Christian Chabot, CEO and co-founder of Tableau, spoke at the Leaders to Legends Breakfast Lecture Series on April 2. He outlined how Tableau, a business intelligence* software company, went from a small start-up in his Capitol Hill apartment to a publicly traded company (NYSE: DATA).
Chabot drew parallels between the rise of Tableau and the pattern that all disruptive companies follow as outlined in the book Innovator’s Dilemma by Clayton M. Christensen. That pattern is outlined below.
1. Disruptive technology comes along that is written off as low-end.
Initially, industry experts dismissed Tableau’s software even though it made it much easier for people to analyze data. Its software democratized people’s ability to work with and analyze data.
2. Market share captains write off the disruptive technology.
Gartner, an industry research firm, wouldn’t give Tableau the time of day from 2004-2006, and from 2007-2009, Gartner referred to Tableau as an interesting little data visualization start-up that is part of a niche market.
3. Massive numbers of people start to adapt the new technology.
The company’s revenue has roughly doubled every year since 2005, except for in 2009, the year of the financial collapse. Today, Tableau is the fastest growing software company in the world.
4. Technology moves up market and replaces the high-end technology.
Gartner visited Tableau in 2013 and said traditional business intelligence is dying and the world is moving toward the way Tableau operates.
5. Traditional providers start to struggle financially.
While Tableau is experiencing rapid growth, companies such as SAP and IBM, former leaders in the business intelligence industry, are reducing the size of their business intelligence divisions.
To learn more about Tableau and hear Chabot’s two pieces of advice for entrepreneurs and why he thinks Seattle is a better place for start-ups than Silicon Valley, watch the video below.
* Business intelligence (BI) refers to software applications that are used to analyze an organization’s raw data. BI includes data mining, processing, querying and reporting.
Christian Chabot was one of UW Foster School of Business Dean Jim Jiambalvo’s guest speakers at the annual Leaders to Legends Breakfast Lecture Series, which include notable leaders in an array of industries from greater Seattle and around the country.