Why So Many Fast-Growing Data Startups Hit a Ceiling?
Julia Bardmesser
Accelerate the Business Value of Your Data & Make it an Organizational Priority | ex-CDO advising CDOs at Data4Real | Keynote Speaker & Bestselling Author | Drove Data at Citi, Deutsche Bank, Voya and FINRA
Startups often start with laser focus.
They identify their MVP - that one customer profile and the features required to make the sale.?
If they are successful, they start to grow and scale.
As a natural part of their growth, they start adding more features to their product to cater to a wider audience.?
When they sell enterprise, they even add features that are necessary for that one customer so it works for them, almost like co-developing the product.
As they continue to grow, they reach an inflection point.
If they tip over the wrong side, they indiscriminately start adding features to the product, diluting its original focus and value proposition.?
For example,?
They can have a piece that addresses security concerns.
They have a piece that addresses privacy concerns.
They have a piece that looks at data quality.
They have a piece that looks at data lineage.
They have multiple other pieces.
Different people care about different pieces.
In my experience, from my previous jobs and now as a consultant, I've witnessed numerous startups make 2 crucial mistakes that can jeopardize their success.
#1. They go to potential customers and talk about all the features.
This leaves the customers having to figure out what's applicable to them and what's not.
And sometimes this takes more time than most people have.
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#2 They bring wrong features to wrong roles because they don't fully understand it.
For example, data privacy.
The general idea is that CDOs care a lot about data privacy and PI.
That's not true for many CDOs.
PI might be actually much more relevant to the CISO.
Yes, we all care about PI, but when it comes to a tool, it’s a nice icing on the cake along with a core focus on data quality or lineage.?
You need to understand the company and understand how responsibilities are distributed.
Where is the focus of the chief data officer?
Is it defensive focused? Or is it growth focused??
You have to pitch your product accordingly.
The shift here is to move from product to persona.?
What is that role that will care most about this feature??
Understand the positioning of the company and the roles within that company.
Look at LinkedIn, meet people at conferences and listen to podcasts.?
A stitch in time saves nine.?
Every Friday morning, I'll email you 1 actionable tip to accelerate the business potential of your data & make it an organizational priority.
Entrepreneur-8 Exits ?? Linguist ?? Wordsmith ?? TheGoldCall.com??
10 个月Oh JULIA - Did you ever hit the nail on the head. Like you, I've seen these failures repeatedly. Too many developers believe that if they build it they will come. In other words, they assume the market. An assumptive GTM strategy adds unnecessary startup costs for young software companies, especially if they embrace the traditional "10-Step Software Sales Cycle". ??
Digital-First Operating Tech & AI Executive | Fortune 100 Global businesses | CDO, CIDO, CDAi, CIO | Non-Exec Board Director
10 个月Yet, amidst above hurdles, the ultimate test lies in achieving a solid product-market fit. While technical prowess is crucial, understanding customer needs and business dynamics is equally vital. It's not just about being technically correct; it's about aligning innovation with market demand.
Vice President - Financial Services
10 个月Great insights Julia Bardmesser . The 2 points you make also apply to many established data product vendors as well as observed by various industry analyst reports - too many features that dilute the core message , increasingly complex products that are targeted at multiple buyer persona’s , which impacts messaging for the users / buyers