Episode 3: The Tornado Test
In this episode, Maciej (Mat) Gren introduces a powerful strategic tool for software development agencies: the Tornado Test. This framework helps agencies determine if their chosen core technology is the right wave to ride to become a "Service Gorilla"- a dominant leader in their market niche.
Selecting a technology is one of the most fundamental and difficult decisions for a software agency. It dictates hiring, training, and marketing investments, locking the company into a long-term path. But how do you know if you're betting on the right horse?
Inspired by Geoffrey Moore's classic "Inside the Tornado," this test provides a structured approach to analyzing a technology's potential. It's not just about what's new and shiny; it's about identifying a technology at the perfect moment in its lifecycle to build sustainable growth and market leadership.
In this episode, you will learn about the four critical phases of the Tornado Test:
Phase 1: Your Company's DNA: Are you obsessed with technology or with solving business problems? Understanding your archetype is the first step to aligning your strategy with the right kind of technology.
Phase 2: Technology Diagnosis: Does the technology introduce a revolutionary paradigm shift? Does it offer a 10x advantage over the old way? And critically, does it have a "competency moat" that makes deep expertise highly valuable?
Phase 3: Market Diagnosis: Is the market ready for a new king? We look for blessings from tech giants, assess the talent gap, and, most importantly, check if the "throne is empty" or already occupied by other Service Gorillas.
Phase 4: Building the Gorilla Strategy: Once you've analyzed the landscape, how do you build a strategy to dominate? It involves establishing a strong community mandate, focusing on a high-value problem, and building an offer based on risk elimination.
To make it concrete, Mat applies the Tornado Test to a real-world example: the Scala programming language. He shares insights from his seven years of experience in the Scala ecosystem, revealing whether it's still in the "tornado" phase or has moved to "Main Street," and what that means for agencies specializing in it today.
Listen to this episode to gain a strategic framework that will change how you view your technology choices and help you build a durable, high-margin service business.
