intranet portal, solution services and cpldocshare04.docshare.tips/files/26622/266228430.pdf ·...

Intranet Portal, Solution Servicesand CPL

Summer Training ReportDate of Submission: 03-Aug-2011

Submitted To:

Sonam Lal Head, Marketing & Communication SAP Global Delivery

Submitted By:

Arpit Bansal Roll No: 1070370012

Table of ContentsAcknowledgement......................................................................................................6

Preface....................................................................................................................... 7

1. About SAP...............................................................................................................8

1.1 History in the Making........................................................................................9

1.2 Business and Markets......................................................................................10

2. Enterprise Service-Oriented Architecture.............................................................11

2.1 Products..........................................................................................................11

2.2 Partnerships....................................................................................................13

2.3 Organization....................................................................................................13

2.4 SAP Endorsed Business Solutions (EBS)..........................................................14

3. SAP - SAP Global Delivery: Enabling and Delivering Services...............................15

3.1 Consolidation of services.................................................................................16

3.2 Added Value Through Industrialization............................................................17

3.3 Working Arm-In-Arm With A Partner Ecosystem..............................................18

4. Introduction to Marketing.....................................................................................20

4.1 Approaches for Marketing...............................................................................21

4.2 Marketing Mix..................................................................................................26

4.3 Four 'P's...........................................................................................................28

4.5 Marketing Strategy..........................................................................................30

4.6 Business Marketing Vs. Consumer Marketing..................................................32

4.7 The Marketing Environment............................................................................39

4.8 Segmentation, Targeting, and Positioning.......................................................46

4.9 International Marketing...................................................................................53

5.0 PROJECT 1- Intranet Portal..................................................................................64

5.1 SAP NetWeaver Portal and Collaboration.........................................................64

5.2 Portal Look & Feel............................................................................................76

5.3 Enterprise Web Portal Questionnaire...............................................................77

2 | Intranet Portal, Solution Services and CPL

5.4 Findings - Existing Portal.................................................................................83

5.5 Survey Within the Organization.......................................................................84

5.6 Suggestions.................................................................................................84

5.7 Solution For Findings - Existing Portal..........................................................85

5.8 Portal Phases...................................................................................................87

5.9 Proposed Features...........................................................................................88

5.10 Proposed Look and Feel for SAP Touch..........................................................88

5.11 Key Components on SAP Global Delivery Home Page...................................91

6.0 Project 2 – Solution Services for Caterpillar......................................................102

6.2 History...........................................................................................................103

6.3 Caterpillar Strategy.......................................................................................104

6.4 Five Year Goals..............................................................................................105

6.5 Major Challenges...........................................................................................108

6.6 CAT Dealer Business Opportunity..................................................................109

6.6.1 Opportunity.............................................................................................109

6.7 Opportunity Challenges.................................................................................110

6.8 Significant Project Variations.........................................................................110

6.9 Solution Approach.........................................................................................111

6.10 Questions for Clients/Prospects...................................................................113

6.11 SAP Cat Dealer Program..............................................................................114

6.12 SAP Strategy to Monetize the CAT Dealer...................................................115

6.13 What is the Ask of SAP Management?.........................................................117

6.14 SAP Global CAT Dealer Center of Excellence...............................................118

6.15 SAP Cat Dealer Program..............................................................................119

6.15.1 Application Strategy..............................................................................119

6.16 Approach.....................................................................................................120

6.17 Benefits.......................................................................................................120

6.18 SAP CAT Dealer Template............................................................................121

7.0 Project 3 – CPL (Competency Premier League).................................................123

7.1 Corporate Innovation Leadership Questionnaire...........................................123

7.2 Findings.........................................................................................................125


7.3 Solution for Findings – Launch Of CPL...........................................................125

7.3.1 What is the Competency Premier League?..............................................125

7.3.2 Go Beyond The Boundary........................................................................125

7.4 CPL Phases....................................................................................................126

7.4.1 Power Play - Make Your Pitch...................................................................126

7.4.2 Power Play - Thought Leadership............................................................128

7.4.3 Pinch Hitting - Innovation........................................................................129

7.4.4 The Doosra - QUIZ...................................................................................131

7.5 The CPL Official Web Page.............................................................................131

7.6 Winners.........................................................................................................134

8.0 BIBLIOGRAPHY..................................................................................................135


Acknowledgement

I, Arpit Bansal, a student of MBA-Finance & Marketing Management, Shri Siddhi

Vinayak Institute of Management, Bareilly would like to take this opportunity to thank

SAP Global Delivery for providing me the opportunity and platform for carrying out my

summer training project. Without their response, support and help, I would have never

been able to manage as efficiently.

I would not have been able to carry this project out without the help and guidance of my

Project Head Sonam Lal, project guide Amrita Nandi; Surabhi Singh, Arun Baindur,

S.Sajish, and Nisha Sinha. Also my college faculty guide and respected Deputy Director

Abhijit Das Gupta Sir was another key contributor in the project completion. They all

wholeheartedly supported me in my endeavor, and provided me with valuable inputs

and insights at each stage. Lastly, I would like to thank all colleagues who helped me

clear my doubts. This project would have never been able to see this stage, had it not

been for their co-operation.


Preface

M.B.A. program is one of the most reputed professional courses in the field of

management. This course includes both theory and its application contents of

curriculum.

Research Report is an integral part of the M.B.A. program of “GAUTAM BUDDH

TECHNICAL UNIVERSITY”. Each student is required to undergo research from the

company in his/her third semester. As complimentary to that, every trainee has to

prepare and submit a report on the research work conducts by the student.

This report is at continuation of the above tradition. The topic of the report was

“Intranet Portal, Solution Services and CPL in SAP Global Delivery, SAP India Pvt.

Ltd.”At Bangalore (Karnataka) which is relevant to this research report.

This research is an attempt to present a report on SAP Global Delivery Intranet Portal

Solution Services and CPL at the work place under the”SAP Global Delivery, SAP India

Pvt. Ltd”.

Arpit Bansal


1. About SAP


1.1 History in the Making

SAP AG is a German Global Software corporation that provides enterprise software

applications and support to businesses of all sizes globally. Headquartered in Walldorf,

Baden-Württemberg, with regional offices around the world, SAP is the largest

enterprise software company in the world. It is also the largest software company in

Europe and the fourth largest globally. The company's best known products are its SAP

Enterprise Resource Planning (SAP ERP) and SAP Business Objects software. SAP is

the world's largest business software company – with more than 53,000 employees at

sales and development locations in more than 50 countries worldwide.

SAP was founded in June 1972 as Systemanalyse und Programmentwicklung ("System

Analysis and Program Development") by five former IBM engineers in Mannheim,

Baden-Württemberg (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso

Plattner, and Claus Wellenreuther).

The acronym was later changed to stand for Systeme, Anwendungen und Produkte in

der Datenverarbeitung ("Systems, Applications and Products in Data Processing").


http://www.sap.com/contactsap/directory/index.epx

In 1976, "SAP GmbH" founded, and moved its headquarters the following year to

Walldorf. SAP AG became the company's official name after the 2005 annual general

meeting. AG is short for Aktiengesellschaft (corporation).

In August 1988, SAP GmbH transferred into SAP AG (a corporation by German law),

and public trading started 4 November. Shares are listed on the Frankfurt and Stuttgart

stock exchanges.

1.2 Business and MarketsSAP is the world's largest business software company and the third-highest revenue

independent software provider (as of 2007). It operates in four geographic regions:

EMEA (Europe, Middle East, Africa), AMERICA (United States and Canada), LAC (Latin

America and Caribbean), and APJ (Asia Pacific and Japan), which represents Japan,

Australia, India, and parts of Asia. In addition, SAP operates a network of 115

subsidiaries, and has R&D (Research & Development) facilities around the globe in

Germany, India, the US, Canada, France, Brazil, Turkey, China, Hungary, Israel, Ireland

and Bulgaria.

SAP focuses on six industry sectors: process industries, discrete industries, consumer

industries, service industries, financial services, and public services. It offers more than


25 industry solution portfolios for large enterprises and more than 550 micro-vertical

solutions for midsize companies and small businesses.

2. Enterprise Service-Oriented Architecture

Service-oriented architecture moves the ERP (Enterprise Resource Planning)

landscape toward software-based and web services-based business activities. This

move increases adaptability, flexibility, openness, and efficiency. The move towards E-

SOA helps companies reuse software components and not rely as much on in-house

ERP hardware technologies, which makes ERP adoption more attractive to small and

mid-sized companies

According to a press fact sheet from SAP, "SAP is the only enterprise applications

software vendor that is both building service-orientation directly into its solutions and

providing a technology platform SAP Net Weaver and guidance to support companies in

the development of their own service-oriented architectures spanning both SAP and

non-SAP solutions."


2.1 ProductsSAP's products focus on Enterprise Resource Planning (ERP). The company's main

product is SAP ERP. The current version is SAP ERP 6.0 and is part of the SAP

Business Suite. Its previous name was R/3. The "R" of SAP R/3 stood for real time –

even though it is not a real time solution.

The number 3 related to the 3-tier architecture: database, application server and client

(SAPGUI). R/2, which ran on Main frame architecture, was the predecessor of R/3.

SAP ECC is one of five enterprise applications in SAP's Business Suite. The other four

applications are:

Customer Relationship Management (CRM) – helps companies acquire and

retain customers, gain marketing and customer insight

Product Lifecycle Management (PLM) – helps manufacturers with product-related

information

Supply Chain Management (SCM) – helps companies with the process of

resourcing its manufacturing and service processes

Supplier Relationship Management (SRM) – enables companies to procure from

suppliers

Other major product offerings include: the Net Weaver platform, Governance, Risk and

Compliance (GRC) solutions, Duet (joint offering with Microsoft), Performance


Management solutions and RFID. SAP offers SOA capabilities (calling it Enterprise

SOA) in the form of web services that are wrapped around its applications.

While its original products were typically used by Fortune 500 companies, SAP now

actively targets small and medium sized enterprises (SME) with its SAP Business One

and SAP Business All-in-One.


2.2 Partnerships

SAP partners include Global Services Partners with cross-industry multinational

consulting capabilities, Global Software Partners providing integrated products that

complement SAP Business Suite solutions, and Global Technology Partners providing

user companies with a wide range of products to support SAP technology, including

vendors of hardware, database, storage systems, networks, and mobile computing

technology.

Solution extensions partners

This is a small number of companies which provide functionality that complements SAP

solution capabilities. These enhancements fulfill high quality standards and are certified,

sold and supported by SAP directly. These partner companies include Adobe, CA

Technologies, Hewlett-Packard, IDS Scheer, OpenText, Nakisa, Inc, ICON-SCM, and

Smart Ops.


2.3 Organization

Functional units of SAP are split across different organizational units for R&D needs,

field activities and customer support. SAP Labs are mainly responsible for product

development where as the field organizations spread across each country are

responsible for field activities such Sales, Marketing, Consulting etc. Head office located

in SAP AG is responsible for overall management as well as core engineering activities

related to Product Development. SAP customer support, also called Active Global

Support (AGS) is a global organization to provide support to SAP customers worldwide.

2.4 SAP Endorsed Business Solutions (EBS)One of SAP's highest partnership levels lead to a product being designated as an

Endorsed Business Solution (EBS). Globally, only 33 companies are SAP Endorsed

Business Solution providers. The EBS partnership is an invitation only partnership.

These companies are:

Aris Global CA Conformia

Invensys Wonderware KSS Fuels

Questra Quorom


Development Epic Data ESRI FRS Global Greenlight HCL Implico InQuira

Meridium NRX Global Open Text Oracle ORSoft OSIsoft MDUS Oversight Systems Prologa

RIB Software SPSS StreamServe (Open

Text) TechniData cFP Triple Point

3. SAP - SAP Global Delivery: Enabling and Delivering Services

SAP Global Delivery provides a flexible mix of on-shore, off-shore, and near-shore

services delivered remotely from its various locations across the globe to maximize

customer success. Using SAP Global Delivery, SAP consultants can provide consistent

quality worldwide and complete projects successfully and quickly.

"SAP Global Delivery is an integral part of SAP Consulting. It is a delivery methodology

that allows the distribution of services at low risk, some of them provided locally,

regionally, or globally from locations with specialized consulting skills," explains

Animesh Parihar, Director of SAP Global Delivery in Bangalore, India. A "follow the sun"

approach for its consulting services ensures that SAP Global Delivery is operational the

world over, 24 hours a day. "We can use the different centers for the development of


any project, always taking care of its specificity. The combination of global and local

consultants along with the SAP ecosystem means a reduction in the total cost of

ownership. This strategy also allows us to raise the level of skills," adds Animesh

Parihar.

3.1 Consolidation of services

The consultancy business underwent a transformation in 2000. Customers required

services adapted to a global model of business. SAP Global Delivery, launched in 2002,

answered those needs without affecting the quality of the consulting services.

Today, SAP Global Delivery works with SAP subsidiaries, labs and global service and

support units, with partners and other elements of the SAP ecosystem to deliver

services from Bangalore, Bucharest, Buenos Aires, Dalian and Gurgaon. "We provide

development, upgrade, implementation and roll-out services so that our customers get

the best value from their investment in SAP products. In 2006, we reached 670

deliveries and we have about more than 1.000 engagements in 2007," states Parihar.


Once SAP solutions arrive in the market, it is time for consolidation. With SAP Global

Delivery, that model is applied to services. "We are speaking of industrialization in the

area of services. We understand that industrialization offers two perspectives. First, it

allows offering a product in a shorter period of time. Second, it enables cost reduction

by means of reusable resources," says Parihar.

3.2 Added Value Through Industrialization

SAP productized services offer predictable, cost-effective results across a variety of IT

projects. Implementations and upgrades can be piloted and evaluated quickly and then

rolled out across the organization based on proven business results. SAP Consulting

currently offers the productized services leveraging the SAP Global Delivery model.

The productized services are reusable work packages fixed in scope, cost and effort

and increase benefits to customers in terms of time and dependability. The development

of these service packages with the partner network has accelerated the

"industrialization mode" in the services industry. The recent inauguration of a new SAP

Global Delivery location in Buenos Aires, which is added to the existing ones in India,

China and East Europe, fits well into this strategy.

"We understood that it was necessary to reduce service implementation time," adds


Stefan Gruler, Chief Operations Officer of SAP Field Services. "Through SAP Global

Delivery, we are closer to the development centers, innovation hubs, and customers,

and can respond quicker with a larger scope. This strategy allows us to accompany

projects from the initial steps onward globally analyzing and comparing the main topics

in development. It is more efficient to approach development from a global perspective

than doing it only in a specific country," says G ruler.

The productized services do not restrict the client's needs. "For example, upgrades are

productized services that are a combination of resources," says Gruler. "These

upgrades usually have similar requirements in various cases, which gives us an

opportunity to provide the same service in less time." Combining the productized service

with the experience provided by SAP creates added value, as the predefined, reusable

service package is standardized on industry best practices and proven business

processes, meeting the need for greater consistency and reduced risk in service

delivery. "The tendency is to make small productized services that easily provide

advantage to larger projects. This is a great way to leverage SAP Global Delivery," says

Gruler.


3.3 Working Arm-In-Arm With A Partner Ecosystem

The SAP Global Delivery model feeds into an ecosystem of partners. "The ecosystem

works in conjunction with us. We have trusted a good part of the consultancy business

to them, which is why they play a significant role in the distributed delivery of services,"

says Parihar. "For any development, it is essential to count on partners to provide first-

hand information, collect data, and communicate data. In that sense, the multiple

locations of SAP Global Delivery work like receivers and distributors of productized

services.

In the future, we plan even greater participation, creating new productized services on

the basis of input provided by the partners on site," Gruler adds.

Professional work in the network is performed by a global team as SAP Global Delivery

promotes interchange and cultural multiplicity. The project structures are global, so that

a project manager of one nationality can work jointly with managers of other

nationalities and cultures. Project managers are located in their own countries and can

offer the required solution with localization.


4. Introduction to Marketing

Marketing is the process used to determine what products or services may be of

interest to customers, and the strategy to use in sales, communications and business

development. It generates the strategy that underlies sales techniques, business

communication, and business developments. It is an integrated process through which

companies build strong customer relationships and create value for their customers and

for themselves.

Marketing is used to identify the customer, satisfy the customer, and keep the customer.

With the customer as the focus of its activities, marketing management is one of the

major components of business management. Marketing evolved to meet the stasis in

developing new markets caused by mature markets and overcapacities in the last 2-3

centuries. The adoption of marketing strategies requires businesses to shift their focus

from production to the perceived needs and wants of their customers as the means of

staying profitable.

The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants of target markets and delivering the desired satisfactions.

It proposes that in order to satisfy its organizational objectives, an organization should

anticipate the needs and wants of consumers and satisfy these more effectively than

competitors.


4.1 Approaches for Marketing

Earlier approaches

Orientation

Profit driver

Western European timeframe

Description

Productio

n

Production

methods

until the

1950s

A firm focusing on a production orientation

specializes in producing as much as

possible of a given product or service. Thus,

this signifies a firm exploiting economies of

scale until the minimum efficient scale is

reached. A production orientation may be

deployed when a high demand for a product

or service exists, coupled with a good

certainty that consumer tastes will not

rapidly alter (similar to the sales

orientation).

Product Quality of

the product

until the

1960s

A firm employing a product orientation is

chiefly concerned with the quality of its own

product. A firm would also assume that as

long as its product was of a high standard,

people would buy and consume the


Orientation

Profit driver


Description

product.

Selling Selling

methods

1950s and

1960s

A firm using a sales orientation focuses

primarily on the selling/promotion of a

particular product, and not determining new

consumer desires as such. Consequently,

this entails simply selling an already existing

product, and using promotion techniques to

attain the highest sales possible.

Such an orientation may suit scenarios in

which a firm holds dead stock, or otherwise

sells a product that is in high demand, with

little likelihood of changes in consumer

tastes that would diminish demand.

Marketing Needs and

wants of

customers

1970 to

present

day

The 'marketing orientation' is perhaps the

most common orientation used in

contemporary marketing. It involves a firm

essentially basing its marketing plans

around the marketing concept, and thus

supplying products to suit new consumer

tastes. As an example, a firm would employ

market research to gauge consumer


Orientation

Profit driver


Description

desires, use R&D to develop a product

attuned to the revealed information, and

then utilize promotion techniques to ensure

persons know the product exists.

Contemporary Approaches

Recent approaches in marketing include relationship marketing with focus on the

customer, business marketing or industrial marketing with focus on an organization or

institution and social marketing with focus on benefits to society. New forms of

marketing also use the internet and are therefore called internet marketing or more

generally e-marketing, online marketing, search engine marketing, desktop advertising

or affiliate marketing. It attempts to perfect the segmentation strategy used in traditional

marketing. It targets its audience more precisely, and is sometimes called personalized

marketing or one-to-one marketing. Internet marketing is sometimes considered to be

broad in scope, because it not only refers to marketing on the Internet, but also includes

marketing done via e-mail and wireless media.


Orientation Profit driver Western Europeantimeframe

Description

Relationship

marketing /

Relationship

management

Building and

keeping good

customer relations

1960s to present

day

Emphasis is placed

on the whole

relationship

between suppliers

and customers. The

aim is to provide the

best possible

customer service

and build customer

loyalty.

Business

marketing /

Industrial

marketing

Building and

keeping

relationships

between

organizations

1980s to present

day

In this context,

marketing takes

place between

businesses or

organizations. The

product focus lies

on industrial goods

or capital goods

rather than

consumer products

or end products.



Description

Different forms of

marketing activities,

such as promotion,

advertising and

communication to

the customer are

used.

Social marketing Benefit to society 1990s to present

day

Similar

characteristics as

marketing

orientation but with

the added proviso

that there will be a

curtailment of any

harmful activities to

society, in either

product, production,

or selling methods.

Branding Brand value 1980s to present

day

In this context,

"branding" is the

main company

philosophy and



Description

marketing is

considered an

instrument of

branding

philosophy.

4.2 Marketing Mix

The term "marketing mix" was coined in 1953 by Neil Borden in his American

Marketing Association presidential address. However, this was actually a reformulation

of an earlier idea by his associate, James Culliton, who in 1948 described the role of the

marketing manager as a "mixer of ingredients", who sometimes follows recipes

prepared by others, sometimes prepares his own recipe as he goes along, sometimes

adapts a recipe from immediately available ingredients, and at other times invents new

ingredients no one else has tried. The marketing mix (price, product, distribution,

promotion) forms the entire promotional campaign. As stated in “Management of a

Sales Force” by Rosann L. Spiro, Gregory A. Rich, William J. Stanton, “when these are

effectively blended, they form a marketing program that provides want-satisfying goods


and services for the company’s market." The term became popular in the article written

by Niel Borden called, “The Concept of the Marketing Mix,” as explained on the site

netmba.com. He started teaching the term to many after he himself learned about it with

an associate of his. The marketing mix is a broad concept which includes several

aspects of marketing which all inquire to obtain a similar goal of creating awareness and

customer loyalty. The marketing mix is not only an important concept, but a guideline to

reference back to when implementing the price, promotion, product, and distribution.

Those are the four main ingredients of the marketing mix, but there are other

components not already mentioned on the Wikipedia site, including, planning, branding,

packaging, display, distribution channels, personal selling, advertising, servicing, and

physical handling. All in all the current description of the marketing mix is accurate, but

missing some vital pieces of information which will allow individuals to gain a better

understanding and implement a more effective marketing mix. A prominent marketer, E.

Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use.


4.3 Four 'P's Product - It is a tangible good or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible

products are service based like the tourism industry & the hotel industry or

codes-based products like cell phone load and credits. Typical examples of a

mass produced tangible object are the motor car and the disposable razor. A less

obvious but ubiquitous mass produced service is a computer operating system.

Packaging also needs to be taken into consideration. Every product is subject to

a life-cycle including a growth phase followed by an eventual period of decline as

the product approaches market saturation. To retain its competitiveness in the

market, product differentiation is required and is one of the strategies to

differentiate a product from its competitors.

Price – The price is the amount a customer pays for the product. The business

may increase or decrease the price of product if other stores have the same

product.

Place – Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store as

well as virtual stores on the Internet.


Promotion represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements: advertising, public relations,

personal selling and sales promotion. A certain amount of crossover occurs when

promotion uses the four principal elements together, which is common in film

promotion. Advertising covers any communication that is paid for, from cinema

commercials, radio and Internet adverts through print media and billboards. Public

relations are where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and

events. Word of mouth is any apparently informal communication about the product

by ordinary individuals, satisfied customers or people specifically engaged to create

word of mouth momentum. Sales staff often plays an important role in word of mouth

and Public Relations (see Product above).

Any organization, before introducing its products or services into the market;

conducts a market survey. The sequence of all 'P's as above is very much important

in every stage of product life cycle Introduction, Growth, Maturity and Decline.

In recent years the addition of a 5th P has become common place. The 5th P being

people. This is to represent the people who you are targeting but also the people


who will physically conduct each part of the campaign. Some people even go up to

as many as 10 P's.

Extended Marketing Mix (4 P's)

More recently, three more Ps have been added to the marketing mix namely People,

Process and Physical Evidence. This marketing mix is known as Extended

Marketing Mix.

People: All people involved with consumption of a service are important. For

example workers, management, consumers etc. It also defines the market

segmentation, mainly demographic segmentation. It addresses particular class of

people for whom the product or service is made available.

Process: Procedure, mechanism and flow of activities by which services are

used. Also the 'Procedure' how the product will reach the end user.

Physical Evidence: The marketing strategy should include effectively

communicating their satisfaction to potential customers.

"Posture" it represents a friendly behavior with people and make a relation.


4.5 Marketing Strategy

The field of marketing strategy encompasses the strategy involved in the management

of a given product. A given firm may hold numerous products in the marketplace,

spanning numerous and sometimes wholly unrelated industries.

Accordingly, a plan is required in order to effectively manage such products. Evidently,

a company needs to weigh up and ascertain how to utilize its finite resources. For

example, a start-up car manufacturing firm would face little success should it attempt to

rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a

product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing

of production, may be made. Each scenario requires a unique marketing strategy. Listed

below are some prominent marketing strategy models.

B2C Buying Behavior

This mode of behavior concerns consumers and their purchase of a given product. For

example, if one imagines a pair of sneakers, the desire for a pair of sneakers would be

followed by an information search on available types/brands. This may include perusing

media outlets, but most commonly consists of information gathered from family and


friends. If the information search is insufficient, the consumer may search for alternative

means to satisfy the need/want. In this case, this may mean buying leather shoes,

sandals, etc. The purchase decision is then made, in which the consumer actually buys

the product. Following this stage, a post-purchase evaluation is often conducted,

comprising an appraisal of the value/utility brought by the purchase of the sneakers. If

the value/utility is high, then a repeat purchase may be made. This could then develop

into consumer loyalty to the firm producing the sneakers.

B2B Buying Behavior

Business Marketing is the practice of individuals, or organizations, including

commercial businesses, governments and institutions, facilitating the sale of their

products or services to other companies or organizations that in turn resell them, use

them as components in products or services they offer, or use them to support their

operations. Also known as industrial marketing, business marketing is also called

business-to-business marketing, or B2B marketing, for short. (Note that while marketing

to government entities shares some of the same dynamics of organizational marketing,

B2G Marketing is meaningfully different.)


4.6 Business Marketing Vs. Consumer Marketing

Although on the surface the differences between business and consumer marketing

may seem obvious, there are more subtle distinctions between the two with substantial

ramifications. Dwyer and Tanner (2006) note that business marketing generally entails

shorter and more direct channels of distribution.

While consumer marketing is aimed at large groups through mass media and retailers,

the negotiation process between the buyer and seller is more personal in business

marketing. According to Hutt and Speh (2004), most business marketers commit only a

small part of their promotional budgets to advertising, and that is usually through direct

mail efforts and trade journals. While that advertising is limited, it often helps the

business marketer set up successful sales calls.


Marketing to a business trying to make a profit (business-to-business marketing) as

opposed to an individual for personal use (Business-to-Consumer, or B2C marketing) is

similar in terms of the fundamental principles of marketing. In B2C, B2B and B2G

marketing situations, the marketer must always:

successfully match the product or service strengths with the needs of a definable

target market;

position and price to align the product or service with its market, often an intricate

balance; and

Communicate and sell it in the fashion that demonstrates its value effectively to

the target market.

These are the fundamental principles of the 4 Ps of marketing (the marketing mix) first

documented by E. Jerome McCarthy in 1960.

While "other businesses" might seem like the simple answer, Dwyer and Tanner (2006)

say business customers fall into four broad categories: companies that consume

products or services, government agencies, institutions and resellers.

The first category includes original equipment manufacturers, such as large automakers

who buy gauges to put in their cars and also small firms owned by 1-2 individuals who


purchase products to run their business. The second category - government agencies,

is the biggest. In fact, the U.S. government is the biggest single purchaser of products

and services in the country, spending more than $300 billion annually. But this category

also includes state and local governments. The third category, institutions, includes

schools, hospitals and nursing homes, churches and charities. Finally, resellers consist

of wholesalers, brokers and industrial distributors.

So what are the meaningful differences between B2B and B2C marketing?

A B2C sale is to a "Consumer" i.e. an individual who may be influenced by other factors

such as family members or friends, but ultimately the sale is to a single person who

pays for the transaction. A B2B sale is to a "Business" i.e. organization or firm. Given

the complexity of organizational structure, B2B sales typically involve multiple decision

makers. The marketing mix is affected by the B2B uniqueness which include complexity

of business products and services, diversity of demand and the differing nature of the

sales itself (including fewer customers buying larger volumes). Because there are some

important subtleties to the B2B sale, the issues are broken down beyond just the

original 4 Ps developed by McCarthy.

Business To Business (B2B) Marketing Strategies


B2B Branding

B2B Branding is different from B2C in some crucial ways, including the need to closely

align corporate brands, divisional brands and product/service brands and to apply your

brand standards to material often considered “informal” such as email and other

electronic correspondence. it is mainly of large scale when compared with B2C.

Product (or Service)

Because business customers are focused on creating shareholder value for

themselves, the cost-saving or revenue-producing benefits of products and services are

important to factor in throughout the product development and marketing cycles.

People (Target Market)

Quite often, the target market for a business product or service is smaller and has more

specialized needs reflective of a specific industry or niche. A B2B niche, a segment of

the market, can be described in terms of firmographics which requires marketers to

have good business intelligence in order to increase response rates. Regardless of the

size of the target market, the business customer is making an organizational purchase

decision and the dynamics of this, both procedurally and in terms of how they value

what they are buying from you; differ dramatically from the consumer market. There


may be multiple influencers on the purchase decision, which may also have to be

marketed to, though they may not be members of the decision making unit.

Pricing

The business market can be convinced to pay premium prices more often than the

consumer market if you know how to structure your pricing and payment terms well.

This price premium is particularly achievable if you support it with a strong brand.

Promotion

Promotion planning is relatively easy when you know the media, information seeking

and decision making habits of your customer base, not to mention the vocabulary

unique to their segment. Specific trade shows, analysts, publications, blogs and

retail/wholesale outlets tend to be fairly common to each industry/product area. What

this means is that once you figure it out for your industry/product, the promotion plan

almost writes itself (depending on your budget) but figuring it out can be a special skill

and it takes time to build up experience in your specific field. Promotion techniques rely

heavily on marketing communications strategies (see below).


Place (Sales and Distribution)

The importance of a knowledgeable, experienced and effective direct (inside or outside)

sales force is often critical in the business market. If you sell through distribution

channels also, the number and type of sales forces can vary tremendously and your

success as a marketer is highly dependent on their success.

B2B Marketing Communications Methodologies

The purpose of B2B marketing communications is to support the organizations' sales

effort and improve company profitability. B2B marketing communications tactics

generally include advertising, public relations, direct mail, trade show support, sales

collateral, branding, and interactive services such as website design and search engine

optimization. The Business Marketing Association is the trade organization that serves

B2B marketing professionals. It was founded in 1922 and offers certification programs,

research services, conferences, industry awards and training programs.


Positioning Statement

An important first step in business to business marketing is the development of your

positioning statement. This is a statement of what you do and how you do it differently

and better and more efficiently than your competitors.

Developing Your Messages

The next step is to develop your messages. There is usually a primary message that

conveys more strongly to your customers what you do and the benefit it offers to them,

supported by a number of secondary messages, each of which may have a number of

supporting arguments, facts and figures.

Building A Campaign Plan

Whatever form your B2B marketing campaign will take, build a comprehensive plan up

front to target resources where you believe they will deliver the best return on

investment, and make sure you have all the infrastructure in place to support each

stage of the marketing process - and that doesn't just include developing the lead -

make sure the entire organization is geared up to handle the inquiries appropriately.


Briefing An Agency

A standard briefing document is usually a good idea for briefing an agency. As well as

focusing the agency on what's important to you and your campaign, it serves as a

checklist of all the important things to consider as part of your brief. Typical elements to

an agency brief are: Your objectives, target market, target audience, product, campaign

description, your product positioning, graphical considerations, corporate guidelines,

and any other supporting material and distribution.

Measuring Results

The real value in results measurement is in tying the marketing campaign back to

business results. After all, you’re not in the business of developing marketing campaigns

for marketing sake. So always put metrics in place to measure your campaigns, and if at

all possible, measure your impact upon your desired objectives, be it Cost Per

Acquisition, Cost per Lead or tangible changes in customer perception.

4.7 The Marketing Environment


Elements of the environment. The marketing environment involves factors that, for the

most part, are beyond the control of the company. Thus, the company must adapt to

these factors. It is important to observe how the environment changes so that a firm can

adapt its strategies appropriately. Consider these environmental forces:

Competition: Competitors often “creep” in and threaten to take away markets

from firms. For example, Japanese auto manufacturers became a serious threat

to American car makers in the late 1970s and early 1980s. Similarly, the Lotus

Corporation, maker of one of the first commercially successful spreadsheets,

soon faced competition from other software firms. Note that while competition

may be frustrating for the firm, it is good for consumers. (In fact, we will come

back to this point when we consider the legal environment).Note that competition

today is increasingly

global in scope. It is important to recognize that competition can happen at different

“levels.” At the brand level, two firms compete in providing a very similar product or

service. Coca Cola and Pepsi, for example, compete for the cola drink market, and

United and American Airlines compete for the passenger air transportation market.

Firms also face less direct—but frequently very serious—competition at the product

level. For example, cola drinks compete against bottled water. Products or services can

serve as substitutes for each other even though they are very different in form.


Teleconferencing facilities, for example, are very different from airline passenger

transportation, but both can “bring together” people for a “meeting.” At the budget level,

different products or services provide very different benefits, but buyers have to make

choices as to what they will buy when they cannot afford—or are unwilling to spend on

—both. For example, a family may decide between buying a new car or a high

definition television set. The family may also have to choose between going on a

foreign vacation or remodeling its kitchen. Firms, too, may have to make choices. The

firm has the cash flow either to remodel its offices or install a more energy efficient

climate control system; or the firm can choose either to invest in new product

development or in a promotional campaign to increase awareness of its brand among

consumers.

Economics. Two economic forces strongly affect firms and their customers:

Economic Cycles. Some firms in particular are extremely vulnerable to changes

in the economy. Consumers tend to put off buying a new car, going out to eat, or

building new homes in bad times. In contrast, in good times, firms serving those

needs may have difficulty keeping up with demand. One important point to

realize is that different industries are affected to different degrees by changes in

the economy. Although families can cut down on the quality of the food they buy

—going with lower priced brands, for example—there are limits to the savings


that can be made without greatly affecting the living standard of the family. On

the other hand, it is often much easier to put off the purchase of a new car for a

year or hold off on remodeling the family home. If need be, firms can keep the

current computers—even though they are getting a bit slow—when sales are

down. The economy goes through cycles. In the late 1990s, the U.S. economy

was quite strong, and many luxury goods were sold. Currently, the economy

fluctuates between increasing strength, stagnation, or slight decline. Many firms

face consequences of economic downturns. Car makers, for example, have seen

declining profit margins (and even losses) as they have had to cut prices and

offer low interest rates on financing. Generally, in good economic times, there is a

great deal of demand, but this introduces a fear of possible inflation. In the U.S.,

the Federal Reserve will then try to prevent the economy from “overheating.” This

is usually done by raising interest rates. This makes businesses less willing to

invest, and as a result, people tend to make less money. During a recession,

unemployment tends to rise, causing consumers to spend less. This may result

in a “bad circle,” with more people losing their jobs due to lowered demands.

Some businesses, however, may take this opportunity to invest in growth now

that things can be bought more cheaply.

Inflation. Over time, most economies experience some level of inflation. Therefore,

it is useful to explicitly state whether a reference to money over time involves the

actual dollar (or other currency) amount exchanged at any point (e.g., one dollar


spent in 1960 and one dollar in 2007) or an “inflation adjusted” figure that “anchors”

a given amount of money to the value of that money at some point in time. Suppose,

for example, that cumulative inflation between 1960 and 2007 has been 1,000%--

that is, on the average, it costs ten times as much to buy the same thing in 2007 as it

did 47 years earlier. If the cumulative inflation between 1960 and 1984 had been

500%, we could talk about one 1984 dollar being worth fifty 1960 cents or two 2007

dollars. It is important to note that inflation is uneven. Some goods and services—

such as health care and college tuition—are currently increasing in cost much higher

than the average rate of inflation. Prices of computers, actually decline both in

absolute numbers (e.g., an average computer cost $1,000 one year and then goes

for $800 two years later) and in terms of the value for money paid once an

adjustment has been made for the improvement in quality.

That is, two years later, the computer has not only declined in price by 20%, but it

may also be 30% better (based on an index of speed and other performance

factors). In that case, then, there has actually been, over the period, a net deflation

of 38.5% for the category.

Political. Businesses are very vulnerable to changes in the political situation. For

example, because consumer groups lobbied Congress, more stringent rules

were made on the terms of car leases. The tobacco industry is currently the

target of much negative attention from government and public interest groups.


Currently, the desire to avoid aiding the enemy may result in laws that make it

more difficult for American firms to export goods to other countries. Many

industries have a strong economic interest in policies that benefit the industry

may have a negative impact on the nation as a whole but enhance profits for the

industry. For example, regulations that limit the amount of sugar that can be

imported into the United States is estimated to cost each American approximately

$10.00 a year. The total increase in profits to the sugar industry is difficult to

estimate because many of the large producers of refined sugar are privately held

corporations, but it is likely that the net gain to the industry is as much as the

roughly $3 billion lost by Americans a whole. However, the interests of the

industry are much more concentrated.

The industry can rally its stockholders, unions and employees, and suppliers (e.g.,

fertilizer manufacturers and manufacturers of sugar cane processing equipment)

together to lobby for their special interests. In turn, the industry can join forces with

other agricultural interests which each support each other’s programs.

Legal. Firms are very vulnerable to changing laws and changing interpretations

by the courts. Firms in the U.S. are very vulnerable to lawsuits. McDonald’s, for

example, is currently being sued by people who claim that eating the chain’s

hamburgers caused them to get fat. Firms are significantly limited in what they

can do by various laws—some laws, for example, require that disclosures be


made to consumers on the effective interest rates they pay on products bought

on installment. A particularly interesting group of laws relate to antitrust. These

laws basically exist to promote fair competition among firms. We will consider

such laws when we cover pricing later in the term.

Technological. Changes in technology may significantly influence the demand

for a product. For example, the advent of the fax machine was bad news for

Federal Express. The Internet is a major threat to travel agents. Many record

stores have been wiped out of business by the trend toward downloading songs

(or illegally “ripping” songs from friends’ CDs—an act to which even the President

of the United States has confessed). Although technological change eliminates or

at least greatly diminishes some markets, it creates opportunities for others. For

example, although Federal Express has lost a considerable amount of business

from documents that can now be faxed or sent by the Internet rather than having

to be physically shipped, there has been a large increase in demand for

packages to be delivered overnight or “second day air.” Just-in-time

manufacturing techniques, in addition to online sales, have dramatically

increased the market for such shipments. Online sites such as eBay now makes

it possible to sell specialty products that, in the old days, would have been

difficult to distribute. Although it has been possible for more than a hundred years


to sell merchandise by catalog, buyers of these specialty products often had no

easy access to the catalogs.

Social: Changes in customs or demographics greatly influence firms. Fewer

babies today are being born, resulting in a decreased demand for baby foods.

More women work outside the home today, so there is a greater demand for

prepared foods. There are more unmarried singles today. This provides

opportunities for some firms (e.g., fast food restaurants) but creates problems for

others (e.g., manufacturers of high quality furniture that many people put off

buying until marriage). Today, there are more “blended” families that result as

parents remarry after divorce. These families are often strapped for money but

may require “duplicate” items for children at each parent’s residence.

4.8 Segmentation, Targeting, and Positioning

Segmentation, targeting, and positioning together comprise a three stage process. We

first (1) determine which kinds of customers exist, then (2) select which ones we are

best off trying to serve and, finally, (3) implement our segmentation by optimizing our

products/services for that segment and communicating that we have made the choice to

distinguish ourselves that way.


Segmentation involves finding out what kinds of consumers with different needs exist. In

the auto market, for example, some consumers demand speed and performance, while

others are much more concerned about roominess and safety. In general, it holds true

that “You can’t be all things to all people,” and experience has demonstrated that firms

that specialize in meeting the needs of one group of consumers over another tend to be

more profitable.

Generically, there are three approaches to marketing. In the undifferentiated strategy, all

consumers are treated as the same, with firms not making any specific efforts to satisfy

particular groups. This may work when the product is a standard one where one

competitor really can’t offer much that another one can’t. Usually, this is the case only


for commodities. In the concentrated strategy, one firm chooses to focus on one of

several segments that exist while leaving other segments to competitors. For example,

Southwest Airlines focuses on price sensitive consumers who will forego meals and

assigned seating for low prices. In contrast, most airlines follow the differentiated

strategy: They offer high priced tickets to those who are inflexible in that they cannot tell

in advance when they need to fly and find it impractical to stay over a Saturday. These

travelers—usually business travelers—pay high fares but can only fill the planes up

partially. The same airlines then sell some of the remaining seats to more price sensitive

customers who can buy two weeks in advance and stay over.

Note that segmentation calls for some tough choices. There may be a large number of

variables that can be used to differentiate consumers of a given product category; yet,

in practice, it becomes impossibly cumbersome to work with more than a few at a time.

Thus, we need to determine which variables will be most useful in distinguishing

different groups of consumers. We might thus decide, for example, that the variables


that are most relevant in separating different kinds of soft drink consumers are (1)

preference for taste vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price

sensitivity—willingness to pay for brand names; and (4) heavy vs. light consumers. We

now put these variables together to arrive at various combinations.

Several different kinds of variables can be used for segmentation.

Demographic variables essentially refer to personal statistics such as income,

gender, education, location (rural vs. urban, East vs. West), ethnicity, and family

size. Campbell’s soup, for instance, has found that Western U.S. consumers on

the average prefer spicier soups—thus, you get a different product in the same

cans at the East and West coasts. Facing flat sales of guns in the traditional male

dominated market, a manufacturer came out with the Lady Remmington, a more

compact, handier gun more attractive to women. Taking this a step farther, it is

also possible to segment on lifestyle and values.”

Some consumers want to be seen as similar to others, while a different segment

wants to stand apart from the crowd.

Another basis for segmentation is behavior. Some consumers are “brand loyal”—

i.e., they tend to stick with their preferred brands even when a competing one is

on sale. Some consumers are “heavy” users while others are “light” users. For

example, research conducted by the wine industry shows that some 80% of the


product is consumed by 20% of the consumers—presumably a rather intoxicated

group.

One can also segment on benefits sought, essentially bypassing demographic

explanatory variables. Some consumers, for example, like scented soap (a

segment likely to be attracted to brands such as Irish Spring), while others prefer

the “clean” feeling of unscented soap (the “Ivory” segment). Some consumers

use toothpaste primarily to promote oral health, while another segment is more

interested in breath freshening.

In the next step, we decide to target one or more segments. Our choice should

generally depend on several factors. First, how well are existing segments served by

other manufacturers? It will be more difficult to appeal to a segment that is already well

served than to one whose needs are not currently being served well. Secondly, how

large is the segment, and how can we expect it to grow? (Note that a downside to a

large, rapidly growing segment is that it tends to attract competition). Thirdly, do we

have strengths as a company that will help us appeal particularly to one group of

consumers? Firms may already have an established reputation. While McDonald’s has

a great reputation for fast, consistent quality, family friendly food, it would be difficult to

convince consumers that McDonald’s now offers gourmet food. Thus, McD’s would

probably be better off targeting families in search of consistent quality food in nice,

clean restaurants.


Positioning involves implementing our targeting. For example, Apple Computer has

chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a

lot through its advertising to promote itself, through its unintimidating icons, as a

computer for “non-geeks.” The Visual C software programming language, in contrast, is

aimed a “techies.”

Michael Treacy and Fred Wiersema suggested in their 1993 book The Discipline of

Market Leaders that most successful firms fall into one of three categories:

Operationally excellent firms, which maintain a strong competitive advantage

by maintaining exceptional efficiency, thus enabling the firm to provide reliable

service to the customer at a significantly lower cost than those of less well


organized and well run competitors. The emphasis here is mostly on low cost,

subject to reliable performance, and less value is put on customizing the offering

for the specific customer. Wal-Mart is an example of this discipline. Elaborate

logistical designs allow goods to be moved at the lowest cost, with extensive

systems predicting when specific quantities of supplies will be needed.

Customer intimate firms, which excel in serving the specific needs of the

individual customer well. There is less emphasis on efficiency, which is sacrificed

for providing more precisely what is wanted by the customer. Reliability is also

stressed. Nordstrom’s and IBM are examples of this discipline.

Technologically excellent firms, which produce the most advanced products

currently available with the latest technology, constantly maintaining leadership in

innovation. These firms, because they work with costly technology that need

constant refinement, cannot be as efficient as the operationally excellent firms

and often cannot adapt their products as well to the needs of the individual

customer. Intel is an example of this discipline.

Treacy and Wiersema suggest that in addition to excelling on one of the three value

dimensions, firms must meet acceptable levels on the other two. Wal-Mart, for example,

does maintain some level of customer service. Nordstrom’s and Intel both must meet

some standards of cost effectiveness. The emphasis, beyond meeting the minimum

required level in the two other dimensions, is on the dimension of strength.

Repositioning involves an attempt to change consumer perceptions of a brand, usually

because the existing position that the brand holds has become less attractive. Sears, for


example, attempted to reposition itself from a place that offered great sales but

unattractive prices the rest of the time to a store that consistently offered “everyday low

prices.” Repositioning in practice is very difficult to accomplish. A great deal of money is

often needed for advertising and other promotional efforts, and in many cases, the

repositioning fails.

To effectively attempt repositioning, it is important to understand how one’s brand and

those of competitors are perceived. One approach to identifying consumer product

perceptions is multidimensional scaling. Here, we identify how products are perceived

on two or more “dimensions,” allowing us to plot brands against each other. It may then

be possible to attempt to “move” one’s brand in a more desirable direction by selectively

promoting certain points. There are two main approaches to multi-dimensional scaling.

In the a priori approach, market researchers identify dimensions of interest and then ask

consumers about their perceptions on each dimension for each brand. This is useful

when (1) the market researcher knows which dimensions are of interest and (2) the

customer’s perception on each dimension is relatively clear (as opposed to being “made

up” on the spot to be able to give the researcher a desired answer).

In the similarity rating approach, respondents are not asked about their perceptions of

brands on any specific dimensions. Instead, subjects are asked to rate the extent of

similarity of different pairs of products (e.g., How similar, on a scale of 1-7, is Snicker’s

to Kitkat, and how similar is Toblerone to Three Musketeers?) Using a computer


algorithms, the computer then identifies positions of each brand on a map of a given

number of dimensions. The computer does not reveal what each dimension means—

that must be left to human interpretation based on what the variations in each

dimension appears to reveal. This second method is more useful when no specific

product dimensions have been identified as being of particular interest or when it is not

clear what the variables of difference are for the product category.

4.9 International Marketing

Scope. A number of issues are involved in marketing internationally and cross-

culturally:


Protectionism: Although trade generally benefits a country as a whole, powerful

interests within countries frequently put obstacles—i.e., they seek to inhibit free trade.

There are several ways this can be done:

Tariff barriers: A duty, or tax or fee, is put on products imported. This is usually a

percentage of the cost of the good.

Quotas: A country can export only a certain number of goods to the importing

country. For example, Mexico can export only a certain quantity of tomatoes to

the United States, and Asian countries can send only a certain quota of textiles

here.

“Voluntary” export restraints: These are not official quotas, but involve

agreements made by countries to limit the amount of goods they export to an

importing country. Such restraints are typically motivated by the desire to avoid

more stringent restrictions if the exporters do not agree to limit themselves. For

example, Japanese car manufacturers have agreed to limit the number of

automobiles they export to the United States.

Subsidies to domestic products: If the government supports domestic

producers of a product, these may end up with a cost advantage relative to

foreign producers who do not get this subsidy. U.S. honey manufacturers receive

such subsidies.


Non-tariff barriers, such as differential standards in testing foreign and domestic

products for safety, disclosure of less information to foreign manufacturers

needed to get products approved, slow processing of imports at ports of entry, or

arbitrary laws which favor domestic manufacturers.

Cultural lessons

We considered several cultural lessons in class; the important thing here is the big

picture. For example, within the Muslim tradition, the dog is considered a “dirty” animal,

so portraying it as “man’s best friend” in an advertisement is counter-productive.

Packaging, seen as a reflection of the quality of the “real” product, is considerably more

important in Asia than in the U.S., where there is a tendency to focus on the contents

which “really count.” Many cultures observe significantly greater levels of formality than

that typical in the U.S., and Japanese negotiator tend to observe long silent pauses as a

speaker’s point is considered.

Product Need Satisfaction. We often take for granted the “obvious”

need that products seem to fill in our own culture; however, functions served may be

very different in others—for example, while cars have a large transportation role in the

U.S., they are impractical to drive in Japan, and thus cars there serve more of a role of


being a status symbol or providing for individual indulgence. In the U.S., fast food and

instant drinks

such as Tang are intended for convenience; elsewhere, they may represent more of a

treat. Thus, it is important to examine through marketing research consumers’ true

motives, desires, and expectations in buying a product.

Approaches to Product Introduction

Firms face a choice of alternatives in marketing their products across markets. An

extreme strategy involves customization, whereby the firm introduces a unique product

in each country, usually with the belief tastes differ so much between countries that it is

necessary more or less to start from “scratch” in creating a product for each market. On

the other extreme, standardization involves making one global product in the belief the

same product can be sold across markets without significant modification—e.g., Intel

microprocessors are the same regardless of the country in which they are sold. Finally,

in most cases firms will resort to some kind of adaptation, whereby a common product is

modified to some extent when moved between some markets—e.g., in the United

States, where fuel is relatively less expensive, many cars have larger engines than their

comparable models in Europe and Asia; however, much of the design is similar or

identical, so some economies are achieved. Similarly, while Kentucky Fried Chicken


serves much the same chicken with the eleven herbs and spices in Japan, a lesser

amount of sugar is used in the potato salad, and fries are substituted for mashed

potatoes.

There are certain benefits to standardization. Firms that produce a global product can

obtain economies of scale in manufacturing, and higher quantities produced also lead to

a faster advancement along the experience curve. Further, it is more feasible to

establish a global brand as less confusion will occur when consumers travel across

countries and see the same product. On the down side, there may be significant

differences in desires between cultures and physical environments—e.g., software sold

in the U.S. and Europe will often utter a “beep” to alert the user when a mistake has

been made; however, in Asia, where office workers are often seated closely together,

this could cause embarrassment.

Adaptations come in several forms. Mandatory adaptations involve changes that have

to be made before the product can be used—e.g., appliances made for the U.S. and

Europe must run on different voltages, and a major problem was experienced in the

European Union when hoses for restaurant frying machines could not simultaneously

meet the legal requirements of different countries. “Discretionary” changes are changes

that do not have to be made before a product can be introduced (e.g., there is nothing

to prevent an American firm from introducing an overly sweet soft drink into the


Japanese market), although products may face poor sales if such changes are not

made. Discretionary changes may also involve cultural adaptations—e.g., in Sesame

Street, the Big Bird became the Big Camel in Saudi Arabia.

Another distinction involves physical product vs. communication adaptations. In order

for gasoline to be effective in high altitude regions, its octane must be higher, but it can

be promoted much the same way. On the other hand, while the same bicycle might be

sold in China and the U.S., it might be positioned as a serious means of transportation

in the former and as a recreational tool in the latter. In some cases, products may not

need to be adapted in either way (e.g., industrial equipment), while in other cases, it

might have to be adapted in both (e.g., greeting cards, where the both occasions,

language, and motivations for sending differ). Finally, a market may exist abroad for a

product which has no analogue at home—e.g., hand-powered washing machines.

Country of origin effects. Traditionally, a product’s country of origin has

had a considerable impact on how the product is perceived by consumers. Some

countries were thought to be good at making certain things (e.g., the French being

famous for wine and cheese with the Germans and Japanese being known for


manufacturing excellence). One country could have a good reputation for one type of

product but not for another. For example, the British might be perceived as a high

quality maker of sports automobiles but a poor quality maker of food. A beer brewer in

France and a wine maker in Germany—both being near the border to the other country

—deliberately obscured the origin of the products to avoid being judged negatively.

Some firms may engage in the dubiously ethical practice of giving a product an

appearance of being associated with—if not being outright manufactured in—a country

with a favorable origin

impact on the product. For example, a manufacturer of perfume might print the

instructions on the container in French even if there is no intention of exporting the

product to—let alone making the product in—France.

Today, the world of manufacturing is more complicated. Consumers are increasingly

aware that products are often not made in the country associated with the brand. Many

Sony products, for example, are produced in countries other than Japan. Many

“Japanese” cars made for the U.S. market are now manufactured in North America. It is

now also recognized that high quality products can be designed and made in countries

such as South Korea and even China. Few people know in which country a particular

model of the Apple iPod® has been made. The country-of-origin effect today, then, is

considerably less than it has been in the past.


Measuring country wealth. There are two ways to measure the wealth

of a country. The nominal per capita gross national income (GNI) refers to the value of

goods and services produced per person in a country if this value in local currency were

to be exchanged into dollars. Suppose, for example, that the per capita GDP of Japan is

3,500,000 yen and the dollar exchanges for 100 yen, so that the per capita GDP is

(3,500,000/100)=$35,000. However, that $35,000 will not buy as much in Japan—food

and housing are much more expensive there. Therefore, we introduce the idea of

purchase parity adjusted per capita GNI, which reflects what this money can buy in the

country. This is typically based on the relative costs of a weighted “basket” of goods in a

country. The actual formula is very lengthy and complicated, but as a simple illustration,

one might example a weighting based on 35% of the cost of housing, 40% the cost of

food, 10% the cost of clothing, and 15% cost of other items. If it turns out that this

measure of cost of living is 30% higher in Japan, the purchase parity adjusted GPD in

Japan would then be ($35,000/(130%) = $26,923.

In general, the nominal per capita GNI is more useful for determining local consumers’

ability to buy imported goods, the cost of which are determined in large measure by the

costs in the home market, while the purchase parity adjusted measure is more useful

when products are produced, at local costs, in the country of purchase. For example,


the ability of Argentineans to purchase micro computer chips, which are produced

mostly in the U.S. and Japan, is better predicted by nominal income, while the ability to

purchase toothpaste made by a U.S. firm in a factory in Argentina is better predicted by

purchase parity adjusted income.

It should be noted that, in some countries, income is quite unevenly distributed so that

these average measures may not be very meaningful. In Brazil, for example, there is a

very large “underclass” making significantly less than the national average, and thus,

the national figure is not a good indicator of the purchase power of the mass market.

Similarly, great regional differences exist within some countries—income is much higher

in northern Germany than it is in the former East Germany, and income in southern Italy

is much lower than in northern Italy. The relevant figures, then, should generally be

based on the segments of interest within the respective country. For example, if it is

estimated that only homes in the upper 30% of income in a given country would be able

to afford the product in question, this is the group that should be used for comparison.


PROJECT 1

SAP GLOBAL DELIVERY

INTRANET PORTAL


5.0 PROJECT 1- Intranet Portal

5.1 SAP NetWeaver Portal and Collaboration

The SAP NetWeaver Portal offers a single point of access to SAP and non-SAP

information sources, enterprise applications, information repositories, databases and

services - all integrated into a single user portal experience. SAP NetWeaver Portal

provides you the tools to manage and analyze this knowledge, and to share and

collaborate on the basis of it. The SAP NetWeaver Portal also delivers collaboration

features that enable individuals, teams, and interested parties to work closely together

towards common goals.

SAP NetWeaver Portal is one of the building blocks in the SAP NetWeaver

architecture. With only a Web Browser, users can begin work once they have been

authenticated in the portal which offers a single point of access to information,

enterprise applications, and services both inside and outside an organization. The Net

weaver Portal also provides the tools to manage this knowledge, to analyze and

interrelate it, and to share and collaborate. With its coherent interface, role-based

content, and personalization features, the portal enables you to focus exclusively on

data relevant to your daily decision-making processes.


Knowledge Management offers capabilities that everyone can use to distribute and

access unstructured information within an organization through a heterogeneous

repository landscape.

Collaboration brings users, information, and applications together to ensure successful

cooperation. All collaboration tools and channels are easily accessible directly from the

portal. These tools include collaboration rooms, discussion forums, instant messaging,

chat, e-mail, and calendar integration.

The Portal is used for different purposes.

Internationalization

Personalization

Integration

Authorization

SAP NetWeaver Portal is the platform for running Web Dynpro applications or Dyn Page

applications created by SAP or custom designed for connecting to some ERP

functionality.


Authentication

SAP NetWeaver Portal allows different forms of authentication:

Username and password

SAP Logon Tickets

x.509 certificates (i.e., Single Sign-On) via Secure Network Communications or

Secure Socket Layer

SAP Logon Ticket SAP Logon Tickets represent user credentials in SAP systems. When

enabled, users can access multiple SAP applications and services through

SAPgui and web browsers without further username and password inputs

from the user. SAP Logon Tickets can also be a vehicle for enabling single

sign-on across SAP boundaries; in some cases, logon tickets can be used

to authenticate into 3rd party applications such as Microsoft-based web

applications.

How Does It Work1. User opens SAP

2. User logs on to SAP


3. SAP enterprise portal server issues (against user persistence specified in the

portal user management engine (UME)) an SAP Logon Ticket to the user

4. SAP Logon Ticket is stored in the user's browser as a non-persistent HTTP

cookie

5. User gains access to multiple SAP applications and services

Composition User ID

Validity date(s)

Issuing system

Digital signature

Authentication method

Notable Properties

Below is a short list of important properties for SAP Logon Tickets.

login.ticket_client - a three-character numeric string used to indicate the client

that is written into the SAP logon ticket


login.ticket_lifetime - indicates the validity period of the ticket in terms of hours

and minutes (i.e., HH:MM)

login.ticket_portalid - yes/no/auto for writing the portal ID into the ticket

ume.login.mdc.hosts - allows the enterprise portal to look for logon tickets from

servers outside the portal domain

ume.logon.httponlycooki - true/false for security again malicious client-side script

code such as JavaScript

ume.logon.security.enforce_secure_cookie - enables SSL communication

ume.logon.security.relax_domain.level - determines which domains the SAP

logon ticket is valid

Single Sign-On

SAP Logon Tickets can be used for single sign-on through the SAP Enterprise Portal.

SAP provides a Web Server Filter that can be used for an authentication via http header

variable and a Dynamic Link Library for verifying SSO Tickets in 3rd party software

which can be used to provide native support for SAP Logon Tickets in applications

written in C or JAVA.


Integration with Identity & Access Management Platforms

Tivoli Access Manager has developed an authentication service compatible with

SAP Logon Tickets Sun ONE Identity has developed a solution where companies

can use the SAP Internet Transaction Server (ITS 2.0) and SAP Pluggable

Authentication Service (PAS) for integration with SAP for single sign-on. This

method uses logon tickets for single sign-on and the SAPCRYPTOLIB (SAP

encryption library) for SAP server-to-server encryption. Sun's solution utilizes the

dynamic libraries (DLL) external authentication method.

IBM Lotus Domino can be used as a technical ticket verifier component

Availability

Windows, Microsoft Internet Information Server

Apache, iPlanet Web Server


Dynamic Link Library

SAP provides Java and C sample files that can provide some hints how the library can

be implemented in the source code of a high level programming language such as

Visual Basic, C or JAVA.

Single Sign-On to Microsoft Web Applications

Microsoft web based applications usually only support the authentication methods basic

authentication or windows integrated authentication (Kerberos) provided by the Internet

Information Server. However, Kerberos does not work well over the internet due to the

typical configuration of client-side firewalls. SSO to Microsoft backend systems in

extranet scenarios is limited to the user id password mechanism. Based on the new

feature called protocol transition using constrained delegation SAP developed the

SSO22KerbMap Module. This new ISAPI Filter requests a constrained Kerberos ticket

for users identified by valid SAP Logon Ticket that can be used for SSO to Microsoft

web based applications in the back end.


Single Sign-On to Non-SAP Java Environments

It is possible to use SAP Logon Tickets in a non-SAP Java environment with minor

custom coding.

Integration into SAP Systems

ABAP

Logon tickets allows for single sign-on into ABAP application servers. However, there

are prerequisites:

Usernames need to be the same for all SAP system that the user wants single

sign-on for. Passwords can be different.

Web browsers need to be configured to accept cookies.

Any web servers for ABAP servers need to be placed on the same DNS

The issuing server must be able to digitally sign logon tickets (i.e., public-key and

private-key are required).

Systems that accept logon tickets must have access to the issuing server's

public-key certificate.


Security Features Digitally signed by the SAP portal server

Uses asymmetric cryptography to establish unidirectional trust relationship

between users and SAP systems

Protected in transport via SSL

Validity period that can be configured in the security settings of the SAP

Enterprise Portal

Security Challenges SAP Logon Tickets do not utilize Secure Network Communications (SNC)

Typical security-related issues around cookies stored in a web browser.

Examples include:

Copying the SAP Logon Ticket via network traffic sniffing or social

engineering and storing it on another computer for access to the SAP

Enterprise Portal

Alternatives to SAP Logon Tickets Account aggregation via SAP Net Weaver


Utilize Secure Network Communications-based single sign-on technology from

independent software security providers

Secure Network Communications-Based Single Sign-On

Account Aggregation

The Enterprise Portal Server maps user information, i.e., user id and password, to allow

users to access external systems. This approach requires that to maintain changes of

username and/or password from one backend application to the portal. This approach is

not viable to web-based backend systems because past security updates from Microsoft

no longer support handling of usernames and passwords in HTTP, with or without

Secure Sockets Layer (SSL), and HTTPS URLs in Internet Explorer.

The usage of account aggregation has several drawbacks. First of all it requires that a

SAP portal user has to maintain a user id and password for each application that is

using account aggregation. If the password in one backend application changes the


SAP portal user has to maintain the stored credentials too. Though account aggregation

can be used as an option where no other solution might work it causes a significant

administrative overhead.

Using account aggregation to access a web based backend system that is configured to

use basic authentication results in sending a URL that contains user name and

password. A security update from Microsoft that has been published recently removes

support for handling user names and passwords in HTTP and HTTP with Secure

Sockets Layer (SSL) or HTTPS URLs in Microsoft Internet Explorer. The following URL

syntax is no longer supported in Internet Explorer if this security patch has been

applied.

Benefits Include

Reduces phishing success, because users are not trained to enter password

everywhere without thinking.

Reducing password fatigue from different user name and password combinations

Reducing time spent re-entering passwords for the same identity


Can support conventional authentication such as Windows credentials (i.e.,

username/password)

Reducing IT costs due to lower number of IT help desk calls about passwords

Security on all levels of entry/exit/access to systems without the inconvenience of

re-prompting users

Centralized reporting for compliance adherence.

SSO uses centralized authentication servers that all other applications and systems

utilize for authentication purposes, and combines this with techniques to ensure that

users do not actively have to enter their credentials more than once. SSO users need

not remember so many passwords to login to different systems or applications.

5.2 Portal Look & Feel

This is how a SAP Portal looks like for the employees

within SAP:


5.3 Enterprise Web Portal Questionnaire

Your response is important to us - please take a few moments to complete these questions!

1) How satisfied are you with your overall visit to SAP Corporate Portal?


Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

2) Did you find the information you needed?

Yes Partially No Just Browsing

3) Please indicate the type of information you look for on SAP Portal. (Check all that apply.)

Company Specific News Events Find employees Technical Information

Benefits & Compensation Company Policies Other

4) Clarity and understanding greatly affect how satisfied people are with the Portal. Please indicate your level of agreement with the following statements. As you were reading the information on our corporate portal.

a) The language was easy to understand?

Completely Agree Strongly Agree Agree Disagree Strongly Disagree


Completely Disagree

b) The level of technical terms used was appropriate?

Completely Agree Strongly Agree Agree Disagree Strongly Disagree Completely Disagree

5) Please rate your level of satisfaction with the following aspects of our portal:

a) Ability to navigate around Web site


b) Time to download information

Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied


Extremely Dissatisfied

c) Information is Up-to-date


d) Ability to search for information


e) Usefulness of information


f) Information assists in making new employee friends under your domain

Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied



g) How often do you visit our Corporate Portal?

This is my first visit Daily Weekly Monthly Yearly

6) What things would you change about this existing portal?

Thanks again for completing this questionnaire.


SAP GLOBAL DELIVERY

INTRANET PORTAL

FINDINGS


5.4 Findings - Existing Portal

One of the key points defining the problem statement for development of Intranet portal,

even when a Main portal already exists was:

1) Employees from One Country interact with employees from other countries mostly

when working together in one project.2) Employees from one work stream does not know their counterpart experts in other

countries or other domains.3) Main portal enables linkage to the benefits and information for one employee only

and has no way of communication with other employees.

4) The above mentioned problem statements arose a need for a new Intranet Portal. To

eradicate the above mentioned short comings new intranet portal will focus on the

below mentioned four key points.

5) The solution is based on the survey level done within the SAP Global Delivery

employees.


5.5 Survey Within the Organization

0123456789

10

Extremely Satisfied

Very Satisfied

Satisfied

Dissatisfied

Very Dissatisfied



5.6 Suggestions

Suggestions

Change in Look & Feel

Change in Provision of Information

Addition of Social Networking Features

Usefullness

Categorization of Pages

Recognition

5.7 Solution For Findings - Existing Portal

Connecting people across different Global Delivery centers: With unprecedented

speed and vigor, the outsourced economy is deeply entrenched across the business

landscape. In today's tough business environment, most of the companies are seeing a

tremendous opportunity in this downturn to streamline their resource operations, to


integrate their global delivery centers, to rationalize their cost structures and put in place

a lean and agile organization that can adapt quickly to the changing business needs.

Intranet Portal will be able to emphasize and implement new ways to dynamically

connect our employees across the globe, and empowering them through process

automation and information visibility so that they can accelerate on the next upturn.

Common platform to discuss various topics: One of the most important

purposes of the intranet portal is for the SAP community to discuss, in technical

detail, the ongoing development of new technologies and to discuss relevant

issues and derive solutions that benefit all concerned parties.

This will also serve purpose of a social networking service within SAP that

focuses on building and reflecting of social networks or social relations among

people, who, for example, share interests and/or activities. It will essentially

consist of a representation of each user (often a profile), his/her social links, and

a variety of additional services. This will be a web based and provide means for


users to interact over the Internet, such as e-mail and instant messaging. Though

in a broader sense, this new service can be differentiated with other social

networking services as the already existing portal usually means an individual-

centered service whereas Intranet portal will be group-centered. It will allow SAP

users to share ideas, activities, events, and interests within their individual

networks.

Fun at work: All work and no play make Jack a Dumb boy! It's been well

accepted that there is a direct relationship between 'fun at work' and employee

motivation, productivity, creativity, satisfaction and retention. A planned

programme of occasional and surprise activities at our workplace will bring staff,

at all levels, to work with a smile, never knowing what might happen today.

Humor is in the unexpected and it is well known to help relieve stress and

improve health, there is little else that will make a person feel as good as a laugh

and at the same time will lead to a balanced Work Life balance.

The new portal will provide all employees a chance to post and share their ideas

regarding fun at work and the most accepted idea can be implemented in Friday

afternoon or any feasible time to keep everyone in good shape and in motivated

mood.

Recognition and accolades.


5.8 Portal PhasesThe New Intranet Portal can be named as SAP Touch. The development of SAP Touch

will be divided into 3 phases:

First Phase: SAP Touch will be developed with the proposed features for

SAP Global Delivery India location and will be tested for various

functionalities and usage amongst the employees. Second Phase: During the second phase SAP Touch will be integrated

with other Business Centers of SAP Global Delivery and will be checked

for the performance and popularity amongst employees. Third Phase: Once SAP Touch is tested, integrated and validated

amongst all centers, a final rollout/Go live will be in place, after which

everyone can start

using SAP Touch and can take SAP to a totally high cloud with new innovative

ideas beneficial for the organization.

5.9 Proposed FeaturesSAP Touch will have the following mentioned proposed features in first phase:

Global Delivery Home page User Profiles and User home page


Employee Points System (EPS ) Regular contests and events Video and Photo Uploads Blogs, Groups, Polls and Discussions Travelogues, Food Reviews, Movie and Book reviews… etc.

5.10 Proposed Look and Feel for SAP TouchWith the proposed look and feel SAP Touch will basically consist of 2 Home Screens:

1) SAP GD Home Page : Global Home Page

2) My Home Page : Employees personal home page

SAP Global Delivery Home Page

As per the proposed features SAP Global Delivery Home page will look like:


My Home Page

As per the proposed features My Home page will look like:


5.11 Key Components on SAP Global Delivery Home Page

GD Home ->The main news center: This will be one of the prominent features on SAP

Global Delivery home page which will display and act as a main news center. The block

of news center will contain latest news from all the five centers and important official

announcements for SAP Global Delivery. Overall content of the news block will be

categorized as follows:

News will be displayed as a slide show.

News With a picture and short description of the news/event.

Topic headline will be a hyperlink and on clicking will lead to main article.

Slide show will be updated by team of moderators based on the input provided by

different teams and departments.


SAP Global Delivery Home ->Menus:

Menu Bar block on SAP Global Delivery home page will have provision for upload of:

1) Videos: Videos related to the latest and important events happening at SAP and at

different SAP Global Delivery centers.

2) Photos: Photos related to the latest and important events happening at SAP and at

different SAP Global Delivery centers.


GD Home -> The Buzz Area

The Buzz area will be one of the most prominent features of the SAP Global Delivery

home page.

The block will be updated by moderators and will display the key elements like:

1) Holds the updates of competition winners, any flash news.

2) Reminders of the latest events like Howzzat, FKOM.


SAP Global Delivery Home -> Top posts:

This prominent feature will help to showcase the most important articles on the site,

encouraging viewers to click on more articles and read what matters. New and

interesting blog posts can be submitted by SAP employees, which after validation will

be posted by the moderators. It can maximize the value of our archive by helping your

readers discover the most engaging topics or overall content.


Extra Features:


PROJECT 2

SAP Services

For


6.0 Project 2 – Solution Services

for Caterpillar

6.1 About the Company

Caterpillar is a global leader, a genuine enabler of sustainable world progress and

opportunity. While they share a rich heritage, the Caterpillar and Cat brands are

distinctly different. In the early years of Caterpillar's history, the term Cat was

synonymous with Caterpillar. Both described dependable, industry-leading machines

and the company that built them. In the 1950s, as the product line expanded, Cat

emerged as a distinct brand in its own right. Thirty years later, the Cat logo was

introduced, becoming the main identifier for products and services and the dealers that

distributed them. Today, the Cat brand is one of many brands owned by Caterpillar, and

it represents the largest and most respected family of products and services in earth-

moving industries across the world. Backed by the unmatched support of a global

network of Cat dealers, Cat products and services deliver superior quality and long term

value, helping to accelerate the success of our customers worldwide.


6.2 HistoryCaterpillar Inc. (NYSE: CAT), also known as "CAT", designs, manufactures, markets

and sells machinery and engines and sells financial products and insurance to

customers via a worldwide dealer network. Caterpillar is the world's largest

manufacturer of construction and mining equipment, diesel and natural gas engines and

industrial gas turbines. With more than US$7 billion in assets, Caterpillar was ranked

number one in its industry and number 44 overall in the 2009 Fortune 500. Caterpillar

stock is a component of the Dow Jones Industrial Average.

Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company

and the C. L. Best Tractor Company, creating a new entity, the California based

Caterpillar Tractor Company. In 1986, the company re-organized itself as a Delaware

corporation under the current name; Caterpillar Inc.Caterpillar's headquarters are

located in Peoria, Illinois, United States.


http://wiki.ask.com/United_States?qsrc=3044

http://wiki.ask.com/Peoria,_Illinois?qsrc=3044

http://wiki.ask.com/C._L._Best?qsrc=3044

http://wiki.ask.com/Holt_Manufacturing_Company?qsrc=3044

http://wiki.ask.com/Dow_Jones_Industrial_Average?qsrc=3044

http://wiki.ask.com/Stock?qsrc=3044

http://wiki.ask.com/Fortune_500?qsrc=3044

http://wiki.ask.com/Asset?qsrc=3044

http://wiki.ask.com/United_States_dollar?qsrc=3044

http://wiki.ask.com/Dealer_(franchising)?qsrc=3044

http://wiki.ask.com/Insurance?qsrc=3044

http://wiki.ask.com/Financial_services?qsrc=3044

http://wiki.ask.com/Internal_combustion_engine?qsrc=3044

http://wiki.ask.com/Heavy_equipment_(construction)?qsrc=3044

http://www.nyse.com/about/listed/quickquote.html?ticker=cat

http://wiki.ask.com/New_York_Stock_Exchange?qsrc=3044

Strategy

Caterpillar's Vision 2020 strategy sets the stage for the next phase of the company’s

leadership and growth in the global industries it serves.

6.3 Caterpillar Strategy

The strategy includes a vision of the future where:

Caterpillar is the recognized leader everywhere it does business.

Their products, services and solutions help their customers succeed.

Their distribution system is a competitive advantage.

Their supply chain is world class.

Their business model drives superior results.

Their people are talented and live Our Values in Action.

Their work today helps our customers create a more sustainable world.

Their financial performance consistently rewards our stockholders.


6.4 Five Year Goals

Goals for the next five years are focused in three areas

Delivering superior results: They are a great long-term investment with total

shareholder return in the top 25% of the S&P 500.

Developing the best team of people: Their employees will have a great, safe and

inclusive place to work.

Becoming the global leader everywhere we do business: Their customers will

make more money with them than with our competitors.


To achieve vision 2020 CAT has been trying with different solutions all across the world

with solution providers to streamline their process of:

Sales New Equipments Sales Used Equipments Renting & Finance Repair & Service Spare Parts Engineering Services


However, none other software vendor could prove their solution worth for streamlining

the existing process.

6.5 Major Challenges1. Streamlining the processes of OEM (original equipment manufacturer) Business

without major changes to the existing process.

2. CAT has innumerable dealers spanned all across the world with dealership of

their different variety of products. One of the main problem for the dealers was

that everyone used to see a different dealership login page when they log in for

the order placement or for any other activity.

3. What CAT wants is that a uniform and universal dealership page for dealers all

across the world, so that everyone can see the same page when they login and it

also becomes for the CAT maintenance team to maintain the information.


4. The other major challenge is the conversion of an existing financial data to the

new proposed vendor solution without any loss of data. Since all the above three

problem statements needs to be addressed for the large volume of the dealers

spanned across the globe, many software solution providers proposed their

solutions but could not prove it worth of handling all the problems successfully.

6.6 CAT Dealer Business Opportunity

6.6.1 Opportunity

CATERPILLAR is a solid and well served SAP Customer but goes to market

(sales, service, parts, rental …) through ~150 independent dealerships The CAT Dealer Network needs to replace their legacy solution aiming into a

‘networked’ software selling opportunity.

SAP is not first but was called in by a US Dealer community to offer an SAP Dealer

Solution as yet none other software vendor could prove their solution.


6.7 Opportunity ChallengesThe SAP Strategy to win a profitable volume of CAT Dealers is to take the solution

ownership by building and delivering a CAT Dealer specific implementation template.

6.8 Significant Project Variations SAP is difficult to deal with, and doesn’t have a common global

program Lack of solution consistency between installations Different projects with different partners Functional challenges SAP limited involvement Project details not shared for mutual benefit Redundancy


6.9 Solution ApproachSAP to have meat in the game: Owning the Solution

Cat-specific processes within a standard SAP template Project awareness and governance Enable a collaborative community for mutual benefit Align with Caterpillar solution roadmap Leverage SAP innovations

Global Dealer CAT Network Round the Globe


6.10 Questions for Clients/Prospects Replacing the ‘legacy’ solutions - how do we minimize customer data risk? How to best contribute to and share the SAP implementation template

framework? How to establish a common approach for developing and managing the

Caterpillar interfaces? How to extend the SAP solutions to support desired functionality (Rental)? How to accelerate adoption and avoid risk with change management best

practices? How to confidently undertake the DBS replacement and identify the

evolutionary roadmap? Is SAP very difficult to deal with? Do we need a small dedicated team? Should have a global program?


6.11 SAP Cat Dealer Program

6.11.1 Findings/Objectives for 2011 – Standardize and

Simplify

Common Template through CoE

Including product demonstrations Established a common DSG, CoE and SE team for Whayne, Started working together since Whayne discovery Re-initiate the Advisory Group Agreed for a monthly call with all dealers Established a portal for CDAG NADITA follow-up started

Work with existing customers on a one-by-one basis

Cashman, Hewitt, Barloworld all agreed to work with us Provided Initial Proposal to Borosan Cashman Audit being arranged Hewitt agreed to provide access to their SolMan

Establish Clear Partner Strategy

Multiple alignment meetings with Systech, FIT, FDC, B4 etc Fit and FDC agreed to work on a partnership agreement for Interfaces


6.12 SAP Strategy to Monetize the CAT

Dealer Opportunity

Key Building Blocks and Responsibilities of the SAP Strategy for CAT

Dealers


Enable the US CAT Dealer Team to Scale towards a Global CAT Dealer Business

• Approval to engage across the globe• Common policy for revenue and order booking

credits• One off deals/agreements are difficult to

manage/every sales cycles requires commitment of time

Establish Global Consulting Program

• Microsoft has launched a common pricing discounts for the global community

• Need a common SE team for the global program

Establish a Common Global Sales Play

• Lack of alignment will lead to tremendous bleeding of revenues and weaken the business case for the CoE

• We need a lean development and support model with a single face to the dealer community, else we will fail together

Establish a Common Business Case with

the IBU

6.13 What is the Ask of SAP Management?

6.14 SAP Global CAT Dealer Center of

Excellence

Dedicated Resources to Serve the CAT Dealer Community


6.15 SAP Cat Dealer Program

6.15.1 Application Strategy


Deale

r Bu

siness N

etw

ork

Inte

gra

tion

Eq

uip

men

t D

eale

r A

naly

tics

EquipmentLifecycleManagement

ReplacementOpportunitie

s

Configuration

Management

FleetManageme

nt

Profitability

Management

Equipmentand ServiceOperations

Warranty and

Complaint

Workshop Service

Field Service

Spare PartLogistics

EquipmentInteraction

OperatedEquipment

CustomerInteraction

B2B withOEM

B2B with

Dealers

B2B with

Customer

Service

Partner

Financial

Partner

EquipmentSolutionSelling

Marketing and

AppearanceRental &

Rent-to-Buy

New/UsedEquipment

FleetOutsourcing

Construction

Site Solutions

Service and Spare

Part

Engineered

Solutions

Trade-In & Financing

DealerBusinessFunctions

Financials and

AccountingHuman Capital

Management

ProjectManageme

ntCorporateSustainabil

ity

Risk and Complianc

e

Procurement and

SourcingQuality

Management

6.16 Approach Consolidate experience and knowledge and best practices Standardize and evolve the SAP CAT Dealer implementation

template Ensure alignment with Caterpillar landscape and future direction Establish a dedicated team of CAT Dealer expert consultants


6.17 Benefits Accelerated implementations to improve time to value and total cost

of ownership Single source for solution and implementation strategy and best

practice knowledge

Ensure SAP CAT Dealer customers are well coordinated with Caterpillar innovation

rollouts.

6.18 SAP CAT Dealer Template

Status and Milestones


PROJECT 3SAP Global Delivery

Competency Premier League

7.0 Project 3 – CPL (Competency Premier League)


7.1 Corporate Innovation Leadership Questionnaire

Your response is important to us - please take a few moments to complete these questions!

1) How satisfied are you with the innovation at SAP?


2) How satisfied are you regarding the extempore and presentation skills training?


3) Has the external trainers able to meet up the expectation level during training?

Yes No Partially Have Not Attended Yet Others

4) Has the training helped you to enhance your communication and presentation skills?


Yes No Partially Have Not Attended Yet Others

5) Have you ever participated in Innovation at SAP?

Yes No Partially Others

6) Please suggest how would you help SAP with new Innovative ideas?

Thanks again for completing this questionnaire.

7.2 Findings

7.3 Solution for Findings – Launch Of CPL

7.3.1 What is the Competency Premier League?

The CPL is a three-day event that saw the best consulting brains from SAP Global

Delivery battle for the top spot with the best ideas, the best displays, speaking


opportunities and thought leadership - all to show the SAP world how the best in the

business are BUILT TO DELIVER.

The best players competed with themselves to raise the bar continuously. This was a

chance to outdo consultants on the Competency Premier League (CPL) platform.

Showcase their consulting DNA and how their competency is the market maker across

various SAP solutions.

7.3.2 Go Beyond The Boundary

CPL is SAP employee show - Employees went beyond their boundaries and

demonstrated everything that SAP Global Delivery stands for in the Competency

Premier League. The event was a three day power packed event:

7.4 CPL Phases

The whole event was divided into 4 phases:

1) Power Play

2) Straight Drive

3) Pinch Hitting

4) The Doosra


7.4.1 Power Play - Make Your Pitch

Max Points : 50 +20

The first day competition of the CPL event is a showcase for the competencies.

Key Concepts & Rules

- Each practice was allowed to make a presentation in front of a select jury & open

audience for a maximum of 10 minutes about the competency + 4 minutes for Q & A

(on 28th June, 2 to 6 pm.) Evaluation Criteria for presentation (total = 50 points)

- Clarity of the content; explaining the capabilities of the competency (10)

- Key highlights & distinguishing factors about the practice that come out of the

presentation (10)

- Strategy & vision articulated in the presentation and its relevance to organization

strategies - Any new ideas proposed in the presentation that can help the

organization grow, Ability of the competency to contribute to organization growth .

(10)

- Creativity & Innovation of presentation (10)

- Presentation skills of the presenter in terms of ability to connect with the audience

and convey the message (10)

Team Mascot 10 points Jury evaluation


Team Name 5 points Jury evaluation

Slogans 5 points Jury evaluation

- Presentation can be made using any standard software and can use all

audio-visual audio-visual media (ppt, movie files etc)

- A maximum of 50 points can be awarded by each jury member and the average score

will be calculated to decide the winner.

- In case of a tie, the team taking lesser time will be awarded the winner

- 2 point will be deducted with every additional minute taken for the presentation

- No limit on the number of presenters making the presentation

- The rules and regulations of the CPL events are subject to change by the

CPL Core Committee without notice

7.4.2 Power Play - Thought Leadership

Max Points: 20 (Jury) + 5 (Community Votes) + 5 (participation)

Teams to present an article that will be posted on the SAP Global Delivery community

page and screened papers will be presented before a select jury.

Key Concepts & Rules

- The article can be presented in the form of a whitepaper or an opinion article

(relevant to SAP Global Delivery Business)


https://community.wdf.sap.corp/sbs/groups/sap-global-delivery-connect-expressexploreengage/blog/2011/06/01/competency-premier-league--straight-drive


- This is an individual event. Maximum 2 participants can present one whitepaper and

a maximum of 5 entries are allowed from one competency.

- Each participation from the competencies (max 5) will be awarded 1 point each for

participation

Evaluation criteria can be (maximum 20 points) -

- Content (10)

- Relevance to GD (5)

- Presentation Skills(5)

- For opinion articles, the author(s) must warrant that the write-up submitted is their

original work and has not been published previously.

- The Whitepapers and Articles will be posted on the SAP Global Delivery community

page. A poll will be linked to judge the article by readers.

- The article must be submitted latest by June 22nd , 2011. The article will be made live

on the community page for polling.

- The screened papers will be presented to the Jury on 29th June , 2011 (10 am to 1

pm)

- Jury's decision will be based on presentation of content and relevance to

SAP Global Delivery business.

- Result will be based on Jury decision and Reader's Poll.


CPL Core Committee without notice.





7.4.3 Pinch Hitting - Innovation

Max Points: 50

Each Competency to present the topic in front of select jury and open audience.

Presentation of an idea to-

- Increase market presence of SAP Global Delivery (unexplored solutions/services…)

- Increase share of work (more presence in already explored areas)

- Improve productivity

- Improve quality

Idea can be a Service/Solution/Re-usable object (no codes/documents) or...

It can be one idea or multiple linked ideas

Each team gets 12 minutes, including Q & A (8 mins for speaker/s + 4 for Q&A)

Evaluation criteria can be (maximum 50 points) –

- Creativity, innovation, out of box thinking (10)

- Business gain, in terms of $ value (10)

- Clarity of the content, Presentation Skills (10)


- Viability, immediate application (10)

- Cross-team/cross-practice collaboration (10) -> the presenting team gets evaluated.

The team with major solution stake will be the owner of the idea.

2 marks deducted for every additional minute.

No limit on the number of presenters making the presentation.

Scores by Jury will be averaged out to decide the winner.

In case of tie, team taking lesser time will win.



7.4.4 The Doosra - QUIZ

Max Points: 25

- A quiz of epic proportions with questions on everything under the sun!

- Eliminations at the end of round 1 and 2 on 30th June, 2 to 6 pm.




7.5 The CPL Official Web Page

To make the event successful and to bring out the main motive of the CPL- leverage

SAP brains to cultivate out the best innovative ideas to make SAP a better place to work

and to make SAP RUN BETTER for all our customers the whole event was categorized

between 13 teams as participants:

Team Name Captains Power Play

HCM Dream Team - CPL CHAMPION Jayendra Bisnik 41

CalpavRikshaM - CPL Runner Up Sathish Radhakrishnan 42


FS Falcons Santosh Ramadoss 50

BA Infonators Sandeep Gupta 42

Hurricane Hunters! (SCM/SRM) Hari Shankar Tripathy 49

Incredible Innovators (IISD) Subramanyam Balasubramanian 33

BCCI – Bindaas Players Mahalingam Sornanathan 31

ERP Core Anup Das 36

T&L Transporters Venkata Sivkumar Sridhar Desiraju 40

t FORCE (TTS) Amit Ranjan Bhattacharjee 42

T-72 (Retail) Manish Bhandari 36

Transformers (OTS & STS) Abhijit Bora 48

Energy Mavericks Chandrasekar Purushotham 32


7.6 Winners


8.0 BIBLIOGRAPHY

Primary Sources : Questionnaire (Survey)

Secondary Sources : Print Media , Company’s internal documents Journals etc.

Websites : www.wikipedia.com

www.sap.com

www.google.com


http://www.google.com/

http://www.wikipedia.com/

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