Lead to Win
    Internet as go-to-market platform
                   May 2009


         Michael Weiss and Peter Carbone

...
Objective

    • Upon completion of this module, you will know:
       – how to enter networked markets
       – about way...
Agenda

    • Push vs pull marketing
    • Entering a networked market
    • Mapping your ecosystem
    • Internet-centric...
Networked markets

    • Locus of competition is shifting from the firm to
      the network: network position matters
    ...
Traditional push marketing




                   Traditionally, companies
                   have pushed their products
 ...
Traditional push with network




                   Markets are hostile to
                   innovations the more inter-...
From push to pull marketing




                   Market players will only
                   adopt a product when they
 ...
From push to pull marketing




                   Networked markets allow
                   for quick diffusion of ideas...
From push to pull marketing




                   Breaking into a networked
                   market requires care

9   ...
Entering a networked market

                     Adobe PDF reader and creator

     Reason back  Hard to change PDF docum...
Mapping your ecosystem


                                         Core




Node size: number of interactions
Edge width: n...
Lessons from mashup ecosystem

     • Positions of API providers are mutually reinforcing
     • Users will select APIs ba...
Go-to-market design options

     Option        Details
     Market        Leverage network to reach market (eg sell
     ...
Sample tools

     Option           Details
     Admin            oDesk is a service to find, hire, and pay
               ...
15   Lead to Win
Google Code




16            Lead to Win
Key messages

     • Know your position in the ecosystem
     • Enter a networked market by reasoning back
       from the...
Breakout activity (1 hour)

     • Break into 3 teams and discuss – 30 min
     • Present back to class – 10 min each
    ...
References

     • Chakravorti, B. (2004), The new rules for bringing innovations to
       market, Harvard Business Revie...
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Day 2 Morning - Internet Platform (Weiss and Carbone)

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Day 2 Morning - Internet Platform (Weiss and Carbone)

  1. 1. Lead to Win Internet as go-to-market platform May 2009 Michael Weiss and Peter Carbone 1 Lead to Win
  2. 2. Objective • Upon completion of this module, you will know: – how to enter networked markets – about ways to scale using the Internet • And you will be able to: – determine when to use the Internet as part of your product or your operations 2 Lead to Win
  3. 3. Agenda • Push vs pull marketing • Entering a networked market • Mapping your ecosystem • Internet-centric tools to scale 3 Lead to Win
  4. 4. Networked markets • Locus of competition is shifting from the firm to the network: network position matters • Entry strategies that focus on push marketing are less effective than those that focus on identifying market players and aligning them • Need to envision the new market status quo and align the players across the market • Mapping an ecosystem allows us to understand how firms access complementary resources 4 Lead to Win
  5. 5. Traditional push marketing Traditionally, companies have pushed their products to players they know 5 Lead to Win
  6. 6. Traditional push with network Markets are hostile to innovations the more inter- connected players are 6 Lead to Win
  7. 7. From push to pull marketing Market players will only adopt a product when they believe others will do so 7 Lead to Win
  8. 8. From push to pull marketing Networked markets allow for quick diffusion of ideas, but also present barriers 8 Lead to Win
  9. 9. From push to pull marketing Breaking into a networked market requires care 9 Lead to Win
  10. 10. Entering a networked market Adobe PDF reader and creator Reason back Hard to change PDF documents: meets needs of from endgame creators to protect their content; offer reader for free, and creator as complement to (not substitute for) content creation products Complement Ally with Microsoft, AOL, and Google power players Orchestrate Three types of players: developers, distributors, incentives adopters (content creators, users) Maintain Separate reader from creator flexibility Offer reader for free Chakravorti (2004) 10 Lead to Win
  11. 11. Mapping your ecosystem Core Node size: number of interactions Edge width: number of interactions per edge (measure of strength) Weiss & Gangadharan (2009) 11 Lead to Win
  12. 12. Lessons from mashup ecosystem • Positions of API providers are mutually reinforcing • Users will select APIs based on how many other mashups use a given API, as well as the collective experience in combining the API with other APIs • New API providers should seek out opportunities to complement existing APIs that are strongly positioned in the ecosystem (enter a niche around keystone) • Complexity of mashup drives the development of mashup platforms that help search for APIs, enforce design rules in compositions, and certify APIs 12 Lead to Win
  13. 13. Go-to-market design options Option Details Market Leverage network to reach market (eg sell online, use download-and-try model) Distributor Eg Apple App store to reach customers (then focus on getting into top 50 for visibility) Free Drive volume through a free service, monetize some other business model (eg support) Long tail Offer large number of low volume items (Lulu enables niche authors to sell their books) Embedded Reach market via a partner (eg Intuit software ships with Windows) 13 Lead to Win
  14. 14. Sample tools Option Details Admin oDesk is a service to find, hire, and pay workforce: can scale with demand Infrastructure EC2 is Amazon’s cloud computing service: can rent infrastructure as needed Development Google Code provides canned hosting for software development projects Design Eclipse as platform for product: can reuse shared pool of building blocks Communication Coral CEA provides integrated set of enablement communications technology components 14 Lead to Win
  15. 15. 15 Lead to Win
  16. 16. Google Code 16 Lead to Win
  17. 17. Key messages • Know your position in the ecosystem • Enter a networked market by reasoning back from the endgame (new status quo) • Design GTM as you would a product – even more important in a knowledge economy • There are many Internet-centric tools to facilitate collaboration in GTM • Name of the game is to “herd the cats” • Room to innovate in GTM tools 17 Lead to Win
  18. 18. Breakout activity (1 hour) • Break into 3 teams and discuss – 30 min • Present back to class – 10 min each • Nominate a moderator, scribe and presenter • Pick one person's opportunity • Identify specific ways the opportunity does or could take advantage of open source, mashups, open API’s and/or business ecosystems to reduce costs, reduce time to revenue, ... • Discuss and prioritize your recommendations 18 Lead to Win
  19. 19. References • Chakravorti, B. (2004), The new rules for bringing innovations to market, Harvard Business Review, 82(3), 58-67 • Weiss, M., & Gangadharan, G.R. (2009), Growth of the mashup ecosystem, submitted to R&D Management (posted on wiki) 19 Lead to Win
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