To exist, businesses must connect with people outside of the company. They must connect with customers from the wider pool of people buying things. They must connect with suppliers from the wider business ecosystem. And they must connect with investors to get funding for their future business operation. We call connecting with these folks marketing, production, and finance. These departments are run by the CMO, COO, and CFO, respectively.
These three are big, general buckets that are hard to wrap your head around because they’re so complex. Let’s break them down into smaller buckets by looking at their sub-functions or more commonly known departments:
- Market - marketing, sales, and customer service
- Produce - people, technology, and manufacturing
- Finance - finance, purchasing, and accounting
While different businesses use different configurations of these, all businesses use each of these functions to run. A software firm like Microsoft needs a different physical footprint than a car manufacturer like Range Rover. Both of them, however, have departments doing the same kinds of things like marketing, hr, finance, etc. Software Architects and Automotive Architects both design what the company will manufacture, and the tools needed to build what’s being manufactured. That’s why this Matrix is so powerful, because you can use it to analyze every type of business.