Copyright: IBM Corporation | 2008 Connecting What You Value To What You Do Kevin A. Clark Program Director Brand & Values Experience Strategy IBM Corporation

Copyright: IBM Corporation | 2008

Connecting What You ValueTo What You Do

Kevin A. Clark

Program DirectorBrand & Values Experience StrategyIBM Corporation

Unleashing the power of beingintentional

IBM Brand Experience Community LeaderAuthor of Brandscedence: Three Essential Elements of Enduring Brands

Brand & Values Experience I 2008 2

Agenda

Being intentional

Engaging and adaptive

Segmentation experience


Why Segment?

Strategic Focus Customer Insight Resource Allocation


What is client experience?

The designed interaction between a customer and your organization


business IBM Confidential

Mobility differences not driven by business size.

High overlap between business & personal use of notebook (a personal object regardless of how it is acquired).

Geo-specific segments emerge.

Areas that differentiate one segment from another are:Degree of mobility and/or need for Space savingsKnowledge about mobile computingNeed for status

Top learnings across segments:Status is a major factor in JapanPerformance & expertise are highly correlatedVolumetrics value is $300 or less outside Japan ($1000)Service & Support highly valued by everyone ($500-$700)

Key Learnings



% of Respondents

28% 30% 29% 37% 32% 33%

18% 8% 8%

7%14% 9%

100% 100%

18%

22% 17%

20% 19%19%

33%

18%19%

23%

17% 18%18%

36%

18% 21% 24%18% 17%

21%

30%

TotalSegment 1

Segment 2Segment 3

Segment 4Segment 5

Segment 6Segment 7

Segment 8

0%

20%

40%

60%

80%

100%

US Japan France UK Germany

Segment 6 is exclusively Europe, and Segments 7 and 8 are exclusively Japan.

Global Segment 3 has the largest proportion from the U.S.

Global Segments

(E3)(J1)

(J3)

Global Segment Composition by Country



Case Study Questions:

Which of these segments would you select?

Which would you de-select?

How would you use this information about the selected segments from the perspective of...

John Burchfiel -- integrated marketing (communications)

Greg Munster -- marketing operations (go to market)

Leo Suarez -- worldwide product marketing (portfolio)



Price Shoppers

15%

Simplifiers

9%

Day Extenders

11%

Global Travelers

28%

NumericIntensives

19%

Sharers

2%

Status Seekers

12%

Gamers

4%

% = Percent of sample population

Global TravelerVery mobile users who travel globally and are more experienced

Numeric-Intensive UsersExpert Users who do analytical/numeric work & send/receive big documents

Status-Seekers (Japan)Japan Status-seekers who believe small = cool

SimplifiersNovices that travel, need to be organized & want simplicity and space savings

Day ExtendersNovices that take work home andare heavy internet users

Gamers (Japan)Male gamers in Japan with limited work space who prefer specialized devices & integrated notebooks

Price ShoppersReluctant novices who are not very mobile but are very price sensitive

Sharers (EMEA)European experts who are concerned about battery life, work outdoors, share their computer and are concerned about ergonomics & security

Mobile Customer Usage Segments



3

IBM ThinkPad BrandMobility InnovationStatus/PrestigeBusiness-focused

"IBM innovates to provide a betterownership experience."

Global Travelers

Numeric-Intensive Users

Status-Seekers(Japan)

Simplifiers

Day Extenders

Gamers (Japan)

Price Shoppers

Sharers (EMEA)

4

Here's What We Did to Target Five Segments



Prometheus Profiles: Status Seekers

I am a high profile individual and need to project a sophisticated and technically savvy image to the people around me. I use a laptop because it communicates something about me. I think it is important to have tools that are consistent with the image I want or need to project, even if I have to buy it myself. Although I'm not particularly interested in new technologies, I enjoy having a device that represents the latest and greatest technology, especially if it creates a buzz or discussion. Although I don't do a lot of international travel for my work, I do need to carry my work tools around with me fairly frequently.

Of all the segments I am willing to pay the most for the smallest and coolest technology, but I still want to know that I got a good deal.

Kenichi Takahashi: Sales Rep



Laptop PCs are cool devicesThe devices I carry tell people something about me

Need organizer that accepts voice inputPrefer one that's mobile over one in every place of work

Prestigious to compute anywhere/anytimeI spend a lot of time in hotels

Rather carry a storage device to use with any PC than laptopStay in touch with people all the time

Others need to use my mobile computerI frequently send large amounts of information

I work in places that are not well litCommunicate primarily within company on LAN

Suffer from having too much to carryI consider myself an expert on laptop PC technology

Would use voice recognition if it were accurateMy work involves constant communications

Prefer to buy integrated over component systemsI communicate with others all the time

Brand name means a lot when buying PC/comm. devicesWorry that carrying PC makes me a target for crime

I frequently work outdoorsI know more about laptop PCs than others

Sometimes have trouble reading computer screensFrequent user of organizers, cell phones, pagers

My work space is very limited in sizeI work on planes a lot

I need to access data in other parts of the country/worldMust have access to e-mail everywhere

Mobile PC restricts my personal freedomI frequently download large amounts of information

I use floppy drive at least once a weekDifficult to type on small keyboard

I cannot imagine being without a laptopNeed to keep up with lot of appointments

Work requires I have mobile computer or comm. deviceOne PC for home and work simplifies life

6.586.443.816.327.013.215.195.853.625.344.406.176.084.495.226.675.996.776.093.434.155.705.416.285.692.713.256.544.065.756.006.345.695.616.015.18

AverageMean Rating

RepresentsRelative to Total

Status-Seekers (Japan)









Very Small Biz PrioritiesCore technology at price pointInternet centric, dial upPC savvy, buys like consr, CTO directsensitive to service & supportEOU & simplicity valued

LE PrioritiesEase of doing business, responsiveMore expensive workhorse offeringsBigger screens, longer battery life and docking stationsStability, consistency, qualityTransitions, commonality, TCO & bids Flexible configs & custom preloads

LE

MM

VSB

IND

Global Travellers

ProfileExperienced mobile users who travel globally28% of mktMobility & statusFlexibility & productivityhigh connectivity, must have access everywhere

Increasing Mobility

Middle Market PrioritiesPrefer VAR/Reseller, external S&Sfresh technology, internet, biz appsplatforms with fresh technologySmall budget, price sensitivelow IT support, experienced PC users

Individual PrioritiesTargeting "Productive Individuals"Productivity & career focusedRepeat purchasers, tech savvySpend more on personal technologyRequire less expensive systems than LE but tuned to meet speciifc needsInternet focused & buy online often Day

Extenders

Profileheavy Creation heavy internet use11% of mktTech enthusiast, Eager NovicesPrice focuseddon't travel alot, take work homecomm'ns important

Numeric Intensives

Profileanalytical/numeric work, big documents19% of mktLarge form factorlatest core technnologyPower reqmnts73% purchase for self

Status Seekers

Profilewant advanced technology12% of mktJapan focused segmentSmall & thin devices are coolStatus conciousreluctant or eager novices

Simplifiers

ProfileTravel & want simplicityprice sensitive9% of mktUtility deviceSmaller form factorspace saving & portabilityeager novices

The "Mobile Matrix"

Mobile matrix combines Prometheus & PSG segmentation approaches.

Go to Market

Product Offerings



Segment 1

15%

Segment 2

9%

Segment 3

11%

Segment 4

28%

Segment 5

19%

Segment 6

2%

Segment 7

12%

Segment 8

4%

Population

Who are they?32% Individual

13% VSB , 33% SMB , 23% LE

Units: 1% LE WH , 4% SMB WH, 1% VSB WH , 29% Ind.

25% Female

32% 18-29 years , 64% 30-49 years, 3% 50+ years

66% purchase mobile computing device for self

10% MIS , 13% Marketing/Sales, 21% Engineering , 6% Finance , 10% Education, 12% Service/Support , 2% Owner/Proprietor , 0% Manufacturing

Heavy communication

Travel a lot

Value space savings

Highly knowledgeableabout laptops

One PC for home & worksimplifies life

Play games

Frequent Internet Usage

Share PC

More info could helpin laptop decisions

Ergonomic issueswith small devices

% of Population 12%% of Laptops Bought Past Year 11%% of Laptops Bought Next Year 10%

I use a laptop because it fits my self-image and

I know the devices I carry tell people something

about me. Although I will pay a little

extra to get something small and

with the right preloaded software,

I want to feel like I've gotten

a good deal on my

laptop purchase.

/ denotes a higher / lower percentage relative to Total Respondents




Status Seekers (Japan)

Laptop PCs are cool devicesThe devices I carry tell people something about meNeed organizer that accepts voice inputPrefer one that's mobile vs. one everywhere I workPrestigious to compute anywhere/anytime

Lower than average

I am highly numbers orientedPCs & devices must be easy to use

Higher than average



Laptop PCs are cool devicesThe devices I carry tell people something about me

Need organizer that accepts voice inputPrefer one that's mobile over one in every place of work

Prestigious to compute anywhere/anytimeI spend a lot of time in hotels

Rather carry a storage device to use with any PC than laptopStay in touch with people all the time

Others need to use my mobile computerI frequently send large amounts of information

I work in places that are not well litCommunicate primarily within company on LAN

Suffer from having too much to carryI consider myself an expert on laptop PC technology

Would use voice recognition if it were accurateMy work involves constant communications

Prefer to buy integrated over component systemsI communicate with others all the time

Brand name means a lot when buying PC/comm. devicesWorry that carrying PC makes me a target for crime

I frequently work outdoorsI know more about laptop PCs than others

Sometimes have trouble reading computer screensFrequent user of organizers, cell phones, pagers

My work space is very limited in sizeI work on planes a lot

I need to access data in other parts of the country/worldMust have access to e-mail everywhere

Mobile PC restricts my personal freedomI frequently download large amounts of information

I use floppy drive at least once a weekDifficult to type on small keyboard

I cannot imagine being without a laptopNeed to keep up with lot of appointments

Work requires I have mobile computer or comm. deviceOne PC for home and work simplifies life

6.58

6.443.81

6.32

7.013.21

5.195.85

3.62

5.344.40

6.176.08

4.49

5.226.67

5.996.77

6.09

3.434.15

5.705.41

6.28

5.692.71

3.256.54

4.06

5.756.00

6.345.69

5.61

6.015.18

AverageMean Rating

RepresentsRelative to Total




Business Only

3%

Business/Personal

72%

Personal Only

25%

Have

71%

Don't Have

27%

Don't Use It

2%

25%21%

20%19%

10%7%

5%0%0%0%

ToshibaFujitsu

IBMSonyNEC

CompaqDell

AcerSNI

Some Other

Reluctant Novices

40%

Eager Novices

31%

Expert

7%

PC Generation

22%

Accessing

36%

Creating

25%

Presenting

5%

Transmitting

34%

What brands did they buy? How much experience do they havewith laptops?

What role do they play in informationhandling?

What do they use their laptops for?





64%

55%

36%

29%

24%

24%

23%

19%

13%

12%

A computer superstore

A retail computer store

Discount department store

Maker via mail/phone/net

Mail/phone/net order company

Electronic appliance store

Computer dealers or VAR

An office supply store

Bank/credit card offer

Manufacturer's salesperson

Magazine ads/coupons

21%

Internet

9%

Radio advertising

9%

Newspaper ads/coupons

15%Trade journals

3%

Friends and family

3%

Advertising in the store

6%

Pertinent industry journals

11%

All Other

23%


Where do they shop for their PC?What influences them?




Basic-FixedFast-Fixed

Fast-UpgradableFastest-Upgradable

-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Core Technology

"C""D"

"B""A"

-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Form Factor

W LAN/W PANWL LAN/ WL PAN

W LAN/WL PAN-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Connectivity

$2,999 $1,999 $999-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Price

Maker DirectMail Order

Retail OutletsDealers/VARs

-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Channel

Call referral without loanerCall referral with loaner

One call with loaner-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Service & Support

Windows NT Windows 95/98 Windows 2000-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Software Preload

NEC Toshiba Fujitsu IBM Sony-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Brand

None Low interest loan 24 mo lease-0.8

-0.5

-0.3

0.0

0.3

0.5

0.8

Financing

.21

.02.12

.04

.27

.39

.33

.00 .00 .04

.13

.10

.19

.06

.03

.01 .00

.02 .00

.00

.11.07

.04

Form Factor - Dimensions/Descriptions:"A" = 10/12" display; 0.5/1" thick; 2/3 lb.; 1 Spindle Fixed"B" = 12/14" display; 1/1.2" thick; 4/6 lb.; 2 Spindle (1 Fixed)"C" = 15/16" display; 1.4/1.8" thick; 6/8 lb.; 3 Spindle Fixed"D" = 15/16" display; 1.4/1.8" thick; 6/8 lb.; 3 Spindle (1 Fixed)

(see below for dimensions/descriptions)

Provide:10/12" display, 0.5/1" thick; 2/3 lb; 1 spindle fixedFastest processor (upgradability not relevant)Win 95/98 or 2000Service: single contact; loaner




Japan SEGMENT C Conjoint

Best Worst Diff

Dollar value of Best-Worst Comments

Core Tech

Fastest Upgradeable

Basic Fixed 0.35 $972

Form Factor A C 0.35 $972 Strong preference for light A

ConnectivityW LAN /WLPAN

W LAN /W PAN or WL LAN / WL PAN 0.01 $28 Doesn't care

Price $999 $2,999 0.72 $2,000 $1999 to $2999 a slightly bigger deal

ChannelDealers / VARs All others 0.04 $111

Service & Support

One call w loaner

Call referral w/o loaner 0.23 $639

Software Preload

Windows 2000

Windows NT 0.25 $694 Hate NT

Brand Sony IBM 0.07 $194 IBM pretty close to SonyBrand* Sony NEC 0.21 $583 Other Japan brands negatives

Financing

24 Mo Lease / Low interest loan None 0.02 $56 Doesn't care

Sum of Getting all Best v. Worst on Nonprice $4,056Uses Brand* (Best - Worst of all brands, not best v. IBM)

Status-Seekers (Japan) Conjoint


Figure 4: Image from user scenariofor Status SeekersFigure 4: Image from user scenariofor Status Seekers

Case Study: IBM ThinkPad s Series

"I want to projecta sophisticatedhigh-tech imageand use the smallest,hottest technologyto reflect who I am."

a user scenario specifically for Japan


Case Study: results of product design

1. Extended IBM ThinkPad DNA

2. Compact B4 size with usable design

3. Exclusive finishes and touch

4. Built-in advanced technology...


Case Study: IBM ThinkPad s Series details

expanded keyboard andwireless antenna mirror each other's form/function


Case Study: IBM ThinkPad s Series finish


C a se S tu d y: IB M Th in kP a d s S e rie s In te g ra te d M a rke tin g C o m m u n ica tio n s

re ta il b roc hures

ibm .c om


C a s e S tu d y : IB M T h in k P a d s S e r ie s A c c e s s o r ie s

t i lt-do w n ba tte ry le g


Case Study: IBM ThinkPad s Series out of box experience


Design Thinking Embraces:

• Emotional intelligence

• Integral intelligence

• Experiential intelligence

Design Management Journal, Summer 2008


Driving Innovation with Experience: think beyond products and offerings

Driving Innovation with Segmentation: think beyond customers

Driving Innovation with Intention: think beyond markets

Unleashing the power of Being Intentional


Integral Segmentation Model

Suppliers Employees Customers

Ownership/relationship experience

“Go-to-market”

Marketing communications

IBM Business Partners

Resource Allocation

Resource Acquisition

First impression & “out-of-box experience”

Support

Service

Community/advocacy

Education

Contracting/purchase

Outsource(strategic)

Use as needed (tactical)

“who does what……and how”

Path of value creation

Supplier segmentation Employee segmentation Customer segmentation

Segmenting and mapping the business ecosystem


Reading list

Other favorites:

• The Executive's Compass by James O'Toole

• A Theory of Everything by Ken Wilber

• Understanding Media by Marshall McLuhan

• The Global Village by Marshall McLuhan and Bruce Powers

• The External Control of Organizations by Pfeffer and Salancik

• Understanding Comics by Scott McCloud

• Man and His Symbols by Carl Jung

• The Writer's Journey by Christopher Vogler

• Words that Work by Dr. Frank Luntz

• The Art of the Long View by Peter Schwartz

• The Starfish and the Spider by Ori Brafman and Rod Beckstrom

• Business Plans that Win $$$ by Stanley Rich and David Gumpert

• The Logic of Failure by Dietrich Dorner

• The Metaphysics of Virtual Reality by Michael Heim

• Love is the Killer App by Tim Sanders

• A Whole New Mind by Daniel Pink

• A Question of Values by Hunter Lewis

• Return on Customers by Don Peppers and Martha Rogers

• Hidden in Plain Sight by Erich Joachimsthaler

• Sun Tzu and the Art of Business by Mark McNeilly

• The Visual Display of Quantitative Information by Edward Tufte

• Envisioning Information by Edward Tufte

• Visual Explanations by Edward Tufte

• …and Brandscendence by Kevin Clark (for personal reasons)

Experiential picks:

Flow by Mihaly Csikszentmihalyi

How Customers Think by Gerald Zaltman

Authenticity by Joe Pine and Jim Gilmore

The Experience Economy by Pine and Gilmore

Building Great Customer Experiences by Colin Shaw and John Ivens

Revolutionize Your Customer Experience by Colin Shaw


Be intentional


Thank You

Copyright: IBM Corporation | 2008

Connecting What You Valueto What You Do

Kevin A. Clark

Program DirectorBrand & Values Experience StrategyIBM Corporation919 543 6245 - [email protected]

IBM Brand Experience Community LeaderAuthor of Brandscedence: Three Essential Elements of Enduring Brands

Thank you

Documents

Copyright: IBM Corporation | 2008 Connecting What You Value To What You Do Kevin A. Clark Program Director Brand & Values Experience Strategy IBM Corporation