Mapping strategic thought and action in developing disruptive software technology: advanced case study research on how the firm crafts shared vision

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1 Hugh M. Pattinson (Australia), Arch G. Woodsid (USA) Innovativ Markting, Volum 3, Issu 4, 2007 Mapping stratgic thought and action in dvloping disruptiv softwar tchnology: advancd cas study rsarch on how th firm crafts shard vision Abstract This cas study uss two storytlling mthods for analysis an advancd hrmnutic framwork and an xtndd form of dcision systms analysis (DSA) incorporating cognitiv mapping to xplor th stratgic thought in building a softwar hous around a philosophy of bst practic application dvlopmnt. Th papr xplors dcisionmaking for turning an ambitious vision (automation of ntrprisbasd sals and markting activitis) into a focusd application (pricing configuration softwar), and thn into a larg softwar hous (Trilogy) offring ntrpris commrc suits. Trilogy s managmnt tam s dcisionmaking was havily influncd by a strong prcption that th organization ndd to tak risks to achiv critical mass in anticipation of a convrgnc of backoffic and frontoffic applications into on markt. Th advancd cas study also addrsss Trilogy s transition of its applications into Intrnt nvironmnts, plus th transformation of th organization from a productorintation to a strictly industrybasd businss and application dvlopmnt prspctiv. Trilogy has not compromisd its strict application dvlopmnt philosophis, but has incorporatd its fast cycl tim (FCT) mthods into its industryfocusd businss divisions and now actually offrs th mthod as a st of srvics. Kywords: mapping, stratgic, thought, softwar, dvlopmnt, cas study, hrmnutic, rsarch, dvlopmnt, commrcialization, innovation. Introduction 14 Th articl prsnts and applis a hrmnutical framwork (Arnold & Fischr, 1994; Thompson, Pollio, & Locandr, 1994; Thompson, 1997) in rsarch on B2B dcision making. Th cas study rsarch in th prsnt rport follows Woodsid, Pattinson, and Millr s (2005) hrmnutic tmplat and Huff s (1990; also s Huff & Huff, 2000) mapping stratgic thought tmplats. Th articl dscribs concptual and rsarch tools for achiving dp snsmaking of what happnd and why it happnd including how participants intrprt outcoms of what happnd and th dynamics of mic (i.., transformations in informants own intrprtations of what happnd and why it happnd) and tic (i.., transformations in rsarchrs viws about what happnd and why) snsmaking. This rport includs doing frsh rrsarch that is going back to original informants to larn thir furthr rflctions on what happnd and why vnts happnd, along with how ths informants intrprt arlir rsarchrs rports that followd from arlir cas rsarch studis on th informants thinking and bhavior (cf. Langly, Mintzbrg, Pitchr, Posada, & SaintMacary, 1995). Dynamic snsmaking rlats to and advancs from hrmnutical rsarch. This articl dfins hrmnutic rsarch as th inclusion of multipl rounds of informantrsarchr intrprtations of th dynamics of a spcific situation framingproblmdcisionactionoutcom by rflctiv analysis of Hugh M. Pattinson, Arch G. Woodsid, autonomous txt and multipl intrviws of th sam and diffrnt prsons in diffrnt tim priods. Tabl 1 outlins th main faturs of th Advancd Hrmnutic Analysis Framwork. Tabl 2 prsnts th Framwork in trms of multipl ETICEMIC intrprtations. Tabl 1. Advancd hrmnutic analysis framwork 1. Hrmnutic analysis writtn accounts, thn rvisitation, rviw and rintrprtation 2. Writing and rvisitation using snsmaking packag : a) dcision systm analysis (DSA); b) DSA modls; c) vnt chronology maps; d) cognitiv maps. 3. EMICETIC itrations Tabl 2. Advancd hrmnutic analysis framwork ETIC/ETIC itrations A systm for snsmaking itrations 1. First lvl: EMIC1 (intrnal viw of dcision makr). 2. Scond lvl: ETIC1 (rsarchr who wrot first story). 3. Third lvl: ETIC2 (rsarchr who dvlopd DSA packag). 4. Fourth lvl: EMIC2 (viw of dcision makr aftr rviwing DSA packag). 5. Fifth lvl: ETIC3 (rvision of DSA packag by rsarchr who dvlopd DSA packag). Harvard Businss School (HBS) cass, dscribing th historis of ntrpriss along with spcific problmsactionsoutcoms for ths firms, ar xampls 107

2 Innovativ Markting, Volum 3, Issu 4, 2007 of autonomous txt that may b incorporatd into a hrmnutic framwork. Th prsnt articl includs rintrviwing informants participating in intrviws for th original HBS cas rport and rporting ths informants intrprtations of th original rsarchrs cas rport; th prsnt articl includs collcting additional data rlating to th dcision procss and outcoms xamind in th original cas as wll as rlvant data from subsqunt tim priods. Thus, th prsnt rport includs informants intrprtations of rsarchrs intrprtation of prior informants dcisions and actions. Prior rports of multipl rounds of intrviwing informants that includ informants intrprting rsarchrs findings appar in B2B markting litratur (.g., Howard and Morgnroth, 1968; Howard, Hulbrt & Farly, 1975; Woodsid and Samul, 1981). Th inclusion of diffrnt sts of rsarchrs, th systmatic collction of additional data not includd in th original rport, and th rtrospctiv focus, rprsnt a uniqu contribution by th prsnt articl. 1. Background on th firm Trilogy Inc., of Austin Txas provids ntrpris softwar focusd on rducing th costs associatd with frontnd or slling chain activitis, including sals and markting. Trilogy mrgd in 1991 from a group of Stanford Univrsity studnts pursuing th dvlopmnt of softwar to configur and pric computr hardwar parts. Trilogy was slctd for rsarch on mapping stratgic thought bcaus th firm provids rich dtail on softwar application dvlopmnt, both in th initial HBS cas study accounts, and from th rspondnts within th company in followup prsonal intrviws conductd for th prsnt rport. Strictly spaking, Trilogy s softwar application is not classifid by Christnsn and Raynor (2003) as a disruptiv tchnology. Howvr, Trilogy was a pionr in dvloping applications to spcifically rduc sals and markting costs that volvd into B2B E commrc systms that may in 2007, arguably b now classifid as disruptiv tchnology or at th vry last powrful sustaining tchnology. Th cas study for th projct tracs Trilogy from its incption from an ida to addrss a spcific markting problm through to compting with larg ERP organizations in th lat 1990s and is xtndd to covr a nw phas of industryfocusd application dvlopmnt and dlivry in Th initial dcision systms analysis (DSA, s Capon & Hulbrt, 1975) modl, vnts chronology map, and th thr cognitiv maps for this cas wr dvlopd from xtracts drawn from Austin s (1998) HBS study Trilogy (A). Austin, with Mandl, wrot an additional short not for th Cas study, Trilogy (B) addrssing th spinoff of svral Intrntbasd on Dot.com businsss from Trilogy in (Mandl & Austin, 2000). Th main purpos of Austin s (1998) and Mandl & Austin s (2000) cas study was to xplor risktaking in trms of crating and rapidly growing a nw businss and instilling such a cultur in th businss, and particularly in softwar dvlopmnt. Austin outlind th cration and rapid dvlopmnt of Trilogy from 1991 to 1998, whil Mandl & Austin not a list of spinoff businsss out of Trilogy in Th cas is rlvant to this projct bcaus Austin provids a substantial account of application dvlopmnt and its cntral rol in Trilogy s corporat cultur. Trilogy s arly applications wr dvlopd mainly in C but wr transitiond across to an Intrntbasd platform using Java and XML from Austin s (1998) account of th application is sufficint for th dvlopmnt of a rprsntativ DSA modl and to undrtak furthr analysis on application dvlopmnt and dlivry. Th DSA modl and maps for this cas wr updatd, plus xtnsion qustions on dominant logic, shard vision, ky lvrag points and stratgic markting issus wr addrssd through intrviws. Th intrviw participants wr on of th ky playrs in th HBS cas study, who is still with Trilogy, and th currnt Vic Prsidnt of Dvlopmnt at Trilogy (s Frank, 2002a, 2002b; Hyams, 2002). 2. Trilogy cas study hrmnutic analysis Fiv lvls of hrmnutic analysis wr dvlopd to addrss dcisionmaking issus, vnts, and linkags in th Trilogy cas study. Figur 1 (s Appndix A) provids a complt pictur of analysis lvls 1 through 5. Th original cas study by Austin (1998) srvs as th tic 1 rport of th cas study although thr ar lmnts of mic 1 (i.., rports by informants in th original cas study rport) rporting in th form of dirct quots from dcisionmakrs in th account. Quots and prspctivs from dcisionmakrs wr ncapsulatd th Lvl 1 mic analysis in Tabl 1. Ky cas study issus as articulatd by Austin (1998) wr addd to th mic 1 data in th Lvl II analysis (s Tabl 2) and prsntd as tic 1 (rports by rsarchrs in th original cas study rport) data. Ths issus includ th following points: high risktaking to rapidly dvlop a softwar hous capabl of taking vry larg rp comptitors; 108

3 vry strong focus on application dvlopmnt xcllnc; trilogy ratd itslf as suprior to microsoft for application dvlopmnt; its application dvlopmnt approach focusd on rapid dvlopmnt in small tams of suprprogrammrs spcially dvlopd by trilogy to maximiz quality and spd of application dvlopmnt; trilogy programmrs wr rwardd highly and ncouragd to tak risks with dfind boundaris. Th Lvl II analysis also xplord mntal modls and dcisions/actions associatd with ths issus. Th third lvl of analysis is an tic 2 (nw rporting by nw round of rsarchrs) rprsntation basd on th currnt rsarchr s summarization of vnt milstons and th mic 1 snsmaking viws idntifid in th data in th Austin s (1998) cas study. Austin s (1998) account focuss on th dcisionmaking associatd with idntifying th automation and rduction of sals and markting costs as a major unmt ntrpris nd and dvloping a comprhnsiv commrc application suit ovr tim to addrss this nd. Th account also highlights application dvlopmnt xcllnc of a cor valu in Trilogy s corporat cultur. Th account was sufficint for th dvlopmnt of an initial (tic 2) rprsntativ DSA modl and to undrtak furthr analysis on application dvlopmnt and dlivry. Th initial DSA, vnt chronology, and cognitiv maps rportd blow offr dtails supporting th third lvl analysis. Etic 2 prspctivs ar mainly basd on th initial DSA modl, initial vnts chronology map, and initial cognitiv maps. Ky tic 2 issus includ th following points: a company with an unusually strong mphasis on application dvlopmnt; focus on small tam application dvlopmnt; not initially focusd on intrntbasd dvlopmnt but shiftd quickly toward commrc in th lat 1990s; focusd on anticipatory comptitiv actions. Th tic 2 DSA modl and maps for th cas wr updatd following xtnsiv qustioning of th accuracy and compltnss of th original Austin s (1994) cas th collctd data rprsnt mic 2 matrial and wr addd during th fourth lvl of analysis. Thus, additional (mic 2) data wr collctd for tic 3 dscription and intrprtation of th dcisionmaking procss as rportd in th original cas study, and for th priod of four yars byond that rportd by Austin (1998) and thr yars byond Mandl & Austin (2000). Emic 2 data consist of rsponss from intrviws with th principal dvlopr of Trilogy s Innovativ Markting, Volum 3, Issu 4, 2007 SalsBuildr application, and th currnt (as arly 2003) VP of Dvlopmnt at Trilogy (s Frank 2002a & 2002b; Hyams, 2002a & 2002b). Th fifth and final lvl of th analysis (s full analysis in Tabl 3) with th addition of tic 3 data summarizing mic 2 intrprtations of mntal modls and vnts covrd in th original cas study as wll as th work compltd for th tic 2 intrprtation including th DSA, vnt chronology, and cognitiv maps dvlopd for th tic 2 intrprtation. Th rvisd DSA, vnt chronology, and cognitiv maps prsntd in subsqunt sctions blow follow from th mic 2 intrprtations, and ths maps ar part of th tic 3 intrprtation. Th nw data from th mic 2 and tic 3 rounds of intrprtation validatd tic 2 data and highlightd nw insights rlatd to th following topics: transformation to vrtical industryfocusd divisions; trilogy application dvlopmnt philosophis maintaind in rstructurd divisions; trilogy actually turnd its application dvlop mnt philosophy into a product/mthodology; can Trilogy s philosophy of application dvlopmnt xcllnc b succssfully applid to dvloping and managing industryspcific applications?; trilogy continus to battl with th rp vndors somtims in comptition, somtims in partnrship; nw focus by trilogy on roi from softwar productivity ncourags masurmnt of th ffctivnss of using frontnd applications. Ovrall, th fivlvl hrmnutic framwork for th Trilogy cas study providd a strong and comprhnsiv framwork for capturing and xtnding dynamic snsmaking for Trilogy, for both th dvlopmnt of a pricing configurator application into a comprhnsiv frontnd commrc application suit, in tandm with th rapid dvlopmnt of a small businss into a robust mdiumsizd ntrpris. 3. DSA modl Th first DSA modl was dvlopd from a rviw of th whol Austin (1998) cas study. Th supporting not by Mandl & Austin (2000) was droppd from th analysis as it only addrssd a list of nw businss vnturs and not application dvlopmnt and dlivry. Th sction in Austin s (1998) cas study undr Dvloping th Product was th main sourc for dvloping a DSA modl (s Austin, 1998, p. 78). Th papr discusss dvlopmnt philosophis, issus and approachs that could b rgardd as distinctiv to Trilogy. Figur 1 prsnts th original DSA modl and is rprsntativ of Trilogy application dvlopmnt during

4 Innovativ Markting, Volum 3, Issu 4, Start 2. Allocat product ida to projct tam 4. Dvlopmnt of Trilogy softwar product: Nightly and wkly product builds. Emphasis on incrmntal dvlopmnt. 5. Intgration of product build into main Trilogy Suit (main build): wkly. 3. Small projct tams: 12 suprcodrs = programmrs. Complt ownrship of product from initial rquirmnt to product support. Suprcodrs allowd absolut frdom to add in faturs but also to maintain quality. 6. Longr than on wk build cycl? 8. Structurd build rlas cycls: Dcisions on nw faturs and rlass agrd by multipl product tams. Rflcting product intrdpndncis. Dcisions on a faturbyfatur basis. 7. Branch out to dvlop nw product 10. Customrs Usually companis (larg or small) rqusting configuration applications. 9. Rlas of a full Trilogy Product Suit 11. Rapid dvlopmnt of prototyp to idntify customr rquirmnts: Variation of basic configuration softwar for ach customr. 12. Customizd Trilogy Product Suit Sourc: Austin (1998). Fig. 1. Summary DSA Modl for trilogy application dvlopmnt (1998) Th application dvlopmnt commncd with th allocation of a Product Ida to a projct tam (box 2). A distinctiv fatur of Trilogy s application dvlopmnt cycl is th concpt of vry small projcts composd of 12 Suprcodrs (box 3). Trilogy s managmnt blivd that on to two highly xprincd and motivatd programmrs could do th work of 1020 standard programmrs. Ths Suprcodrs wr givn complt ownrship of a projct right through th whol application dvlopmnt cycl. Trilogy also blivd in high lvls of rmunration, bonuss and compnsation, and ongoing training for th Suprcodrs, who wr also accordd suprstar status within th organization. Componnts of th application wr built or rlasd as nw dvlopmnt vrsions ithr on a nightly or wkly frquncy. Updats to th dvlopmnt vrsion wr usually incrmntal (box 4). Componnts wr intgratd into th application wkly (box 5). A significant dcisionpoint ach wk for th projct tam was whthr a componnt or application would b likly to tak longr than a wkly build cycl (box 6). If NO thn th projct tam(s) can go onto nw product dvlopmnt (box 7). If YES thn th projct tams dvlopd structurd build rlas cycls incorporating dcisions rlating to nw faturs and nw rlass (box 8). A st of collctiv dcisions was mad among a numbr of projct tams working on application componnts or full applications, undrstanding that thr wr significant intrdpndncis btwn thir projcts. It is likly that this collctiv dcisionmaking approach was actually incorporatd into th application dvlopmnt cycl right from th commncmnt of th cycl. A full Trilogy Product Suit was rlasd (box 9). Howvr, that was not th nd of th dvlopmnt cycl. Customrs oftn rquird major customization of Trilogy s applications into thir own configuration systms (box 10). A significant numbr of ths customr rqusts addd up to an xtnsion of th application dvlopmnt cycl, whrby Trilogy rapidly prototypd a variation of th basic configuration softwar tailord for a customr rqust (box 11). Th customizd application was in ffct a nw vrsion of th application and could b rgardd as a compltion point in th application dvlopmnt cycl (box 12). Trilogy s application dvlopmnt cycl was supportd 110

5 Innovativ Markting, Volum 3, Issu 4, 2007 by a rapid dcisionmaking systm with a mix of vry small groups (on to two codrs) working in concrt, with high collctiv mpowrmnt, with a vision of an intgratd application suit. Thr was provision for rapid customization byond th basic application, which is worthwhil bing viwd as part of th ovrall application dvlopmnt cycl. Intrviws with Frank (2002) and Hyams (2002) confirmd th DSA modl for Trilogy without any modifications for Trilogy s application dvlopmnt cycls up to Nw DSA modl ( ) Th intrviws for th Trilogy cas rqustd that a nw DSA modl b cratd for Trilogy s application dvlopmnt cycls from Th nw DSA modl rflcts Trilogy s commitmnt to vrtical (industry) focusd businss managmnt and product dvlopmnt. Th intrviws providd substantial insights in th dvlopmnt of th nw DSA modl. Dtaild product dvlopmnt cycl information was drawn from company documnts on Trilogy Product Managmnt Mthodology, and is usd but not dirctly rfrncd, with prmission from th intrviws at Trilogy. Ths inputs wr compild into a vigntt which is prsntd in Tabl 3with th nw summary DSA modl prsntd in Figur 2 (s Appndix A). Tabl 3. Trilogy s industryfocusd application dvlopmnt Trilogy gos vrtical industryfocusd ntrpris solutions In 2000, Trilogy rstructurd from a horizontally focusd application vndortoward using a Softwar Dvlopmnt Mthodology dsignd to quickly concptualiz, crat and dlivr highly vrticalizd applications. Prviously, from , Trilogy s application dvlopmnt stratgis wr basd on Trilogy Product Roadmaps. Th Excutiv Tam stablishd an Oprations Group with fiv vrtical divisions focusd on ky ntrpris customrs and products: Automotiv. Computr. Tlcommunications. Financial srvics. Nw businss. Trilogy has a twodimnsional matrix of managmnt and dlivry rsourcs, locatd in Cor companywid Groups and within ach Division with dp industry xprinc. Ths rsourcs covr: Gnral managrs plus functional vicprsidnts. Consulting. Human rsourcs. Financ. Solutions markting and businss dvlopmnt. Product managmnt and prsals rsourcs. Trilogy s Fast Cycl Tim (FCT) Softwar Dvlopmnt Mthodology is now basd on dlivring vrtical applications within industry Maps st up for ach division for a twoyar timfram. Thr ar four phass in this mthodology: 1. Product idation During this phas, Trilogy s division managrs with thir Solutions Markting and Product Markting tams gnrat idas for products, crat a vision for th product and th Industry, apply an invstmnt justification procss to th vision and product, and dvlop an Industry Roadmap supportd by a Businss Cas. All product concptualization and dvlopmnt ar drivn with a vrtical industry focus. 2. Product planning During this phas, th capabilitis of th product will b idntifid and squncd for dlivry. Product faturs will thn b xpandd into actual dvlopmnt schduls including actual rlas faturs and initial stimats rlas dats. During this phas, Product Managmnt taks ovr with Dvlopmnt Tams in driving product planning. 3. Product dvlopmnt This phas consists of gathring th dtaild rquirmnts for th product, and commncing dvlopmnt using Trilogy s Fast Cycl Tim mthodology. Although Product Managmnt and Dvlopmnt Tams ar driving th product dvlopmnt procss, chartrd customrs associatd with spcific Trilogy divisions may b involvd in tsting arly vrsions of th product. An xtndd vrsion of stp in Trilogy s Softwar Dvlopmnt Cycl is outlind blow: 1. Idntify and dfin product concpts (product idation): a) industry analysis; b) analysis against currnt Trilogy industry/product maps; c) drivn by solutions markting/product managmnt; som input from division gnral managmnt. 2. Evaluat product concpts (product idation): a) product vision and product concpt; b) validat product concpts against industry maps; c) dvlop businss cas; d) drivn by solutions markting/product managmnt; division gnral managmnt. 111

6 Innovativ Markting, Volum 3, Issu 4, 2007 Tabl 3 (continud). Trilogy s industryfocusd application dvlopmnt 3. Squnc capabilitis and dfin product faturs (product planning): a) dfin and squnc product capabilitis; b) product faturs against industry maps; c) drivn by product managmnt with input from dvlopmnt tams. 4. Crat rlas dfinition (product planning): a) dtrmin rlas faturs and scop; b) dtrmin rsourcs and tim stimats; c) dfin rlas rviw cycls; d) agrd and finalizd btwn product managmnt; dvlopmnt tams; division gnral managr; som input from nominatd Chartr customrs. 5. Dfin rlas rquirmnts (product dvlopmnt): a) idntify potntial product rquirmnts; b) prioritiz basd on businss valu & dcid on rlas contnts; c) rquirmnts inputs (from consultants); d) dvlopmnt rlas plan; ) undrtakn by product managmnt; dvlopmnt tams; som input from nominatd Chartr customrs. 6. Dvlop Product (product dvlopmnt): a) itrativ dvlopmnt via fdback and short dvlopmnt cycls; b) product lockd onc rlas to bta; c) itrativ updats; d) dvlop launch dvlopmnt plan at bta stag; ) activ involvmnt from product managmnt; dvlopmnt tams; solutions markting (for product rollout and markting); fdback from nominatd Chartr customrs associatd with tsting. 7. Rlas product (product dlivry): a) product rlas crtification procss; b) crtification for spcific platforms; c) markting launch; d) drivn by dvlopmnt tam; solutions markting. 8. Monitor product (product dlivry): a) support including bug fixd and minor nhancmnts; b) fdback from installd bas; c) st up for nw products and/or nxt rlas; d) dirctd by product managmnt with product fixd and subrlass compltd by dvlopmnt tam. Sourc: Hyams, Chris (2002a & 2002b). Trilogy s industryfocusd approach to application dvlopmnt is vidnt at th commncmnt of th application dvlopmnt cycl as all product concpts that ar idntifid and dfind subjct to rigorous industry analysis (s box 2). Solutions Markting and Product Managmnt ar rsponsibl for th dcisionmaking associatd with mapping concpts against xisting Trilogy industry and product maps. Industry Group Gnral Managrs with Solutions Markting and Product Managmnt conduct furthr validation of concpts against industry maps and dvlop businss cass for th concpts (box 3). Product concpts ar transformd into actual product faturs and capabilitis by Product Managmnt (box 4). Th dfind product faturs ar validatd against industry maps, rinforcing that ach of th Trilogy industrybasd businss divisions ar dirctly involvd in spcific application dvlopmnt. Svral groups ar involvd in crating a Rlas Dfinition, which includs rlas faturs and scop, rsourc and tim stimats, and rlas rviw cycls (box 5). Product Managmnt and th Projct Dvlopmnt Tam will crat th actual documntation and contnt, but will consult closly with th rlvant industry group Gnral Managr for spcific rlas dats. Slctd Chartrd Customrs will also b consultd, particularly with rgard to product faturs and scop. Trilogy s application dvlopmnt cycl has a spcific stp for th dfinition of rlas rquirmnts which has mor dtail and furthr prioritization of product faturs than th rlas dfinition (box 6). Thr is an additional assssmnt of product faturs basd on businss valu, and inputs from Trilogy and othr consultants. Outputs from ths assssmnts ar thn finalizd into a Dvlopmnt Rlas Plan. Product Managrs working with th Projct Tam and Chartrd Customrs driv th finalization of th Dvlopmnt Rlas Plan. Th actual product dvlopmnt phas is itrativ and through short dvlopmnt cycls similar to th wkly/monthly build approach in th original DSA modl (box 7). Product Managmnt works with th Projct Tam, but also includs Solutions Markting in this phas. Th dirct involvmnt of industrybasd solutions markting prsons in th actual product dvlopmnt phas is a distinctiv fatur of Trilogy application dvlopmnt cycl, whn compard with othr softwar houss in this projct. A distinct bta product milston occurs whr product faturs ar lockd in and a Launch Dvl 112

7 opmnt Plan is dvlopd (box 8). Thr ar still itrativ updats basd on tsting th product at this stag. Product Managmnt, with th Projct Tam and Solutions Markting, ar all activ in bta tsting and crating th Launch Dvlopmnt Plan. Trilogy has formal procsss for product rlas (box 9). Trilogy s products ar formally crtifid for actual rlas and for spcific platforms (spcific oprating systms and/or vndor s computr systms). A formal markting launch occurrd for th product rlas. Crtification procsss ar drivn by th dvlopmnt tams, whil solutions markting driv th markting launch. Trilogy has formal postrlas procsss for product monitoring, including bug fixs and minor nhancmnts (box 10). Customrs provid fdback on product prformanc and rcommndd fixs. Product Managrs ovrs product monitoring and tak inputs for stting up th nxt application dvlopmnt cycl. Th nw DSA modl rprsnts a significant dpartur from th original DSA modl in that it rcognizs that almost all application dvlopmnt is undrtakn within th Businss Divisions and is focusd right from concption on th industry map. Businss rquirmnts ar focusd within that Division, rathr than bing a gnric application that was customizd at th nd of th application dvlopmnt cycl. Thr ar still som application dvlopmnt inputs from Trilogy xcutivs in charg of dvlopmnt, but that is rapidly contxtualizd into industry/divisionspcific dcisionmaking procsss. Th nw DSA modl still rflcts an intrnal focus for applications rquird for Trilogy s own application dvlopmnt. Howvr, thr is a significant thirdparty intraction btwn Trilogy and slctd chartrd customrs and consultants. 5. Evnts chronology map Austin s (1998) Trilogy (A) cas study provids a chronology of th gnsis and rapid growth of Trilogy from 1990 through to An vnts chronology map was cratd incorporating ky vnts during this priod (Figur 3, s Appndix A). Additional symbols wr mployd for th map including th flowchart symbol for a dlay or problm and a sixprongd box for a solution to th dlay or problm. Jo Limandt rcognizd that, compard to othr functions with larg computr hardwar companis, sals and markting wr rlativly nonautomatd functions (box 1). Limandt blivd that softwar to assist with th configuration of complx computr systms could gratly contribut to cutting costs in th sals and markting functions. Innovativ Markting, Volum 3, Issu 4, 2007 Whil at Stanford Univrsity, Limandt, with som othr studnts, bgan work on configuration softwar in (box 2). Limandt, Lynch, Jons, Porch and Cartr st up Trilogy in 1990 (box 3). Thy sought funding from vntur capitalists but wr rgardd as too young, and ndd up lvraging thir own crdit cards up to almost half a million dollars (box 4). During 1991, Limandt dcidd to mov th nw company to Austin, Txas, to b closr to his ill fathr (box 5). Th mov nabld Limandt to mor asily hir David Frank, who was an xprincd and wllknown softwar dvlopr (box 6). Frank s strong rputation in softwar dvlopmnt was a contributor to Trilogy signing up HwlttPackard (HP) as a customr in March Trilogy rapidly built on its succss with providing a configurator solution for HP, through signing up nw customrs including Boing, AT&T, IBM and Chryslr in (box 7). Trilogy gaind xtra businss dvlopmnt knowldg through th appointmnt of Jo Limandt s fathr, Grg, as Trilogy s Chairman in Grg Limandt had rcntly bn a snior xcutiv with GE and a Chairman of UCCELL. Trilogy turnd down svral vntur capitalists offrs of funding, but chos othr spcific VCs to gain xprtis on how to grow a company rapidly (box 8). By 1994, Trilogy had grown to 100 mploys, having hird xprincd dvlopmnt, consulting and sals managrs (box 9). Howvr, Trilogy s xcutivs wr struggling with stablishing rasonabl growth targts for th company and whn to go public (or to IPO), and whr th company might go aftr an IPO (box 10). Through his fathr s links with GE, Jo Limandt was abl to confr with Jack Wlch th wllknown CEO of Gnral Elctric (GE) about ths issus (box 11). Wlch advisd that Trilogy not to stablish a traditional organization structur, but to focus on hiring th bst popl to dvlop th bst products. John Pric was hird to st up th Trilogy Univrsity that would hir and train highquality dvloprs. Ovr th thr yars , Trilogy built a substantial customr bas, whil broadning its product lin byond configuration to covr all lmnts of sals and markting (box 12). By 1998, Trilogy was gnrating rvnus of ovr $100 million, with ovr 400 mploys whos avrag ag was just 26 (box 13). Also, through th priod of , Trilogy movd toward ndtond solutions, working with indirct channls partnrs such as systm intgrators (box 14). Expansion from frontoffic into Back Offic activitis put Trilogy on a collision cours with ERP vndors ( Entrpris Rsourc Planning 113

8 Innovativ Markting, Volum 3, Issu 4, 2007 vndors) including SAP, PoplSoft, Baan and Sibl (box 15). During 1998, Trilogy s mploy numbrs doubld and wr xpctd to doubl again in 1999 (box 16). Austin (1998) highlights svral issus facing Trilogy s xcutiv tam for 1999, around continud rapid growth, broadning product offrings, maintaining product quality, and maintaining businss succss and a risktaking dvlopmnt cultur (box 17). Trilogy also ndd to dramatically incras distribution of its products without adding fixd costs to its ovrall businss modl. It smd that Trilogy had to stay on an xponntial growth curv forvr. 6. Updatd vnts chronology map Th original vnts chronology map was validatd during th intrviw stag without modification up to 1999, and includs rfrnc to Mandl & Austin s (2000) Trilogy (B) cas study. Th map timfram was xtndd to 2002, and, Figur 4 (s Appndix A) prsnts an updatd vnts chronology map. During , Trilogy strov to xtnd its product rang toward a full ntrpriswid commrcialoffthshlf (COTS) commrc suit (box 18), through th stablishmnt of an indirct businss unit. Trilogy attmptd to partnr with dvloprs to rapidly xtnd its application suit. Trilogy also attmptd to tailor its packags for asir us by dvloprs. Vantag was notd as a ky partnr in Trilogy stablishd various Intrnt spinoff businsss in car ordring, insuranc ordring, applianc ordring and collg hiring from (box 19). Ths spinoffs lvragd off Trilogy s configuration application knowldg, or dvlopr training skills, or from ntrprising Trilogy programmrs and xcutivs, who wishd to branch out into nw businss vnturs. Howvr, by mid2000, with th Intrnt bubbl bursting, Trilogy closd or sold most of its Intrnt businsss (box 20). Th indirct businss unit was also abandond, mainly bcaus of th complxity of attmpting to stablish an xtndd COTS application suit. This xprinc rinforcd a viw within th company that dvloping a gnral COTS application suit just lik th ERP supplirs was dfinitly not a path that Trilogy should travl on. Trilogy s own growth was haltd and th company undrtook major rstructuring and consolidation into Trilogy s rspons to a falling information tchnology markt was to rstructur toward a vrtical/industry focus in , crating fiv Businss Divisions (box 21). Each Division manags its own application dvlopmnt, consulting, markting and its own businss functions. Th fiv Businss Divisions cratd includ Automotiv, Computr/IT, Tlcommunications, Financial Srvics, and Nw Businss. Svral issus mrging from th original and updatd vnts chronology maps ar xplord furthr though cognitiv maps. 7. Cognitiv maps Cognitiv maps cratd for th Trilogy cas study wr dsignd to complmnt DSA modls and vnts chronology maps through additional xploration of slctd dcisionmaking issus and contxts. Thr sctions wr xtractd from Austin s (1998) cas study for furthr txt analysis and cration of cognitiv maps to complmnt th analysis prsntd in th original DSA modl and original vnts chronology map. Th thr initial cognitiv maps cratd for th Trilogy cas study addrssd th following thms: arly dvlopmnt ( ); industry and comptition; softwar dvlopmnt. During th intrviw procss, rqusts wr put forward for an additional cognitiv map rflcting updatd insights from : Industryfocusd application dvlopmnt ( ). Th first cognitiv map is an xtndd insight into th cration and arly growth of Trilogy. Th scond cognitiv map provids insights into industry comptition. Part of th scond map parallls Trilogy s arly growth, but about half of th map focuss on Trilogy s comptition as it rapidly grw btwn 1993 and Th third cognitiv map amplifis logic and philosophy bhind Trilogy s distinctiv application dvlopmnt mthodology for , but is also rlvant through to Th additional cognitiv map highlights insights into Trilogy s industryfocusd application dvlopmnt in Cognitiv map 1 arly dvlopmnt ( ) Th cognitiv map was dvlopd from th From founding to markt ladrship sction in Company Background sction (Austin, 1998, p. 23 s Tabl 4). Figur 5 (s Appndix A) prsnts this cognitiv map. Th map covrs insights into th idntification of an opportunity in 1990 to automat activitis within sals and markting functions, onto addrssing th opportunity through th dvlopmnt of a configurator application, and th cration of a startup company. Th map also provids insights into rapid growth of Trilogy through to

9 Tabl 4. Txt xtract Trilogy arly dvlopmnt ( ) Innovativ Markting, Volum 3, Issu 4, 2007 Limandt had com to Stanford knowing h wantd to start a softwar company. As an undrgraduat, h had spnt many hours rsarching th industry and thinking about whr th bst opportunitis might b. In an around school work, h did consulting to pay bills and to stay on top of th latst in information tchnology practics. Evntually, xprincs from consulting clickd with th rsarch. It smd to Limandt that hardwar vndors had difficulty dlivring thir products with th right quipmnt. His consulting clints frquntly rcivd computrs with missing or incompatibl componnts. Slling and dlivry procsss for ths complx products appard to b largly manual and fraught with rror. This obsrvation promptd Limandt to analyz th incom statmnts of computr product companis, comparing spnding pattrns with th dgr of automation in ach company function. What h found surprisd him (s Tabl 1). Companis typically spnt only 8 to 10 prcnt on Gnral and Administrativ costs, which had bn xtnsivly automatd ovr th yars. Rsarch and Dvlopmnt, also highly automatd in most hightch companis, accountd for slightly mor spnding, about 10 to 15 prcnt. Manufacturing was a similar story: matur cost saving tchnologis had bn applid to rduc spnding (lss cost of good sold) to 20 to 25 prcnt of th firm s total xpnss. What rmaind aftr dducting ths major catgoris was mor than 40 prcnt of xpnditurs that wr mostly rlatd to Sals and Markting an ara which, surprisingly, was not vry automatd. If automation of th slling chain allowd companis to put an additional 12 prcnt of rvnus on th bottom lin (a numbr which Trilogy now considrs rasonabl), that would b worth litrally billions of dollars. It was a potntially hug markt that had not yt bn targtd by anyon. Whil still in school, Limandt and th othrs had bgun working on configuration softwar, which incorporatd complx ifthn ruls into a tool that would prvnt mismatchs btwn incompatibl product parts. Thy continud this work aftr school, into 1991, always sur thy wr on th vrg of solving th configuration problm that would finally giv thm a compltd product. Companis lik HwlttPackard (HP) and Digital wr working on thir own configurators, which addd urgncy to Trilogy s fforts. Limandt prsntd thir idas to vntur capitalists, but non would invst in a company composd ntirly of barly 20yarsolds. To stay a float, th tam lvragd mor than 20 crdit cards, managing to borrow almost half a million dollars in cash advancs. Limandt dscribs th mood in th days bfor th company had rvnus or product: At th bginning, nothing workd. W livd failur vry quartr. Th product nvr workd. W d sit around thinking This is just ridiculous, why ar w continuing? W wr living in a stat of failur, but w had this hop, this shining star that wouldn t go out. What kpt us togthr was th vision that this was a hug opportunity; w just ndd to mak it work. That, or th fact that w wr ylling at ach othr th whol tim. In 1991 th company movd to Austin, Txas so that Limandt could spnd mor tim with his fathr, Grorgy Limandt, who had bn diagnosd with a fatal illnss. By this tim Trilogy had an arly product and had applid for patnts covring its algorithms, but th company still had no customrs. Thy wr working hard to gnrat intrst in thir softwar, but nothing was working. HP, a ky potntial customr, snt a particularly discouraging lttr saying, in ssnc, W alrady hav a configurator and don t nd your product. Manwhil, howvr, bing in Austin nabld Trilogy to hir David Franc, a softwar dvlopr with an industrywid rputation, from a rsarch consortium in Austin. With Franc on board, th company suddnly had nwfound crdibility. Silicon Graphics bcam th first customr, signing a small dal. Within months, HP was back, this tim offring $ 3.5 million for softwar and support srvics. Th dal was consummatd in March of At th tim, Trilogy had ight mploys. Whn HP signd, vrything changd for Trilogy. Softwar that was good nough for HP was good nough for a lot of othr big companis, also. Th floodgats opnd and Boing, AT&T, and, vntually, IBM and Chryslr bcam customrs (th IBM dal alon was worth $25 million). Also significant: Limandt s fathr, a formr GE xcutiv and chairman of UCCELL, who had calld his son a moron for squandring his Stratford ducation, grd to bcom Trilogy s chairman, a position h ndd th xprtis on how to grow a company that thos firms could offr. Vntur invstors who had rfusd to fund Trilogy in th arly days cam calling and wr turnd a way. Limandt rtaind mor than 50 prcnt ownrship. As ordrs rolld in, Trilogy staffd up. Th company grw rapidly to around 100 mploys. Thy hird xprincd xcutivs to had dvlopmnt, Consulting, and Sals. But by lat 1994, Limandt was not happy with th things wr going. Things wr good at prsnt, but h worrid about th futur. Som of th factual matrial in this sction was found in Dram On, by Karn E. Starr, Slling Powr, Octobr, 1997, Vol. 17, No. 8; and Holy Cow, No On s Don This! by Josh McHugh, Forbs, Jun 3, Sourc: Austin (1998, pp. 23). Whil studying at Stanford Univrsity, Josph Limandt wantd to start up a softwar company. H had unarthd an opportunity whr computr hardwar vndors had difficulty dlivring products with th corrct parts and quipmnt. Thir slling and dlivry procsss wr mainly manual, and wr rrorpron. Limandt conductd furthr analysis on th incom statmnts of slctd computr companis, finding a brakdown of costs into th following prcntags: Gnral and Administration (G&A) (810%). Rsarch and Dvlopmnt (R&D) (1015%). Manufacturing (2025%). Sals and Markting (40%). G&A, R&D and Manufacturing had bn xtnsivly automatd, but by 1990 thr was vry littl automation within sals and markting functions. Limandt calculatd that attmpting to automat aspcts of th Slling Chain (th sals and markting functions) to nabl an additional 2% of rvnus would b potntially worth billions of dollars and was a nw potntial markt not currntly targtd by anyon. Austin (1998) indicatd as an additional not that th stimat of adding 2% to rvnus was a figur considrd as rasonabl by Trilogy. Limandt and som othr studnts at Stanford startd work on dvloping configuration softwar. Configuration softwar nabls th usr to incorporat all ssntial faturs and quipmnt for a product, plus nomination of optional additional products and accssoris. In th lat 1980s, most quots for computr hardwar wr linbylin itms manually ntrd without any form of validation or chcking. For complx larg systm quots, such as for multimillion dollar tndrs, hardwar consultants wr mployd to chck systm configurations and linbylin. Th author of this dissrtation was a spcialist consultant in th ara of th configuration and pricing of complx computr systms in th lat 1980s. Early configuration systms wr dvlopd by DEC and HP in th midtolat 1980s, but thy both rquird mainfram computr powr to run through complx ifthn ruls, and vn thn only standardizd systms with fw additional options could b procssd into quots in a rasonabl turnaround 115

10 Innovativ Markting, Volum 3, Issu 4, 2007 tim. Nvrthlss, as minicomputr and small srvr prformanc was rapidly incrasing, ths configuration systms had th potntial to b placd on smallr vry powrful UNIXbasd systms mrging at that tim, and vntually on Windowsbasd PCs. Limandt ralizd that Trilogy ndd to bring its configuration softwar to markt quickly to countr DEC and HwlttPackard s arly lad. Dcisionmaking at this stag was all about valuating options to commrcializ and bring to an application rapidly to markt. Trilogy ndd capital to acclrat application dvlopmnt. Limandt sought vntur capital support but no vntur capitalist was prpard to invst in a company with such a young group of dvloprs. Howvr, Trilogy s foundrs had such a strong faith in its capability and vision for its application that thy lvragd its own crdit cards with cash advancs of almost half a million dollars. Such an attitud to risktaking, that is, risk nough mony to hurt, but not to brak th bank is a fundamntal organizational valu at Trilogy and is xplord in mor dtail in othr sctions of Austin s (1998) cas study. Limandt dscribd th atmosphr of Trilogy at th tim ( ) as a stat of failur whr nothing workd, but a strong vision kpt th tam togthr. Or th tam smd to stay togthr by ylling at ach othr th whol tim. A circuitbrakr for Trilogy sms to b Limandt s dcision to mov Trilogy to Austin, Txas, in Limandt wantd to spnd mor tim with his ill fathr in Austin and movd thr prior to his graduation from Stanford. Othr mmbrs of th Trilogy gradually movd to Austin, som bfor graduation, som aftr graduation. By th tim th mov to Austin was compltd, Trilogy had dvlopd an arly application. In an unusual mov for softwar dvloprs, Trilogy applid arly for patnts not so much for th actual application but for th algorithms usd in th ifthn ruls within th application. Although Trilogy was trying hard to gnrat intrst in its application, thy had no customrs. In a twist suggsting Trilogy knw that its application was suprior to Hwltt Packard s xisting configuration softwar, Trilogy was activly targting HwlttPackard as a potntial customr. At th tim, HwlttPackard rjctd Trilogy s ovrturs, claiming that it alrady had its own configuration softwar. Moving Trilogy to Austin nabld Limandt to hir David Frank from a rsarch consortium in Austin in Frank was a wllknown softwar dvlopr with strong links to various hardwar and softwar supplirs and h gav Trilogy a substantial boost in industry crdibility. Trilogy s incrasd industry crdibility through Frank 116 translatd into nw customrs. Silicon Graphics (SGI) bcam Trilogy s first customr, and within a fw months HwlttPackard signd up in a $3.5 million dal for softwar and support srvics. Trilogy was still a small startup company with ight mploys, facing xponntial dmand for its application. Scuring HwlttPackard as a ky customr appard to lgitimiz Trilogy in th ys of svral larg companis who soon also signd up with Trilogy and for larg contracts. Boing, AT&T and Chryslr rapidly signd up, whil IBM took on Trilogy s softwar and support for ovr $25 million. Limandt s fathr Grg, although diagnosd with a fatal illnss, was appointd Chairman of Trilogy during , sharing valuabl xprinc and knowldg from snior xcutiv rols at GE and bing Chairman at UCCELL. Trilogy now ndd knowldg and rsourcs to turn into a larg ntrpris srvicing larg corporat customrs. Trilogy was sn in this priod as a grat invstmnt opportunity by svral vntur capitalists, but most wr turnd away as Limandt rally wantd xprtis and rsourcs to rapidly grow th company, and not just capital. Limandt accptd funding from two vntur capitalists that providd ths additional bnfits, but maintaind 50% ownrship of th company. Trilogy grw rapidly through to around 100 mploys and xprincd xcutivs wr hird to stablish organizational structur for dvlopmnt, consulting and sals. Trilogy was growing strongly with a killr application for sals & markting and that was all bfor th Intrnt rvolution arrivd. 9. Updatd cognitiv map 1 arly dvlopmnt ( ) Th cognitiv map was rvisd through dirct diting in PowrPoint with inputs from intrviws with Frank (2002) and Hyams (2002). Svral sctions of th original map wr validatd with minimal changs, but thr wr som significant additional insights for othr sctions. Figur 6 (s Appndix A) prsnts th updatd map. Sctions 1 and 2, apart from som formatting adjustmnts, wr validatd unchangd from th original cognitiv map. Sction 3, on arly configurator application dvlopmnt, was updatd to indicat that apart from Limandt, th othr arly dvloprs wr Chris Porch, John Lynch, Tom Cartr and Christy Jons. Th actual configuration application was known as SalsBuildr and was basd on an xprt systm with nural ntwork capability. Ths faturs nabld th

11 stting up of complx ruls for slction of faturs and options. Sction 4 was validatd unchangd from th original map. Trilogy s mov to Austin covrd in Sction 5, was amplifid to provid mor insight into Frank s mov to Trilogy. Frank had workd with MCC in Austin, a company that was focusd on dvloping nw computing tchnologis and softwar. Frank had substantial knowldg in softwar dvlopmnt, xprt systms and h was alrady quit familiar with algorithms and dvlopmnts rlatd to configuration applications. Frank hlpd Trilogy formaliz Sals Buildr into a formal rlas SalsBuildr V1.0. Sction 6, on Nw Crdibility and Nw Businss, was updatd to incorporat additional insights. Innovativ Markting, Volum 3, Issu 4, 2007 Trilogy had ight mploys in March Trilogy dvlopd SalsBuildr V2.0 in mid1992, using its own cod and dvloprs. NCR was idntifid an additional larg nw customr in Sction 7, covring Rapid Growth, was validatd unchangd xcpt that Josph Limandt bcam chairman in lat 1993 (aftr his fathr Grg). 10. Cognitiv map 2 industry and comptition Th cognitiv map was dvlopd from th Industry and Comptition sction in Austin (1998, pp. 45 s Tabl 5. Figur 6 (s Appndix) prsnts this cognitiv map. Th map provids a cognitiv dscription of Trilogy s prcption of its comptition and industry spac from th arly 1990s to Tabl 5. Txt xtract Trilogy industry and comptition Industry and Comptition Limandt's original analysis of spnding pattrns vrsus dgr of automation in computr product firms had idntifid a widopn markt worth at last $10 billion. Th fw companis that wr in that markt at th tim wr bit playrs, slling things lik contact managmnt softwar for salspopl. Most of th functionality that constituts th bulk of th slling chain catalog updating, configuration, pricing, bid prparation, commission calculation was prformd manually or by softwar writtn by product firms thmslvs. Trilogy had pushd rapidly and succssfully into this mostly mpty spac. But Trilogy s succss did not go unnoticd. Bginning in about 1993, nw companis lik Aurum, Brightwar, Calico, Clarify, Rmdy, Scopus, Sibl Systm, and Vantiv ntrd ara of sals and markting automation. Som of ths companis targtd nichs that wr not in immdiat comptition with Trilogy. But all wr oprating in th sam gnral spac, going aftr that 40 plus prcnt of P&S spnding that Limandt had first noticd as a studnt. Mor worrying than ths small playrs, howvr, was th awakning intrst of th giants of Entrpris Rsourc Planning (ERP) rapidly growing companis that wr many tims largr than Trilogy, such as SAP, Oracl, Poplsoft, and Baan (s Figur 1 for profils of ths companis, s Appndix A). Trilogy had intntionally positiond itslf as an ntrpris softwar company, maning that its products wr dsignd to work togthr to provid ndtond functionality for a major sgmnt of a customr s businss (s slling chain). This was ncssary bcaus Trilogy s corporat customrs wr incrasingly looking to build or buy intgratd systms. Companis that did not sll ntrpris products riskd losing out to companis with mor intgratd and broadr product offrings. But ERP vndors saw th ntrpris softwar markt as thir turf. On company s supply chain, rasond th ERP giants, was anothr company s slling chain. As th xprts on intgrating a customr s back offic th valu stram from procurmnt through production to dlivry it smd only natural to th ERP vndors that thy should also intgrat th front offic th slling chain. Limandt summarizd th thrat to his company in stark trms: Thy dcidd that Trilogy had don som fantastic rsarch for thm and that thy d just com in and tak it ovr. Th qustion was (and still is), Can w withstand th onslaught of giants tn tims as big who want to mov into our spac? As arly as 1993, Trilogy had ralizd that th numbr on thrat to its longtrm wllbing was SAP, th largst of th ERP vndors, which by 1998 ownd 70 prcnt of th back offic automation businss for Fortun 500 customrs. In 1997 and 1998, th thrat from SAP and othr ERP vndors bcam mor immdiat. Baan purchasd Aurum. Poplsoft announcd partnrships with Vantiv and Sibl Systm (which itslf bought Scopus). SAP pointdly faild to invit Trilogy to xhibit at Sapphir 1998, th Sapsponsord tradshow for its own customrs, vn though th company had participatd in arlir yars. At that sam tradshow, Hasso Plattnr, SAP s chairman and cofoundr, announcd to his customrs that 80% of th company s R&D going forward would b aimd at building front offic products. Trilogy had a considrabl had start on ERP vndors in th dvlopmnt of ky tchnologis, spcially configuration softwar, som of which was by thn protctd by patnts. But th protction providd by patnts would b shortlivd. Whthr Trilogy would rmain a factor would dpnd far lss on past accomplishmnts than on what thy could accomplish in th futur. Sourc: Austin (1998, pp. 45). Limandt idntifid an unmt markt opportunity (s also first cognitiv map) that h stimatd to b at last $10 billion in th ara of th sals & markting functions, or th frontnd or frontoffic or th slling chain. Most activity in th slling chain activitis for computr hardwar companis such as catalogu updating, configuration, pricing, bid prparation and sals/consulting commission calculations wr procssd manually. Thr wr a fw companis that sold softwar for spcific activitis in th slling chain such as contact managmnt softwar. Thr wr som forms of simpl customr databas applications availabl for dirct markting programs but CRM as a concpt mrgd in th lat 1990s. Trilogy was on of th first companis with a solution that wnt furthr than just on componnt of th Slling Chain. Howvr, it was not long bfor Trilogy facd comptition from svral fronts. Svral of th companis that w would now s as CRM vndors wr cratd in th arly 1990s. Eight companis ar notd in th original cognitiv map, of which probably Sibl Systms is bst known for sals forc managmnt applications. Most of th companis notd wr not in immdiat comptition with Trilogy but thy all could b classifid as comptition, dpnding on how an industry 117

12 Innovativ Markting, Volum 3, Issu 4, 2007 spac for a slling chain was dfind. Trilogy facd mor aggrssiv and powrful comptition from a diffrnt front. Trilogy s xcutiv always saw th company as an ntrpris softwar company that could addrss a full ndtond slling chain. Trilogy was in part rsponding to customrs who wantd to build or buy systms that at last intgratd th slling chain. Such positioning put Trilogy dirctly in th path of larg and rapidly growing ntrpris rsourc planning (ERP) vndors. Companis such as SAP and Oracl had bn stablishd at last 10 yars longr than Trilogy and had grown rapidly through th 1980s and 1990s offring various ky ntrpris applications. SAP had grown out of offring ntrpris financial softwar, xpanding into manufacturing and logistics in th arly 1990s. SAP could b put on svral computr hardwar platforms but was oftn usd on IBM systms through th 1980s and arly 1990s. Oracl rod th Opn Systms/UNIX boom of th lat 1980s and arly 1990s to b th major databas application for various ntrpris applications to run on UNIX hardwar vndors including Sun, HwlttPackard, and DEC s UNIX systms. Oracl was also arly to position its applications as businss solutions to work with th WorldWid Wb. Poplsoft was cratd in th lat 1980s with Human Rsourc Managmnt (HRM) applications but sprad quickly into othr ntrpris applications, working closly with UNIX computing vndors, but also with IBM and DEC s VMS systms of th arly 1990s. Baan was a Dutch company that mrgd through ntrpris financial applications in th arly 1990s. Th ERP companis main focus was intgration of backoffic activitis such as manufacturing, logistics, and financial managmnt. Howvr, it was logical for th ERP companis to xpand its application suits right from procurmnt to dlivry, including intgration of frontoffic activitis. Trilogy idntifid SAP as its numbr on longtrm comptitor as arly as SAP dominatd th backoffic ERP businss with about 70% shar of that businss by Howvr, for about fiv yars Trilogy workd with SAP as a ky ISV and rgularly xhibitd at Trilogy s main tradshow, SAPPHIRE. SAP changd its stratgy in 1998 to focus havily on building frontoffic applications. On sidffct of that stratgy was not to invit Trilogy to SAPPHIRE At that vnt SAP s Chairman committd that 80% of SAP s R&D would go to dvlopmnt of frontoffic applications. By 1997, comptition btwn th main ERP vndors and Trilogy was quit dirct, as a numbr of ERP companis ithr acquird ISVs with frontoffic applications, or thy attmptd to dvlop thir own applications. Trilogy s managmnt blivd that th company possssd a considrabl lad ovr th ERP vndors in th sllingchain ara. Trilogy was vry strong in configuration tchnology, for which it hld som significant patnts. Howvr, Trilogy ndd to continually dvlop nw frontofficrlatd applications and grow fast nough to gain sufficint critical mass to tak on much largr companis pushing into th sllingchain spac. Limandt dirctly qustiond whthr Trilogy could surviv as a ky playr at last in th slling chain industry that h had dfind back in th arly 1990s. Limandt was rflcting on a not uncommon problm for small startup companis with strong nw tchnologis facing up to largr mor stablishd companis attmpting to brak into its ara of xprtis. Othr casstudis in this projct and particularly thos with ntrpris softwar solutions hav facd th sam problm as Trilogy s. NtDynamics gaind a strong arly lad with its application to link WbPags with databass, but was thn acquird by Sun, as it ndd siz and rsourcs to support a rapidly growing ntrpris customr bas. Kana rapidly acquird ISVs to dvlop a full CRM solution. It movd from a focusd application on mail communication managmnt to a rdfind and mor intgratd CRM and commrc applications spac. Trilogy could s that thy ndd to at last strngthn its product offring for th slling chain, although at th sam tim, it was not committing to rdfin its offrings to match th total ERP solutions. Th ovrall cognitiv map prsnts Trilogy s managmnt prcptions of comptitiv volution through th 1990s. Th map also highlights Trilogy s xcutiv tam s stratgic mapping of its comptitiv position, initially in a nw industry, but thn in a mor broad and rdfind industry with much largr and mor aggrssiv comptitors on th sam prcivd turf. 11. Updatd cognitiv map 2 industry and comptition Th cognitiv map was rvisd subsqunt to intrviws with Frank (2002) and Hyams (2002) (Figur 8, s Appndix A). Most of th original cognitiv map was validatd unchangd, but thr wr som additional insights and structural updats incorporatd into th map. Th first sction of th map covring Early 1990s Widopn Markt (box 1) was validatd with only two modifications. Th first indicatd that Trilogy rlasd an application Slling Chain V1.0 in with th functionality dscribd in th original map. Th scond modification was th incorporation of th commnt in th original map rlating to 118

13 Trilogy s moving into a mostly mpty spac, into th first sction of th updatd map. Th scond sction, Mid1990s Nw Companis Entr Nw Sals & Markting Automation Markt, was validatd with two modifications rlatd to th sam point. Frank (2002) notd that thr wr two or thr vndors in th configuration spac. Trilogy s comptitiv advantag was basd on th bradth of its nw application suit (Slling Chain V1.0) and bttr pointbypoint configuration capability. Th third sction on mrging ERP companis as potntial comptitors was validatd unmodifid, but xtndd to highlight th ERP vndors strngths in Financials, Human Rsourcs Managmnt and Manufacturing suits. Trilogy s positioning as an Entrpris Softwar Company (box 4) was validatd without modifications to contnt, xcpt that th subsction on ERP vndors sing ntrpris softwar as its turf was rformattd into a sparat sction (box 5 ERP Companis Mov From BackOffic to frontoffic ). Th original sction on SAP bing th Numbr On thrat to Trilogy was slightly rformattd (s box 6) but contnt was validatd without modifications. An additional point was incorporatd into th sction indicating that, vn by arly 2002, SAP had still not dlivrd a complt Pricing and Configuration application similar to Trilogy. Tabl 6. Txt xtract Trilogy softwar dvlopmnt Innovativ Markting, Volum 3, Issu 4, 2007 Th sction on th consolidation of ERP Vndors with othr frontnd vndors through slctd acquisitions was validatd unchangd for contnt. Howvr, this sction, including th subsctions on Limandt s viw on th thrat of from th ERP companis, and Trilogy s comptitiv advantags ovr thm, wr split into thr sctions (s box 7 for Dirct Comptition, box 8 for Limandt s viw of th ERP companis, and box 9 for Trilogy s Comptitiv Advantags ovr th ERP Vndors). Th qustion at th nd of th original map rgarding whthr or not Trilogy would rmain a factor in th industry was rformattd as box 10. Th rvisd cognitiv map largly validats th original map, with som xtra insights spcific to Trilogy s actual Slling Chain application suit. 12. Cognitiv map 3 softwar dvlopmnt Th cognitiv map was dvlopd from th Dvloping th Product sction (Austin, 1998, pp. 78 s Tabl 6). Th cognitiv map is prsntd in Figur 9 (s Appndix A). Th map provids furthr insights into Trilogy s product dvlopmnt capability and its fundamntal philosophis of softwar dvlopmnt. Dvloping th product Trilogy s markting goals dpndd vitally on th company s product dvlopmnt capability. Spcifically, markting objctivs rquird that dvloprs sustain th comptitiv advantag Trilogy njoyd in configurator tchnology whil dramatically broadning th product to fill th ntrpris nds of larg and small customrs in a varity of industris. Trilogy aspird to maintain a softwar dvlopmnt capability that was scond to non. Thir comparison st for valuating thmslvs in this ara was not thir dirct comptitors, but othr world class dvlopmnt organizations, spcially Microsoft. In thir aim to b th bst, thy blivd that thy had largly succdd. Limandt was convincd that no othr ntrpris softwar vndor was vn a clos scond to Trilogy in dvlopmnt capability. Scott Snydr, Trilogy s Snior Dvlopmnt VP, stimatd that 15 or 20 succssful softwar companis could b built around th talnt in Trilogy s dvlopmnt organization. Cntral to th company s dvlopmnt capability was th rul of th supr codrs, which hld that on suprstar programmr could do th work of tn avrag programmrs. Gtting th most out of grat dvloprs, rmarkd Snydr, is on of th things Trilogy dos amazingly wll. Th dvlopmnt procss was gard toward giving Trilogy s suprstar programmrs th support and frdom thy ndd to produc grat products. Snydr dscribd som of th company s fundamntal philosophis of softwar dvlopmnt: Our dvlopmnt is basd around four basic philosophis. Small tams, vry small from a traditional dvlopmnt standpoint. W xpct ntir nw products to b cratd by on or two suprstar programmrs you can count on to dlivr grat products quickly. Complt ownrship of th product at th dvlopr lvl from initial product rquirmnts gathring through product support. W don t hav a sparat chang tam that insulats th dvloprs from th impact of producing poor quality products. Intns focus on automation in ordr to fr th dvloprs (or anyon ls) from having to spnd thir tim manually prforming frquntly rpatd tasks lik rgrssion tsts. Finally, a focus on incrmntal dvlopmnt modl that allows us to dlivr nw functionality quickly and provids us with th flxibility to ract to changs in th markt quickly. A ky fatur of th dvlopmnt procss was that it volvd to maintain in rsponsivnss to th markt, bcoming mor structurd as th product maturd. As th product grw byond a crtain siz, xplaind Snydr, maintaining rsponsivnss and high product quality dpndd on som ky disciplins: Th goal is to maintain your cod at ship lvl quality on a wkly basis. Whn a dvlopr drops cod for a nw fatur or bug fix into th build, it must b accompanid by th appropriat suit of automatd tsts to validat that th changs work as xpctd. Ths tsts ar addd to th xisting suit and th ntir st is xcutd vry tim th product is built, whthr that was a wkly or nightly build. If you had to dvlop a fatur that took longr than th wkly build cycl, you branch your dvlopmnt, dvlop th fatur, dvlop tsts, mrg it all back into th main build, thn rrun all th tsts on th intgratd cod. In addition to th individual product tsts, w also hav automatd systm tsts which tst th intractions btwn products. Th goal is to constantly improv th quality of th product as you incras its functionality. Again, a vry incrmntal modl. It s awsom and brilliantly suitd for an nvironmnt which rquirs you to ract quickly to any nw rquirmnt or chang in markt dirction as long as you maintain th quality disciplin. As th product grw in complxity, programmrs rtaind absolut frdom to add faturs in whatvr way thy saw fit, but thy wr obligd to maintain in quality. As intrdpndncis dvlopd btwn diffrnt dvlopr s programs, th build and rlas cycl bcam mor structurd, with dcisions bing mad about th timing of th rlas of nw faturs on a fatursbyfatur basis. Nw faturs wr schduld around a plan that usd 60 to 70 prcnt of Trilogy s dvlopmnt capacity with th rmaining 30 to 40 prcnt hld in rsrv for lat braking and urgnt fixs. According to Austin (1998), Trilogy s markting objctivs focusd havily on th company s dvlopmnt capability. Trilogy s dvloprs had th goal of sustaining its comptitiv advantag in con 119

14 Innovativ Markting, Volum 3, Issu 4, 2007 figuration softwar, but also to quickly broadn th product to mt th ntrpris nds of a wid rang of customrs. Balancing ladrship in thir cor comptncy with broadning th appal of th product to mor customrs was a logical approach to th rapidly growing ntrpris softwar markt during th mid1990s. Such an approach also rquird th rapid rcruitmnt of larg numbrs of vry highly skilld application programmrs. Trilogy was cratd as a company with a dp blif in aspiring to b th bst softwar dvlopmnt company in th world. Trilogy initially bnchmarkd its mrging dvlopmnt capability against othr worldclass dvlopmnt organizations, but particularly Microsoft. By 1998, Limandt was convincd that Trilogy was th bst by a long way in softwar dvlopmnt capability. Trilogy s Snior Dvlopmnt VicPrsidnt in 1998, Scott Snydr providd insights into Trilogy s viw of itslf as a bstinclass softwar dvlopmnt company. H rgardd Trilogy s dvlopmnt organization as awsom and brilliantly suitd for an nvironmnt which rquirs quick raction to nw rquirmnts or chang in markt dirction, as long as you maintain th Quality Disciplin (Austin 1998, p. 8). Snydr also blivd that Trilogy s dvlopmnt organization could b th basis for 15 or 20 succssful softwar companis. In ordr to grow and maintain a bstinclass softwar dvlopmnt capability, Trilogy ncouragd a concpt of Supr Codrs, whrby on Suprstar Programmr could do th work of tn avrag programmrs. Trilogy focusd on gtting th most out of grat dvloprs through giving thm th support and frdom ndd to produc grat products. A focus on maximizing productivity from highquality programmrs, right through to linking its achivmnts through to markting goals, is an unusual fatur of Trilogy as an organization. Trilogy s softwar dvlopmnt was built around four fundamntal philosophis which Austin has rcountd from Scott Snydr. Small tams, in fact tams of vn on or two Suprprogrammrs dvloping ntir applications (or at last moduls of applications), follow logically from th vry high valu Trilogy placd on ths individuals, both from a productivity and quality output prspctiv. Complt ownrship of th product at dvlopr lvl is drivn down to a unit of analysis of a tam of on or two Suprprogrammrs. Trilogy givs its tams control of th full application dvlopmnt cycl both for good and poor quality products. In rality th ownrship is at a collctiv tam lvl and this is vidnt whr thr ar rquirmnts to crat nw moduls or nw applications. Intns focus on automation nabld Suprprogrammrs to b frd up from manually prforming frqunt rptitiv tasks and to focus on dirct application dvlopmnt. Focus on incrmntal dvlopmnt modl sms initially to b a contradiction in that Suprprogrammrs might b xpctd to quickly crat radical nw applications and products. Howvr, Trilogy sms to hav placd a highr priority on sufficint modularization and brakdown of dvlopmnt componnts to nabl th Suprprogrammrs to quickly chang componnts in rspons to fast changs in markts. Applying th four fundamntal philosophis of softwar dvlopmnt to actual dvlopmnt procsss rquird balancing th nd to maintain rsponsivnss to markts with bcoming mor structurd as markts maturd. According to Tom Snydr, maintaining this balanc dpndd on som programming and dvlopmnt disciplins. Dvlopmnt tams should hav a goal to maintain its actual cod at a lvl whr it could b shippd (or b crtifid as compltd) on a wkly basis. A nw componnt or fatur or bug that was to b incorporatd into th wkly build of th ovrall application had to includ a st of automatd tsts that would validat that th addition would work as xpctd outsid and within th wkly build. Th tsts would b xcutd vry tim a build was undrtakn. Whil a typical build may b undrtakn wkly, som applications wr built into nw vrsions nightly with th tsts having to run at th frquncy of th build. Dvlopmnt Tams had to quickly judg if a fatur or componnt or bug was likly to tak longr than on wkly build cycl. Anything longr than th wkly build cycl promptd a branching of dvlopmnt, probably to a nw or rvisd small tam, which would undrtak th dvlopmnt with th automatd tsts and thn nsur that it mrgd succssfully back into th ovrall application, usually in th nxt wkly build. Additional automatd systms tsts wr cratd to tst intractions btwn applications, moduls and othr Trilogy products. Trilogy focusd on constantly incrasing th quality of its ovrall productlin as it also incrasd functionality within th lin. Ovr tim Trilogy s product grw in complxity and, whil th Suprprogrammrs rtaind th frdom to add faturs, thy had to maintain ovrall product quality. Intrdpndncis mrgd across and btwn th dvlopmnt tams with mor dcisionmaking rquird across th tams. Crosstam dcisionmakrs contributd to incrasingly structurd build and rlas cycls, and all additional faturs wr subjctd to substan 120

15 tial assssmnt bfor bing accptd for both dvlopmnt and incorporation in th product. By th lat 1990s, Trilogy s dvlopmnt procsss had volvd to allocat 60 to 70% of Trilogy s dvlopmnt capacity for nw faturs, and 20 to 30% in radinss for lat braking and urgnt fixs. Th cognitiv map capturs insights from a company that puts th vry highst priority on bstinclass softwar dvlopmnt. Thr is litrally a uniqu dfinition and acclaim of a Suprcodr or Suprprogrammr that is capabl of much highr application dvlopmnt productivity than typical programmrs. Trilogy pushs this lit group of programmrs furthr with philosophis and supporting procsss dsignd to maximiz its productivity. Trilogy appars to hav achivd scalability throughout th lat 1990s, with its Suprprogrammr approach, maintaining frqunt rlass and updats, with both highquality shipmnt cod and ffctiv bug and quality fix procsss. 13. Updatd cognitiv map 3 softwar dvlopmnt Th cognitiv map was validatd almost unchangd through intrviws with Frank (2002) and Hyams (2002), and is prsntd in Figur 10 (s Appndix A). Th original cognitiv map was validatd unchangd xcpt for th numbring of sctions and for a commnt from Frank (2002) that thr wr 2030 small dvlopmnt tams during th lat 1990s (this commnt was addd into th Small Tams subsction of Four Fundamntal Philosophis of Softwar Dvlopmnt ). Frank (2002) and Hyams (2002) agrd that Austin s (1998) account of Trilogy s softwar dvlopmnt was accurat and with substantial insights and ths had bn ffctivly capturd in th original cognitiv map. 14. Nw cognitiv map 4 industryfocusd application dvlopmnt ( ) During th intrviws for th Trilogy projct, suggstions wr put forward that both a nw DSA modl and supporting cognitiv map for Trilogy s application dvlopmnt in 2001 b dvlopd for th cas study. Th cognitiv map was dvlopd from a Subst from th Trilogy Gos Vrtical Industryfocusd Entrpris Solutions Vigntt (Vigntt was prsntd in Figur 1, s Appndix A). Th subst is prsntd in Innovativ Markting, Volum 3, Issu 4, 2007 Tabl 7, and Figur 11 (s Appndix) prsnts th cognitiv map output. From , Trilogy s focus was on xcllnc in softwar dvlopmnt, mainly in horizontal configuration applications. Trilogy had bn srvicing ntrpris customrs sinc its incption du to th natur of its configuration application and xtnsiv potntial for automation of ky sals and markting activitis using th application and xtndd ntrprisorintd vrsions of it. Howvr, in 2000 during and aftr th dot.com crash and falls in tchnology/computing stocks, th company rstructurd toward a focus on slctd vrtical industry sctors (box 1). Trilogy rvampd its softwar dvlopmnt mthodology toward quickly concptualizing and roadmapping applications against targtd vrtical markts, thrby dvloping and dlivring highly tailord applications for spcific industris and customrs. Trilogy s Excutiv Tam stablishd an Oprations Group with fiv vrtical divisions, basd on its ky ntrpris customrs and products (box 2). Trilogy s fiv divisions ar Automotiv, Computr, Tlcommunications, Financial Srvics, and a Nw Businss Division. Each division was st up with a complt st of managmnt and dlivry rsourcs (box 3). Each division possssd rsourcs with dp vrtical industry xprinc in all managmnt aras, including Gnral Managmnt, Dvlopmnt, Consulting, Human Rsourcs, Financ, Solutions Markting and Businss Dvlopmnt, plus Product Managmnt. In trms of dcisionmaking, Trilogy s rstructur was a radical dpartur from dcisionmaking focusd at th Suprprogrammr or at th small dvlopmnt tam lvl, toward managrs with dp industry xprinc but not ncssarily focusd on softwar dvlopmnt. Trilogy s softwar mthodology is now basd on dlivring vrtical applications within ach Division (box 4). Each Division has its own industry maps st up for a twoyar timfram which is dsignd around a fourphas dvlopmnt mthodology. Th first phas of softwar dvlopmnt mthodology is Product Idation whr Division managrs, with solutions markting and product markting tams, work togthr on gnrating idas and vision, which in turn ar translatd into products within th contxt of targtd industris. 121

16 Innovativ Markting, Volum 3, Issu 4, 2007 Tabl 7. Extract from vigntt Trilogy s industryfocusd application dvlopmnt Trilogy gos vrtical industryfocusd ntrpris solutions In 2000, Trilogy rstructurd from a horizontally focusd application vndortoward using a Softwar Dvlopmnt Mthodology dsignd to quickly concptualiz, crat and dlivr highly vrticalizd applications. Prviously, from , Trilogy s application dvlopmnt stratgis wr basd on Trilogy Product Roadmaps. Th Excutiv Tam stablishd an Oprations Group with fiv vrtical divisions focusd on ky ntrpris customrs and products: Automotiv. Computr. Tlcommunications. Financial srvics. Nw businss. Trilogy has a twodimnsional matrix of managmnt and dlivry rsourcs, locatd in Cor companywid Groups and within ach Division with dp industry xprinc. Ths rsourcs covr: Gnral managrs plus functional vicprsidnts. Consulting. Human rsourcs. Financ. Solutions markting and businss dvlopmnt. Product managmnt and prsals rsourcs. Trilogy s Fast Cycl Tim (FCT) Softwar Dvlopmnt Mthodology is now basd on dlivring vrtical applications within industry Maps st up for ach division for a twoyar timfram. Thr ar four phass in this mthodology: 4. Product idation During this phas, Trilogy s Division Managrs with thir Solutions Markting and Product Markting tams gnrat idas for products, crat a vision for th product and th Industry, apply an invstmnt justification procss to th vision and product, and dvlop an Industry Roadmap supportd by a Businss Cas. All product concptualization and dvlopmnt ar drivn with a vrtical industry focus. 5. Product planning During this phas, th capabilitis of th product will b idntifid and squncd for dlivry. Product faturs will thn b xpandd into actual dvlopmnt schduls including actual rlas faturs and initial stimats rlas dats. During this phas, Product Managmnt taks ovr with Dvlopmnt Tams in driving product planning. 6. Product dvlopmnt This phas consists of gathring th dtaild rquirmnts for th product, and commncing dvlopmnt using Trilogy s Fast Cycl Tim mthodology. Although Product Managmnt and Dvlopmnt Tams ar driving th product dvlopmnt procss, chartrd customrs associatd with spcific Trilogy divisions may b involvd in tsting arly vrsions of th product. Sourc: xtractd from Tabl 3. Although thr appars to b substantial frdom to visualiz and concptualiz nw applications in this arly phas dvlopmnt, thr is an immdiat rquirmnt to apply an invstmnt justification procss and to immdiatly map thm to an industry roadmap with a businss cas. All product concptualization and dvlopmnt ar undrtakn with dirct alignmnt to spcific divisional industry roadmaps, and thus is drivn right from th outst with a vrtical industry focus. In th scond phas of dvlopmnt, Product Planning, Product Managmnt, with Dvlopmnt Tams (within ach Division), driv th dfinition of product capabilitis and schduling of dvlopmnt and dlivry (box 6). Product faturs ar idntifid and dfind into full dvlopmnt schduls with stimatd and dclard rlas dats. In th third phas of dvlopmnt, Product Dvlopmnt, Trilogy mploys a propritary application dvlopmnt mthodology (Fast Cycl Tim, or FCT), to quickly dvlop nw faturs and applications (box 7). Although th full four phas mthodology is known as FCT, th actual product dvlopmnt phas is an 122 industryfocusd volution of Trilogy s arlir softwar dvlopmnt mthodology, using small tams of Suprcodrs with automatd tsts, as dscribd in th cognitiv map on softwar dvlopmnt. Ky customrs (or chartrd customrs) for spcific Trilogy divisions may b involvd in th tsting of arly vrsions of a product. Ths customrs may also hav had som say in product idation via consultants working with thm and through to th Solutions Markting Group. Trilogy commncd th dvlopmnt of Intrntnabld applications in mainly using Java, C and nw objctorintd dvlopr applications, plus thy wr arly adoptrs of XML. Trilogy s configuration systms saw an almost immdiat dploymnt into onlin ordring systms in and hav bcom on of th major ntrpriswid commrc applications. Ths applications ar now growing strongly in all of Trilogy s targtd industry sgmnts through furthr customization and incorporation of nw faturs and businss tchnologis. Th final dvlopmnt phas, Product Dlivry, commncs whn th product is byond bta R

17 las (box 8). Prior to final dlivry, thr is substantial collctiv intraction btwn product managmnt, chartrd customrs, dvlopmnt tams and solutions markting groups. A formal launch and rollout of th product is finalizd and th product is launchd and dlivrd. Ongoing product support and maintnanc ar classifid as part of product dlivry. Patchs, bug fixs and subrlass ar plannd and dlivrd within th product dlivry phas. Furthr customization and support may b rquird through consultants working with customrs on th dploymnt and installation of th nw product. Th cognitiv map on industryfocusd application dvlopmnt capturs a radical transformation in dcisionmaking associatd with application dvlopmnt at Trilogy. Thr is a logical volution of Trilogy s smalltam/suprcodr approach to actual application dvlopmnt, but it is now has strict boundaris and is focusd toward targtd industris. Th nw focus is furthr rinforcd by th mbdding of dvlopmnt rsourcs, and most othr managmnt and oprational rsourcs, within spcific industry divisions. Th cognitiv map (and associatd DSA modl) highlights an volution for som softwar houss from a productfocusd horizontal application and organizational dvlopmnt approach, toward a vrtical industryfocusd approach. Such an volution may b rlvant for softwar houss providing spcializd ntrprisfocusd applications and is rlvant for othr casstudis in this projct (Zaplt in particular also Innovativ Markting, Volum 3, Issu 4, 2007 movd from a horizontal to a vrtical orintation during 2001). On th othr hand, som softwar houss in this projct hav prfrrd to rmain horizontally focusd vn with its ntrpris applications. Kana and NtDynamics/iPlant hav continud mainly as horizontally focusd oprations, although vn in ths cass thr is incrasing vidnc of at last som broad vrtical catgorization of aspcts of its products and srvics. Trilogy blivs thr is still grat opportunity to furthr lowr sals and markting costs, and continus to dvlop nw applications to addrss that challng in th contxt of targtd industris. 15. Trilogy advancd cas study 2003 updat Trilogy is viwabl as an innovativ ntrpris commrc (also sn in th mdia as an businss) application providr and, although byond th scop of th currnt projct, nw initiativs such as linking customr ROI to its ongoing us of Trilogy s applications could st th stag for furthr significant rdfinition of what constituts an businss application suit (s Kirsnr, 2002). Trilogy is also working on dfining nw masurmnts for customr satisfaction rlating to ntrpris commrc application suits incorporating businss valu mtrics (s Sawhny, 2003). During 2003, Trilogy packagd its Fast Cycl Tim (FCT) application dvlopmnt mthodology. FCT Wbbasd tools and supporting srvics ar prsntd in Tabl 8 (s also Trilogy, 2003c). Tabl 8. Trilogy Fast Cycl Tim (FCT) Mthodology tools From mthodology to rality Othr projct mthodologis rly almost ntirly on procsss and organizational disciplin. Th Trilogy Fast Cycl Tim mthodology, howvr, includs a st of ladingdg, Wbbasd vision managmnt tools for automating critical aspcts of th mthodology, along with managd hosting srvics that provid ndtond quality and availability for FCT projcts: Ladrship.com is a multimdia Wbbasd application that allows xcutivs to rcord vision in a cntral location and maks th vision availabl to all projct mmbrs. Fdback is a Wbbasd tool to licit and consolidat usr fdback, both on a Ladrship.com sit and on th targt businss Wb sit. Prioritiz and RankIt tool supports projctlvl triag of faturs and rquirmnts. Th innovativ combination of philosophy and tchnology that undrlis th Trilogy Fast Cycl Tim mthodology kps both projct and vision synchronizd, providing a sound foundation for businss projct managmnt. Managd hosting srvics fully intgrat th FCT mthodology with computing, storag, and ntworking rsourcs, providing a solid foundation of quality, availability, and administrativ rsponsivnss rquird for FCT projct succss. Maximiz businss valu with FCT Th Trilogy Fast Cycl Tim mthodology offrs a suprior approach to managing and dvloping businss solutions, on that maximizd businss valu by constantly masuring progrss and incorporating stakholdr fdback. To larn mor about th FCT mthodology, call th Trilogy Projct Offic at or snd mail to PMO@trilogy.com. Sourc: Trilogy (2003c). Packaging FCT for Trilogy rprsnts th translation of fundamntal application dvlopmnt philosophy and dcisionmaking dirctly into a st of application managmnt srvics an unusual but vry intrsting offring ovr and abov ntrpris commrc application suits. 16. Rsarch xtnsions Additional insights wr gaind through placing additional qustions within th DSA packag addrssing dominant logic, shard vision, lvrag points, and stratgic markting issus. Ths qustions wr askd during th initial intrviws and followdup with furthr validation and commntary 123

18 Innovativ Markting, Volum 3, Issu 4, 2007 in th followup intrviws. Findings and discussion on ths qustions ar not rportd in this articl but can b found in Woodsid and Pattinson (2007). Summary Dcisionmaking issus rlating to softwar dvlopmnt at Trilogy from its incption in 1991 to 2002 wr capturd and mappd in a packag of DSA modls, vnts chronology maps and cognitiv maps and xtnsion qustions. Th Trilogy cas study provids dp insight not just into softwar dvlopmnt and dlivry, but also in th undrlying philosophis bhind dvloping and changing actual softwar dvlopmnt ovr tim. Th packag also highlights a transformation for Trilogy from a horizontal productfocusd organization through th 1990s to a highly focusd vrtical industry organization in Th intrviw procss nabld xtnsion of th cas study timfram to analyz Trilogy s transition in , in substantial dtail. Ky insights from th cas study includ th following obsrvations: transformation from productfocusd to vrtical industryfocusd dcisionmaking; undrlying softwar dvlopmnt philosophis and thir contribution to dcisionmaking; dcisionmaking associatd with anticipatory comptitiv actions; dfining and rdfining product lins/application suits. Summary additional commnts Th Trilogy cas study highlights th dcisionmaking associatd with an organizational cultur that xalts xcllnc in application dvlopmnt. DSA modling augmntd with vnts chronology and cognitiv maps provids analysis and insights into rapidly building an ntrpris application softwar hous and thn transforming th whol organization toward a vrtical industrybasd focus. Th Trilogy cas study xplors th dcisionmaking associatd with combining a philosophy of bstpractic application dvlopmnt with risktaking in ordr to grow a company rapidly to prpar for an vntual and imposing comptitiv showdown with largr and mor stablishd corporations. Th advancd cas study also provids insights into dcisionmaking from a big vision (automating ntrpris sals & markting activitis) into a focusd application offring (pricing configuration softwar) and onto a major providr of vrtically focusd (industryfocusd) applications. Th Trilogy cas study offrs som spcial contributions to th ovrall rsarch projct through analysis of xplicit philosophis on application dvlopmnt that appar to b as fundamntal to th organization as growing a strong and profitabl softwar powrhous. Th cration and validation of a st of DSA modls plus cognitiv mapping outputs rprsnt an ffctiv mapping of stratgic snsmaking ovr tim and in multipl contxts. This xtndd DSA approach offrs insights into turning an ida into an application in conjunction with turning a small startup businss into a substantial and comptitiv ntrpris softwar providr. Th analysis indicats that Trilogy s xcutiv managmnt tam was drivn to tak substantial businss and application risks in ordr to quickly rach a critical mass such that thy could tak on svr comptition from much largr and mor stablishd ERP softwar houss. Both Trilogy and its slling chain comptitors prcivd that its nich would dvlop into in a largr markt for ntrpriswid application suits. DSA modls and slctd maps for th Trilogy cas provid unusual insights into a vry strong logic for stting innovativ application dvlopmnt procsss and cycls. In fact, Trilogy brandd its Fast Cycl Tim (FCT) application dvlopmnt systm. Trilogy has a spcial systm of rcruitmnt and training to instill shard vision and mpowrd dcisionmaking at th individual dvlopr lvl in projcts. Th Trilogy cas study offrs mapping ovr tim of dcisionmaking associatd with transformation from a bstpractic productdrivn businss and application dvlopmnt approach into a vrtical industryfocusd businss. Th Trilogy cas study provids valuabl insights into stablishing bstpractic application dvlopmnt groups. Trilogy s strong organizational cultur around suprprogramming skills capabilitis and tsting xcllnc through rcruitmnt and training ar xplord in th cas study. Th intrviw procss for th Trilogy cas study provids valuabl insights into transforming a softwar hous from a strong product dvlopmnt focus across industryfocusd businss groups and application dvlopmnt. Ky stratgic insights for managmnt applications Th Trilogy cas study provids spcial insights into a company with a vry strong softwar application dvlopmnt cultur and its fforts to chang to bcom a mor marktfocusd businss. Rcommndations for managmnt considration and application includ th following actions. Managrs should sk out, or dvlop, highly skilld softwar programmrs. Suprprogrammrs, whn ffctivly dployd, can dramatically spd up commrcialization and timtomarkt for 124

19 softwar applications. Howvr, th Trilogy cas also shows that dploymnt of suprprogrammrs without appropriat stratgic focus is not ncssarily a formula for businss succss ithr. Som form of dirctd markt or customr focus is rquird to facilitat such suprchargd dvlopmnt tams. Somtims thr ar opportunitis to turn xmplary dvlopmnt procsss into products or consulting srvics. Trilogy turnd its fast cycl tim (FCT) mthods into a product and consulting srvic. Whr a company has such strong product or application or srvic dvlopmnt capabilitis, managrs should xplor scnarios for turning thm into ffctiv products and srvics. Businsss should xplor scnarios whr th big playrs will countrattack, as Smart companis growing quickly in a largr company s prcivd spac will vntually facoff against th Goliath Innovativ Markting, Volum 3, Issu 4, 2007 in that spac. Managrs should xplor ways to ithr mak thir product, srvic or tchnology so disruptiv that th largr incumbnt cannot mt th challng, or to grow quickly nough to b abl to continu to bat th largr playr in nichs that suit th startup. Whn can an ongoing propritary application dvlopmnt kp winning? Is a full propritary dvlopmnt approach actually now sustainabl? Can organizations afford to wait to build capabilitis inhous, or should thy work mor with thirdpartis to gain capabilitis fastr? Managrs nd to xplor prsnt and potntial mixs of propritary and thirdparty dvlopmnt for thir application and srvic offrings. Thn thy can craft th vision with th bst prospcts of supporting dvlopmnt and dlivry of disruptiv tchnology. Rfrncs 1. Arnold, S.J. and Fischr, E., (1994), Hrmnutics and consumr rsarch. J. Cons. Rs. Vol. 21 (Jun), pp Austin, Robrt D. (1998), Trilogy (A), Harvard Businss School, Boston, Capon, N., and Hulbrt, J. (1975), Dcision systms analysis in industrial markting. Indus. Mark. Man., 4 (2), Chandra, Mala (2001), Prsonal Intrviw (Tlphon) with Hugh Pattinson, Sydny/Rdwood Shors, CA (13 Dcmbr). 5. Christnsn, Clayton M., and Michal E. Raynor (2003), Th Innovator's Solution: Crating And Sustaining Succssful Growth, Boston: Harvard Businss School Prss. 6. Frank, David (2002a), Prsonal Intrviw (FactoFac) with Hugh Pattinson, Austin Txas (13 Fbruary). 7. Frank, David (2002b), Prsonal Intrviw (Tlphon) with Hugh Pattinson, Sydny/Austin Txas (17 April). 8. Hulbrt, J., J.U. Farly, J.A. Howard. (1972), Information procssing and dcision making in markting organizations. J. Mark. Rs. Vol. 9, No. 1, pp Howard, J.A., Hulbrt, J. and Farly, J.U. (1975), Organizational analysis and informationsystms dsign: A dcisionprocss prspctiv. J. Bus. Rs., Vol. 3, No. 2, pp Howard, J.A., and Morgnroth, W.M. (1968), Information procssing modl of xcutiv dcision. Managmnt Scinc, Vol. 14, No. 1, pp Huff, A.S. (1990), Mapping Stratgic Thought, Wily, Chichstr, UK. 12. Huff, A.S., and Huff, J.O. (2000), Whn firms chang dirction. Oxford Univrsity Prss, Nw York. 13. Hulbrt, J. (2003), Organizational analysis and information systm dsign: A road rvisitd. J. Bus. & Indus. Mark., Vol. 18, No. 6/7, pp Hyams, Chris (2002a), Prsonal Intrviw (FactoFac) with Hugh Pattinson, Austin Txas (13 Fbruary). 15. Hyams, Chris (2002b), Prsonal Intrviw (Tlphon) with Hugh Pattinson, Sydny/Austin Txas (3 May). 16. Kirsnr, Scott (2002), How Do You Spll Valu? Nwswk (10 Jun) Vol Langly, A., Mintzbrg, H. Pitchr, P. Posada, E., and SaintMacary, J. (1995), Opning up dcision making: Th viw from th black stool. Organ. Sci., Vol. 6, No. 3, pp Mandl, Marc and Robrt D. Austin (2000), Trilogy (B), Harvard Businss School, Boston, Pattinson, Hugh, Arch G. Woodsid (2007), Innovation and Diffusion of Softwar Tchnology: Mapping Stratgis, Elsvir, Oxford, UK. 20. Sawhny, Mohanbir (2003), How to Kp Your Customrs Satisfid; To larn if nd usrs ar happy, you hav to ask th right popl and th right qustions, CIO Magazin, 16 (14), Thompson, C., Pollio, H.R., and Locandr, W.B. (1994), Th spokn and th unspokn: A hrmnutic approach to undrstanding th cultural viwpoints that undrli consumrs xprssd manings. J. Cons. Rs. Vol. 21 No. 4, pp Thompson, C.J Intrprting consumrs: A hrmnutical framwork for driving markting insights for th txts of consumrs consumption storis. J. Mark. Rs. Vol. 34, No. 4, pp Trilogy (2003a), Wbsit, nots on tstimonials and xampls of Trilogy applications: Ford ( British Airways ( ); Prudntial Insuranc Company of Amrica ( ), all viwd 23 July. 125

20 Innovativ Markting, Volum 3, Issu 4, Trilogy (2003b) Wbsit, commnts from Jack Wlch ( ), plus xtract from CIO ( linkd to Trilogy Wbsit), and Nwswk. ( ). all viwd 23 July. 25. Trilogy Corporation (2003c), Introducing Th Trilogy Fast Cycl Tim Mthodology: Dlivring EBusinss Valu In Intrnt Tim, Viwd on 28 Novmbr Wgnr, D.M. (2002). Th illusion of conscious will. Cambridg, MA: Bradford Books, MIT Prss. 27. Wick, K.E. (1995), Snsmaking in organizations. Sag, Thousand Oaks, CA. 28. Whyt, W.F. (1943), Strt Cornr Socity. Chicago Univrsity Prss, Chicago. 29. Wilson, T.D. (2002). Strangrs to ourslvs: Discovring th adaptiv unconscious. Cambridg, MA: Blknap Prss of Harvard Univrsity Prss. 30. Woodsid, A.G. (2003), Middlrang thory construction of th dynamics of organizational marktingbuying bhavior. J. Bus. & Indus. Mark. Vol. 18, No. 4/5, pp Woodsid, A.G. (2006), Ovrcoming th Illusion of Will and SlfFabrication: Going Byond Naïv Subjctiv Prsonal Introspction to an Unconscious/Conscious Thory of Bhavior Explanation, Psychology & Markting, 23 (3), Woodsid, Arch G., Pattinson, H.H., and Millr, K.E. (2005), Advancing Hrmnutic Rsarch for Intrprting Intrfirm Nw Product Dvlopmnt, Journal of Bus. & Indus. Mark., Vol. 20, No. 7, pp Woodsid, A.G. and Samul, D.M. (1981), Obsrvations of corporat procurmnt. Indus. Mark. Man., Vol. 10, No. 2, pp Woodsid, A.G. and Wilson, E. (2003), Cas study rsarch for thorybuilding. J. Bus. & Indus. Mark., Vol. 18, No. 6/7, pp

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