Boston Matrix

High Growth/Low Share

These combinations are described as 'wild cats', or alternatively 'problem children' or 'question marks'. This is the area where new products start out with a small share of a growing market. However, not all of these good ideas will survive and the key management decision is whether investment should be continued because of high potential or be cut back because their market share is too low to survive.

High Growth/High Share

Products in this quadrant are described as 'stars' , representing successful high profit generating parts of the business. The fact that the market is growing justifies continued investment in these parts of the business and the profits generated can be funnelled either back into these profits or into new 'wild cats' which are the potential 'stars' of the future.

Low Growth/High Share

These products give rise to what are termed 'cash cows' (or falling stars!) from which steady profits can be milked, but because of the static market the money which they generate should be invested elsewhere.

Low Growth/Low Share

These products are termed 'dogs' (or falling cows?) and are typified by long established products providing very little return and thus should have investment capital removed from them. This is also the category within which it is reasonable to place those facilities which normally provide support to other parts of the organisation but do not help generate profits.

The End of the World?

I have just had a look at my blog as I had forgoten what I put on last time and the number of hits was 6666! Presumably this means the world will end shortly so I'm off to do something I'll regret.

Matching systems to the business

First, examine the stages through which a product, a car, a financial package, a pop song, an operating system, a credit card, goes through during its life, and yes they do have lives!. The best way of looking at this is by the four cell matrix introduced by the Boston Consultancy Group, The Boston Matrix.

The Great Time Machine Myth

Another of the great ills of systems development is the idea that a system can be 'designed'.

Of course systems can be designed.

But .... they can only be designed to cater for the demands as the stand at that particular point in time!

In other words - designs are not static - they have a time dimension, a topic rarely addressed.

Another example of zen irony is the IT phrase 'real time systems' when we have no concept of how it is impossible to 'freeze' specifications, designs or systems.

The Tyranny of Perfection

The supreme irony of the situation is that many of the ills which currently beset our industry are brought about , not by any reluctance to provide solutions or to take on board the wishes of other departments. On the contrary, it is more an over willingness to provide , not just 'any old' solution , but the ultimate, the most perfect computer based solution in the world! The reasons for this approach, and the problems which can arise will become apparent as we examine the life-cycle of products and the historical background of how systems have been applied to parts of the life cycles.