View
215
Download
0
Category
Preview:
Citation preview
Not for reproduction or redistribution
1
Improving Your Probability for Success ™
How Fast Can You Move
January 25, 2007 Webinar
Brought to you by SAS and VisionEdge Marketing
Not for reproduction or redistribution
2
Improving Your Probability for Success ™
Agenda
Welcome and Introductions The Quick and The Dead – the role marketing
plays in innovation and speed – VisionEdge Marketing
Smart Speed – Keynote by Skip Maner, Principal Inverness Capital
Intelligence and Speed – a winning combination – Larry Mosiman, SAS
Q&A and Wrap
Not for reproduction or redistribution
3
Improving Your Probability for Success ™
The Quick and The Dead
“There are two kinds of businesses: the quick and the dead.”
Bruce Richardson, AMR
The dynamics of the 21st Century are forcing businesses of all sizes and types to speed up
Marketing plays a critical role in innovation and speed
Not for reproduction or redistribution
4
Improving Your Probability for Success ™
Six Major 21st Century Dynamics
1. Fast changing customer demands2. Global Outsourcing3. The Rise of Asia4. The Spread of Disruptive Technologies5. Innovative New Business Models6. Open Source SoftwareLet’s take a quick look at each
Not for reproduction or redistribution
5
Improving Your Probability for Success ™
Fast Changing Customer Demands
Customers are more empowered than ever and are taking control of how, when and where they consume
Today’s customers and consumers are less brand-loyal, less trusting, and prefer to get information from personal research, friends and product specialists
Implications to businesses and marketing:changes in media mix, messaging and general approach to customer interaction
Not for reproduction or redistribution
6
Improving Your Probability for Success ™
Global Outsourcing
Outsourcing and offshoring is here to stay Gartner expects offshore IT services spending to
reach $50 billion by 2007 IDC anticipates WW IT outsourcing to grow to $18
billion by 2008 The Global Insight Report concludes that by 2008,
IT offshoring will account for roughly $125 billion in additional US GDP and by 2015 the amount will be increased to $250 billion.
The Meta Group predicts that around the world, offshore outsourcing will grow at a rate of more than 20% annually, becoming a $10 billion market
Not for reproduction or redistribution
7
Improving Your Probability for Success ™
The Rise of Asia
China has already trebled its share of world GDP over the past two decades and India has doubled it.
A dynamic Asia can power global growth and provide new opportunities for growth for Europe as well as for North America. Prime Minister Dr. Manmohan Singh December 7,
2006, Conference of the London School of Economics (LSE) Asia Forum
Not for reproduction or redistribution
8
Improving Your Probability for Success ™
The Spread of Disruptive Technologies
Market changes will be driven by the rapid proliferation of several disruptive technologies:
Mobile and wireless devices are expected to outnumber wired PCs as early as 2010
Biometrics on the rise. Nanotechnology: Growing from $1.4 billion
in 2007 to $19.7 billion by 2012 and then go on to reach $34.4 billion in revenues by 2014. (NanoMarkets, LLC)
RFID: The global market for RFID software, hardware and services has increased three times the market value in 2004 making it $6.14 billion by 2010. (RCNOS)
TV-Over-Internet Protocol (IPTV): Worldwide IPTV Service Revenue will reach U.S $38 billion in the year 2009 and that the worldwide IPTV subscribers will reach 53 million in the year 2009. (RCNOS)
Not for reproduction or redistribution
9
Improving Your Probability for Success ™
New Business Models Businesses have reached the old model's limits
with respect to complexity and speed. The successful companies in the future will be
the firms that are responsive to challenges and adroit in both creating and capturing opportunities.
To match a business environment that is more networked within and among companies, companies will become extended enterprises. Extended Enterprise -a company made up
of its employees, its board members, executives, business partners, suppliers, and customers.
The notion of extended enterprise includes many different arrangements such as virtual integration, outsourcing, distribution agreements, collaborative marketing, R&D program partnerships, alliances, joint ventures, preferred suppliers, and customer partnerships.
Today's most successful executives, while still greatly concerned with cost structure, maximizing operational effectiveness, and business process reengineering, need to shift their focus to issues of
1. How to build capabilities for faster growth
2. How to attract and retain the best people
3. How to develop leaders at all levels in the company
4. How to manage knowledge effectively5. How to become a true learning
organization and6. How to be more effective global
corporations
Not for reproduction or redistribution
10
Improving Your Probability for Success ™
Open Source Software
Open Source had already created a technically successful operating system and the first practical web servers and clients
The Linux sub-sector alone is showing an annual growth rate of 37 to 45 percent and predicted to be a $35 Billion dollar market by 2008.
IDC Software Consulting: The Linux Marketplace - Moving from Niche to Mainstream. Prepared for OSDL. http://www.osdl.org/docs/linux_market_overview.pdf
Not for reproduction or redistribution
11
Improving Your Probability for Success ™
Speed of Innovation
Long-term corporate success is linked to the ability to innovate.
Although corporate investment in incremental improvements and innovation to existing products and processes does bring growth, it is new game changing breakthroughs that will launch company into new markets, enable rapid growth, provide a platform for long-term growth, and create high return on investment.
Radical innovation helps your company reinvent itself and maintain its leadership.
Not for reproduction or redistribution
12
Improving Your Probability for Success ™
Marketing is Critical to Speed and Innovation
We own market and customer insight needed to facilitate strategic decisions and innovation
To facilitate speed and innovation we need A Culture of Accountability Processes Performance Metrics
Not for reproduction or redistribution
13
Improving Your Probability for Success ™
Culture of Accountability
Cultures that encourage teamwork (collaboration), employee development and empowerment achieve higher quality outcomes, that is, higher quality results.
Klein, Masi and Weidner, 1995 Three Core Attributes:
1. Shared knowledge. Everyone in the marketing organization needs to have clear visibility into the organization’s purpose, the performance targets, timelines, measurement and consequences.
2. Tight and solid alignment between marketing objectives and business outcomes. Every marketing objective should link directly to a business outcome.
3. Unwavering belief in the inextricable link between performance and accountability. The people within marketing must believe in the essential value of measuring, evaluating, and improving their work based upon objective criteria.
Not for reproduction or redistribution
14
Improving Your Probability for Success ™
Can Your Marketing Organization Pass this Test?
1. Marketing has a specific goals with measurable criteria designed to achieve clear results that will impact the business.
2. Each person in marketing knows which business outcomes their work personally addresses. There is a focus on achieving results beyond the boundaries
of each individual’s job3. Each person within the marketing organization knows
how their job advances the corporate and marketing goals. The focus is outcome-centric not task-centric (e.g. updating
the website, creating and implementing a campaign, revising the pricing model, etc)
Not for reproduction or redistribution
15
Improving Your Probability for Success ™
Process
Process is the foundation for alignment and one of critical complaints with marketing is that is lacks alignment with sales, finance, and R&D.
The right processes need to be in place to support performance management and measurement
Three steps to improve process and foster alignment: Analyze the existing processes and identify overlaps, gaps,
bottlenecks and redundancies. Define, document and standardize core marketing processes
to facilitate collaboration with finance, sales, and R&D. Develop and manage an integrated process that includes
setting performance goals, modeling, planning and reporting.
Not for reproduction or redistribution
16
Improving Your Probability for Success ™
What have been your biggest challenges in improving marketing effectiveness?
Lack of well-dfined perfomrance
measurement capabilities
35.0%
Insufficient knowledge on how
to do it7.1%
Have not focused on it thus far
18.0%
Lack of customer data
12.8%
Lack of internal coordination and clearly defined accountabilities
27.0%
Performance Metrics Needed Demand for increased
accountability in marketing requires marketing to measure its effectiveness and contribution
Fewer than 20% of 460 CEOS believe their company is adequately measuring marketing –
Deloitte study 2006
Being able to move fast means you need marketing metrics tied to speed and innovation
Not for reproduction or redistribution
17
Improving Your Probability for Success ™
Six Marketing Metrics tied to Speed and Innovation
1. Rate of customer acquistion
2. Rate of profitable customer growth
3. Rate of Growth compared to industry peers
4. Rate of product adoption
5. Rate of new product success
6. Time to market and revenue
Not for reproduction or redistribution
18
Improving Your Probability for Success ™
Four Key Steps To Cracking the Metrics Code
1. Align your marketing metrics with overall strategic objectives and business outcomes
2. Use the metrics continuum to focus on outcome-based metrics
3. Establish a baseline that reflects your company’s current marketing effectiveness and contribution
4. Define a set of performance measurement objectives
Not for reproduction or redistribution
19
Improving Your Probability for Success ™
If You Want to be Fast Address These Five Tasks
1. Attracting qualified people for key positions.
2. Retaining key employees.3. Developing financial and performance
monitoring systems. 4. Providing product support and customer
service. 5. Developing internal control systems.
The Ivey Institute for Entrepreneurship, Canada
Not for reproduction or redistribution
20
Improving Your Probability for Success ™
Skip Maner – Smart Speed
Skip has spent eleven years in private equity. He is currently a Managing Principal with Inverness Capital Partners in Newtown Square, PA. Inverness provides growth equity (both control and non-control) to industrial technology-oriented companies and high growth manufacturers in the United States. Skip works with Inverness portfolio companies such as SkyBitz, NCSRT, Nexiant and Pelion. Prior investments, among others, include WebLogic (sold to BEA Systems), Conduit Software (now ADP) and ICG Commerce.
Prior to starting Inverness, Skip was a Managing Director with Internet Capital Group and a Principal with TL Ventures and Safeguard Scientifics.
Prior to becoming an investor, Skip was an entrepreneur and served as president and founder of two companies including a recycled products manufacturer.
He serves on the University of Richmond's President's Council. He also is on the Board of two Philadelphia-based non-profit youth organizations.
Skip holds a BA from the University of Richmond and an MBA from Wharton.
Not for reproduction or redistribution
21
Improving Your Probability for Success ™
What is Smart Speed?
Moving your company at a rate of growth faster than your industry sector
Soliciting input from employees and customers to quickly develop market worthy products and react to market needs and dynamics
Making timely decision using a combination of fact-based data-driven metrics and intuition
Met
rics
Intuition
The Goal
LargeIndustryLeaders
Small/EntrepreneurialCompanies
Not for reproduction or redistribution
22
Improving Your Probability for Success ™
Size Doesn’t Matter
Size doesn’t matter, smart speed is about how a company is organized and operates so they can make crucial business decisions fast
Small companies can win (David vs. Goliath
Large companies can win (Allow for entrepreneurial decision making as long as supported by strong data)
Not for reproduction or redistribution
23
Improving Your Probability for Success ™
Smart Speed Companies Are Organized for Success
Be willing to review your business model, and the way you go to market
Be willing to accept failure as a part of business
Have a process for idea flow
Not for reproduction or redistribution
24
Improving Your Probability for Success ™
No Silos or Stove Pipes
Organize for speed and success Democratically managed Input not defined by the
organizational chart Create collaborative culture Reward collaboration and
performance Don’t confuse motion with progress Make data-driven decisions Must not only accept but encourage
cross-functional input and interaction
Not for reproduction or redistribution
25
Improving Your Probability for Success ™
Smart Speed Companies Like Data
The days of intuitive product development are over
The Internet has broken down so many informational barriers
Sound customer and market research imperative – the Internet allows this to be done quickly
Don’t need vast amounts of analysis, need enough data to gain directional insight to help with increasing confidence around making the right decisions
Not for reproduction or redistribution
26
Improving Your Probability for Success ™
Smart Speed Companies Keep a Pulse on the Market – SkyBitz Case Study
SkyBitz has a technology for tracking remote assets
Two entrenched large competitors Initially wandering in the fog
Company was not sure about target market or price
Did a quick blind research study with customers and prospects using a third party (to avoid creating a bias)
Revised the product roadmap and pricing strategy
Growing 100%/year ever since
Not for reproduction or redistribution
27
Improving Your Probability for Success ™
Smart Speed Companies Listen to Their Customers
BEA WebLogic Server® 10
Not for reproduction or redistribution
28
Improving Your Probability for Success ™
Smart Speed Companies Keep an Eye on the Numbers
Track performance monthly and share results at all levels of the organization
What do they track? Pipeline development, cost to generate a qualified lead, cost
of customer acquisition, customer referral rate, customer renewals and share of wallet, customer usage, rate of new product adoption
Many of these are related to marketing
Not for reproduction or redistribution
29
Improving Your Probability for Success ™
A Company that has Smart Speed
Has a growth rate faster than industry peers and is gaining market share at the expense of the competition
Delivers higher margins Achieves higher market premium in
relation to industry peers Has customers who are wild about their
relationship with the company
Not for reproduction or redistribution
30
Improving Your Probability for Success ™
Four Things You Can Do Today to Create a Smart Speed Company
Ask and listen. Ask customers and prospects about their needs and how your product is or isn’t serving their needs – be willing to use a third party
Remove structural barriers so your people can talk across the organization Reward collaboration
Link employee performance to shareholder value Each employee should understand how they add value to
the customer and company Create an environment that encourages
experimentation – experimentation leads to innovation, we can all learn something from 3M
Not for reproduction or redistribution
31
Improving Your Probability for Success ™
Larry Mosiman – Worldwide Product Marketing
Manager Customer Intelligence Solutions
Larry Mosiman has over 20 years of experience leading marketing teams for high tech companies.
Before joining SAS, Mosiman led the marketing organization for the Material Testing Division of MTS Systems Corporation in Eden Prairie, MN, where he developed a successful marketing organization in a business that had been engineering focused.
Mosiman has a Masters in Business from St. Thomas University and a Bachelors in Electrical Engineering from South Dakota State University.
Not for reproduction or redistribution
32
Improving Your Probability for Success ™
The Value of Analytics
Customer Knowledge and Insight Customer Touchpoints Marketing Performance
Not for reproduction or redistribution
33
Improving Your Probability for Success ™
The Value of Analytics
Customer Knowledge and Insight Behavioral modeling Customer profitability / lifetime value
Not for reproduction or redistribution
34
Improving Your Probability for Success ™
Customer Knowledge and Insight Example
1-800-FLOWERS.COM Challenge
Needed better insight into their customers
Solution Collect customer data at every touchpoint (retail stores,
phone, online) Use analytics to anticipate customer behavior
Results More targeted offers and promotions to the most valued
customers >15% improvement in customer retention rate
Not for reproduction or redistribution
35
Improving Your Probability for Success ™
The Value of Analytics
Customer Touchpoints Optimization (campaign, channel, offer) Behavior monitoring and event triggers
Not for reproduction or redistribution
36
Improving Your Probability for Success ™
Campaign Optimization Example
Camp1
Camp3
Camp2
All Customers
Customer Camp A Camp B Camp C
1 100 120 90
2 50 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 80 70 75
8 65 60 70
9 80 110 75
Not for reproduction or redistribution
37
Improving Your Probability for Success ™
Prioritization Approach
Customer Camp A Camp B Camp C
1 100 120 90
2 50 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 80 70 75
8 65 60 60
9 80 110 75
Constraints:
1. Each customer must get only one campaign
2. Each campaign must get three customers
Objective Value = 655
Not for reproduction or redistribution
38
Improving Your Probability for Success ™
Rules Approach
Customer Camp A Camp B Camp C
1 100 120 90
2 50 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 80 70 75
8 65 60 60
9 80 110 75
Constraints:
1. Each customer must get only one campaign
2. Each campaign must get three customers
Objective Value = 715
Not for reproduction or redistribution
39
Improving Your Probability for Success ™
Math-based Approach
Customer Camp A Camp B Camp C
1 100 120 90
2 50 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 80 70 75
8 65 60 60
9 80 110 75
Constraints:
1. Each customer must get only one campaign
2. Each campaign must get three customers
Objective Value = 745
Not for reproduction or redistribution
40
Improving Your Probability for Success ™
Not Here!
Behavior monitoring and event triggers
Catch Them Here!
Not for reproduction or redistribution
41
Improving Your Probability for Success ™
The Value of Analytics
Marketing Performance Forecasting Marketing Mix Analysis Correlation Analysis
Not for reproduction or redistribution
42
Improving Your Probability for Success ™
The Value of Analytics – Correlation Example
Large retail company 5 people assigned to manage brand usage Metrics were established to measure
compliance Correlation analysis showed no correlation
between brand usage metrics and sales.
Not for reproduction or redistribution
43
Improving Your Probability for Success ™
Summary
Analytics can play a key role in making smarter decisions – across all aspects of marketing.
Not for reproduction or redistribution
44
Improving Your Probability for Success ™
Wrap Up
Today’s takeaways Lack of speed kills Lack of speed without intelligence can be worse Decisions need good data and analytics Marketing plays a key role in speed, especially in
terms of providing customer insight and guidance for innovation
Performance for business and marketing needs to be measured from the perspective of innovation and speed
Thank You and now Q&A
Not for reproduction or redistribution
45
Improving Your Probability for Success ™
About the Company’s
Inverness Capital Partners, L.P., part of the of the Philadelphia based Graham Group of private equity funds and industrial businesses, is a $125 million private equity fund, with offices in Philadelphia and Boston. Inverness acquires or provides expansion capital to innovative industrial businesses and industrial technology providers. For more information go to www.invernesscap.com.
SAS is the leader in business intelligence software and services. Customers at 40,000 sites use SAS software to improve performance through insight into vast amounts of data, resulting in faster, more accurate business decisions; more profitable relationships with customers and suppliers; compliance with governmental regulations; research breakthroughs; and better products. Only SAS offers leading data integration, intelligence storage, advanced analytics and business intelligence applications within a comprehensive enterprise intelligence platform. Since 1976, SAS has been giving customers around the world THE POWER TO KNOW® . For more information go to www.sas.com
VisionEdge Marketing is a data-driven and metrics-focused marketing firm that specializes in improving marketing performance and helping organizations create a competitive advantage designed to attract, secure and retain profitable customers. Our services include marketing performance management, business intelligence, product and strategic marketing, pipeline re-engineering and revenue creation, and professional development. For more information go to www.visionedgemarketing.com.
Recommended