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Being first and fast doesn't guarantee a catalyst's success. Successful catalysts have recognized the importance of experimentation in discovering how to ignite a catalytic reaction and of adopting an evolutionary--rather than a big bang--strategy for growth.
Task (1). Know When to Be First--and When to Follow Catalysts shouldn't overlook the advantages of starting slow and building gradually. It is easier to adjust pricing, design, and other strategies before you have made significant, irreversible investments. Catalysts Discussed: BusinessWire, Palm
Task (2). Control Growth Catalysts should have a strategy for growing the business on their terms and in their timeframe. Often that means adopting a business model that allows them to expand the platform while maintaining control over pricing, design, and other key elements of the business strategy. Catalysts Discussed: Sirius, XM Satellite
Task (3). Protect Your Back Other entrepreneurs will build on successful catalysts and what they've learned. Being first doesn't guarantee success and being paranoid might not be a bad idea. Catalysts Discussed: Alibaba (China), NASDAQ, TiVo
Task (4). Plan for What's Next Catalysts should have a plan for when their platform reaches saturation and have considered other catalyst products to build from this platform. Catalysts Discussed: NTT DoCoMo (Japan), Octopus Card (Hong Kong)
Task (5). Watch Out for the Cops Courts and regulators generally don't understand what catalysts do. A successful catalyst should help them understand how its business model makes all customer groups better off. Catalysts Discussed: Google, Microsoft
Catalysts are naturally unstable businesses that succeed only when they keep their balance. Simply trying to grow as quickly as possible isn't always a practical solution for companies that need to maintain the delicate balance among the multiple sides of its community. For more on experimenting and evolving, visit Step 6 of the Framework™
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