Date post: | 01-Jan-2016 |
Category: |
Documents |
Upload: | veda-schultz |
View: | 57 times |
Download: | 1 times |
InfoTech Marketing 2 2010
Course Outline
• Objectives– To give the participants an insight into the marketing of information technology products and
solutions
• Scope– 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– Marketing I (Concepts & Environment)– Marketing II (Mix, Planning & Strategy)– IS For Management (Trim I)– Enterprise Planning Systems (Trim III)
• Prescribed Text– Marketing High Technology by William Davidow
• Internet References– Website of leading IT vendors – Websites of IT industry associations
InfoTech Marketing 3 2010
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)
InfoTech Marketing 4 2010
Assessment Pattern
Description Marks Allocation
Attendance / Class participation 10
Knowledge Sharing 10
Group Presentation 30
Final Exam 50
Total 100
InfoTech Marketing 6 2010
Contact Details
Name Email Cell Number
Shailesh Vyas [email protected] +91 98202 39520
InfoTech Marketing 8 2010
Table of contents
• Spend Data Management – 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
InfoTech Marketing 9 2010
Spend Data Management (SDM) – What is it ?
The process of aggregating, classifying, and leveraging spend data for reducing costs and improving operational performance.
InfoTech Marketing 10 2010
SDM - Block Diagram of Solution Components
Typical Spend analysis infrastructureRobust Spend Data Management (SDM) Infrastructure – Adds Value to spend data
InfoTech Marketing 11 2010
Spend Data Management (SDM) – What is it ?
Plant Item DescriptionMaterial
codeMaterial Group
US BRG,5212WFAF,IBI 14043 BRSKF0001024 Bearings
Poland 14043IBI FAF 5212-W MM11000051PM Maintenance part
UK BRG,AR23144CKYW33,SKF
Japanボールベアリング ,8.6 X 14.5 X 4.7, 自
己
Australia Ball Brg 6210 MG017567 Ball Bearing
Netherlands Brg Ball
Germany Lager, Kugel, 4.5x3.6x10.5; Wart. 00031171521KR Kugellager
Mexico NU415C3,SKF MM03166 Cojinete
Invoice Amount
3,693.24
78,200.00
109.43
34,564.00
5,693.47
2,307.61
78.98
81,872.29
Poorly structured Data (inconsistent or missing material definitions) Incomplete data (cryptic, abbreviations, mis-spelt words) Multilingual descriptionsThese issues make spend analysis a “Garbage in and Garbage out” exercise….
These issues make spend analysis a “Garbage in and Garbage out” exercise….
Accurate, Consistent and Granular Classification Multilingual classification capabilities Handles cryptic, abbreviated, mis-spelt descriptions Does not rely on material groups for classification
Turns the garbage into actionable information…Turns the garbage into actionable information…
Ball Bearing31171504
Ball Bearing31171504
Ball Bearing31171504
Ball Bearing31171504
Ball Bearing31171504
Ball Bearing31171504
Ball Bearing31171504
Ball Bearing31171504
CategoryCat. CodeBall Bearing Spend
Australia1%
Netherlands3%
Mexico3%Germany
22%
Japan28%
UK12%
Poland1%
US30%
InfoTech Marketing 12 2010
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.
InfoTech Marketing 14 2010
SDM – The Benefits ..2
Category-wise drill down by supplier report … IT HW Spectrum
InfoTech Marketing 16 2010
SDM – The evolution ..1
Non-automated
AutomatedCost
Critical volumeVolume
Volume independent cost
Faster time to value Repeatable Consistent
Classification
Automated
Non-automated
Spiraling cost Inordinate time Not repeatable Inconsistent Classification
InfoTech Marketing 17 2010
hig
h
high
● Robust Data Warehouse infrastructure for repeatable analysis.● Efforts to move beyond elementary data cleansing
● Consultant lead process● Localized effort● spend aggregation based on suppliers
Approach
Approach
Spend Analysis: Evolution of systems and processes
Functionalities
En
terp
rise V
alu
elo
w
low
SDM – The evolution ..2
Decision support system for:● Global category management● Measuring realized savings and compliance● Identifying hidden savings opportunities● Setting supply management discipline
Perceived Value
● Capture low hanging fruits in top categories● “test drive” Spend Analysis
Perceived Value
InfoTech Marketing 18 2010
Strengths & weakness of players involved
Vendor NamePublic / Private
Revenues (2003)
No. of Customers,
Q1 2004Product Summary Strengths Weakness
Ariba Public$228
million27
Hosted offering pay by the drink
End-to- end sourcing suite
Manual / semi -automated
classification
Emptoris PrivateNot
Available20
opportunity finder feature
Ketera PrivateNot
Available43 Analytics
Verticalnet Public $9.6 million 29
Hosted and software license
None
Zycus PrivateNot
Available20 Auto Classification Analytics
InfoTech Marketing 19 2010
SDM – Future Trend
• 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.
Source : Forrester Research
InfoTech Marketing 20 2010
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
InfoTech Marketing 21 2010
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
InfoTech Marketing 22 2010
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
InfoTech Marketing 24 2010
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
InfoTech Marketing 26 2010
Classifies spend data and provides clarity on spend information
DSV Solution Overview
InfoTech Marketing 27 2010
The Spend Data Issues
Sales and business promotion activities FRANKLYN IDEASAgency Fee -AF--1 ()2615
Advertising agency servicesFRANKLYN IDEAS Agency Fee -AF--1 ()2613
Desk suppliesKabuco BürocentrumKopierpapier weiß DIN A4/100g9000
Printer or copier paperKabuco BürocentrumKopierpapier weiß DIN A4/100g5091
Category Supplier Name Description ID
Notebook for leaseHEWLETT PACKARD COMPANY Redundant power supply unit per server node 45X8
Workstations or desktop computers COMARK CORP SALES INCRedundant power supply unit per server nodeA7896
Peripherals HEWLETT PACKARD COMPANY HP - Hard drive - 36.4 GB - hot-swap - 3.5" - Ultra320 SCSI786
Notebook for leaseHEWLETT PACKARD COMPANY HP - Hard drive - 36.4 GB - hot-swap - 3.5" - Ultra320 SCSI 1589
Category Supplier Name Description ID
.20%IT Equipment & Services
65%MRO Equipment
% SpendCategory
5Butterfly Valve
20Ball Valve
25Valve
10Roller Bearings
Ball Bearings 30
40Bearings
% SpendCategory
1.Classification Inconsistency - Fragmented spend view
2. Low Classification Accuracy – Erroneous spend view
3. Low Classification Granularity – Only Address low hanging fruits
InfoTech Marketing 28 2010
IBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBM
Office Suppies
MROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendGraingerGrainger Co.
IBM
AT&T
Oracle
With Whom? How much?
Grainger
IBM CorpIntl Business M/C
ATTAT&T
Oracle CorpOracle
On what?253.33
19.25
22.68
33.62
??
??
??
??
IBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendIBMOffice SuppiesMROProductionSalesMarketing
Spend Buckets$$$$$$$$$$$$$$$$$$
SpendGraingerGrainger Co.
IBM
AT&T
Oracle
With Whom How much?
Grainger
IBM CorpIntl Business M/C
ATTAT&T
Oracle CorpOracle
On what?253.33
19.25
22.68
33.62
hand tools
Hardware
Power toolsTest Instruments
ConsultingSoftware
EquipmentsNetworkingConsulting
ConsultingSoftware
Professional Services
Category Management: A Perspective