A Practical Guide To Angel Investing (First Edition)

3.3.4 Strategic Lenses Every MBA program includes at least one course on strategy. A litany of lenses arises from the strategic management field that both entrepreneur and investor may use to gain insights. Tools include 3BL, SWOT, PESTEL, Strategic Group Maps, Value Chain, Porter’s Five Forces, Porter’s Generic Strategies and Roger’s Cascading Choices framework. To this list of analysis tools we may add strategic implementation tools such as the 7-S Model: Strategy, Structure, Systems, Style/Culture, Staff, Skills (core competencies), and Shared Values (vision/mission). Aside from these more-academic approaches, Angels often use popular business books to provide insightful lenses. Crossing the Chasm (Moore) and Inside the Tornado (Moore) are part of the common vernacular, and Blue Ocean Strategy (Kim) gives us tools like the Strategy Canvas, Four Actions Framework, Pioneer Migrator Settler Map, and Buyer Utility Map.

Technology Adoption Life Cycle

Paradigm Shock

Application Breakthrough

Niche Market Adoption

Mass Market Adoption

After Market Development

The Chasm

Main Street

Early Market

Tornado

Prototypes

The Bowling Alley

End of Life

Pure Science

2% 14%

34%

34%

16%

Innovators (Technology Enthusiasts)

Early Adopters (Visionaries)

Early Majority (Pragmatists)

Late Majority (Conservatives)

Laggards (Skeptics)

100%

0%

Time

Source: Geoffrey Moore , Inside the Tornado

The Bowling Alley

Critical Success Factors

Niche-based adoption through the bowling pin model

Segment 3 Application 1

Segment 2 Application 2

Segment 1 Application 3

Product Leadership

Bowling Alley

Tornado

Segment 1 Application 2

Segment 2 Application 1

Product Development New applications leveraging existing customer relations

Market Development New segments leveraging existing applications

Customer Intimacy

Operational Excellence

Main Street

Segment 1 Application 1

Market Entry

Source: Geoffrey Moore , Inside the Tornado

54 A Practical Guide to Angel Investing: How to Achieve Good Returns

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