Stealth Mode is the Quickest Avenue to Bankruptcy.
By Mike Crawford

I read an article last week about a few technology companies that were operating secretly in what's known as "stealth mode" for their first two years of operation. They wanted to develop their product offerings before communicating externally. I've been working with technology companies for more than 20 years now, and I've seldom seen stealth mode work the way companies hope it will. It's certainly not an approach I'd recommend.

Just because your products are not ready to ship doesn't mean your company should bury its head in the sand. Below are just a few thoughts on how putting yourself in the market, rather than operating in secret, can help you be successful.

Before you do anything else, you need to have in mind the image you want to present - your brand. Untold numbers of technology companies fail because they focus only on their products and forget to develop their brands. A brand is the experience your target audience has or expects to have with you. More specifically, it is the box in your target audience's brains that is filled with images, information, slogans, feelings and experiences that create preference for or dissatisfaction with your company and what it sells or plans to sell. Initially, this starts with the company name and logo and should influence your company's mission statement as well as the value propositions. Your brand is just as critical to the success or failure of your company as is your product development.

Hiding in the shadows, perfecting your technology in a vacuum can be a good way to shoot yourself in the foot. The technology industry is all about collaboration - particularly with standards development. Participating in standards organizations helps validate your technology and builds credibility. It is also a great opportunity to network and cultivate business development/partner relationships, and it keeps your company apprised of competing technologies.

Every trade magazine is interested in writing about future offerings. Developing a tutorial article that conveys new directions and future applications is an excellent tactic. In addition, producing a podcast is a great vehicle for promoting emerging technologies. It allows your company spokespeople to enhance market expert status, and it can also be distributed to the press. This doesn't mean you have to spill the beans on your secret sauce. But it will establish your company and spokespeople as experts. And it will generate interest and credibility, which can create immediate demand.

Communicating with market analyst firms is critical to the success of almost every technology company. They are market validators that influence your prospects, potential stakeholders and the press community. An analyst communications program will have a huge impact on your company's success.

Here is a good example of a company that shunned stealth mode and experienced significant success as a result:

SnapTrack was in the process of developing wireless location software at the handset (cell phone) level. Market research found numerous competitors had already developed a solution that would reside in the network as opposed to the handset.

In addition, the standards groups had already endorsed the network solution. However, research showed wireless device manufacturers and service providers wanted a handset solution.

At this point, SnapTrack had no customers - and no revenue. Nobody had heard of SnapTrack.

To create awareness of SnapTrack and its future products, the company leveraged media hype about public safety to create an onslaught of press coverage. They joined the standards groups and trade associations to convey their views about this emerging technology and persuade them to adopt their idea as a viable solution. In addition, they were committed to building their company's brand and aggressively positioning the company in the marketplace.

As a result, at the end of 18 months, SnapTrack ranked first in "Perception of Importance" in its market category and had an impressive 100 percent recognition among the target audience. They still had not finished their product development, so they had no revenue. But their strategy worked so well that Qualcomm acquired SnapTrack for $1 billion.

Your company may be in the process of building the best mousetrap in the world, but if nobody knows about it, your potential success may only be a dream. You need to get out there and tell your story, and if you don't know how, then work with someone who can help you deliver your messages to the right targets.

Do it right the first time - no stealth mode - because your business may go away as quietly as it came.

E-mail the author: Mike Crawford

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