Advice For High Tech Product Companies: Q&A With Pete Savage [Part 4]

Over recent weeks, we have featured Newport partner Pete Savage and his advice for high tech product companies. This week concludes our four part series.

You can see the previous articles here:

• Part 1

• Part 2

• Part 3

Below, Pete takes his experience as a naval officer and offers suggestions based on the correlations that can be made to business. He also explains his thoughts as they relate to high tech product development and expanding operations globally. 

Knowing of your experience as a submarine officer, I wonder what analogies you see with business?

I spent my first years after graduating from the U.S. Naval Academy “hunting for RED OCTOBER”.  It was a time of significant transition in the Submarine Force as new technologies were developed and deployed. Basically a sub usually fired three torpedoes; one at the middle of the target, one 15 degrees aft, and one 15 degrees forward, to compensate for zigs and zags.  I call this the aim, aim, aim, aim, aim, fire!... hope and pray” strategy. Applying this strategy to product development raises interesting and important issues:

• Are periodic, once-in-a-while, “up the periscope” looks at the market sufficient or is constant analysis required to identify trends that could be threats or opportunities?

• Can any company afford to launch three independent product developments (firing three torpedoes) hoping one of the product development efforts is successful?

While I was in the Submarine Force, a new type of torpedo was introduced, which  could be continuously steered to the target, matching the bearing to the target with the bearing to the torpedo.  I call this the “Fire! aim, aim, aim, , Bingo!” strategy. 

Entrepreneurs need to get to market quickly (“fire”) and continuously refine product and service specifications (“aim, aim, aim…”) while continuously engaging with their strategic customers (“targets”).

Are there any other points about high tech product development you would make?

Another issue: development teams want to use tools and methodologies with which they are familiar, even if they represent last year's technology. You would be surprised how many competent, experienced developers haven’t kept up with the latest innovations in development tools.

Using outdated, suboptimal tools and methods can result in producing suboptimal products that will have a shorter life. The CEO needs to drive a product development process that includes continuous updating of tools and methods.

How should a US tech company think about expanding its operations globally?

I’ve had significant opportunity to lead expansion into international markets. Despite my earlier comments about the importance of “time to market”, there are three more things that are vitally important: Command of the channel, command of the channel, and command of the channel! A U.S. manufacturer needs to establish channels with partners who command the channel in their market. A large well established company with a stellar reputation that is already selling to the customers you want to sell to, can be a good candidate. So can an independent offshore distributor, as can a company that is well known in its local market.

Research and product development partnerships may also be a good approach. There are opportunities to create alliances with large international companies to help you develop technology that is complementary with what they offer in their own markets. You can enhance each other’s efforts in your respective national markets by cross licensing technology.

About the Expert

Pete has been CEO and Board Member of several innovative telecom firms. Pete’s deep background in technology has led him to entrepreneurial roles in many industries. He currently leads a company organized to commercialize technology developed at the University of South Florida to support video imaging systems for minimally invasive surgery. Contact or learn more about Pete here.

Connect with Pete on LinkedIn

Image credit: Flickr