infotech marketing

1InfoTech Marketing 2010

InfoTech Marketing

Shailesh Vyas

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


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)


Assessment Pattern

Description Marks Allocation

Attendance / Class participation 10

Knowledge Sharing 10

Group Presentation 30

Final Exam 50

Total 100


Group Project Presentation

Infotech Mktg Group Schedule


Contact Details

Name Email Cell Number

Shailesh Vyas [email protected] +91 98202 39520


Spend Data Management solutions


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


Spend Data Management (SDM) – What is it ?

The process of aggregating, classifying, and leveraging spend data for reducing costs and improving operational performance.


SDM - Block Diagram of Solution Components

Typical Spend analysis infrastructureRobust Spend Data Management (SDM) Infrastructure – Adds Value to spend data


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








CategoryCat. CodeBall Bearing Spend

Australia1%

Netherlands3%

Mexico3%Germany

22%

Japan28%

UK12%

Poland1%

US30%


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.


SDM – The Benefits ..1


SDM – The Benefits ..2

Category-wise drill down by supplier report … IT HW Spectrum


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


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


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


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


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


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


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


Thank You


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


Source: Aberdeen Group

The Spend Data Management best practices approach


Classifies spend data and provides clarity on spend information

DSV Solution Overview


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


IBM

Office Suppies

MROProductionSalesMarketing

Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


Spend Buckets$$$$$$$$$$$$$$$$$$

SpendIBM

Office Suppies


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$$$$$$$$$$$$$$$$$$


Spend Buckets$$$$$$$$$$$$$$$$$$


Spend Buckets$$$$$$$$$$$$$$$$$$


Spend Buckets$$$$$$$$$$$$$$$$$$


Spend Buckets$$$$$$$$$$$$$$$$$$


Spend Buckets$$$$$$$$$$$$$$$$$$


Spend Buckets$$$$$$$$$$$$$$$$$$


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


End of Presentation

infotech marketing

Documents