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Day 2 Morning - Internet Platform (Weiss and Carbone)
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Day 2 Morning - Internet Platform (Weiss and Carbone)

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  • 1. Lead to Win Internet as go-to-market platform May 2009 Michael Weiss and Peter Carbone 1 Lead to Win
  • 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. Agenda • Push vs pull marketing • Entering a networked market • Mapping your ecosystem • Internet-centric tools to scale 3 Lead to Win
  • 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. Traditional push marketing Traditionally, companies have pushed their products to players they know 5 Lead to Win
  • 6. Traditional push with network Markets are hostile to innovations the more inter- connected players are 6 Lead to Win
  • 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. From push to pull marketing Networked markets allow for quick diffusion of ideas, but also present barriers 8 Lead to Win
  • 9. From push to pull marketing Breaking into a networked market requires care 9 Lead to Win
  • 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. 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. 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. 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. 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 Lead to Win
  • 16. Google Code 16 Lead to Win
  • 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. 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. 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