Value Migration: Capturing the Transformational Impact of Cloud Services

www.flickr.com/photos/caribb/4694032267

Window of opportunity www.flickr.com/photos/samikrc/2880877343

18 February 2011 3

The world has changed

Everything is moving to the web www.flickr.com/photos/netphotography/2563348357

The Gamehttp://cache.daylife.com/imageserve/00hJ6wC4t695x/610x.jpg

The Gamehttp://www.chess-center.com/images/tournament.jpg

Game ChangerCustomers Economy You Online Services www.flickr.com/photos/dweinberger/896628236

Get it rightwww.flickr.com/photos/winemegup/3641912321

Get it wrong www.flickr.com/photos/roome/3390682853

Find 3 Take Aways

Game changingquestions

Q1. Are the risks high?Q2. Do you need to change?Q3. Will some of you fail?

…and the answer is? www.flickr.com/photos/rankenjordan/3403645155

www.flickr.com/photos/rankenjordan/3402723752

www.flickr.com/photos/rankenjordan/3401922415

You probably feel...

…you should feel like this www.flickr.com/photos/darkpatator/395215642

…and this

Value Migration: 5 Key Trends: 1 Massive disruptive change 2 Everything is moving to the web 3 Customers want to enjoy the benefits 4 They want services not infrastructure 5 HSP -> BSP

Change =Opportunity

thinkdif erently f

A fresh perspective 27

By looking outside www.flickr.com/photos/cverdier/4402868869

Start with the Buyer’s Journey Search Refer Find Support How do you Qualify differentiate at each point of the customer’s journey? Try Up-sell Manage Buy Activate

Helping your customers movetheir business to the cloudValue Migration www.flickr.com/photos/julishannon/2233750434

Value Migration: 5 Killer Questions: 1 What is your Business Strategy? 2 What is your Value Proposition? 3 What are your Channels to Market? 4 What is your Message & Positioning? 5 How are you going to get there?

Destination postcard

Identify barriers to success www.flickr.com/photos/myklroventine/480909595

Change your thinking www.flickr.com/photos/oriol_gascon/2172565951

The hard way

AND thinking

Change your view point www.flickr.com/photos/miikka_skaffari/4632166297

Child-like thinking www.flickr.com/photos/toekneesan/3847444842

Target specific customer groups www.flickr.com/photos/superzelle/4608034587

Investment Strategy Skills (People) Enterprise Needs Midmarket SOHO & SMB Infrastructure Marketing: Brand Awareness (Investment)

Rethink your Value Proposition www.flickr.com/photos/kanaka/2395419030

Create a compelling Value Proposition Product Service Customer Experience

Create simpleValue Propositions www.flickr.com/photos/xrrr/2321685873

Channels to Market Direct & Partners Enterprise Online & Partners Midmarket Online Channel Telesales SOHO & SMB Partners

Channels to Market Direct In-Direct Online Sales Sales Sales 48

Channels to Market Integrated Sales Machine 49

Tipping the funnelJosh Bernoff & Charlene Li Josh Bernoff & Ted Schadler

Capture their attention

Messaging & Positioning

Influence is spreadthrough social media

Target tomorrow’s customers

Being Found/Findable

Standing out from the crowd

Wishing for change www.flickr.com/photos/superzelle/3853482206

It not a game of chance! www.flickr.com/photos/kubina/185489325

Put your customer at thecentre of everything you do www.flickr.com/photos/nnova/2841741385

Focusing all your efforts on how they think www.flickr.com/photos/yanivg/418470817

Get everyone movingin the same direction www.flickr.com/photos/36665622@N00/253527065

Collective focus 64

Continuous adaptability www.flickr.com/photos/josephrobertson/2693259390

Innovate continuously www.flickr.com/photos/sundazed/2976653570

Think outside the box www.flickr.com/photos/katerha/4813106031

Practical dilemma www.flickr.com/photos/sundazed/2940001447

You/Your company +Your Hosted Services +Together we can do more www.flickr.com/photos/xrrr/2478140383

Next: What? and How?

The Killer Question:

The Killer Question: What is the problem for which you are the solution?

Strategic direction www.flickr.com/photos/caribb/4694032267

Strategic direction http://www.flickr.com/photos/ferranp/2333698704

Get it rightwww.flickr.com/photos/winemegup/3641912321

David R Ednie President & CEO SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Ph: +61 415 94 51 57 (AUS)Email: david@saleschannel-europe.comWebsite: www.saleschannel-europe.com www.flickr.com/photos/horacio/3781750 www.flickr.com/photos/horacio/3781750

8 Key Success Factors

8 KSF’s in Actions Murals SaaS Key Success Factors © 11. SaaS Business Acceleration 2.0 Competitive Online Customer Direct/Indirect Sales Organizational Level Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Demand Generation Experience Process Effectiveness Focus & Behavior Provider has created true Blue Vertical (e.g. Real Estate), Micro-market specific Micro-market sales sites for Micro-market specific demand Integrated up-sell and cross-sell Vertical or micro-market focused Organization is designed and Ocean (aka uncontested market Horizontal specialization (e.g. packaging/bundling of service specific vertical markets (e.g. real- generation campaigns with activities into customer "control channel partners with lead flow internally aligned for change. space) by differentiating along a Finance), or other micro-market with vertically focused add-ons. estate). Fully integrated PPC/SEO integration across all forms of panel". Pro-active and ongoing integrated into micro-marketing Specific processes for continuous Target Market 5 unique axis that reaches beyond specific positioning. User focus Market research used to and pro-active analysis of web- demand generation (e.g. PPC, customer feedback management campaigns. Channel partner improvement. Healthy balance of Focused w/ (Optimized) current market boundaries and groups or surveys are pro-actively understand customer price-point analytics Banner Ads, email, direct mail, (surveys of customer panels by branded sales sites. Integration of management (stability) and Continuous existing demand used to incorporate customer sensitivities. print) segment to assess overall channel partner into knowledge leadership (fostering change). Improvement Workshop self-scoring snap shot of feedback into product life-cycle. customer experience, satisfaction, base, live chat, etc. and future needs). Today Provider has differentiated with a Best Practice positioning based Some type of unique Differentiated sub-sites and/or Demand generation campaigns Integrated online knowledge-base Integrated lead/opportunity flow Strong executive sponsorship for vertical market focus with vertical on a well-defined messaging & differentiation of packaging or landing pages aligned with best- drive to a specific sub-site or and live-chat for both sales for channel partners. Mature improving existing offerings and Transition Phase - (or micro-market) specific add-on position framework (see pricing that sets the provider apart practice positioning of value landing page. All campaign support and post-sales support. process for lead qualification and adding new value-added service Focused on 4 capabilities/features. template). Customer centric of the reset of the pack. proposition according to activities are well coordinated and Pro-active email communication routing of leads. Customer offerings. Proven organizational Competitive (Competitive) positioning that blends customer- messaging & positioning integrated. Pro-active PPC/SEO during first 30-60 days provides segmentation and qualification agility and rapid time-to-market in Differentiation & benefit as the solution for the framework campaign management with training, tips, tricks, etc. "drives" the opportunity response to competitive threats. Discrete customer pain point/problem. periodic (e.g. bi-weekly) management. Willing to "walk your business today refinement. away" from bad opportunities. Improvements Provider has differentiated from Customer centric positioning with Small number (2-3) of different Best-practice site that allows Makes use of pro-active Self-guided sales experience, self- Pro-active management of direct Organizational alignment around the competition by bundling Benefits (e.g. Anytime, Anywhere customer/user "plans" that align customers to 1) Search; 2) Find; PPC/SEO campaigns. All demand admin capabilities, no barriers to sales, inside sales, and channel business objectives and customer additional services or capabilities access), then supporting benefits correctly with end-user or 3) Self Qualify; 4) Try (Free Trial generation activities lead to one sale via web, or phone. Easy partners. Focus on customer needs. Organizational ability to End-Customer 3 not offered by the competition. points, then features as customer personas. Value where possible); 5) Make the place -- the web-site. signup and activation. segmentation and lead repeatedly follow a relatively short Focused & Service- (Predictable) appropriate. Consistent differentiation between different buying decision; 6) Buy; 7) qualification. Pro-active training. and defined life-cycle for the application of messaging price plans is clear and Activate. Web-site is the focal Overlay sales team with deep successful introduction of new or Driven throughout ALL collateral. significant. point of the business. solution expertise supports all revised product offerings. channels. Providers offering is functionaly Still product and feature centric Competitive pricing and correct Customers can search, find, and PPC/SEO and other demand Self-guided signup, support, Direct Sales, indirect channels, Good executive leadership in equivalent to that of other positioning with progress towards packaging, but actively working to buy. Provider is actively working generation capabilities are and/or self-administration but telesales, but with ineffective place and committed to drive providers, resulting in a "my customer-centric benefits eliminate other inhibitors (e.g. to ensure that all of the leveraged, but with some inhibited in some way -- e.g. processes for lead qualification change and improve business2. Identify key actions / improvements feature X beats your feature X" positioning. Typically a lack of contract minimums). information required to make a inhibiting factors that limit their overly complex registration and routing of leads to "best performance by driving Transition Phase - 2 competitive differentiation tactic, consistent application of successful buying decision is on effectiveness (e.g. mismatch process, complex activation. qualified" channel. Provider is improvements in accordance with Focused on Initial (Inhibited) but ultimately resulting in a price- messaging across all channels the site and correctly presented, between PPC terms and landing Active progress is being made to actively working to train sales and the "key success factors". Change competitive sale. and collateral. eliminating any final inhibitors to page positioning). Active progress eliminate remaining inhibitors. revise processes to improve selling. is being made to eliminate effectiveness. remaining inhibitors Provider is offering the exact Positioning is completely product Typically characterized by Customers are unable to find No PPC/SEO campaigns. Other No self-signup capability, direct Direct sales only. No pro-active Ad-hoc organizational and same service offering as other and feature centric. Positioning is uncompetitive pricing, minimum offering, presentation is demand generation activities (e.g. sales interaction required. No lead qualification. No customer departmental behaviors with a providers (perhaps based on third- effective only for customers who contract terms, minimum # of confusing, no online self- Print ads, direct mail, etc) do not offering self-administration. segmentation by size or industry. lack of internal alignment towards you can undertake for each KSF party technologies) with no already know what they need and users, confusing pricing, too many subscription is available. leverage the web-site. Characterized by tendancy to achieving a common vision or Product-Dependent 1 opportunity for true differentiation, are already familiar with the tiers of service, multiple tiers focus too far up-market. Long business objectives. Focus & Ad-Hoc (Ineffective) resulting in a Red Ocean in which specific application domain. instead of "add-on" options. sales cycles. Lack of "solution Behavior the only remaining competetive specialist" capability results in differentiator is price. inability to overcome common ob area Murals SaaS Key Success Factors © 2 Level Competitive Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Demand Generation Online Customer Experience Direct/Indirect Sales Process Organizational Effectiveness Focus & Behavior3. Implement actions / improvements Provider has created true Blue Vertical (e.g. Real Estate), Micro-market specific Micro-market sales sites for Micro-market specific demand Integrated up-sell and cross-sell Vertical or micro-market focused Organization is designed and Ocean (aka uncontested market Horizontal specialization (e.g. packaging/bundling of service specific vertical markets (e.g. real- generation campaigns with activities into customer "control channel partners with lead flow internally aligned for change. space) by differentiating along a Finance), or other micro-market with vertically focused add-ons. estate). Fully integrated PPC/SEO integration across all forms of panel". Pro-active and ongoing integrated into micro-marketing Specific processes for continuous Target Market 5 unique axis that reaches beyond specific positioning. User focus Market research used to and pro-active analysis of web- demand generation (e.g. PPC, customer feedback management campaigns. Channel partner improvement. Healthy balance of Focused w/ (Optimized) current market boundaries and groups or surveys are pro-actively understand customer price-point analytics Banner Ads, email, direct mail, (surveys of customer panels by branded sales sites. Integration of management (stability) and Continuous existing demand used to incorporate customer sensitivities. print) segment to assess overall channel partner into knowledge leadership (fostering change). Improvement + 6 m. feedback into product life-cycle. customer experience, satisfaction, base, live chat, etc. and future needs). giving priority to the Top 3 KSF Provider has differentiated with a Best Practice positioning based Some type of unique Differentiated sub-sites and/or Demand generation campaigns Integrated online knowledge-base Integrated lead/opportunity flow Strong executive sponsorship for vertical market focus with vertical on a well-defined messaging & differentiation of packaging or landing pages aligned with best- drive to a specific sub-site or and live-chat for both sales for channel partners. Mature improving existing offerings and Transition Phase - (or micro-market) specific add-on position framework (see pricing that sets the provider apart practice positioning of value landing page. All campaign support and post-sales support. process for lead qualification and adding new value-added service Focused on 4 capabilities/features. template). Customer centric of the reset of the pack. proposition according to activities are well coordinated and Pro-active email communication routing of leads. Customer offerings. Proven organizational Competitive (Competitive) positioning that blends customer- messaging & positioning integrated. Pro-active PPC/SEO during first 30-60 days provides segmentation and qualification agility and rapid time-to-market in Differentiation & benefit as the solution for the framework campaign management with training, tips, tricks, etc. "drives" the opportunity response to competitive threats. Discrete customer pain point/problem. periodic (e.g. bi-weekly) management. Willing to "walk refinement. away" from bad opportunities. Improvements areas for your business Provider has differentiated from Customer centric positioning with Small number (2-3) of different Best-practice site that allows Makes use of pro-active Self-guided sales experience, self- Pro-active management of direct Organizational alignment around the competition by bundling Benefits (e.g. Anytime, Anywhere customer/user "plans" that align customers to 1) Search; 2) Find; PPC/SEO campaigns. All demand admin capabilities, no barriers to sales, inside sales, and channel business objectives and customer additional services or capabilities access), then supporting benefits correctly with end-user or 3) Self Qualify; 4) Try (Free Trial generation activities lead to one sale via web, or phone. Easy partners. Focus on customer needs. Organizational ability to End-Customer 3 not offered by the competition. points, then features as customer personas. Value where possible); 5) Make the place -- the web-site. signup and activation. segmentation and lead repeatedly follow a relatively short Focused & Service- (Predictable) appropriate. Consistent differentiation between different buying decision; 6) Buy; 7) qualification. Pro-active training. and defined life-cycle for the application of messaging price plans is clear and Activate. Web-site is the focal Overlay sales team with deep successful introduction of new or Driven throughout ALL collateral. significant. point of the business. solution expertise supports all revised product offerings. channels. Providers offering is functionaly Still product and feature centric Competitive pricing and correct Customers can search, find, and PPC/SEO and other demand Self-guided signup, support, Direct Sales, indirect channels, Good executive leadership in equivalent to that of other positioning with progress towards packaging, but actively working to buy. Provider is actively working generation capabilities are and/or self-administration but telesales, but with ineffective place and committed to drive providers, resulting in a "my customer-centric benefits eliminate other inhibitors (e.g. to ensure that all of the leveraged, but with some inhibited in some way -- e.g. processes for lead qualification change and improve business feature X beats your feature X" positioning. Typically a lack of contract minimums). information required to make a inhibiting factors that limit their overly complex registration and routing of leads to "best performance by driving Transition Phase - 2 competitive differentiation tactic, consistent application of successful buying decision is on effectiveness (e.g. mismatch process, complex activation. qualified" channel. Provider is improvements in accordance with Focused on Initial (Inhibited)4. Evaluate results based on changes but ultimately resulting in a price- messaging across all channels the site and correctly presented, between PPC terms and landing Active progress is being made to actively working to train sales and the "key success factors". Change competitive sale. and collateral. eliminating any final inhibitors to page positioning). Active progress eliminate remaining inhibitors. revise processes to improve selling. is being made to eliminate effectiveness. remaining inhibitors Provider is offering the exact Positioning is completely product Typically characterized by Customers are unable to find No PPC/SEO campaigns. Other No self-signup capability, direct Direct sales only. No pro-active Ad-hoc organizational and same service offering as other and feature centric. Positioning is uncompetitive pricing, minimum offering, presentation is demand generation activities (e.g. sales interaction required. No lead qualification. No customer departmental behaviors with a providers (perhaps based on third- effective only for customers who contract terms, minimum # of confusing, no online self- Print ads, direct mail, etc) do not offering self-administration. segmentation by size or industry. lack of internal alignment towards party technologies) with no already know what they need and users, confusing pricing, too many subscription is available. leverage the web-site. Characterized by tendancy to achieving a common vision or Product-Dependent 1 opportunity for true differentiation, are already familiar with the tiers of service, multiple tiers focus too far up-market. Long business objectives. Focus & Ad-Hoc made and update scoring on each (Ineffective) resulting in a Red Ocean in which specific application domain. instead of "add-on" options. sales cycles. Lack of "solution Behavior the only remaining competetive specialist" capability results in differentiator is price. inability to overcome common ob KSF Murals SaaS Key Success Factors © 3 Level Competitive Differentiation Provider has created true Blue Messaging & Positioning Vertical (e.g. Real Estate), Packaging & Pricing Micro-market specific Web-Driven Micro-market sales sites for Demand Generation Micro-market specific demand Online Customer Experience Integrated up-sell and cross-sell Direct/Indirect Sales Process Vertical or micro-market focused Organizational Effectiveness Organization is designed and Focus & Behavior5. Translate lessons-learned from one Ocean (aka uncontested market Horizontal specialization (e.g. packaging/bundling of service specific vertical markets (e.g. real- generation campaigns with activities into customer "control channel partners with lead flow internally aligned for change. space) by differentiating along a Finance), or other micro-market with vertically focused add-ons. estate). Fully integrated PPC/SEO integration across all forms of panel". Pro-active and ongoing integrated into micro-marketing Specific processes for continuous Target Market 5 unique axis that reaches beyond specific positioning. User focus Market research used to and pro-active analysis of web- demand generation (e.g. PPC, customer feedback management campaigns. Channel partner improvement. Healthy balance of Focused w/ (Optimized) current market boundaries and groups or surveys are pro-actively understand customer price-point analytics Banner Ads, email, direct mail, (surveys of customer panels by branded sales sites. Integration of management (stability) and Continuous existing demand used to incorporate customer sensitivities. print) segment to assess overall channel partner into knowledge leadership (fostering change). + 12 m. Improvement feedback into product life-cycle. customer experience, satisfaction, base, live chat, etc. and future needs). Provider has differentiated with a Best Practice positioning based Some type of unique Differentiated sub-sites and/or Demand generation campaigns Integrated online knowledge-base Integrated lead/opportunity flow Strong executive sponsorship for vertical market focus with vertical on a well-defined messaging & differentiation of packaging or landing pages aligned with best- drive to a specific sub-site or and live-chat for both sales for channel partners. Mature improving existing offerings and Transition Phase - KSF area to another, share across (or micro-market) specific add-on position framework (see pricing that sets the provider apart practice positioning of value landing page. All campaign support and post-sales support. process for lead qualification and adding new value-added service Focused on 4 capabilities/features. template). Customer centric of the reset of the pack. proposition according to activities are well coordinated and Pro-active email communication routing of leads. Customer offerings. Proven organizational Competitive (Competitive) positioning that blends customer- messaging & positioning integrated. Pro-active PPC/SEO during first 30-60 days provides segmentation and qualification agility and rapid time-to-market in Differentiation & benefit as the solution for the framework campaign management with training, tips, tricks, etc. "drives" the opportunity response to competitive threats. Discrete customer pain point/problem. periodic (e.g. bi-weekly) management. Willing to "walk refinement. away" from bad opportunities. Improvements Provider has differentiated from Customer centric positioning with Small number (2-3) of different Best-practice site that allows Makes use of pro-active Self-guided sales experience, self- Pro-active management of direct Organizational alignment around the competition by bundling Benefits (e.g. Anytime, Anywhere customer/user "plans" that align customers to 1) Search; 2) Find; PPC/SEO campaigns. All demand admin capabilities, no barriers to sales, inside sales, and channel business objectives and customer the organisation additional services or capabilities access), then supporting benefits correctly with end-user or 3) Self Qualify; 4) Try (Free Trial generation activities lead to one sale via web, or phone. Easy partners. Focus on customer needs. Organizational ability to End-Customer 3 not offered by the competition. points, then features as customer personas. Value where possible); 5) Make the place -- the web-site. signup and activation. segmentation and lead repeatedly follow a relatively short Focused & Service- (Predictable) appropriate. Consistent differentiation between different buying decision; 6) Buy; 7) qualification. Pro-active training. and defined life-cycle for the application of messaging price plans is clear and Activate. Web-site is the focal Overlay sales team with deep successful introduction of new or Driven throughout ALL collateral. significant. point of the business. solution expertise supports all revised product offerings. channels. Providers offering is functionaly Still product and feature centric Competitive pricing and correct Customers can search, find, and PPC/SEO and other demand Self-guided signup, support, Direct Sales, indirect channels, Good executive leadership in equivalent to that of other positioning with progress towards packaging, but actively working to buy. Provider is actively working generation capabilities are and/or self-administration but telesales, but with ineffective place and committed to drive providers, resulting in a "my customer-centric benefits eliminate other inhibitors (e.g. to ensure that all of the leveraged, but with some inhibited in some way -- e.g. processes for lead qualification change and improve business feature X beats your feature X" positioning. Typically a lack of contract minimums). information required to make a inhibiting factors that limit their overly complex registration and routing of leads to "best performance by driving Transition Phase - 2 competitive differentiation tactic, consistent application of successful buying decision is on effectiveness (e.g. mismatch process, complex activation. qualified" channel. Provider is improvements in accordance with Focused on Initial (Inhibited) but ultimately resulting in a price- messaging across all channels the site and correctly presented, between PPC terms and landing Active progress is being made to actively working to train sales and the "key success factors". Change competitive sale. and collateral. eliminating any final inhibitors to page positioning). Active progress eliminate remaining inhibitors. revise processes to improve6. Repeat cycle, starting at 2 (above) selling. is being made to eliminate effectiveness. remaining inhibitors Provider is offering the exact Positioning is completely product Typically characterized by Customers are unable to find No PPC/SEO campaigns. Other No self-signup capability, direct Direct sales only. No pro-active Ad-hoc organizational and same service offering as other and feature centric. Positioning is uncompetitive pricing, minimum offering, presentation is demand generation activities (e.g. sales interaction required. No lead qualification. No customer departmental behaviors with a providers (perhaps based on third- effective only for customers who contract terms, minimum # of confusing, no online self- Print ads, direct mail, etc) do not offering self-administration. segmentation by size or industry. lack of internal alignment towards party technologies) with no already know what they need and users, confusing pricing, too many subscription is available. leverage the web-site. Characterized by tendancy to achieving a common vision or Product-Dependent 1 opportunity for true differentiation, are already familiar with the tiers of service, multiple tiers focus too far up-market. Long business objectives. Focus & Ad-Hoc (Ineffective) resulting in a Red Ocean in which specific application domain. instead of "add-on" options. sales cycles. Lack of "solution Behavior the only remaining competetive specialist" capability results in differentiator is price. inability to overcome common ob

David R Ednie President & CEO SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Ph: +61 415 94 51 57 (AUS)Email: david@saleschannel-europe.comWebsite: www.saleschannel-europe.com www.flickr.com/photos/kubina/441918214

Value Migration: Capturing the Transformational Impact of Cloud Services

by David Ednie on Feb 19, 2011

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Value Migration: Capturing the Transformational Impact of Cloud Services Presentation Transcript

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