Winning in the Solutions Future: Capitalizing on the Growing...
Transcript of Winning in the Solutions Future: Capitalizing on the Growing...
Page 1Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com
Winning in the SolutionsFuture: Capitalizing on the Growing Importance of Services
Software 2005 ConferenceSanta Clara Convention CenterApril 26, 2005
Presented by:David C. Munn President and CEOITSMA
Agenda
• The Move to Solutions• The Services Opportunity
in the Solutions Future• Four Initiatives for
Solutions Success
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The Move to Solutions
Solutions are everywhere
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In the technology industry “solutions” revenue as become extremely important to many companies.
0
2.4
9.8
14.6
73.2
0 20 40 60 80
1
2
3
4
5Extremely Important
Not at All Important
Mean Rating = 4.6
% of Respondents (N=41)
Q. How important is the solutions business to your company?
Source: 2004, ITSMA Online Survey
What’s really driving the move to solutions?
• Client demand• Differentiation• Growth and
profitability
Services organizations need to play a greater role in the drive to solutions!
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It’s important that we have a common definition of a solution.
A solution is a combination of products and/or services plus intellectual property, focused on a particular business or technology problem, which drives measurable business value
Solutions offer greater business value
Measurable Business ValueLower Higher
Capabilities
Products andServices
Offerings
Solutions
Leve
l of C
usto
mer
Spe
cific
ity
GenericCustomers
Customerswith Common
Problems
TargetedSegments
TargetedFunctions
A ParticularCustomer
Customer-specificSolution
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The Services Opportunity in the Solutions Future
Software buyers are looking for new services in the solutions world
Yes (60.5%)
No (34.9%)
% of Respondents(N=413)
Are you building custom applicationsfor [software application module]?
Don’t know (4.6%)
Source: ITSMA, Improving Business Results from Software Applications and Services: 2005 Brand Tracking Study
Yes (30.3%)
No (64.3%)
% of Respondents(N=412)
Are you planning to outsource the management of [software application
module] to a vendor?Don’t know (6.4%)
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Outsourcers, integrators, and offshore firms see growth in software services
Wipro expands software management services work with Allmerica Financial
IBM wins Sony outsourcing
contract for software applications
Accenture wins homeland security contract—significant amount of software services involved
Four Initiatives for Solutions Success
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Winning with solutions requires a fundamental reorientation of how companies go-to-market
Deepen Customer
and Market Intelligence
Strengthen Collaborative
Solutions Development
Manage the Total ClientExperience
Rethink Go-to-Market
Strategy
Customerand Market Intelligence
1: Substantially Deepen Customer and Market Intelligence
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Sprint’s “Market Sensing” experts identify opportunities for solutions creation.
Market Sensing casts a wide net to absorb information from varied sources about customer business problems & needs, technology directions, and opportunities . . .
. . . And distills that information down into a smaller set of solution opportunities for Sprint for further evaluation.
Short List of Solution Opportunities
12..n
Customer Business Problems & Needs(industry conferences, focus groups, advisory council, one-on-ones)
Analyst & Other Third-Party Views
Partners & Peers(e.g., IBM, Cisco, Bell Canada, SK Telecom)
Competitors
Sprint Internal
Sweet Spot
Responds to Customer Needs
LeveragesCompanyStrengths
LeveragesCompanyStrengths
Provides TrueCompetitive
Differentiation
Screening Criteria• Revenue potential• Time-to-market• Degree of
differentiation• Etc.
2: Strengthen Collaborative Solutions Development
Collaborative Solutions
Development
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Development Process: Novell® exteNd™ secure enterprise dashboard solution
Analyze market
Brief analysts and press
Execute internal comm and train
sales team
Review capabilities/
ID gaps
Create solution “champion
team”
Engage channel partners
Develop solution, partner, messaging and
materials
Launch marketing campaign
Support saleseffort
Novell solution development process
today’s focus
3: Rethink Go-to-Market Strategies
Go-to-MarketStrategy
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Micro-marketing with partners allows deeper insight and broader reach into targeted solution areas
4: Manage the Total Client Experience
Total ClientExperience
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Customer experience management at SAP
Challenges and Risks
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Responding to clients solutions needs can be very challenging.
How the Client explained it
How the Project Leaderunderstood it
How the Solutions team designed it
How the Programmer wrote it
How the Solutions Consultant described it
How the project was documented
What the Consultants installed
How the Client was billed
How it was supported What the Client really needed
Winning with solutions rests heavily on four critical business initiatives
Deepen Customer
and Market Intelligence
Strengthen Collaborative
Solutions Development
Manage the Total ClientExperience
Rethink Go-to-Market
Strategy
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questions
About ITSMA
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ITSMA’s members include software, hardware, and professional services leaders
Siebel SystemsSiemens Communications GroupSiemens Medical Solutions
Health ServicesSoftware AGSolutionsIQSprintSPSSSteriaSun MicrosystemsSunGard SCTSycamore NetworksSymantecSymbol TechnologiesTektronixThermo ElectronUnisysVeritas SoftwareVerizonVertexWipro TechnologiesXerox
NCRNEC Unified SolutionsNetwork ApplianceNextiraOneNokia NetworksNortel NetworksNorthrop GrummanNovellOAO Technology SolutionsOraclePerot Systems CorporationPhilips Medical SystemsPitney BowesPivotalQADRainmaker SystemsReynolds & ReynoldsRockwell AutomationSAP
EDSEMCEncoverEnterasys NetworksEquantEricssonExtreme NetworksFirst Consulting GroupFujitsu ServicesGE Fanuc AutomationHewlett-PackardHitachi ConsultingHitachi Data SystemsHyperionIBM Global ServicesITNETJuniper NetworksKanbayKronosLawson SoftwareLogicaCMGLucentMicrosoftMotorola
3ComAccentureAgilent TechnologiesAT&TAtos OriginAvayaBEA SystemsBearingPointBT RetailBusiness ObjectsCapgeminiCGICH2M HillCisco SystemsCitrix SystemsCognosComputacenterComputer AssociatesComputer Sciences CorporationConvergysCPMCSF GroupDieboldDimension Data
April 15, 2005
ITSMA members take advantage of a broad range of research, advisory, and community benefits
Workshops and CoursesCustom and public programs for new and experienced staff
Best Practices, Trends, and IdeasCase studies, topical updates, interviews, and presentations
Services Marketing Professionals ProgramSix-monthcertificate program
Annual ConferencesMust-attend conferences on marketing’s top issues
Briefings and RoundtablesOnline and in-person events to explore critical issues
Ask ITSMAOngoing access to ITSMA experts
Community Community and and Professional Professional DevelopmentDevelopment
Strategic ConsultingFormal engagements with ITSMA Consultants on strategy, tactics, and planning
AssessmentsAccess to evaluation tools and analysis on a range of topics
Insight SessionsHalf day consulting sessions included with membership
Advisory Advisory GuidanceGuidance
ToolsModels, guidelines, checklists, tips, and more
Customer InsightData, analysis and insight on service buying behavior
Services Sales BenchmarksSales practices and performance metrics
Services BenchmarksBudget and performance metrics
Research, Research, Insight, and Insight, and ToolsTools
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Additional Services:Beyond core membership activities, members take advantage of a suite of additional services
Sponsored and Custom
Research
TrainingConsulting
Events
Along with membership deliverables, members
take advantage of a much deeper research
capability
Members can leverage the expertise and
knowledge of the ITSMA consulting team
ITSMA’s industry-leading events and public
programs are recognized for their depth and focus
Members have exclusive access to specialized
services- and solutions-focused training services
Upcoming Events:ITSMA events enable marketers at all levels explore best practices, sharpen skills, and network with peers• Making Marcom Matter
– May 3 (Santa Clara, CA)• Mastering Solutions: Annual Marketing Leadership Forum
– May 4-5 (San Francisco)• Marketing Dilemmas: 2005 Annual European Forum and Directors’
Forum – May 17-18 (London)
• Transforming Marketing for a Solutions World– May 25 (Online Briefing)
• Building Professional Services Workshop– June 1-2 (Ohio State University, Columbus, OH)
• Growing Your Solutions Business Workshop– June 7-8 (Babson College, Wellesley, MA)– June 22-23 (San Francisco, CA)
Page 16Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com
2005 Marketing Excellence Awards:Show off your best results
• Launching New Solutions • Generating New Demand • Increasing Sales Effectiveness• Improving the Customer Experience • Strengthening Brand Differentiation • Enhancing Marketing Leadership
Submission Deadline is June 15, 2005More info at www.itsma.com
David C. MunnPresident & CEOITSMAEmail: [email protected]: +1-781-862-8500, Ext. 17Internet: www.ITSMA.com
thank you!
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BUILDING BLOCKS FOR SUCCESS