tivit interactive - creating value based offerings for the cloud
TRANSCRIPT
F-Secure
Creating Value based Offerings for the Cloud
• Bronan McCabe (MBA)
• VTT Technical research centre of Finland
Agenda
• VTT– Cloud Market Precedent
– Market Strategies
– Role of Value
Cloud Market PrecedentSupply and Demand
No of Users
Price
Traditional
Software
Provision
P-1
Q-1
Demand
SOURCE: Smith, Adam (1977) [1776].
P-2
Q-2
Cloud Software Provision
Gartner, 2010
Functionally less expensive with more agility
Yankee Group, 2010
Lowers TCO and improves efficiency
Delivery Mechanism - Google vs. Apple
Da
ta c
en
tre
Te
rmin
al
IAP
Application
Infrastructure SW
Equipment
Semiconductor
Application
Infrastructure SW
Equipment
Semiconductor
Network Access
Local-Metro
Internet Access
Backhaul NS
P
SOURCE: Messerschmitt & Szyperski, 2003; Tapscott, Ticoll, Lowry, 2000
Technology
De
live
ry M
ech
an
ism
Provider
End user
Aggregator
Alliance
Distributive
Value chain
SOURCE: Porter, 1980
Barriers to EntryScale economies
Access to capital
Cost advantages
Barriers to EntryProduct differentiation
Switching Costs
Channels to Market
Strategy Selection
SOURCE: Porter, 1980
Barriers to EntryScale economies
Access to capital
Cost advantages
What does Differentiation
Focus mean in the
Cloud?
Strategy Selection
OperationsMarketing
Business
Benefits Cost
Capabilities
Value
Creating Differentiation
Confusing Terminology ???
• Business– E.g. Value Networks – Transforming intangible value to
tangible value
• Operations– E.g. Lean – The removal of non-value adding waste
• Marketing– E.g. UX – Buyers of Experience value what the company
reveals over time
SOURCE: Allee, (2006); Womack et al, (1990); Pine & Gilmore (1998)
Value
Propositio
n
VTT Value Concept
OFFERING(Product/
Service/
Company)
User
Perceived
Value
Values
Input
Customer Values
Offering
ValueNetwork
Revenue Generating
Schemes
ValueProposition
CostStructure
OrganisationalAnalysis
StrategicAlignment
Output
Business Case
Analysis
Culture &Capabilities
Market Forecast
Stage 0:
DiscoveryStage 1:
ScopingStage 2:
Business Case
Business modelling
SOURCE: Cooper, (1990)
Value survey
SOURCE: Schwartz, (1992)
Values > Attitudes > Behaviour
• Gaining Understanding
– Customers & End users
– Behaviour
– Activities
– Products
– Services
– Company
• Correlation > Knowledge
• Criteria for decision making
• Segmenting the market
Differentiate from Competition!
VTT creates business
from technology