value migration: capturing the transformational impact of cloud services

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Window of opportunity

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3 18 February 2011

3

The world has changed

Everything is moving to the web

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The Game

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The Game

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Game Changer

Customers Economy

Online Services

You

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Get it right

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Get it wrong

Find 3 Take Aways

Game changing

questions

Q1. Are the risks high?

Q2. Do you need to change?

Q3. Will some of you fail?

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…and the answer is?

SalesChannel Europe ©2011 All rights reserved 18

Who are the Cloud Computing Losers?* *according to Quora respondents


Data Center

Server Farms

ASP

Managed Services Provider

Val

ue

to c

ust

om

ers

Time

Why? Hosting Industry Evolution

HSP

BSP

Wh

at is

Yo

ur

Stra

tegy

?


Innovation before Profitability

You probably feel...

www.flickr.com/photos/darkpatator/395215642

…you should feel like this

…and this

Value Migration: 5 Key Trends:

Everything is moving to the web 2

Customers want to enjoy the benefits 3

They want services not infrastructure 4

5 HSP -> BSP

Massive disruptive change 1

Opportunity

Change =

erently f

dif think

27

A fresh perspective

By looking outside

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Search

Find

Qualify

Try

Buy

Activate

Manage

Up-sell

Support

Refer

How do you differentiate

at each point of the customer’s journey?

Start with the Buyer’s Journey

Value Migration

Helping your customers move

their business to the cloud

www.flickr.com/photos/julishannon/2233750434

Value Migration: 5 Killer Questions:

What is your Value Proposition?

2

What are your Channels to Market?

3

What is your Message & Positioning?

4

5 How are you going to get there?

What is your Business Strategy?

1

Destination postcard

Identify barriers to success

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Change your thinking

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The hard way

AND thinking

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Change your view point

Child-like thinking

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2


3


4



1

Target specific customer groups

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Investment Strategy

SOHO & SMB

Midmarket

Enterprise

Needs

Skills (People)

Infrastructure Marketing: Brand

Awareness (Investment)



2


3


4



1

Rethink your Value Proposition

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Create a compelling Value Proposition

Product Service Customer Experience

Create simple

Value Propositions

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2


3


4



1

Channels to Market

SOHO & SMB Online Channel

Telesales Partners

Midmarket Online & Partners

Enterprise Direct & Partners

Channels to Market

48

Direct Sales

In-Direct Sales

Online Sales

Channels to Market

49

Integrated Sales Machine

Josh Bernoff & Charlene Li

Josh Bernoff & Ted Schadler

Tipping the funnel

Capture their attention



2


3


4



1

Messaging & Positioning

Influence is spread

through social media

Target tomorrow’s customers

Being Found/Findable

Standing out from the crowd



2


3


4



1

Wishing for change

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It not a game of chance!

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Put your customer at the

centre of everything you do

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Focusing all your efforts on how they think

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Get everyone moving

in the same direction

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64

Collective focus

Continuous adaptability

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Innovate continuously

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Think outside the box

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Practical dilemma

Together we can do more

+

+

You/Your company

Your Hosted Services

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Next: What? and How?



2


3


4



1

The Killer Question:

What is the problem

for which you are

the solution?

The Killer Question:

Strategic direction

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Strategic direction

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Get it right

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David R Ednie President & CEO

SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Ph: +61 415 94 51 57 (AUS)

Email: [email protected] Website: www.saleschannel-europe.com

8 Key Success Factors

8 KSF’s in Actions

Level

Competitive

Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Demand Generation

Online Customer

Experience

Direct/Indirect Sales

Process

Organizational

Effectiveness Focus & Behavior

5

(Optimized)

Provider has created true Blue

Ocean (aka uncontested market

space) by differentiating along a

unique axis that reaches beyond

current market boundaries and

existing demand

Vertical (e.g. Real Estate),

Horizontal specialization (e.g.

Finance), or other micro-market

specific positioning. User focus

groups or surveys are pro-actively

used to incorporate customer

feedback into product life-cycle.

Micro-market specific

packaging/bundling of service

with vertically focused add-ons.

Market research used to

understand customer price-point

sensitivities.

Micro-market sales sites for

specific vertical markets (e.g. real-

estate). Fully integrated PPC/SEO

and pro-active analysis of web-

analytics

Micro-market specific demand

generation campaigns with

integration across all forms of

demand generation (e.g. PPC,

Banner Ads, email, direct mail,

print)

Integrated up-sell and cross-sell

activities into customer "control

panel". Pro-active and ongoing

customer feedback management

(surveys of customer panels by

segment to assess overall

customer experience, satisfaction,

and future needs).

Vertical or micro-market focused

channel partners with lead flow

integrated into micro-marketing

campaigns. Channel partner

branded sales sites. Integration of

channel partner into knowledge

base, live chat, etc.

Organization is designed and

internally aligned for change.

Specific processes for continuous

improvement. Healthy balance of

management (stability) and

leadership (fostering change).

Target Market

Focused w/

Continuous

Improvement

4

(Competitive)

Provider has differentiated with a

vertical market focus with vertical

(or micro-market) specific add-on

capabilities/features.

Best Practice positioning based

on a well-defined messaging &

position framework (see

template). Customer centric

positioning that blends customer-

benefit as the solution for the

customer pain point/problem.

Some type of unique

differentiation of packaging or

pricing that sets the provider apart

of the reset of the pack.

Differentiated sub-sites and/or

landing pages aligned with best-

practice positioning of value

proposition according to

messaging & positioning

framework

Demand generation campaigns

drive to a specific sub-site or

landing page. All campaign

activities are well coordinated and

integrated. Pro-active PPC/SEO

campaign management with

periodic (e.g. bi-weekly)

refinement.

Integrated online knowledge-base

and live-chat for both sales

support and post-sales support.

Pro-active email communication

during first 30-60 days provides

training, tips, tricks, etc.

Integrated lead/opportunity flow

for channel partners. Mature

process for lead qualification and

routing of leads. Customer

segmentation and qualification

"drives" the opportunity

management. Willing to "walk

away" from bad opportunities.

Strong executive sponsorship for

improving existing offerings and

adding new value-added service

offerings. Proven organizational

agility and rapid time-to-market in

response to competitive threats.

Transition Phase -

Focused on

Competitive

Differentiation &

Discrete

Improvements

3

(Predictable)

Provider has differentiated from

the competition by bundling

additional services or capabilities

not offered by the competition.

Customer centric positioning with

Benefits (e.g. Anytime, Anywhere

access), then supporting benefits

points, then features as

appropriate. Consistent

application of messaging

throughout ALL collateral.

Small number (2-3) of different

customer/user "plans" that align

correctly with end-user or

customer personas. Value

differentiation between different

price plans is clear and

significant.

Best-practice site that allows

customers to 1) Search; 2) Find;

3) Self Qualify; 4) Try (Free Trial

where possible); 5) Make the

buying decision; 6) Buy; 7)

Activate. Web-site is the focal

point of the business.

Makes use of pro-active

PPC/SEO campaigns. All demand

generation activities lead to one

place -- the web-site.

Self-guided sales experience, self-

admin capabilities, no barriers to

sale via web, or phone. Easy

signup and activation.

Pro-active management of direct

sales, inside sales, and channel

partners. Focus on customer

segmentation and lead

qualification. Pro-active training.

Overlay sales team with deep

solution expertise supports all

channels.

Organizational alignment around

business objectives and customer

needs. Organizational ability to

repeatedly follow a relatively short

and defined life-cycle for the

successful introduction of new or

revised product offerings.

End-Customer

Focused & Service-

Driven

2

(Inhibited)

Provider's offering is functionaly

equivalent to that of other

providers, resulting in a "my

feature X beats your feature X"

competitive differentiation tactic,

but ultimately resulting in a price-

competitive sale.

Still product and feature centric

positioning with progress towards

customer-centric benefits

positioning. Typically a lack of

consistent application of

messaging across all channels

and collateral.

Competitive pricing and correct

packaging, but actively working to

eliminate other inhibitors (e.g.

contract minimums).

Customers can search, find, and

buy. Provider is actively working

to ensure that all of the

information required to make a

successful buying decision is on

the site and correctly presented,

eliminating any final inhibitors to

selling.

PPC/SEO and other demand

generation capabilities are

leveraged, but with some

inhibiting factors that limit their

effectiveness (e.g. mismatch

between PPC terms and landing

page positioning). Active progress

is being made to eliminate

remaining inhibitors

Self-guided signup, support,

and/or self-administration but

inhibited in some way -- e.g.

overly complex registration

process, complex activation.

Active progress is being made to

eliminate remaining inhibitors.

Direct Sales, indirect channels,

telesales, but with ineffective

processes for lead qualification

and routing of leads to "best

qualified" channel. Provider is

actively working to train sales and

revise processes to improve

effectiveness.

Good executive leadership in

place and committed to drive

change and improve business

performance by driving

improvements in accordance with

the "key success factors".

Transition Phase -

Focused on Initial

Change

1

(Ineffective)

Provider is offering the exact

same service offering as other

providers (perhaps based on third-

party technologies) with no

opportunity for true differentiation,

resulting in a Red Ocean in which

the only remaining competetive

differentiator is price.

Positioning is completely product

and feature centric. Positioning is

effective only for customers who

already know what they need and

are already familiar with the

specific application domain.

Typically characterized by

uncompetitive pricing, minimum

contract terms, minimum # of

users, confusing pricing, too many

tiers of service, multiple tiers

instead of "add-on" options.

Customers are unable to find

offering, presentation is

confusing, no online self-

subscription is available.

No PPC/SEO campaigns. Other

demand generation activities (e.g.

Print ads, direct mail, etc) do not

leverage the web-site.

No self-signup capability, direct

sales interaction required. No

offering self-administration.

Direct sales only. No pro-active

lead qualification. No customer

segmentation by size or industry.

Characterized by tendancy to

focus too far up-market. Long

sales cycles. Lack of "solution

specialist" capability results in

inability to overcome common ob

Ad-hoc organizational and

departmental behaviors with a

lack of internal alignment towards

achieving a common vision or

business objectives.

Product-Dependent

Focus & Ad-Hoc

Behavior

Mural's SaaS Key Success Factors ©

2

+ 6 m.

Level

Competitive


Online Customer

Experience


Process

Organizational


5

(Optimized)






existing demand













sensitivities.





analytics






print)








and future needs).














Target Market

Focused w/

Continuous

Improvement

4

(Competitive)












Some type of unique









framework








refinement.





















Transition Phase -

Focused on

Competitive

Differentiation &

Discrete

Improvements

3

(Predictable)


















significant.























channels.








End-Customer

Focused & Service-

Driven

2

(Inhibited)







competitive sale.







and collateral.




contract minimums).








selling.
























effectiveness.







Transition Phase -

Focused on Initial

Change

1

(Ineffective)













































Product-Dependent

Focus & Ad-Hoc

Behavior


3

+ 12 m.

1. SaaS Business Acceleration 2.0 Workshop self-scoring snap shot of your business today

2. Identify key actions / improvements you can undertake for each KSF area

3. Implement actions / improvements giving priority to the Top 3 KSF areas for your business

4. Evaluate results based on changes made and update scoring on each KSF

5. Translate lessons-learned from one KSF area to another, share across the organisation

6. Repeat cycle, starting at 2 (above)

Level

Competitive


Online Customer

Experience


Process

Organizational


5

(Optimized)






existing demand













sensitivities.





analytics






print)








and future needs).














Target Market

Focused w/

Continuous

Improvement

4

(Competitive)












Some type of unique









framework








refinement.





















Transition Phase -

Focused on

Competitive

Differentiation &

Discrete

Improvements

3

(Predictable)


















significant.























channels.








End-Customer

Focused & Service-

Driven

2

(Inhibited)







competitive sale.







and collateral.




contract minimums).








selling.
























effectiveness.







Transition Phase -

Focused on Initial

Change

1

(Ineffective)













































Product-Dependent

Focus & Ad-Hoc

Behavior


1

Today

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David R Ednie President & CEO

SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Ph: +61 415 94 51 57 (AUS)

Email: [email protected] Website: www.saleschannel-europe.com

value migration: capturing the transformational impact of cloud services

Business

business strategy

message positioning

killer questions

market direct

customers movetheir

messaging positioning

massive disruptive change

target tomorrows customers