4 March 2015

Transitioning to the cloudReview

2©

Introduction

Background:

• Loyalty and rewards solution provider

• Circa 4k employees and a high street customer base

• Legacy enterprise architecture

• New competitive threats utilising cloud

• Cloud has potential to offer new services

• Failed attempt to build cloud solution

• Nervous exec and sales team

• Risk of standing still is potentially huge

3©

The salesforce approach

4©

The previous “fail”

On-premise enterprise Cloud

Go directly to cloud

Feature reduction

&

Fear

Lock inIdentity

management

Ownership of datainteroperability

regulation

privacy

Return on

investment

security

Migration challenges

Service Level Agreement

5©

Introduction Growth DeclineMaturity

Lifecycle stage

Revenue

Profitability

Limited competition

Market domination potential

Low volume

High cost

High failure rate

‘Try-this’ marketing

Rapid volume increase

Competitors increase

Economies of scale

Slightly lower prices

‘Buy-me’ marketing

Limited growth

Lower prices

Replacement products

Volumes drop sharply

Competitors withdraw

Prices can rise

Marketing effort reduced

Back to Basics #1 - The lifecycle model

$

New products

New markets

New features

Chasm

6©

Pe

rce

nta

ge

of A

do

pte

rs

Innovators2.5%

EarlyAdopters13.5%

LateMajority34%

EarlyMajority34%

Laggards16%

Product adoption - The impact

7©

Va

lue

High

Low

Factors of Competition

Med

Back to Basics #2 - The value curve

8©

Back to Basics #3 - Personas

9©

Plans

Name

Name

Name

Name Name Name

Name

Name

Name

2014 2019

Concepts Ideas

Back to basic #3 – mega trends

Product/service

• Key feature

• Key feature

• Key feature

Product/service

• Key feature

• Key feature

• Key feature

Product/service• Key feature

• Key feature

• Key feature

Mega trend

• Problem statement

• Problem statement

• Problem statement

Mega trend

• Problem statement

• Problem statement

• Problem statement

Mega trend

• Problem statement

• Problem statement

• Problem statement

Mega trend

• Problem statement

• Problem statement

• Problem statement

10©

Persona model

User

Technical Gatekeeper

Economic Buyer

• Thirty five personas identified

• Three geographies

• Three persona types

• Twenty five represent current market

• Ten represent potential opportunities

Qualitative workshop build

Quantitative market review

11©

Market research – The hard yards

P1 P2 P35

The attribute map

USE CASE 1

Existing

x275

New

x30

At

Risk

x20

USE CASE 9

USE CASE 6

USE CASE 2

Prioritised

Qualitative workshop build

Quantitative market review

12©

Bridging the gap

Attribute

mapFocused effort

&

coherent message

Reference

13©

Time1.0 X.X Phased releases

Delivering continuous value

Messaging

Themed

update

Scrum

itterations

14©

Messaging

15©

Work in progress

24 months

Point of disruption

Stickiness

layers

16©

Conclusion

Lessons learnt so far:

• Basic NPI still applies!

• It’s a transition plan NOT a big bang

• Innovator motivation needs to be found

• Referees need credibility with the target to help cross the chasm

• Communication rhythm and theme needs careful consideration

• Stickiness is potentially at risk

• Its expensive!