The index below includes terms that are frequently used in BRI's resource materials, the Growth Forge software, in the course of performing our services. They may often be used by, and in many cases, coined by other experts and academics working in the new business growth and innovation strategy domain. We started maintaining a collection of them here for the convenience of our clients.
Sensitivity analysis measures how much a model's outcome changes in response to changes in each of its inputs, identifying which assumptions have the greatest influence on the result, and therefore which are most worth validating.
Serviceable Addressable Market (SAM) is the portion of the Total Addressable Market that your specific offering, pricing, and channels can actually reach and serve. It narrows TAM by the practical constraints of who you can sell to, leaving the realistic field you compete in — before accounting for the share you actually win against the alternatives.
Share of Market is the portion of the serviceable addressable market a product or solution actually captures — its realized share, after competition and the customer's option to do nothing. It is BRI's definition of the SOM in the TAM/SAM/SOM hierarchy (the acronym is sometimes written out as serviceable obtainable market). Of the three figures, it is the one most often inflated: a model that ignores switching cost and the status-quo, do-nothing alternative overstates how much of the reachable market a new offering will really win.
Discrete capabilities or components that together make up the whole solution. Typed as Physical, Operational, Intangible/IP, Subsystem, or Capital Asset; classified as Core Product or Extended Product.
Creating a 'spin-out' business with the intention to ultimately acquire and re-integrate it back into the company once certain conditions are met (typically financial or operational risk reduction, or scale).
Transitioning an exploratory new business into an existing business unit or creating a new organizational unit and scaling the business into its own business unit.
