverage Big Brother Alliances 2.7
#5 Become the Masters of Exponential Returns 3.3
#6 The Management Team: Inside-Outside Leadership 3.8
#7 The Board of Directors: Comprised of Essentials Experts 1.4
Invest in Infrastructure 3.4
Average 3.2
Our Essentials Scorecard
Next Steps to Grow Your Business
Visit www.blueprintgrowth.com
• Take the 7 Essentials Scorecard• Link to BusinessWeek.com 7 Essentials Series• Link to David Thomson