Transcript Infotech Marketing

InfoTech Marketing
Shailesh Vyas
InfoTech Marketing
1
2010
Course Outline
•
Objectives
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•
Scope
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•
Marketing I (Concepts & Environment)
Marketing II (Mix, Planning & Strategy)
IS For Management (Trim I)
Enterprise Planning Systems (Trim III)
Prescribed Text
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•
This course will give a perspective on the sales and marketing of hardware products, software
products, communication products and services. The emphasis will be on the marketing of
solutions.
Pre-requisites
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–
–
–
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To give the participants an insight into the marketing of information technology products and
solutions
Marketing High Technology by William Davidow
Internet References
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Website of leading IT vendors
Websites of IT industry associations
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Schedule
Lecture No
Description
1
Introduction, Assessment pattern
2, 3, 4
Normal
5
Knowledge Sharing – 1 (Five Groups)
6
Knowledge Sharing – 2 (Five Groups)
7,8
Normal
9
Final Group Presentation – 1 (Five Groups)
10
Final Group Presentation – 2 (Five Groups)
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Assessment Pattern
Description
Marks Allocation
Attendance / Class participation
10
Knowledge Sharing
10
Group Presentation
30
Final Exam
50
Total
100
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Group Project Presentation
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Contact Details
Name
Shailesh Vyas
InfoTech Marketing
Email
Cell Number
[email protected]
+91 98202 39520
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Spend Data Management solutions
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Table of contents
• Spend Data Management
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–
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What is it ?
Block Diagram of Solution components
The Need
The Benefits
• The evolution of spend data management
• Strengths & weakness of players involved
• Future trend
• Aspects of Marketing strategy for an SDM Player
– Segmentation, Targeting, Positioning
– The 4 P’s
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Spend Data Management (SDM) – What is it ?
The process of aggregating, classifying, and leveraging
spend data for reducing costs and improving
operational performance.
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SDM - Block Diagram of Solution Components
Robust Spend Data Management
Typical Spend
(SDM)
analysis
Infrastructure
infrastructure
– Adds Value to spend data
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Spend Data Management (SDM) – What is it ?
Ball Bearing Spend
Material
Plant
Item Description
US
BRG,5212WFAF,IBI
14043
Germany
Poland
22%
14043IBI
FAF 5212-W
Mexico
3%
BRG,AR23144CKYW33,SKF
Japan
Netherlands
ボールベアリング,8.6 X 14.5 X 4.7, 自己
3%
Ball Brg 6210
Brg Ball
Germany
Australia
Lager,
Kugel, 4.5x3.6x10.5; Wart.
Mexico
NU415C3,SKF



US
Bearings
30%
BRSKF0001024
Maintenance part
Invoice
Cat. Code
Amount
Category
311715043,693.24 Ball Bearing
78,200.00 Ball Bearing
31171504
31171504 109.43 Ball Bearing
Poland
1%
MG017567
Ball Bearing
34,564.00 Ball Bearing
31171504
311715045,693.47 Ball Bearing
311715042,307.61 Ball Bearing
Netherlands
1%
code
MM11000051PM
UK
Australia
Material
Group
Japan
28%
00031171521KR
MM03166
UKKugellager
12%
Cojinete
31171504
78.98 Ball Bearing
31171504
81,872.29 Ball Bearing
 Accurate, Consistent and Granular Classification
Poorly
structured
Data (inconsistent
or missing material definitions)
 Multilingual
classification
capabilities
Incomplete
data (cryptic,
abbreviations,
words)
 Handles cryptic,
abbreviated,
mis-speltmis-spelt
descriptions
Multilingual
descriptions
 Does not rely
on material groups for classification
These issues make spend analysis a “Garbage in and Garbage
out” exercise….
Turns
the garbage into actionable information…
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SDM - The Need
• Accesses to timely & accurate, spend data offers invaluable
intelligence on spending patterns which is critical for
– Tracking spending
• Firms can monitor employee and corporate spending and identify
maverick purchases not made in compliance to existing contracts
– Compliance
• Aid in compliance with Sarbanes-Oxley by capturing and
consolidating information on corporate spending for review and
analysis.
– Identification of potential savings
• Identify savings by negotiation of volume discounts with a smaller
number of preferred suppliers.
Aberdeen estimates that industry is losing $260 billions each year due to an inability
to organize and analyze spend data.
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SDM – The Benefits ..1
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SDM – The Benefits ..2
Category-wise drill down by supplier report … IT HW Spectrum
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SDM – The evolution ..1
Non-automated




Non-automated
Cost
Spiraling cost
Inordinate time
Not repeatable
Inconsistent Classification
Automated
Automated
Volume
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



Critical volume
16
Volume independent cost
Faster time to value
Repeatable
Consistent Classification
2010
SDM – The evolution ..2
Spend Analysis: Evolution of systems and processes
Decision support system for:
● Global
management
Robustcategory
Data Warehouse
● Measuring
realized
savings and
infrastructure
for repeatable
compliance
analysis.
● Identifying
hidden
savings
Efforts to move
beyond
opportunities
elementary data cleansing
● Setting supply management
discipline
Perceived
Approach Value
● Consultant lead process
●
low
hanging fruits
● Capture
Localized
effort
in top categories
● spend
aggregation based on
● “test
drive” Spend Analysis
suppliers
low
Enterprise Value
high
Approach Value
Perceived
Functionalities
low
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Strengths & weakness of players involved
Public /
Private
Revenues
(2003)
No. of
Customers,
Q1 2004
Ariba
Public
$228
million
27
Emptoris
Private
Not
Available
20
Vendor Name
Product Summary
Strengths
Weakness
End-to- end
sourcing suite
Hosted offering pay
by the drink
opportunity finder
feature
Ketera
Private
Not
Available
43
Analytics
Verticalnet
Public
$9.6 million
29
None
Manual / semi automated
classification
Hosted and
software license
Zycus
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Private
Not
Available
20
Auto Classification
18
Analytics
2010
SDM – Future Trend
•
•
Source : Forrester Research
Estimated total vendor
revenues
– $43 million in 2003
– $80 million in 2004.
Revenues will grow rapidly in
2005 and 2006 then start to
slow in 2007 and 2008 as
competition drives down prices
and the large enterprise market
gets penetrated.
• Forrester Research estimates that 75 to 80 companies bought automated spend analysis products
in 2003, and that the client base will double to around 150 in 2004.
• That’s still a small portion of the Global 2000 market of large enterprises, so there’s still room for each
vendor to grow without running into others.
• By 2005 and 2006, market penetration will start to reach the point that growth will slow, prices will
come down, and a vendor shakeout will occur.
• One source of differentiation will be offering automated spend analysis as a low-cost, hosted
service. This would facilitate adoption below the Global 2000.
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Aspects of Marketing strategy for an SDM Player
•
Whom to talk (Target audience)
– Purchase mangers of target companies
•
How to find them
– Cold calls after researching websites for articles, interviews etc where in sourcing
mangers talk about their SCM initiatives.
– Various conferences , webcasts in purchasing / SCM space
•
What to tell them – The Value
– We can help meet your savings target in sourcing initiatives.
•
How to tell them – Communicate the Value
– Onsite visit with a customized solution presentation
– Email white papers, recent developments / client wins of your company in SDM
space
– Reference calls with existing customers
– customized business cases for prospects using a small slice of their spend data
– Host conferences / webcasts for prospects
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Marketing Strategy options for an SDM player ..1
Segment – Target – Positioning Strategy
Segment
• Fortune Ranking companies based in US & Europe
• Having a minimum spend of $5 billion annually
Target
• Market leaders and early adopters of new technologies across various industry verticals
• No industry specific target as this is currently a niche market
Positioning
• A product which enhances spend data quality
• using automated techniques
• to ensure accurate and repeatable spend analysis infrastructure
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Marketing Strategy options for an SDM player ..2
The 4 P’s
Product
• Ease in integration, deployment & maintenance
• Option to begin with hosted solution and then move to behind the firewall solution
Price
• Value based pricing
• Pricing based on the value of spend processed
• Price of an automated solution is independent of the transaction volumes
Place
• Product development in low cost countries
• Direct sales force for consultative selling
• Technical resources from development centers onsite during deployment
Promotion
• Reference calls, Workshops / conferences for prospects wherein existing customers are
invited to speak about their experiences with the SDM solution
• Building customized business cases for prospects using a small slice of their spend data
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Thank You
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Bibliography
• Cecere, L. (2005). The Procurement and Sourcing Applications
Report, 2004–2009. AMR Research Market Analytix Report: Market
Sizing Series.
• Leverage Spend Data for increased ROI from Spend Management
applications. Retrieved from http://www.zycus.com.
• A Step by Step Guide to Planning your Visibility Program. Spend
Management Visibility 101.
• AberdeenGroup. (2004). Best Practices in Spending Analysis.
• Maiti, S. Spend Data Warehouse “on steroids”. Retrieved from
http://www.zycus.com.
• Bartels, A., Orlov, L. M., & Lambert, N. (2004). Spend Analysis: Key
App, Few Vendors.
• Web site: http://www.zycus.com
• Web site : http://www.ariba.com/
• Web site :http://www.ketera.com/
• Web site :http://www.emptoris.com/
• Web site :http://www.verticalnet.com/home.asp
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The Spend Data Management best practices approach
Source: Aberdeen Group
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DSV Solution Overview
Classifies spend data and provides clarity on spend information
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The Spend Data Issues
1. Classification Inconsistency - Fragmented spend view
ID
Description
Supplier Name
Category
5091
Kopierpapier weiß DIN A4/100g
Kabuco Bürocentrum
Printer or copier paper
9000
Kopierpapier weiß DIN A4/100g
Kabuco Bürocentrum
Desk supplies
2613
Agency Fee -AF--1 ()
FRANKLYN IDEAS
Advertising agency services
2615
Agency Fee -AF--1 ()
FRANKLYN IDEAS
Sales and business promotion activities
2. Low Classification Accuracy – Erroneous spend view
ID
Description
Supplier Name
Category
1589
HP - Hard drive - 36.4 GB - hot-swap - 3.5" - Ultra320 SCSI
HEWLETT PACKARD COMPANY
Notebook for lease
786
HP - Hard drive - 36.4 GB - hot-swap - 3.5" - Ultra320 SCSI
HEWLETT PACKARD COMPANY
Peripherals
A7896
Redundant power supply unit per server node
COMARK CORP SALES INC
Workstations or desktop computers
45X8
Redundant power supply unit per server node
HEWLETT PACKARD COMPANY
Notebook for lease
3. Low Classification Granularity – Only Address low hanging fruits
Category
MRO Equipment
IT Equipment & Services
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Category
% Spend
Bearings
40
% Spend
.
65%
20%
Ball Bearings
30
Roller Bearings
10
25
Valve
27
Ball Valve
20
Butterfly Valve
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Category Management: A Perspective
With Whom?
Spend Buckets
Grainger
Spend
253.33
IBM
$$$
19.25
$$$
??
Production
AT&T
Sales
ATT
$$$
22.68
$$$
??
Marketing
Oracle
$$$
33.62
??
IBM
Grainger Co.
Grainger
Office Suppies
MRO
IBM Corp
Intl Business M/C
AT&T
How much?
$$$
With Whom
Spend
Grainger Buckets
Grainger Co.
IBM
On what?
??
Grainger
Office
IBM
MRO
IBM Corp
Intl Business M/C
$$$
19.25
$$$
hand tools
Power tools
Test Instruments
Hardware
Consulting
Software
$$$
22.68
$$$
Equipments
Marketing
Oracle
$$$
33.62
Consulting
Oracle Corp
Oracle
28
$$$
On what?
Production
AT&T
Sales
ATT
AT&T
Oracle Corp
Oracle
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Suppies
How much?
Spend
253.33
Networking
Consulting
Software
Professional Services
2010
End of Presentation
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