The targeted consumers identified in the case was the enterprise type, Type A. Type A enterprises were pioneers of advanced technologies and aggressively adopted high-risk strategies to gain the high-potential rewards, and were frequently among the first companies to pilot innovative technology (8). Recent studies show that there has been a 50% increase in Type A enterprises. With increases from the initial 15% to 30%, targeting the Type A consumer is looking more promising as businesses are looking for more advanced technology and higher-risk strategies.
Frame of Reference
Guerrieres plan was to not only target Type A organizations, but to target Type A organizations that had adopted Agile or were aware of Martin Fowler and his previous work. Of the waterfall, iterative, and agile methodologies, agile methods (extreme programming) are the most flexible approach to building software. Agile methods ideally implicated small iterations, along with testing and quality assurance that increased efficiency and effectiveness by reducing defects and time. The product features are a lot more high risk than other approaches, because a lot of the implemented software is new oris specifically being developed for the company. Organizations get the top of line technology, but at a high risk cost.
The consumer goals of the Type A organizations are to be at the cutting edge of technology. In their minds the new technology means a competitive advantage over rivals. The high potential rewards are what drives them. Theyre goals arent just to function, but to perform above the competition. Like ThoughtWorks goals to be the best at providing top of the line services, the consumer goals are type are quite as similar. Its as if ThoughtWorks is attempting to connect with businesses just like them.
Points of Difference
Again the points of difference in the comparison to Type A organizations in relations to Type B and Type C is that Type A is the most risky with high potential rewards. Again piloting with innovative technology. While Type B enterprises have moderate risks when it comes to implementation of the new technology. They are nervous about taking on technology that isnt full proof, but at the same time they still want the edge on their competitors. Type C, on the other hand primarily uses IT to reduce their operational costs. Older technology is cheaper and easier to get. Why spend more money and take the risk when you can pick and choose what has already been proven to work?
Some of the functional benefits of going with Type A consumers that use agile methods is that you have so much more flexibility and efficiency. The developers have room to grow and experiment, while the consumers understand the value of the work they are performing. These software a are better adapted and personalized to the consumer. Developers can implement past softwares, and develop new ones for the areas that need it. This is top of the line efficiency on all areas. You dont have either new or old, but you implement and customize the best of both to fit the consumers needs.
The emotional benefits are greater when you have personalized work. One of the things that the case pointed out was how they were building relationships over the process. Not only does it help the consumer to be more comfortable and stable, but it also helps ThoughtWorks business in the long run. The case that a lot of their growing business was generated from referrals.
Reason to Believe
This concludes my reasons to believe that going with their target consumers, Type A with agile methods, is a great approach for the company. Not only has the Type A businesses grown by 50%, but I believe it will continue to grow as competition becomes more and more competitive. It is the race to implement the next best thing that will improve processes and business operations. For the amount of quality and intellect that ThoughtWorks puts into work, they need more clients that can match that. Clients that challenge them will only build the intellect and name of their firm. If they worked primarily on any other type of businesses it would be work, but not the best client for a company at their skill level. Yes, the services are more expensive, but the services are available for those who want the best. In other words, you get what you pay for.