Big data and IoT businesses continue to attract enormous amounts of venture and PE funding but very few of them have yet to demonstrate the growth expected of them. Splunk is an exception. The company’s 2016 revenues will approach $1bn. and its current valuation is $8bn. Perhaps more significantly, the stock has experienced greater growth and stability than most recently public tech companies. This article addresses some of the management “secrets” behind the company’s success, in the words of Godfrey Sullivan, former CEO for eight years until his retirement in November 2015.
Years of field research and work with tech companies have demonstrated that even with vigilant management, skilled engineers, and modern development tools and techniques, anywhere up to 50% of product innovation efforts fail to achieve their objectives of winning and keeping customers. How can CEOs and heads of R&D bring this chronic amount of wasted product development effort under control and focus resources where they can be made to count?