We developed The Machine out of our work with over 50 creative enterprises, ranging from small, boutique, values-driven companies to industry leading giants. The Machine covers the entire enterprise ecosystem in a controlled and systematic way, generating focus around critical questions of strategy. Time and again, it quickly locates areas of opportunity or concern and acts as a catalyst for enterprise evolution.
For an enterprise to be realized, all the pieces of The Machine have to come together at the same time. Intuitively, some people accomplish that kind of modeling with huge, seemingly instantaneous, leaps towards fully-formed complex concepts. When we focus on systematic analysis, though, our process slows down and our aperture is much more narrow. We can't examine all of the components simultaneously. For that reason, The Machine is not a straight line but a circle. We turn the wheel iteratively, learning with each pass, evolving, proposing, creating as we go. Ideas arise and must be tested. The testing leads to evolution and learning. The learning leads to better ideas and original knowledge.
Human-centered design thinking, lean startup, product development and management all follow similar paths;
- Start with a great idea
- Through a series of explorations evolve that into something that impacts people in a significant way
- Let the market’s validation and adoption of it pull it out of your organization and drive you to scale.
We stand in the gap between an initial idea and demonstrated market pull. The Machine acts as a catalyst in that space. Start with a concept, start with a product, start with production capacity, start with a team, start wherever you are and go.
How do you create value for a customer?
Unit of Business
How do you charge for this value? What are all the ways you could transact around it? Why is your solution the best?
How do you generate an audience? How do you convert that audience into a market? How does your Unit of Business support this conversion? What is your Total Addressable Market? What is your Serviceable Addressable Market? What is your Serviceable Obtainable Market? How does your market scale?
How do you define the space you are in? Who are all the competitors in that space? Try and see this from the point of view of your customers.
We use a Contribution Income Statement format to generate pro-forma projections.
For [Target Segment] [Brand] is the [Category] that [Points of Differentiation] because [Reasons to Believe].
Enterprise: Marketing, Finance, Operations