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Page 1 Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com Winning in the Solutions Future: Capitalizing on the Growing Importance of Services Software 2005 Conference Santa Clara Convention Center April 26, 2005 Presented by: David C. Munn President and CEO ITSMA Agenda The Move to Solutions The Services Opportunity in the Solutions Future Four Initiatives for Solutions Success

Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

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Page 1: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 1Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Winning in the SolutionsFuture: Capitalizing on the Growing Importance of Services

Software 2005 ConferenceSanta Clara Convention CenterApril 26, 2005

Presented by:David C. Munn President and CEOITSMA

Agenda

• The Move to Solutions• The Services Opportunity

in the Solutions Future• Four Initiatives for

Solutions Success

Page 2: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 2Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

The Move to Solutions

Solutions are everywhere

Page 3: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 3Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

In the technology industry “solutions” revenue as become extremely important to many companies.

0

2.4

9.8

14.6

73.2

0 20 40 60 80

1

2

3

4

5Extremely Important

Not at All Important

Mean Rating = 4.6

% of Respondents (N=41)

Q. How important is the solutions business to your company?

Source: 2004, ITSMA Online Survey

What’s really driving the move to solutions?

• Client demand• Differentiation• Growth and

profitability

Services organizations need to play a greater role in the drive to solutions!

Page 4: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 4Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

It’s important that we have a common definition of a solution.

A solution is a combination of products and/or services plus intellectual property, focused on a particular business or technology problem, which drives measurable business value

Solutions offer greater business value

Measurable Business ValueLower Higher

Capabilities

Products andServices

Offerings

Solutions

Leve

l of C

usto

mer

Spe

cific

ity

GenericCustomers

Customerswith Common

Problems

TargetedSegments

TargetedFunctions

A ParticularCustomer

Customer-specificSolution

Page 5: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 5Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

The Services Opportunity in the Solutions Future

Software buyers are looking for new services in the solutions world

Yes (60.5%)

No (34.9%)

% of Respondents(N=413)

Are you building custom applicationsfor [software application module]?

Don’t know (4.6%)

Source: ITSMA, Improving Business Results from Software Applications and Services: 2005 Brand Tracking Study

Yes (30.3%)

No (64.3%)

% of Respondents(N=412)

Are you planning to outsource the management of [software application

module] to a vendor?Don’t know (6.4%)

Page 6: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 6Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Outsourcers, integrators, and offshore firms see growth in software services

Wipro expands software management services work with Allmerica Financial

IBM wins Sony outsourcing

contract for software applications

Accenture wins homeland security contract—significant amount of software services involved

Four Initiatives for Solutions Success

Page 7: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 7Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Winning with solutions requires a fundamental reorientation of how companies go-to-market

Deepen Customer

and Market Intelligence

Strengthen Collaborative

Solutions Development

Manage the Total ClientExperience

Rethink Go-to-Market

Strategy

Customerand Market Intelligence

1: Substantially Deepen Customer and Market Intelligence

Page 8: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 8Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Sprint’s “Market Sensing” experts identify opportunities for solutions creation.

Market Sensing casts a wide net to absorb information from varied sources about customer business problems & needs, technology directions, and opportunities . . .

. . . And distills that information down into a smaller set of solution opportunities for Sprint for further evaluation.

Short List of Solution Opportunities

12..n

Customer Business Problems & Needs(industry conferences, focus groups, advisory council, one-on-ones)

Analyst & Other Third-Party Views

Partners & Peers(e.g., IBM, Cisco, Bell Canada, SK Telecom)

Competitors

Sprint Internal

Sweet Spot

Responds to Customer Needs

LeveragesCompanyStrengths

LeveragesCompanyStrengths

Provides TrueCompetitive

Differentiation

Screening Criteria• Revenue potential• Time-to-market• Degree of

differentiation• Etc.

2: Strengthen Collaborative Solutions Development

Collaborative Solutions

Development

Page 9: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 9Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Development Process: Novell® exteNd™ secure enterprise dashboard solution

Analyze market

Brief analysts and press

Execute internal comm and train

sales team

Review capabilities/

ID gaps

Create solution “champion

team”

Engage channel partners

Develop solution, partner, messaging and

materials

Launch marketing campaign

Support saleseffort

Novell solution development process

today’s focus

3: Rethink Go-to-Market Strategies

Go-to-MarketStrategy

Page 10: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 10Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Micro-marketing with partners allows deeper insight and broader reach into targeted solution areas

4: Manage the Total Client Experience

Total ClientExperience

Page 11: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 11Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Customer experience management at SAP

Challenges and Risks

Page 12: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 12Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Responding to clients solutions needs can be very challenging.

How the Client explained it

How the Project Leaderunderstood it

How the Solutions team designed it

How the Programmer wrote it

How the Solutions Consultant described it

How the project was documented

What the Consultants installed

How the Client was billed

How it was supported What the Client really needed

Winning with solutions rests heavily on four critical business initiatives

Deepen Customer

and Market Intelligence

Strengthen Collaborative

Solutions Development

Manage the Total ClientExperience

Rethink Go-to-Market

Strategy

Page 13: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 13Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

questions

About ITSMA

Page 14: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 14Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

ITSMA’s members include software, hardware, and professional services leaders

Siebel SystemsSiemens Communications GroupSiemens Medical Solutions

Health ServicesSoftware AGSolutionsIQSprintSPSSSteriaSun MicrosystemsSunGard SCTSycamore NetworksSymantecSymbol TechnologiesTektronixThermo ElectronUnisysVeritas SoftwareVerizonVertexWipro TechnologiesXerox

NCRNEC Unified SolutionsNetwork ApplianceNextiraOneNokia NetworksNortel NetworksNorthrop GrummanNovellOAO Technology SolutionsOraclePerot Systems CorporationPhilips Medical SystemsPitney BowesPivotalQADRainmaker SystemsReynolds & ReynoldsRockwell AutomationSAP

EDSEMCEncoverEnterasys NetworksEquantEricssonExtreme NetworksFirst Consulting GroupFujitsu ServicesGE Fanuc AutomationHewlett-PackardHitachi ConsultingHitachi Data SystemsHyperionIBM Global ServicesITNETJuniper NetworksKanbayKronosLawson SoftwareLogicaCMGLucentMicrosoftMotorola

3ComAccentureAgilent TechnologiesAT&TAtos OriginAvayaBEA SystemsBearingPointBT RetailBusiness ObjectsCapgeminiCGICH2M HillCisco SystemsCitrix SystemsCognosComputacenterComputer AssociatesComputer Sciences CorporationConvergysCPMCSF GroupDieboldDimension Data

April 15, 2005

ITSMA members take advantage of a broad range of research, advisory, and community benefits

Workshops and CoursesCustom and public programs for new and experienced staff

Best Practices, Trends, and IdeasCase studies, topical updates, interviews, and presentations

Services Marketing Professionals ProgramSix-monthcertificate program

Annual ConferencesMust-attend conferences on marketing’s top issues

Briefings and RoundtablesOnline and in-person events to explore critical issues

Ask ITSMAOngoing access to ITSMA experts

Community Community and and Professional Professional DevelopmentDevelopment

Strategic ConsultingFormal engagements with ITSMA Consultants on strategy, tactics, and planning

AssessmentsAccess to evaluation tools and analysis on a range of topics

Insight SessionsHalf day consulting sessions included with membership

Advisory Advisory GuidanceGuidance

ToolsModels, guidelines, checklists, tips, and more

Customer InsightData, analysis and insight on service buying behavior

Services Sales BenchmarksSales practices and performance metrics

Services BenchmarksBudget and performance metrics

Research, Research, Insight, and Insight, and ToolsTools

Page 15: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 15Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

Additional Services:Beyond core membership activities, members take advantage of a suite of additional services

Sponsored and Custom

Research

TrainingConsulting

Events

Along with membership deliverables, members

take advantage of a much deeper research

capability

Members can leverage the expertise and

knowledge of the ITSMA consulting team

ITSMA’s industry-leading events and public

programs are recognized for their depth and focus

Members have exclusive access to specialized

services- and solutions-focused training services

Upcoming Events:ITSMA events enable marketers at all levels explore best practices, sharpen skills, and network with peers• Making Marcom Matter

– May 3 (Santa Clara, CA)• Mastering Solutions: Annual Marketing Leadership Forum

– May 4-5 (San Francisco)• Marketing Dilemmas: 2005 Annual European Forum and Directors’

Forum – May 17-18 (London)

• Transforming Marketing for a Solutions World– May 25 (Online Briefing)

• Building Professional Services Workshop– June 1-2 (Ohio State University, Columbus, OH)

• Growing Your Solutions Business Workshop– June 7-8 (Babson College, Wellesley, MA)– June 22-23 (San Francisco, CA)

Page 16: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 16Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

2005 Marketing Excellence Awards:Show off your best results

• Launching New Solutions • Generating New Demand • Increasing Sales Effectiveness• Improving the Customer Experience • Strengthening Brand Differentiation • Enhancing Marketing Leadership

Submission Deadline is June 15, 2005More info at www.itsma.com

David C. MunnPresident & CEOITSMAEmail: [email protected]: +1-781-862-8500, Ext. 17Internet: www.ITSMA.com

thank you!

Page 17: Winning in the Solutions Future: Capitalizing on the Growing …sandhill.com/conferences/sw2005_proceedings/munn.pdf · 2013-05-11 · Lexington Office Park 420 Bedford Street, Suite

Page 17Lexington Office Park 420 Bedford Street, Suite 110 Lexington, Massachusetts 02420-1506 USA Phone: +1-781-862-8500 Fax: +1-781-674-1366 Email: [email protected] Internet: www.itsma.com

BUILDING BLOCKS FOR SUCCESS