Welcome back, listeners, to another episode of Continuous Improvement. I’m your host, Victor, and today we have an exciting topic to discuss. But before we dive in, I wanted to share something interesting with you all. I recently took an online course called “Section4 Strategy Sprint” and let me tell you, it was eye-opening. The strategies I learned about are revolutionizing the way companies operate and helping them achieve remarkable growth. Today, we’ll be applying these strategies to analyze a real-world company and identify strategic opportunities. The company we’ve chosen to analyze is none other than Thought Machine, where I have personal experience and insights. So, let’s get started!

For those of you who may not be familiar, Thought Machine is a product-based company that has transformed the banking industry with its core banking solution, empowering banks to provide innovative services to their customers. They recently made headlines by raising $200 million in their Series C funding round, bringing their total funding to an impressive $350 million. With clients ranging from Tier 1 banks to challengers like Atom Bank and Curve, it’s clear that Thought Machine is making waves in the industry.

Now, let’s evaluate Thought Machine using the T-Algorithm framework. This framework has been used by trillion-dollar companies like Apple, Google, Facebook, and Amazon to achieve explosive growth and substantial margins. It focuses on what matters most to customers while advancing key business priorities. As we dive into the strategies, keep in mind that these are potential opportunities for Thought Machine.

The first strategy we’ll discuss is Rundle. Rundle refers to a bundle of goods or services that generate recurring revenue. Traditional banks often face complexity due to outdated systems, and Thought Machine offers a solution where banks can subscribe to their ledger, paying based on usage. This creates a recurring revenue model that aligns well with the needs of banks.

The next strategy is all about appealing to human instinct, and this is where Thought Machine makes a strong case. By targeting the logical part of the human brain and offering practical and cost-effective solutions, they attract new banks with advantages in stability, security, resilience, and cost-benefit. It’s definitely a winning strategy for them.

Moving on to the Benjamin Button Effect strategy, we have an interesting opportunity here. Traditional banks often struggle with extracting data from legacy systems. Thought Machine’s product, Vault, offers the flexibility to integrate with other platforms like Salesforce and Tableau, solving this data extraction issue. Leveraging the power of network effects, Vault becomes more valuable over time.

Now, let’s talk about Visionary Storytelling. This is the ability to articulate a bold vision effectively. Traditional banks often lack a deep culture of engineering excellence, whereas Thought Machine was founded by an ex-Googler with such a culture. This story has been beneficial for them in capital raising and could continue to be a driving force.

Vertical Integration is the next strategy on our list. By owning as much of the value chain as possible, a firm can control the end-to-end customer experience. Thought Machine addresses the needs of banks by offering integrated solutions through partnerships, prioritizing cost, convenience, and speed.

Lastly, we have Accelerant. Thought Machine’s culture encourages continuous learning, high-quality work, and a great deal of fun. This culture sets them apart from traditional Tier 1 banks that are often risk-averse and lack agility. Being an accelerant firm serves as a career springboard for both the company and its employees.

Based on this evaluation, there is one key strategy that stands out for Thought Machine - Visionary Storytelling. Articulating a simple, appealing, and believable vision for transforming the banking industry could be a game-changer. So, let’s dive into some specific initiatives to bring this strategy to life.

Firstly, increasing the social media presence of the CEO, Paul Taylor, could work wonders. Just like innovators such as Elon Musk, having a charismatic leader challenging the status quo in the banking industry can create a buzz. Short videos on platforms like Instagram and TikTok could help drive brand awareness and engage the audience.

Secondly, engaging with technology communities is essential. Thought Machine should consider open-sourcing some of their technology to attract more developers. Organizing meetup groups with perks like free beer and pizza can engage the tech community. Weekly newsletters can also keep the community updated and build a strong network.

Lastly, deepening connections with banks is crucial for raising additional funds and building a good reputation within the industry. Partnering with top consulting firms like Accenture, Deloitte, and BCG can be extremely beneficial. These partnerships can bring credibility and open doors to more opportunities.

Moving forward, here are the next steps to implement these initiatives:

First, Tweet more frequently from the CEO’s Twitter account, emphasizing a bold vision. This will help in keeping the conversation going and capturing the attention of the audience.

Second, open-source part of our technology and create a tech meetup group. By doing so, Thought Machine can attract more developers, build a strong community, and establish themselves as thought leaders in the industry.

And finally, encourage our banking clients to share their success stories using our product. Published case studies and testimonials can be powerful tools to showcase the positive impact Thought Machine has made on their operations.

I’m thrilled about these proposed initiatives and I believe they have the potential to solidify Thought Machine’s position as a frontrunner in the banking industry. I look forward to seeing how they implement these strategies and the incredible growth that awaits them.

That’s all for today’s episode of Continuous Improvement. Thank you for tuning in and joining me on this journey of analyzing and learning from real-world companies. If you have any questions or feedback, feel free to reach out to me on LinkedIn at linkedin.com/in/victorleungtw. Until next time, keep striving for continuous improvement!