Business audiences insight

August 2010

Business Audiences Deep Dive

Contents Purpose of this document The bigger picture (audience, segments, verticals) Business audience deep-dive on:

−Who are they?−Their responsibilities −Challenges they face−Sources of information −Products they choose −Their attitude towards Microsoft −Insights and communications

BDMs

−Who are they −Segmentation −How they work −What they use −Products −Insights −Opportunities

IWs

Final thoughts

Your hosts today

Benedicte Philippe-DominTraining & Readiness Global Lead

(Paris)

Raj MisraSenior Strategist

(Seattle)

Purpose of this document

To equip you with in-depth knowledge about Microsoft’s business audiences, being BDMs and IWs, and how to best connect with them.

Why do we care about business audiences?

Business audiences USE technologyo Productivity increaseo Improved client serviceo Mobile capabilitieso Storage / recovery

“We use it because it is works with my mobile phone really well plus the shared calendars are going to be very important”

“Only about 1% of our email isn’t Spam, so we need good protection”

“Exchange makes us way more productive, it is business critical”

“People want to save everything they have which creates storage problems”

Technical audiences MANAGE technologyo Securityo Reliabilityo Disaster recoveryo Workload minimization

With democratization of technology, end users and business audiences are playing a more important role

The bigger p ictureAudiences vis-à-vis Segments v i s -à -v i s V e r t i c a l s

Microsoft Segmentation Approach

VERTICALS

What are the specific industry traits must we address?

AUDIENCES(BDM, IW, IT PRO, DEVELOPERS…)

Who is our audience, what are the insights and best

ways communication points?SEGMENTS

(Enterprise, Partners…)

Which segment are we talking to?

SMSG Marketing Matrix

SegmentMarketing

Audie

nce

M

ark

eti

ng

Enterprise Public Sector

Education Depth Breadth Partners

BUSINESS DECISION MAKERS (BDM)

IT DECISION MAKERS (ITDM)

ITI IMPLEMENTOR (ITI)

DEVELOPERS

DESIGNERS

INFORMATION WORKERS (IW)

AUDIENCES

SEGMENTSEPG SMS&P

Commercial audiences mappingCxO

BDM-TI

ITDMs

EU / IW

BDM non-TI

Business audiences

ITI

IT Decision MakersIT Implementer

Business Decision Makers Technology Influence

End Users / Information Workers

Business Decision Makers Non - Technology InfluencersOther IT

IT generalist, IT specialists (desktop support, infra support, LOB specialist)

ITDM : CIO

Fu

ncti

on

Execu

tives

Fu

ncti

on

Lead

ers

Technical audiences (TAGM)

Arc

hite

ctur

e / C

TO

Infras

truc

ture

&

deliv

ery

Dev

elop

men

t

Secu

rity

Bus

ines

s App

s / L

OB

CIO

IT I

Developers

Other IT

Designers

CFO (Finance)VP

Sales (Sales)

VP HR (HR)

VP R&D (R&D)

COO (Operations

)

CMO (Marketing)

Other BDMs

Lega

l

Acc

ount

ing

Proc

urem

ent

Trea

sury

PR

eCom

mer

ce

Adv

ertis

ing

RM

/ D

igita

l Mar

ketin

g

Recr

uitin

g

Trai

ning

& D

evel

opm

ent

Ben

efits

Cus

tom

er S

ervi

ce

Sale

s

Rese

arch

& D

evel

opm

ent

Prod

uct M

anag

emen

t

Supp

ly C

hain

Man

agem

ent

Plan

ning

Logi

stic

s

Adm

inis

trat

ion

EU / IW

CxO CEO, CTO, CIO, CMO etc.

Let’s talk about BDMs

first

Who are they?

Responsibilities Making decisions

Source of infoChallenges Products

Attitude to MSFT

Insights & comm

What titles they carry

What job do they do?

What

responsibility do they carry ?

What is the

decision making process like at different BDM levels? What

challenges come with the job? To excel at their job,

where do they go for

information? What products are relevant to them?

When considering Microsoft, what is

their attitude towards us?

What insights can we tap into to best

communicate with them?

Who are they?



Attitude to MSFT

Insights & comm

A very versatile group of people.

From a 10-man company owner

to

a 100,000-people global, public-listed company CEO

A BDM personaI am a man (78%). I obtained tertiary education. I work in a service or manufacturing company. My annual compensation can easily exceed $150,000. I use a computer in my office, and work with Windows XP & Office 2007. I always have my mobile phone near me or my PDA. I surf the web every day. I feel optimistic about my future. I am ambitious and love my job. I read a lot about the economy, my own industry and my job to stay ahead of the curve and lead my company.

I’m around 40 years old. I’m married with children. My wife is working too. My professional life and my private life are not completely balanced. I live in a high-paced cityor its suburbs. I love sports. I often read. Outside of work, I like going to clubs to meet like-minded leaders. At home, we are over-equiped with high tech products. I am a frequent flier for both business and personal reasons, on business class (20%).

Who are they?



Attitude to MSFT

Insights & comm

http://creative.gettyimages.com/source/search/ImageEnlarge.aspx?MasterID=318505-005&s=ImageDetailSearchState%7C3%7C5%7C0%7C15%7C2%7C1%7C0%7C0%7C1%7C36%7C60%7C2ed3.d7c5.03ff.e000.002f.76b0.00e0%7C3%7C0%7C%22business%22+and+%22family%22%7C%7C1%7C0&pk=6

Who is a Business Decision Maker Decision maker of a company or an organization exceeding 10 persons Covers both private and public sector Manages either the whole company or a department Does NOT work in the IT department Top job is managing people and budgets efficiently and effectively Looks after the long-term, strategic company direction (strategic, human,

budgetary) Most likely to meet with senior company management Many BDMs have an influence on technology : TIDM (technology-influencing

decision maker) or TI BDM (same thing) TI BDMs are not just c-level executives Most involved with technology as capital expenditure Top goal is turning IT from an expense into a strategic asset Final decision authority on technology purchases Little or low opinion of Microsoft Microsoft’s focus has been on BDMs in : finances, sales and marketing, HR and

the supply chain roles (from procurement to after-sales services including production)

Who are they?



Attitude to MSFT

Insights & comm

BDM at work

Their career success is their first objective, they accept the sacrifices required to succeed (length of a day worked, little family time)

Their personal priorities :– 1st : increase their income (52 %)– 2nd : develop new competences (42 %)

They are optimists– 84 % are optimistic about the future of the company– 84.5 % are optimistic about their professional future

Who are they?



Attitude to MSFT Insights & Comm

Mid

Mark

et

Tech Competency- +

5,673,000 TI BDM

BDM audience size in USAEnte

rpri

se

Download sizing breakdown for your country.

Sm

all

Org

1,951,000

1,496,000

2,226,000

9,902,000 Non TI BDM

4,310,000

2,858,000

2,733,000

TI BDMNon TI BDM

Source: Microsoft’s BDM Group, March 2010.

Who are they?




https://microsoft.eewikis.com/wikis/do/registered/2299/Item/512421

TI BDM vs. BDM ?

TIDM and TI BDM: same same

The TI BDMs are a sub group of BDMs and represent 73% of the BDMs

TI BDM overall involvement in the IT purchase process is high

TI BDMs’ IT influence varies by IT product category; lowest for server/tools products, highest for business applications

Top focus areas for most TI BDMs are customer-facing and financial process software

Most TI BDMs report friendly relationships with ITDMs

There are 4-6 TI BDMs in a typical mid-market company; 12-15 in a typical enterprise

Microsoft’s primary marketing focus is on TI BDMs.

Who are they?



Attitude to MSFT

Insights & comm

A BDM can also fully/partly be an ITDM

Who are they?



Attitude to MSFT

Insights & comm

A BDM can also partly be an IW

Who are they?



Attitude to MSFT

Insights & comm

Which of the following best describes your role at work?

BDM vis-à-vis IW

I am responsible for making decisions about the

goals/priorities of my department and/or the overall

company.

BD

M

I determine how to complete my projects

and/or tasks.

or

I am responsible for contributing to a team

and completing my own projects/tasks.

IW

Who are they?



Attitude to MSFT

Insights & comm

Exec

Management

Coordination

Implementation

How they describe their responsibilities:

Who are they?



Attitude to MSFT

Insights & comm

BDM Roles & Responsibilities – Key Words When asked to define the ‘essence’ of their positions in just a few words, the

following terms that emerged with some frequency were: manage, control, lead, communicate, coordinate and oversee.– I could say that I manage the direction, I oversee it more so. [Chicago, BDM]

– I have to lead, responsibilities, the juggling of different personalities throughout the organization… [Chicago, BDM]

– To be considered a leader amongst my team and to direct responsibilities and job functions to others and to hold them accountable. [Chicago, BDM]

– Oversee, planning and implement. […] It’s basically what I do. […] Oversee is the same word as management. [SF,BDM]

– Coordinate, project management, and events. […] I see coordinating as taking pieces from different people and putting them all together, whereas the events and project management is something that I own and make all the decisions on and roll out completely on my own. [SF, BDM]

– I control payments within Germany and on an international level, so I underlined control. I test and find new software. So I control, tend and test. [Frankfurt, BDM]

– I said to check the budget, control purchase, and help to structure and the IT content. I underlined control, agree, and participate. […] This is control whether people stick to the defined budget. We have to work with the budget that we have. [Frankfurt, BDM]

– The first one is communication. We’ve got about a thousand staff in 18, 20 offices across the globe, so we’ve got to communicate everything from the engineers to the media to the staff… it’s very difficult to keep everyone up to date with the bids, to tracking, to just trying to make a big company seem like a local company is key. [London, BDM]

– The three words [for the essence of my position], I’ve got detail, management, and communication. [London, BDM]

– The coordinator. I am the go-between between the top management and lines of business, and I have to develop concrete plans, action plans, and manage the plans. Actually it’s the line of people to implement and I have to manage them implementing plans. [Tokyo, BDM]

– I plan. […] And manage people implementing plans. [Tokyo, BDM]

Who are they?



Attitude to MSFT

Insights & comm

Source: CMG Market Research “BDM Influence Mapping Final Report_033108”

BDMs self-expressions on their roles and responsibilities

Despite a broad range of roles and industries a number of consistent elements emerged when BDMs were asked to describe their roles.

– Most BDMs tended to describe their roles in terms of their responsibilities, often listing the functional areas they managed or the key deliverables they were accountable for.

- I’m a Purchasing Manager for a large insurance company. I buy all products using internally outside services. I also manage the corporate travel and the corporate auto fleet. In addition, I also manage our San Francisco office’s portion of our internal mailroom, 12 employees total. [SF, BDM]

- I work for an export company. I supervise a staff overseas. I work with 34 managers. I purchase products. I meet with vendors. I meet our customer demands. I work with our warehouse staff. I do advertising and I manage our local office. [SF, BDM]

- I am the Operation Supervisor of AG Edwards, a financial. I take care of all the employees, all the trading, the daily ins and outs of all trades electronically, and all of the communications the branch goes through, whether it be phone or computer, that kind of thing. [Chicago, BDM]

- I’m responsible for the service planning. I make tenders. I speak with employees. I’m in contact with other branches of the company and I’m in contact with our customers and I’m responsible for customer care. So it’s service planning, employee care and customer care. [Frankfurt, BDM]

- I’m Manager of a varied group of about 10 people providing support services in the global head office in a Fortune 100 company. So I’m head of the facility support unit. We’re providing everything that people need to do their job, whether it’s the chair they sit on or the desk they sit at, what phone they use, what car they drive, what lunch they eat. [London, BDM]

- Marketing Service Manager for a worldwide travel company. Production of sales and photography. Run a team of people, databases and print and ensure online imageries are kept up to date and maintain corporate and individual identities. [London, BDM]

- From the planning all the way up to the implementation for the entire process I have the decision making process, and I should be responsible for the result of the actions taken and the process. [Tokyo, BDM]

Who are they?



Attitude to MSFT

Insights & comm

Source: CMG Market Research “BDM Influence Mapping Final Report_033108”

BDM involvement in the decision process

BDM involvement in the buying process

55

64

182

197

50

52

54

56

58

60

62

64

66

For software > $ 5,000 Hardware equipment > $5,000

170

175

180

185

190

195

200

BDM % Index

BDM consider having three main tasks :– 67 % of them consider they have ”to frame/plan” – 65 % of them consider they have ”to manage” – 64 % of them consider they have ”to decide”

BDM also take part in the IT purchases process of their company

Who are they?



Attitude to MSFT

Insights & comm

Source: FCA 2008

Social and non-social influences on BDM’s decisions

Who are they?



Attitude to MSFT

Insights & comm

BDM’s [professional] social influences

Who are they?



Attitude to MSFT

Insights & comm

Social influencers are a select bunch of people close to a BDM

Social influencers most often (over three-quarters) to be "internal", i.e., part of the BDM's organization

Social influencers are far more likely to be drawn from the Finance and IT departments (over three-quarters) than from any other department

Only two social influencers on average

Long standing relationships; average 7+ years

Social influencers are viewed as honest, dependable, trustworthy and credible (top 2-box scores higher than 80%)

The information provided by social influencers is characterized as very important

And this information is perceived as free from any vested interests (over 80% of social influencers are "not trying to push an agenda")

As such they are in frequent and regular contactSource: BDM Influence Mapping, MaPS and CMG Market Research, March ‘08

% by Phone % by e-mail/IM % In-Person

Multiple times a day

Once a day

Several times a week

Once a week

Several times a month

Once a month

Once every 2-3 months

Once every 6 months

Once every year

Less than once a year

Never

21%

11%

19%

13%

14%

11%

6%

3%

0%

0%

2%

0% 25%

18%

11%

11%

13%

11%

12%

11%

5%

4%

2%

1%

0% 25%

15%

8%

17%

17%

13%

13%

9%

2%

1%

1%

4%

0% 25%

Who are they?



Attitude to MSFT

Insights & comm

Email and in-person contact top the interaction with social influencers

Source: BDM Influence Mapping, MaPS and CMG Market Research, March ‘08

Most prefer a work-only relationship *

Relationships are strictly work related

Relationships are predominantly work related with some social interactions

Relationships are predominantly social with some work related interactions

Relationships are strictly social

2%4%

29% 65%

Who are they?



Attitude to MSFT

Insights & comm

* More so in enterprises and less so in small and medium business. * This is also less applicable to regions like Asia where work-personal relationships are more common.

Credit: BDM Influence Mapping, MaPS and CMG Market Research, March ‘08

BDM’s non-social influences Non-social influences are all influences other than social influencers The top sources of non-social influence are:

Product demonstrations Conferences Sales presentations

Worth noting that the above three sources all involve a human element and interactivity

Three times as many non-social influences as social influencers. Likely to be much less impactful as compared to social influencers. Six non-social influences on average Least impactful non-social source: pure content. Non-social influences not viewed as honest, dependable, trustworthy

and credible Likely to be characterized as non-essential or simply unimportant Information being affiliated with vendors/suppliers and as such perhaps

colored by vested interests Non-social sources of influence consulted on an "as-needed" basis and

at a much lower frequency than social influencers

Who are they?



Attitude to MSFT

Insights & comm

Multiple times a day

Once a day

Several times a week

Once a week

Several times a month

Once a month

Once every 2-3 months

Once every 6 months

Once every year

Less than once a year

0%

100%

1%

2%

4%

6%

9%

17%

22%

20%

14%

5%

0% 25%

Who are they?



Attitude to MSFT

Insights & comm

Engaging non-social influences happens once every 2-3 months.


TI BDM Influence Map

The first number is the strength index calculated as the ratio of the percent of times an influence is cited to the average percent of times all social and non-social influences are cited. The second number is the impact index calculated as the ratio of the percent of times a cited influence is described as essential to the average percent of times all cited social and non-social influences are described as essential.

Social Influencer

Non-social Influence

TI BDM = 0.48

Who are they?



Attitude to MSFT

Insights & comm

Pdt. Demos (419, 170)

Sales presentations (361, 122)

Supplier websites (343, 57)

Conferences/speakers (343, 57)

Trade mags./journals (245, 56)

Trade shows (245, 56)Webcasts/webinars (239, 83)Bus. pubs./ columnists (233, 46)

White papers/tech literature (227, 40)

IT Dir/SM-IT/MIS, Co-worker (210, 196)

Books (175, 26)

Analyst websites (169, 72)

Tech. Consult. websites (140, 65)

Dir. rpt./Subord. (122, 149)

E-mail newsletters (116, 26)

BBs, DGs, blogs (105, 29)

CIO/CTO-IT/MIS, Co-worker (76, 261) External, Tech. Consult. (70, 130)

Other-Other, Co-worker (52, 145)

Other (52, 116)

CXO-Finance, Boss/Mentor (29, 156)

Source: BDM Influence Mapping, MaPS and CMG Market Research, March ‘08

Majority seek advice from colleagues before making a decision. Many prefer committee-based decisions are well advised and are willing to

observe others prior to making a decision.

% Top 2 Box

Average Length of Time Used (In Years)

Seek out advice from colleagues before making recommendation

Decisions made by committee are less risky as several perspectives are considered

Rely on others' good experience with product

Observe others before making decision

Hands-on decision maker

Continue using product with experience rather than try new ones

Decisions made by committee are safer and have less accountability

Like to gamble on new products

Rely on gut feel and experience

59%

44%

42%

39%

21%

16%

16%

8%

7%

59%

42%

39%

21%

16%

16%

8%

7%

44%

0% 100%

BDM Personal Decision Making Style

Who are they?



Attitude to MSFT

Insights & comm


This indicates that these BDMs are likely to be influenced by social and non-social influencers. This is good news for us.

Reaching BDMs is like catching a slippery fish

Who are they?



Attitude to MSFT

Insights & comm

It’s a demanding audience… 65% of business decision makers claim to never click

on online ads

Many won’t get past the headlines of a print ad

They are expensive to reach

Who are they?



Attitude to MSFT

Insights & comm

It is expensive and difficult as they tend to stay away from eDMs and banner ads.

Source : Microsoft Digital campaign benchmarking tools(comparative global results, Q4 FY08)

Who are they?



Attitude to MSFT

Insights & comm

So where do they get information and knowledge?

Who are they?



Attitude to MSFT

Insights & comm

Recommended Contact Tactics for BDMs

BDM’s current information seeking patterns :– reliance on WOM, especially social influencers– desire for targeted, industry-specific information– need for solving business, not technical challenges

Based on these patterns, a series of tactics were evaluated, based on: – Efficiency at moving a BDM lead from awareness to

purchase – Impact of the tactic (relative to others)– Cost– Time to generate a lead

Who are they?



Attitude to MSFT

Insights & comm

Evaluation of media tactics (cont)

Breakfast meetings / symposia 3 5 5 4 4 Depth $ 2

In-flight magazine 3 5 5 4 4 Reach $$ 2

Collateral 3 5 5 4 4 Reach / Depth $$ 2

Analysts (eg. Foley) 3 5 4 3 2 Depth $$ 2

CIO mag ad buy 3 5 4 3 3 Reach $$ 2

Industry conferences

3 5 5 3 3 Reach $$ 2

Industry leader 3 5 5 3 3 Reach $$ 2

Awareness / Knowledge

Cosideration /Trial Satisfaction

Loyalty / Advocacy

(1 = Low / 3 = High) ($ = Low / $$$ = High) (1 = Low / 3 = High)

Time to generate leadsCostReach /

DepthTactic

Impact of Tacticon Target

Messaging Stage

(Effectiveness, 1 = Low / 5 = High)

Targetted Email 3 4 4 3 3 Reach / Depth $ 1

Online search 3 4 4 2 2 Reach $ 2

Buzz creation kit 3 4 4 3 3 Depth $$ 2

Local and regional Events 3 4 3 3 3 Reach $$ 2

Roundtable discussion 3 4 4 3 3 Depth $$ 2

Local radio spots (with CTA - website, event, offer

3 4 4 2 2 Reach $$$ 3

Blog channels 2 4 4 3 2 Reach $$ 2

Business leader groups/Chambers of Commerce 3 3 2 2 2 Depth $$ 2

Who are they?



Attitude to MSFT

Insights & comm

Source: ALM Dev Framework for Microsoft by Y&R Brands, March 2007


Briefings and workshops

2 4 4 3 3 Depth $$$ 2

CIO summit 2 4 4 3 3 Depth $$$ 2Magazine inserts 2 4 3 2 2 Depth $$$ 2SME / Exec Circle Podcasts 2 4 4 3 3 Reach / Depth $$ 3

Gartner summit 2 4 4 2 2 Reach $$ 3HBR / MIT extracts 2 4 4 2 2 Reach $$ 3

EMBA programs 2 4 4 3 3 Depth $$$ 3Management consultants 1 4 4 2 2 Depth $$$ 2

DM w/brochures 2 3 4 3 3 Reach / Depth $ 2

Management retreat in a box 2 3 3 3 2 Depth $ 2

Who are they?



Attitude to MSFT

Insights & comm

Promotion 2 3 5 3 3 Reach $$ 2

Online banners 2 3 2 1 1 Reach $$ 2

Magazines / publications 2 3 2 1 1 Reach $$ 2

Venture capitalists 1 3 3 1 1 Depth $$ 2

Case studies / success stories

2 2 3 3 2 Reach $$ 1

Funny disruptive blog - dysfunctional organization and its turnaround

2 2 2 1 1 Reach $$ 2

Whitepapers 2 2 3 2 1 Reach / Depth $$ 2



Loyalty / Advocacy


Time to generate leads

eCostReach /

DepthTactic Target


Messaging Stage



Viral Game 2 2 2 1 1 Reach $$$ 2



Loyalty / Advocacy


Time to generate leadsCostReach /

DepthTactic


Messaging Stage


Cab flyers 1 2 2 1 1 Reach $ 1

Messenger BOT 1 2 2 1 1 Reach $$ 2

MSFT Recognition

2 1 1 4 4 Depth $$ 3

SMS content 1 1 2 2 1 Depth $$ 2

Executive Dashboard

1 1 1 3 3 Depth $$ 3


Who are they?



Attitude to MSFT

Insights & comm


Few practical things we have learned

Social influencers and non-social influences need to be paired up

Best to engage TI BDM alongside an ITDM– For example, in BI (business intelligence), targeting Finance

Director/ CFO (as TI BDM) alongside a CTO (as ITDM) would be key to winning.

From our experience, we know; – direct mail + email + telemarketing to begin engagement – online + telemarketing to sustain dialogue– events to close deals

Who are they?



Attitude to MSFT

Insights & comm

TI BDM Focus

View of

SW/IT

External Only Internal & External Blend

Cost

Strategic

Silo Appro

ach vs. Need For In

tegrated Applicatio

ns

High

Highest Opportunity for App Integration & ConnectivityHighest Opportunity for App Integration & Connectivity

Business Process &

Integration

Management & Security

Server Foundation Stabl

e Utility

ROI

Low

Internal Only

Client

Storage

Who are they?



Attitude to MSFT

Insights & comm

Product involvement

Even the most engaged BDMs (with IT influence) perceive Microsoft as monolithic, unaware, and indifferent.

• Most BDMs only interact with Microsoft’s desktop products, therefore Microsoft = Office• They lack awareness of Microsoft’s broader capabilities and struggle to comprehend the

company and its people as something apart from Office and Windows

Who are they?



Attitude to MSFT

Insights & comm

Having a relationship with Microsoft is perceived as out of reach for most, relative to other great business relationships.

(as a Company)

• Most BDMs feel the real Microsoft is well beyond them…

• BDM’s company is too small for Microsoft to accommodate or even care about…

• Or they cannot grasp the idea of having a relationship with this very large company, MS.

• Beyond Bill Gates, these BDMs have difficulty picturing the people behind Microsoft.

• When comparing MS to their preferred relationships, BDMs expect to see a sense of caring and personal relationship.

• BDMs know what makes a great relationship.• This is diametrically opposed to BDM perceptions of MS.• The way BDMs see MS has profound implications on how

MS needs to build a relationship.

• A few ponder whether they even need more of a relationship with Microsoft beyond that of a user.

• No reasonable alternative to Microsoft.• Microsoft’s pervasiveness does not require a great

relationship

Who are they?



Attitude to MSFT

Insights & comm

Source: Relationship and Advocacy Focus Group Research, WW BDM Audience Group, June 2008

Consumers Targeted Broad Elites ITDMs IT Is BDMs SBOs Developers

Most important factor in purchases

Quality (43%)/Value

(41%)Quality (43%) Quality (42%) Good Value

(33%) Quality (42%) Good value (45%) Quality (42%)

Strongly agree Microsoft is a good

value31% 11% 59% 36% 22% 33% 30%

Family/Company has been affected

by downtowna great deal

32% 27% 35% 39% 25% 38% 26%

Top Good Value Driver

Quality for a good price Customer service Reliability Quality for a

good priceQuality for a good price

Quality for a good price

Quality for a good price

BDMs are less certain of the value Microsoft offers as opposed to ITDMs who are the most likely to see Microsoft as a good value.

Highest

Lowest

Who are they?



Attitude to MSFT

Insights & comm

Source: Microsoft Value Messaging Research, CMG Market Research, May 2009

Q64-82. Please indicate how much it applies to Microsoft. Scale - 1 = “Does not apply at all” and 9 = “Applies completely.”Net Score = Top 3 Box (9 + 8 + 7) – Bottom 3 Box (1 + 2 + 3)Ranked by Consumer

BDM ITDM

Is an industry leader 85 85

Has a vision for the future of technology 74 79

Is innovative 70 82

Offers leading-edge products 73 78

Has reliable products and services 57 78

Makes my life easier 70 78

Is a company I trust 66 77

Offers leading-edge services 63 75

Has secure products and services 55 71

Products are high quality for a good price 53 76

Services are high quality for a good price 46 76

Has products and services that fit my household/company budget 61 78

Helps me/my company create opportunities to succeed 58 82

Has good customer service 43 71

Helps people get access to the products they need at a low cost 30 77

Total cost of deployment is lower than competitors 32 65

Total cost of ownership is lower than competitors 34 67

Where Microsoft falls short on creating value [quality + cost] with BDMs.

Who are they?



Attitude to MSFT

Insights & comm


BDMs see less “quality” in Microsoft than ITDMs

Wide divide between BDMs and ITDMs on “cost”

Q54. Which of the following companies do you think is most concerned with offering good value to its customers?Ranked by Consumer

BDM ITDM

Dell 42 18

Microsoft 13 37

Hewlett Packard 20 10

Apple 14 12

ASUS 3 1

IBM 8 22

BDMs perceive getting better value from Dell, HP and even Apple. ITDMs see Microsoft as best value.

Who are they?



Attitude to MSFT

Insights & comm


Company Advocacy Assessment Exercises…

I do not involve the vendor or company at all when determining the business problem.

I proactively work with vendor or company to define the business problem and shape the solution.

Situation 1: Solving a Business Problem

Customer Selected Vendor

Who are they?




Company Advocacy Assessment Exercises (cont.)

I do not communicate the vendor’s or company’s value ever.

I publically communicate the vendor or company’s value at external events and in external written communications

Situation 2: Interacting with Peers and Management

Customer Selected Vendor

Who are they?




Current dialogue

Business decision makers are not used to hearing from Microsoft directly

Especially not in person

Who are they?



Attitude to MSFT

Insights & comm

– Segment: • GMSC | depth | breadth• Commercial | Public Sector

– Function: • CEO, IT, HR, Finance, Sales, Marketing, etc. • ITDM or TI BDM

– Industry sector: • Retail, Manufacturing, Finance, etc.

When communicating with BDMs, we typically use the following three dimensions:

Who are they?




How Microsoft communicates with BDMs

MicrosoftMicrosoft

Field Sales

Hi-Touch Partners

Lo-Touch Partners

CxOs VPs, LOB

Development managers

MicrosoftDev Evangelists

KeyPromotionEvangelismInfluence

62

Who are they?




Source: Microsoft / Y&R ALM Framework

BDM

Microsoft has considerable room to grow in order to build relationships and advocacy among BDMs.

Advocacy

Put

customer’s reputation on the line

Willingness to take

chances

based on Strong

Relationship

Development of Trust and

Dependability

Development of a

personal relationship

Knowledge of company/business

Consistent performance

Quality Product

or Service

• Performing above and beyond the call

• Coming through in a tough or difficult situation

• Consistent great performance• Putting name/reputation on the

line• Making the BDMs look good

What sets Advocacy apart

from Good Relationship?

Current Position

Key Steps for Building Strong Relationships and Advocacy

Who are they?




Build Solution Awareness• General and targeted advertisements

• Direct mailings• Ads in trade magazines• Brochures• DVDs• Trial offers

• Participate in tradeshows and conferences

• Product demonstrations and workshops

• Traveling Microsoft road show

Develop Personal Relationships• Account representatives (1:1)

• Get to know me and my company• Determine my needs• Provide solutions• Lunch• Follow-up

• Host social events• Raise awareness of involvement in

charities, scholarships, and the environment

• Offer discounts and incentives• Technical support

Unaided, BDMs recommend for Microsoft to focus on:

MS

Product

Solutions

Who are they?





What would make a BDM leave his office?

• Compelling reasons or benefits to BDM (job made easier or more efficient)

• Topics of interest to the BDMs• Cocktails/entertainment• Key Microsoft Executive speakers• Attendance prizes (discounts on

products, dinners with MS Execs, etc.)• Casual environment• List competency required (making

less skilled more comfortable)

Who are they?





Very short, high level messages

One way only – “I’ll call you”

Make it job- and industry-specific

And not too often…

• “I should get the bullet points to know how it can assist me in human and real terms. How the technology works send it to IT.”

• “I prefer the technical gets funneled through IT. Just give me the more global bullet points and if there were more questions I can call them or call IT.”

• “I don't know the technical jargon and want to know the business perspective. If it’s interesting from a business perspective send it to me and then they can talk tech to IT.”

• “Once a month some kind of newsletter.”

• “Once a year or so is all I need.”

• “A monthly email with new products, information, news – but give me something to make me think or grin or something.”

• “I wouldn’t want them contact me saying guess what I have for you. If it was an add on to what I have I would like it but I don't need a groupie hanging on “

• “A quarterly magazine seems right.”

• “I would like to get 1 way communication I can deal with at my leisure like the magazine. For discussion call IT. If I have a need I will find them.”

• “Send me magazine and invitation and don't call me – send me stuff.”

• “1 way communication so it’s on my timetable and my schedule.”

• “I need to peruse it on my time and no phone calls.”

• “Contact me through an email and I’ll contact back if I want solutions- but I wouldn’t be receptive of them calling me out of the blue to sell me a product.”

• Do your homework - you know our SIC code – give me things focused on that.”

• “Get on our web site and understand the business.”

• “I need industry specific. They have to show they have gone above and beyond to learn the business - talk to customer service and call into the organization before you call up a decision maker.”

• “Say we have something that does this or handles that. That is what will attract me more than generalities.”

So what do TI BDMs want from Microsoft?

Who are they?




Source: BDM Relationship With Microsoft, BDM Relationship Group, March 2003

Who are they?




Findings on BDMs can be paradoxical From research available, we might hear feedback and

recommendations from BDMs that are contradictory and paradoxical. E.g. not wanting regular outreach from Microsoft – yet feeling they should be made aware of any relevant offerings at the time they are seeking information for a new application or to solve a business need.

This could be due to the differences in the organization size and/or geographies.

This means, we need to:

– Understand the specifics of the targeted BDMs

– Test on smaller sampler before going big-bang

Messaging : what works and does not work

What Works:

– Solve a Business Pain. BDMs manage business pains on a daily basis. Resolving or easing any of these pains in our messaging will resonate well.

– Quantify Savings. Showing that Microsoft software (e.g. Office) costs just about a $1 day for hours upon hours of productivity helps explain the value that Microsoft brings to businesses.

– Connect Microsoft Products Directly to Immediate Savings. BDMs process Microsoft value in terms of results and they are looking for immediate delivery of those results. The relationship between Microsoft’s Unified Communications and the resulting increase in productivity and decrease in travel costs gives BDMs an example that is easily understandable and appears to be immediate.

– Emphasize Innovation, Vision, Trust. These form a trifecta for BDMs: BDMs trust Microsoft will deliver products that help drive business; in addition Microsoft has the vision and will continue to innovate which will help BDMs grow their companies.

Who are they?




Messaging : what works and does not workWhat Doesn’t Work:

– Highlighting $9b in research. Opposite to SBOs, BDMs do NOT want to think about Microsoft massive commitments and the resulting economic impact – perhaps the figure spawns a sense of delay in enjoying the benefits of the investment (counterpoint to the immediate savings point above).

– Going too technical. As with the SBO audience, virtualization and cloud computing did not register (again possibly due to a perception of delayed savings).

– Implying Microsoft is Always the Answer. Messages that infer Microsoft’s products are the answer for companies no matter the economic condition – good, bad or somewhere in between – are not believable or successful.

Who are they?




Index Score = Net Believability + Strongly Agree MSFT Good Value + Very Likely to Purchase/Deploy/DevelopNet Believability = (5 + 4) – (1 + 2)Ranked by Index Score

Net Bel

Stgly Ag

Very Lkly

Index Score

Familiar Product = Empower-ed Employ-

ees

Your most important asset and key to business success is your people, never more so than in tough

economic times. Microsoft puts powerful, familiar tools in the hands of your people, enabling them to get to

work quickly on projects and work the way that’s best for them. Microsoft’s familiar toolset and well-established presence across business processes helps empower your employees to get the most value from familiar, existing technology.

79 20 22 121

Office

Microsoft Office represents incredible value for your organization-- for about a dollar a day your people can have a full productivity suite that organizes mail, handles presentations and budgets along with

scheduling and contacts. This incredible value has helped Microsoft Office to become the standard of modern business against many

competitors, even free ones.

60 25 25 110

Eco-system

In times like these, businesses can’t afford to make a risky investment or to retrain staff on new

technologies that don’t have a rapid return on investment. Microsoft server technologies like Windows Server and SQL Server are industry standards, with hundreds of thousands of certified professionals with skills to support your Microsoft infrastructure. With such a robust ecosystem, you can be confident that your trained staff can maximize the impact of your Microsoft investments.

64 20 21 105

Stability

Since 1975, Microsoft has helped lead the software revolution that has brought computers to where

they are today: robust tools that have contributed to economic growth, from world capitals to

remote villages. No matter how great the challenge, Microsoft will be there to give our customers, both home and business users, the tools that will help them realize their potential and open new worlds.

70 18 16 104

Better Commun-

ication/ Less Travel

Sometimes your company’s best people are spread across the country, or even the world. In tough economic times, it’s understandable that travel policies tighten up. Microsoft Unified Communications provides a familiar interface across PC, web and mobile devices, accelerating end-user adoption and enhancing productivity. Your company’s staff stays productive and travel costs are cut.

64 20 20 104

Business Decision-Makers: Top Ranking Messages

Who are they?




Top 10% Top 33% Bottom 33%



Net Bel

Stgly Ag

Very Lkly

Index Score

Windows Mobile

Windows Mobile software is designed so you don't need a $500 device with a touch-screen to get all of the advantages of an advanced smart-phone. Windows Mobile software works with a wide variety of phones, including more basic phones that cost less but can use all its features of syncing mail, calendars and contacts. Windows Mobile Software was designed with value in mind and in extending more advanced technology for less to million more users.

60 23 20 103

PC on every desk

When Microsoft was founded, it sought to put a PC in every home and every desk by helping to make it affordable and useful at a moderate price. Today, Microsoft is helping extend this philosophy to the next billion users in developing countries, offering lower-cost starter editions of its operating system and seeking to put affordable technology in the hands of people across the globe.

59 20 17 96

Better Use of IT Support

Microsoft products, like SharePoint and Communicator are a good value investment for your company because they allow for easy collaboration among employees – whether they are separated by a hallway or an ocean. Because the products are built to

integrate smoothly, your people will experience a familiar layout enabling them to get the job done, without intense training or assistance from the IT department.

58 18 18 94

The Comm-unity

Beyond our own products, Microsoft has helped develop an ever-growing community of diverse companies who build products, create solutions, or provide additional services using Microsoft technology. This global partner ecosystem is a strong network of 700, 000 business partners, working to develop and sell Microsoft-based technologies and solutions. Microsoft has supported this community of companies in building their businesses, which in turn drives the economy by creating new products and services, new opportunities and new jobs.

58 19 16 93

Heritage

Microsoft's heritage has from the beginning been to create products that put in the hands of people superior technology for much less than existed before. The PC revolutionized small business by making computing power affordable and easy to use for them; and today Microsoft in all its products from mobile phone to gaming software seeks to broaden the marketplace by making advanced technology more affordable to millions and even hundreds of millions.

60 16 16 92

Business Decision-Makers: Middle Ranking MessagesTop 10% Top 33% Bottom 33%

Who are they?






Net Bel

Stgly Ag

Very Lkly

Index Score

Optimistic about

Tomorrow

Microsoft has always been a company that pushes the boundaries of software innovation, and we remain

optimistic that future innovations will serve as a catalyst for economic recovery and help

all of us improve our lives. Microsoft is committed to purposeful innovation, which is why we invest $9 billion a year in research and development, a full billion dollars more than last year, to study and bring to market the

best software experience for our customers.

63 15 14 92

Riding the Wave

The soft economy impacts almost every market and community, creating an ebb and flow that can be a challenge to ride from recession back to growth. Microsoft products and services become a particularly valuable strategic investment during a downturn because they support remote worker productivity, virtual solutions, and are easily scalable when your business is ready to grow.

48 14 17 79

Increase Results

with Business Insight

Economic uncertainty creates changes in your customers’ behavior, and addressing those changes early could be the advantage your company needs to stay

ahead. To weather tough times and excel in better times, Microsoft Dynamics offers a valuable set of software and tools that provide real-time, actionable information, which your company can use to react quickly to

changing business conditions.

44 16 14 74

Virtualization Helps with the

Up/Down Economy

Think making IT cuts was hard? How about when your company recovers and you need to get back to par with less time and fewer resources? Microsoft products represent a good value because they take advantage of virtualization and cloud computing, giving you the flexibility and choice to more easily expand and contract your IT load to match

business conditions.

41 15 17 73

Spark Economic Growth

Microsoft continues to deliver software innovations that help individuals and organizations around the world learn and grow while accomplishing everyday tasks and achieving their

goals in increasingly efficient ways. The upcoming Windows 7 and other Microsoft innovations offer cost-effective solutions for both individuals and businesses and serve as resources to aid in the exploration, growth and

innovation that help spark economic growth.

42 15 15 72

Business Decision-Makers: Bottom Ranking Messages

Top 10% Top 33% Bottom 33%

Who are they?





The Bottom Line Value matters to all audiences, but we need to tune the message for each one

– Arm ITDMs (“believers”) with value-based content and air cover so they can sell up to their leadership

- Messaging connecting value to performance and reinforcing IT as a strategic investment that can reduce costs in the long-run helps strengthen the case

– Inform BDMs (“skeptics”) of the value we deliver to their organization today through empowering their employees to get the most value from familiar technology, our investment in innovations, and strong service and support ecosystem in order to shift their perceptions of Microsoft value

- Since BDMs are skeptics, they have the potential to block Microsoft as they increasingly take a larger role in budget decisions

– Remind Consumers and Small Business Owners (“fence sitters”) of the history of value Microsoft has delivered (Office, Windows , Live, UC, etc.) and continue to deliver (via new offerings, free features) to reinforce our strong value heritage and to convert existing equity into consideration of the next wave of offerings (Windows 7, Office, Search, Server, etc.)

- For example, consumers look for immediate cost savings and need to be “reminded” of the ‘hidden’ cost savings in Microsoft products and services

Who are they?




How to promote the new Xerox black & white copy machine to medium size company CEOs ?

Example

Who are they?




Product features and benefits:– High resolution b&w (1600 dpi)– Smaller than the competition– Access to statistics in real time– A service contract that provide you a 24/7 intervention– The quickest copy machine in terms of copies / minutes– A price among the lowest ones with a flexible lease offered to S&M size companies

Insights :

– What BDMs dislike most is to imagine their employees losing their time in useless actions

– BDMs are seeking to hire the best employees despite the lack of « sex appeal » of small companies for young people.

– SMB BDMs are looking for flexible paiment conditions.

– BDMs does not wish to lose their time in dealing with copy machine and toilet paper details, they want to focus on development and company benefits

Write the value proposition

Who are they?




– Product features and benefits:- High resolution b&w (1600 dpi)- Smaller than the competition- Access to statistics in real time- A service contract that provide you a 24/7 intervention- The quickest copy machine in terms of copies / minutes- A price among the lowest ones with a flexible lease offered to S&M size companies

– Insights :

- What BDMs dislike most is to imagine their employees losing their time in useless actions

- BDMs are seeking to hire the best employees despite the lack of « sex appeal » of small companies for young people.

- SMB BDMs are looking for flexible paiment conditions.

- BDMs does not wish to lose their time in dealing with copy machine and toilet paper details, they want to focus on development and company benefits


Who are they?




The quickest copy machine in terms of copies/minutes

What BDMs dislike most is to imagine their employees losing their time in useless actions

Value proposition:The new Xerox copy machine allows your employees to work faster


Who are they?




Value proposition:The new Xerox copy machine allows your employees to work faster

Communication promise:With the new Xerox copy machine, your employees won’t stand for hours in the copy machine room

From the value proposition to the communication promise

Who are they?




The Idea:

– Materialize and dramatize the time lost by users with their current machine

The solution:

– A piece of used carpet sent to BDMs, giving a clear idea of the time lost by employees in front of the copy machine, time that could have been more profitable.

– Telemarketing follow-up

.

The abruption idea

Who are they?




Who are they?




BDMs are OK to be contacted directly even if IT is bypassed

• A few suggest Microsoft should leverage their IT department relationship to…

o Present LOB products and discuss business benefits

o Identify key BDMs within the organizationo Facilitate learning business needs and

offering solutions ideas

• How?o Advertising in industry publications, trade

journals, and business magazineso Onsite product demonstrationso Direct mail/brochures targeting functional

areas or their specific industry

BDMsIT

• Why?o BDMs know their own needs better than

ITo Most IT groups are not passing on or

sharing the information about Microsoft’s other products

o Business groups typically pay for IT solutions

Who are they?




In the case of low priority of BDM marketing

• Even if Microsoft is not interested in building a strong relationship with BDMs in a sub, it should at a minimum educate the BDMs on the product portfolio and relevant business benefits to encourage some level of influence over IT.

Who are they?




Final thoughts

BDMs are the hardest audience to reach, significant effort is required, but they can be the deal-breaker

BDM in a 10-man company is very different from a public-listed company CEO; this filter needs to be applied in this training material

Local nuances are key in developing highly relevant communications

Who are they?




Let’s talk about IW

now

SMSG Marketing Matrix

Enterprise Public Sector

Education Depth Breadth Partners

BUSINESS DECISION MAKERS (BDM)

IT DECISION MAKERS (ITDM)

ITI IMPLEMENTOR (ITI)

DEVELOPERS

DESIGNERS

INFORMATION WORKERS (IW)

AUDIENCES

SEGMENTSEPG SMS&P

Commercial audiences mappingCxO

BDM-TI

ITDMs

EU / IW

BDM non-TI

Business audiences

ITI

IT Decision MakersIT Implementer

Business Decision Makers Technology Influence

End Users / Information Workers

Business Decision Makers Non - Technology InfluencersOther IT

IT generalist, IT specialists (desktop support, infra support, LOB specialist)

ITDM : CIO

Fu

ncti

on

Execu

tives

Fu

ncti

on

Lead

ers

Technical audiences (TAGM)

Arc

hite

ctur

e / C

TO

Infras

truc

ture

&

deliv

ery

Dev

elop

men

t

Secu

rity

Bus

ines

s App

s / L

OB

CIO

IT I

Developers

Other IT

Designers

CFO (Finance)VP

Sales (Sales)

VP HR (HR)

VP R&D (R&D)

COO (Operations

)

CMO (Marketing)

Other BDMs

Lega

l

Acc

ount

ing

Proc

urem

ent

Trea

sury

PR

eCom

mer

ce

Adv

ertis

ing

RM

/ D

igita

l Mar

ketin

g

Recr

uitin

g

Trai

ning

& D

evel

opm

ent

Ben

efits

Cus

tom

er S

ervi

ce

Sale

s

Rese

arch

& D

evel

opm

ent

Prod

uct M

anag

emen

t

Supp

ly C

hain

Man

agem

ent

Plan

ning

Logi

stic

s

Adm

inis

trat

ion

EU / IW

CxO CEO, CTO, CIO, CMO etc.

Which of the following best describes your role at work?

BDM vis-à-vis IW

I am responsible for making decisions about the

goals/priorities of my department and/or the overall

company.

BD

M

I determine how to complete my projects

and/or tasks.

or

I am responsible for contributing to a team

and completing my own projects/tasks.

IW

Management

Coordination

Implementation

Who are theySegmentatio

n How they work InsightsWhat they

use Opportunity

What is a typical IW

persona?

Why and how

Microsoft segments IWs

Where, how, how long…

What devices, applications, web services and tools they use

What insights can we connect with?

What

opportunities can we build on?

Products

What office products they use

IW persona

Mindset“We are expected to do more and more work, with our professional and personal lives becoming an increasing blur. None of us have time to learn new technologies, but we are expected to be fully fluent on everything available to us.”

Need State“We need to have easy access to information for us to make decisions. We don’t want to go through lots of extra hoops to get our work done, and we want to be able to use what is familiar to us.”



use OpportunityProducts




How they define their work

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

- 10,000 20,000 30,000 40,000 50,000

Not all countries have the same level of PC adoption as the US or Western Europe

Gross National Income per Capita

PC

pen

etr

ati

on

Source: The Economist Intelligence Unit

International iWorker

Brazil

France

Germany

US




Why IW segmentation

Information workers (think of them as the people you see at a

football game) are unique individuals.

Uniqueness created by use of productivity, collaboration, and mobility tools varies tremendously based :– Job requirements– Corporate culture and structure– Attitude towards technology

Segmentation is shorthand for understanding customers– We’re human, we naturally assume that everyone is like us. But they’re

not.– It’s impossible to know each IW individually– But it is possible to segment IWs into like-minded groups




3 factors divide IWs into segments

“Accidental” tool user, not confident

Highly engaged, highly skilled, highly

motivated

Use of productivity tools

•Frequency using productivity tools•Expertise with productivity software•Perceptions about productivity software

LowHigh

Usually desk-bound, occasionally deskless

Highly mobile, connected and working

everywhere

Location flexibility

•Number of locations using laptops/smartphones•Attitude towards flexible access to work materials

Low High

Task worker, no project-based teams

Collaboration leader, 3+ teams

Level of collaboration

•Percentage of time working on a collaborative team•Frequency of collaboration tool use•Geographic distribution of the team•Need to manage document versions

Low High

US iWorkerWho are theySegmentatio



Source: Microsoft’s “IW@Work Comprehensive Deck” , June 2009

Getting to know the IW segments Segment % of IWs Description

All Stars 20%These are the alpha dogs of mobility, collaboration, and productivity tools. Think executive, multiple teams, workaholic, tech enthusiast power user, smartphone junky. Aspiration: More power.

TechRealist

25%The Tech Realists represent 25% of the provisioned workforce. Tech Realists understand the potential for technology to improve productivity. They have a higher than average influence on productivity application purchases. Not as “sophisticated” as All Stars. They work from multiple locations, on multiple devices, collaborate with others but may not lead projects. Aspiration: Get time back.

DeskboundContributor

18%(large

r in FR, DE)

They prefer simple, familiar tools that help them get the job done. They use the full suite of Office applications and a few ‘line of business’ apps. Work/life balance is important, they want to get work done quickly. They rarely install other software on their own. Aspiration: All resources within reach.

Road Warrior

17%These are loners, on the road, carrying a bag. They are more likely to be in sales or professional services. They do more presentations and less word processing. Aspiration: Get more done on the road.

Generalist 20%This group uses tools because they must. Think finance, operations, or service rep that works independently. 9-5ers with predictable jobs. They do more data entry and have more shared PCs. Aspiration: Hassle-free tools.





Segments differ in marketsWho are they

Segmentation How they work Insights

What they use OpportunityProducts


Segmentation method has not been operationalized by Microsoft yet and should at this point be used for reference only.




All Stars: Want more power

Productivity Tool (HIGH)• Presentation (78%) users and experts• Excel jockeys (47% do pivot tables)• Twice as likely to do advanced features• Expertise self-ranking across tools: 86%-97%• 99% think productivity tools give competitive

advantage (33% average)

Location flexibility (HIGH)• 96% telecommute or bring work home• 43% use laptops 4+ hours/day (21% average)• Create or edit docs in 3.8 places on average• Smartphones are key to some (12% use)• Critical to edit docs outside office (85%)

Professional & Personal characteristics• 20% of information workers• 57% “have clout” in organization (2X)• 57% have 10+ people reporting to them• 61% Male (10% above average)• 47% business decision makers (24% average)• High for “keep up w/latest tech developments” (96%/78% avg.) • High for “like tech that sets them apart” (88%/65% avg.)• High MP3 player usage (94%/75% avg.) • High for “buy new tech before anyone else” (35%/16% avg.)

Collaboration (HIGH)• Member of 3.2 teams on average• 57% use IM daily (30% average)• 57% are team leaders (38% average)• Half use Web conferencing (1/3 is average)• 33% spend more than half their time working

with team mates (24% average)





Tech Realist : Get time back

Productivity Tool (MEDIUM)• 86% use spreadsheets (79% average)• 40% do highly unstructured tasks (32% avg)• 51% use email most frequently (41% avg)• 16% use work processing most (11% avg)• 42% think productivity tools give competitive

advantage (66% average)

Location flexibility (MEDIUM)• 84% telecommute or bring work home• Create or edit docs in 2.9 places on average• 47% use a laptop 4+ hours/day (21% average)

Professional & Personal characteristics• 13% of information workers• Professional worker (51%, 35% is average)• Engineers, educators• Young and married no kids, or single• More likely to be male (59% vs. 51% average)• Low for “like tech that sets them apart” (57%/65% avg.)• Slightly Low for “tech helps them relax/unwind” (70%/75% avg.)• Average for “buy new tech before anyone else they know” (13%16% avg.)

Collaboration (MEDIUM)• Member of 2.4 teams on average• Individual contributor (50%, 44% average)• Use social networks for work (23%, 18% avg)• Only 15% spend more than half their time

working with teammates (24% average)





Deskbound Contributor: Resources in reach

Productivity Tool (MEDIUM)• Perform data entry, uses e-forms (Avg+4%)• Expert at using spreadsheets (69%/70% Avg)• Frequently uses Office at work (84%/82% Avg)• Unlikely to create presentations (22%/33% Avg)• Will use advanced functions (1.1/1.6 Avg week)• Use tools to achieve work goals (91%/85% Avg)

Location flexibility (LOW)• Rarely works away from desk (.6/1.5 Avg)• Uses fewer devices anywhere (.7/1.3 Avg)• Not critical to synch email (26%/40% Avg)• Doesn’t collect data when away (32%/49% Avg)• Doesn’t need to access work calendar when

away (35%/48% Avg)

Professional & Personal characteristics• 19% of information workers• Structured task worker (25%, Avg+7%)• 67% don’t install SW on work PC (Avg+12%)• 58% female (Avg+9%)• Empty nesters, young single, married no kids• Customer services, non decision-maker•Slightly Low for “tech helps them relax/unwind” (70%75% avg.) • Slightly Low for use an MP3 player (69%/75% avg.) • 2 x Lower for “buy new tech before anyone else” (8%/16% avg.)

Collaboration (MEDIUM)• Work on 1.99 project teams (1.33 Avg)• Use 2.28 collaboration tools daily (1.5 Avg)• Use some web conferencing (18%/31% Avg)• Most face-to-face collaboration (89%)• Have individual contributor role on teams (54%)• Most work with other office staff (84%/77% Avg)





Road Warrior: Get more on the road

Productivity Tool (MEDIUM)• 44% create PDFs weekly (41% average)• Create presentations but don’t view selves as

experts (46%/65% Avg)• Create documents 79% (Avg+11%)• Work highly unstructured (37%/32% Avg)• Use advanced functions (1.7/1.6 Avg week)

Location flexibility (HIGH)• 82% telecommute or bring work home (Avg+16)• 58% need to access work calendar (Avg+10)• 38% use a laptop 4+ hours/day (21% average)• Critical to synch email (51%/40% Avg) • Need flexibility where can work 87% (Avg+12)• High use of devices 1.8 (Avg+.5)

Professional & Personal characteristics•17% of information workers• Sales, professional services• Business decision makers 30% (Avg+6)• Some clout in organization 36%/31% Avg• Young and single, older family with kids at home• Male, 40+ (56%, 52%) • Moderate for “like tech that sets them apart” (73%/65% avg.)• Moderate MP3 player usage (81%/75% avg.)

Collaboration (LOW)• Doesn’t use collaboration tools daily (0%)• Doesn’t work on project teams (0%)• Primarily works on own (44%/36% Avg)• 23% work for single-site firms (19% Avg)





Generalist: Hassle-free tools

Productivity Tool (MEDIUM)• Moderate data entry, e-forms (55%/58% Avg)• Low use of presentation SW (36%/55% Avg)• Less frequent Office users (73%/82% Avg)• Use few apps other than Office (1.07/1.65 Avg)• Use some advanced functions (1/1.6 Avg week)

Location flexibility (MEDIUM)• Not critical to synch email (26%/40% Avg)• Doesn’t need to access work calendar when

away (34%/48% Avg)• Rarely works away from desk (.8/1.5 Avg)• Flexibility where work moderate (62%/66% Avg)• Avg # of devices used anywhere (1.2/1.3 Avg)

Professional & Personal characteristics• 14% of information workers• Most deskless workers (11%/5% Avg)• Data entry worker (21%/13% Avg)• Middle aged, unmarried, DINK• Retail, Cust. Svc, trade, public safety, manuf.• Roughly equal male/female (49%/51%)• Slightly lower for “keep up w/latest tech developments” (73%/78% avg.)• Slightly lower for "like tech that sets them apart” (60%/65% avg.)

Collaboration (LOW)• Primarily works on own (44%/36% Avg)• Doesn’t use collaboration tools daily (0%)• Doesn’t work on project teams (0%)• Low use of IM (23%/37% Avg)• Low use of collab SW (22%/31% Avg)





Each industry has a different breakdown of IW segments

Segment

Significantly higher likelihood of

this Industry

All StarsLocal Government, Wholesale, Hospitality

TechRealist

DeskboundContributor

Road Warrior

Generalist

Significantly lower likelihood of this

Industry

Engineering, Computer-Related

Computer-Related, Engineering, Utility, Education

Utility

Construction, Hospitality

Computer-Related Hospitality, Legal, Banking

Banking, Transportation, Federal Government

Note: The sample sizes for some of the segments by industry are quite small (<10), so consider this directionally correct.

iWorker Exec Pres




Summary of essential differences

20% 13% 19% 17% 17%

High Medium Medium Medium Low

High Medium Medium Low Low

High Medium Low High Low

High Medium Low Medium Very low

More power

Time back

Within reach

More on road

Nothing new

All StarsTech

RealistDeskboundContributor

Road Warrior

Generalist

Percentage of iWorkers

Use of Productivity Tools

Need for collaboration

Location flexibility

Clout in the organization

Primary aspiration





About one-fifth telecommutes regularly

Source: February 2010 “Understanding The Influential Information Worker”





Desk and desktops dominate




40% can download with limits and 60% have internet access





Mainly use Dell and HPUS iWorkerWho are they

Segmentation How they work Insights

What they use OpportunityProducts


iWorker Exec Pres

iWorker Exec Pres




Email, calendar, IM and document sharing are most used


Daily use of email is universal; not so with presentations

102

“How frequently do you use each of the following types of software at work?” (% Using Daily)

92%

81%76%

68%

33%

92%

70%

62%

53%

12%

88%

63% 63%

54%

7%

90%

62% 62%

49%

14%

83%

44%

51%46%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Email Calendar Word processing Spreadsheets Presentations

All Stars Tech Realist Deskbound Contributor Road Warrior Generalist

Base: Total (n=2002)

Email is even hourly for 52%

All Stars lead in presentations.

iWorker Exec Pres

iWorker Exec Pres





Advanced activities are: a) not daily for most; and b) found mostly in All Stars

“How frequently do you do the following activities when using productivity software at work?” (% doing Daily)

81%

47%

36%30%

16%

59%

25%

12% 10%

3%

64%

30%

17%13%

2%

62%

21% 20%

13%

4%

54%

19%13%

9%

1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Spell check documents Sort column data in spreadsheets

Create recurring appointment

Create document templates Generate pivot tables

All Stars Tech realist Deskbound Contributor Road Warrior Generalist

Base: Total (n=2002)

Spell checking is a common daily task for most IWs

Pivot tables are a daily task for only 16% of All Stars and single-digit levels for others.

iWorker Exec Pres

iWorker Exec Pres





PC use is high across all segments, but only some use laptops or smartphones

100%

43%

22%

95%96%

47%

8%

77%

83%

0% 2%

37%

88%

38%

12%

87%

72%

1% 1%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Use PC 4+ hours per day Use laptop 4+ hrs per day Use smartphone 4+ hrs per day * Use PC or smartphone in more than 1 location

All Stars Tech Realist Deskbound Contributor Road Warrior Generalist

Laptops and especially smartphones vary by segment and correlate with the need for location flexibility.

iWorker Exec Pres





For project-based teamwork, All Stars lead in every category

105

“How frequently does your team use the following collaboration tools?” (% Using Daily)

72% 70%

49%

28%

19%

42%

32%

17%

3% 3%

50%

30%

11%

4% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Intranet portal Instant messaging Telephone conferencing Web conferencing Video conferencing

All Stars Tech Realist Deskbound Contributor

For every conferencing technology, but particularly for Web and Video conferencing, All Stars are the big users

IM is only mainstreamfor All Stars

iWorker Exec Pres

iWorker Exec Pres

iWorker Exec Pres





LEAST used tools are those companies do not provide

iWorker Exec Pres

iWorker Exec Pres





On Smartphones: email, contacts and calendar are top

iWorker Exec Pres

iWorker Exec Pres





BB most popular but iPhone catching up

iWorker Exec Pres

iWorker Exec Pres





Most use company-approved smartphones but 23% chose their own

iWorker Exec Pres

iWorker Exec Pres





Smartphones; not necessary but wanted

iWorker Exec Pres

iWorker Exec Pres





Cloud won’t be a total novelty

iWorker Exec Pres

iWorker Exec Pres





Productivity tools most used web services

iWorker Exec Pres

iWorker Exec Pres





Not downloaded apps because of no permission

iWorker Exec Pres

iWorker Exec Pres





Web browsers and desktop search apps is what they download most

iWorker Exec Pres

iWorker Exec Pres





Applications that help their job

iWorker Exec Pres

iWorker Exec Pres





What products would be relevant to IWs

ITDMiWorker Exec Pres

iWorker Exec Pres




Core InfrastructureWindows (server + client)

Hardware

Productivity SuitesE.g. Office, Sharepoint, Outlook

ApplicationsE.g. EI, Forefront

CloudE.g. BPOS

Productivity suites used at organizations

Productivity Suites in Use at Org (Q3/3A)

Total(n=454)

SENT(n=122)

LENT(n=332)

ITDM(n=355)

BDM(n=99)

Single Site

(n=69)

Multi-Sites/One

Country(n=212)

Multi- Sites/ Multi-

Country (n=173)

Above Avg. # Unprov

PS*(n=190)

Avg. or Below Avg. # Unprov

PS*(n=264)

Productivity Suites in Use at Org

Microsoft Office 96% 94% 97% 97% 96% 97% 96% 96% 94% 98%

IBM Lotus SmartSuite 45% 52% 43% 46% 41% 43% 46% 44% 50% 40%

OpenOffice, StarOffice or Red Hat Linux

39% 43% 39% 41% 35% 51% 33% 42% 41% 38%

Google Docs and Spreadsheets 38% 38% 38% 38% 38% 42% 34% 41% 42% 35%

Other desktop-based productivity software

21% 15% 23% 18% 33% 15% 21% 23% 20% 22%

Other web-based productivity software

4% 1% 5% 3% 8% 5% 3% 6% 7% 2%

Above average

Below average

ITDMiWorker Exec Pres

iWorker Exec Pres





Insights Product-related About half IWs don’t understand how a particular feature will help them. The other half needs to be shown the benefits, not the feature. Imagine a world in which an IW can step out to a community for help, for

videos on how to use the feature, for peer advice?

Time and training • All workers are constrained by time and resources

• … to close more deals. • … to get back personal time • … to be better at what they do

• IW thinks “my time”, BDMs thinks “company time” and “their time” • Formal training takes a back seat to learning on the fly

Empowerment In the US, many IWs see themselves as BDMs; they feel empowered to do

more than what the job description reads In France, Germany and Brazil this insight does not apply.




75% ITDM’s say they will provision some of their workers who aren’t currently using a productivity suite in the next 12 months

Reasons for not provisioning workers with productivity suites relate primarily to costs. Three-quarters indicate a desire to provide individual productivity apps or web-based

solutions to these workers.

ITDMs are looking for any excuse to provision No-Suite Workers

Likelihood of Provisioning – No-Suite Workersn=454 (Q1) Top Box % (Very Likely: 7-9)

If the license cost for full productivity suites were 1/10th the current license cost 83%

If the cost of providing email for employee communications was cheaper than using physical mailboxes

78%

If you could provide a Web-based solution 74%

If they were to be given a PC or access to a PC 74%

If you could select individual productivity applications to be provisioned 72%

If the license cost for full productivity suites were half the current license cost 70%

If you could provision workers with email or calendar only 67%

ITDMWho are theySegmentatio




Challenge and opportunity

Microsoft is designing Office for All Stars, while overlooking the needs and issues of the other 80% of IWs.

Designing for the needs of the other 80% does not necessarily mean changing the SKUs, but it does mean thinking about how different segments would value or prioritize a feature or design principal.

Focus on Features and not Benefits only. Features can be owned by Microsoft, benefits often not so. E.g. “saves time” is a benefit that can be claimed by any brand. What FEATURES make it “save time”?




In closing See it as a PUSH and PULL strategy

• PUSH • Targeting the IT Pros as they make IT

recommendations and decisions. • Knowing IWs well will enable us to develop

communications which will help the IT Pros to position products to IWs and sell better internally.

• PULL • See IWs as influencers who will make requests /

demands to IT (Apple, RIM strategy)• The new/younger IWs grew up with high-tech,

they will be more demanding of IT to satisfy their high IT appetite.




Thank you !For more information please contact

Raj MisraSenior Strategist

[email protected]