The four companies that we researched have all taken a business approach that is somewhat different from the business classical model. All four find success in combining products, methods, and services in a new an innovative fashion. Very often, market opportunities look obvious when looking backward in time, yet when they occur the window for success may be small and hard to see amidst a flood of competing information. Looking at what the creators of these companies have done may seem to be simple or completely obvious in retrospect, yet the creation of these companies was risky and required a great deal of foresight.
One unifying factor that can been seen across all of the companies is that they all take advantage of an opportunity that came about from to rapid change in the business environment. The pace of change creates gaps which can be filled by entrepreneurs who recognize a need and construct a product or company that can leverage that need. This opportunity is often a short lived market imperfection, in essence a "$20 bill lying on the ground" which is can be picked up, but not necessarily by anyone.
The Chinese word for opportunity is made up of two characters: one representing crisis, and the another representing preparation. It is the combinations of skills and readiness that allows innovator to take advantage of the gaps or "crises" created by a dynamic and increasingly changing environment. The four companies that we evaluated are an interesting mix, as the products and services that they create are extremely different. Additionally, the opportunities that they took advantage of came about due to different dynamics.
Uses a simple business model involving outsourcing almost every classic business function and focuses on one basic, inexpensive product at a time. The increasing availability of outsourced manufacturing, distribution, and advertising allows a simple creative stimulus to reach a huge lucrative market. Topsy Tail is an extremely efficient firm with only three full-time employees.
Taking advantage of the growing globalization of business by providing consulting services for those companies placing employees internationally. While the need may be obvious now, the company has positioned itself as the de facto market leader in providing a specialized service and has developed a network of individuals and information contacts which create a distinct advantage in the market. This knowledge can be leveraged into helping small companies do business across cultures and helping them target their products, dealing with business people around the world, or establishing operations in a foreign country.
Built a business model for computer software based on support service rather that intellectual property due to the increasing transferability of information and knowledge created by information technology. They modify and improve are "free" software made available through the Internet and bundle the software with a package of value added services and expertise.
Provides fast accurate technical and engineering information needed by companies facing intense external/internal pressure for fast turn-around. By focusing on a specific niche of information support, they are an extremely cost effective outsourcer. Teltech's strength lies in its access to human knowledge. Teltech has access to thousands of technical computer databases as well as thousands of "human" databases. These are combined in an easy-to-use system to solve complex problems.
There is not a common theme related to IT, type of service provided, or clients. While three of the companies do provide a "service", we do not believe that the success is based on service provision rather than a manufacturing model. These firms would not have been possible without the catalyst of IT. Information technology and management allows these firms to compete and change in a global environment. Even Topsy Tail, with no apparent link to technology, is heavily dependent on coordination between many suppliers, manufacturers, and retailers. The bond most common to our companies is the identification of openings that could be filled by new ideas. These organizations are flat, flexible, and poised to take advantage of new opportunities as they present themselves.
Gary Brackenridge, Rob Dressler, Hadi Habal, Alex Lombardo