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Velocity Strategy Explained

        posted by , May 29, 2013

What Is It?

A velocity strategy is any business strategy that prioritizes speed over all else.

Velocity strategies are common in industries that are highly competitive and driven by change such as technology or fashion.

Definition: Velocity Strategy

A velocity strategy is a time driven strategy that prioritizes speed over other factors such as cost, quality and risk.

So What?

If your time was limitless you could easily dominate your industry by developing superior products and customer experiences.

Unfortunately, time isn't limitless. In fact, it has a tendency to feel like it's moving very quickly.

Many businesses find a balance between time, cost, quality and risk pressures. This can be a tricky balance to master.

A velocity strategy forgets about balance to prioritize time. It's a strategic option that has been both successful and disastrous.

Examples of Velocity Strategies

  • Time To Market: Time to market is how fast you can ship new products and features. In a competitive industry such as information technology, time to market is often prioritized over quality and cost.

  • 80/20 Principle: The 80/20 principle (Pareto Principle) predicts that 80% of value is produced by the first 20% of work. According to the principle, perfectionism can greatly reduce the overall value an organization produces.

  • Fail Fast: Fail fast is an innovation strategy that focuses on building fast prototypes to test ideas.

Next: Fail Fast Explained

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