A Checklist for Information Company Executives
September 2006

Information businesses present an unusual set of challenges. By its nature, information is intangible, and the value of the same information can vary widely by type of user or application. Technology can drive rapid change in information markets, allowing new products to spawn from the same core information -- posing threats as well as opportunities for existing players. In addition, although information products have few physical delivery costs, information companies face critical choices in their use of distribution channels, whether direct or indirect, especially when seeking to reach new market segments. Here are some key questions culled from our work with information companies:

STRATEGIC PLANNING

• Does your company have a clear strategic plan with concrete goals, strategies, actions, and milestones?

• Does the plan provide sufficient operational detail to be executed by all operating groups?

• Is the plan understood and supported by all operating groups responsible for executing it?

• Is each operating group adequately resourced to achieve its commitments on schedule and within budget?

• Is your strategic plan constructed to serve as an ongoing management tool, not just a one-time planning exercise?

• Does your company conduct periodic reviews to monitor all operating groups’ progress against the strategic plan?

• Do you regularly conduct an objective analysis of your product portfolio to determine which products are still growing and which should be harvested?

• Are your product development activities backed by in-depth knowledge of target market segments and the needs of users?

• Are you effectively integrating content and applications to greatest effect in serving various user needs?

• Are your product resources adequate for maintaining existing products while developing new ones?

• Do you conduct market research on an ongoing basis – whether internally or externally?

• Are you effectively harnessing your sales force and customer service staff to capture and relay customer feedback?

• Do you understand the different needs and behaviors of users versus buyers within your customers’ enterprises?

• Are you using the optimal set of direct and indirect sales channels to reach your target markets?

• Does your pricing reflect the value that each customer obtains from using your products?

• Is your pricing transparent and logical to customers?

• Do you have a standard price schedule that scales for different size customers, rather than resorting to ad-hoc negotiations with various customers?

• Have you conducted an objective assessment of competitive risks – including both emerging competitors and traditional competitors?

• Do you have a plan for mitigating such competitive risks?

• Does your organization have the optimal structure and processes to support your company's overall strategy?

• Are your organizational structure and processes best-suited to serving your customers’ needs?

• Does your organization enable decision-making in response to changing internal or external conditions?

• Do you conduct formal assessments of your organization on a periodic basis?