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Solutions Marketing at IBM - an observation
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Solutions Marketing at IBM - an observation

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MBA project of a team of 5 students uncovering the evolution of solutions marketing at IBM

MBA project of a team of 5 students uncovering the evolution of solutions marketing at IBM

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Solutions Marketing at IBM - an observation Solutions Marketing at IBM - an observation Presentation Transcript

  • Solutions at IBMSolutions MarketingProfessor Steve HurleyJune 17 2010 Roberto Roitz Karthik Subbaraman Gregorio Sanchez Hamid Houshmand Deepthi Konduru (Dee)
  • Lets hear from our Advisor at BM. Ms Naomi WilseySenior Marketing ManagerState & Local Government / Education, IBM Americas
  • Over the next 15 min. we will talk about… The IBM Story IBM’s move to solutions Role of Marketing in the transition & Sales Evolution IBM Solutions Marketer Profile Value Proposition Thought Leadership Measuring Success Sales Evolution Solutions in a Non-technological firm Growth Opportunities for IBM in Solutions Recommendations
  • We identified the core problem that IBM was facing in the early 1990’s.
  • We identified the core problem that IBM was facing in the early 1990’s (cont.).
  • The IBM Story IBM’s move to solutions Role of Marketing in the transition & Sales Evolution Solutions in a Non-technological firm Growth Opportunities for IBM in Solutions Recommendations
  • IBM’s paths towards solutions to become more customer centric.
  • IBM collaborated with ITSMA to define a solution. “ Our collaboration with ITSMA helped us define a solution due to the discipline they had around the labels and terminology used in the Solutions World", Naomi Wilsey
  • Who is involved in creating a solution at IBM? Solutions cannot be created in isolation All these players are equally involved from the conception to the delivery of specific solutions offerings
  • The Solutions Board was formed at IBM. Solutions Board
  • The IBM Story IBM’s move to solutions Role of Marketing in the transition & Sales Evolution Solutions in a Non-technological firm Growth Opportunities for IBM in Solutions Recommendations
  • The role of an IBM marketer. Then… Sales-driven Tactical
  • From an IBM Marketer to IBM Solutions Marketer. Then… Now… Sales-driven Tactical Marketing-driven Strategic
  • IBM’s Value Proposition Help our clients succeed by providing innovative solutions while maintaining high quality standards in all our relationships.
  • Thought leadership at IBM… "By understanding weak signals and early indicators of industry transformation, we help our clients to be ahead of the pack." — Peter Korsten, Vice President and Global Leader, IBM Institute for Business Value
  • Thought leadership at IBM—IBM Institute for Business Value.
  • Success story: “SMARTER” planet—IBM
  • Metrics for some of the Solutions Marketing-related activities at IBM... Tracking Solutions offering at IBM
  • Evolution of sales within IBM.
  • The IBM Story IBM’s move to solutions Role of Marketing in the transition & Sales Evolution Solutions in a Non-technological firm Growth Opportunities for IBM in Solutions Recommendations
  • Solutions from a different perspective, specifically in non-for profit organizations. Why?
  • We identified Oxfam America as a non-tech organization offering solutions. Oxfam America is an international relief and development organization that creates lasting solutions to poverty, hunger, and injustice. Mission: To create lasting solutions to poverty, hunger, and social injustice. Vision: A just world without poverty Oxfam America Working together to end poverty and injustice Together with individuals and local groups in more than 100 countries, Oxfam saves lives, helps people overcome poverty, and fights for social justice.
  • Technology Processes Resources Here’s another way to look at Oxfam America… A Solution is… Integrated delivery The Solution Understanding Customer Needs Fulfilling Customer needs Delivering Impact (MeasurableBusiness Value)
  • Organizational framework – How similar are these organizations? IBM Solutions Integrated and Sustainable Solutions model at OA Solutions Board Program Working Group IBM Solutions Eradicating Poverty
  • The IBM Story IBM’s move to solutions Role of Marketing in the transition & Sales Evolution Solutions in a Non-technological firm Growth Opportunities for IBM in Solutions Recommendations
  • Challenges as IBM moves ahead. Where is IBM on the Solutions Roadmap today? “Phase5 is endless!”, Naomi Wilsey Phase 5 Phase 3 Phase 2 Starting Point Phase 4 Organizational Execution Building the Foundation Pilot and Test Solutions Mastery The Push and Pull Sustain Momentumand Growth Enable the Organization Leverage OpportunisticSolution Successes Sell OnlyDiscrete Offerings Operationalize the Plan Challenges Identifying growth opportunities for clients in local and global markets through constant innovation Staying in tune with the constantly changing environment the client operates in Decentralization within different markets by defining the solutions continuum Competition that is rapidly moving into solutions – ex. Tata from India, HP worldwide
  • 75 - 100 > $20.000 Level 1 Level 2 - 3 $1.500 - $20.000 1.500 - 1.750 4.000 < $1.500 Level 4 We identified potential growth opportunities within in the IBM solutions business, specially in emerging markets where opportunities are higher. Socio-demographic pyramid A high percentage of the population of the countries with the largest consumer markets in the world - China, India, South Africa, Brazil and Mexico - is made up of Low Income Consumers (LICs) The countries with large populations of low-income rates also have higher population growth The LIC represents a potential market of US$ 5 trillion Global population in millions Annual income per capita Source: Prahalad, C.K. “The fortune at the bottom of the pyramid”
  • Decentralization across the IBM organization and countries will be key, in order to be able to customize solutions within the different emerging markets and clients needs. Key dimensions to profitably serve the LIC SOLUTIONS SOLUTIONS
  • To develop solutions that address LIC needs is key to make alliances between communities, business, government and NGO’s in the different emerging countries were IBM has presence, in order to provide solutions to clients to profitable serve the LICs. Getting involved in develop projects of companies in the private and public sector, in order to achieve improved quality of life Getting key players involved in the communities to ensure sustainability of projects Jointly serve the LIC through partnerships among different industries / companies / countries Search the mitigation of poverty and problems associated with it, through structured programs with communities and the private sector
  • The IBM Story IBM’s move to solutions Role of Marketing in the transition & Sales Evolution Solutions in a Non-technological firm Growth Opportunities for IBM in Solutions Recommendations
  • We identified several recommendations in order to develop solutions that will allow IBM clients to profitable server this growing segment in emerging markets. Recomendations Create a “Solutions Study Team for the LIC” that will allow the current IBM organization to identify opportunities within this segment across the different emerging countries where IBM has its presence It is important to consider that LIC’s are very different in every country – with different incomes, behaviors, needs, values, routines, and expectations The team will communicate across the different Solutions teams in order to leverage on the current solutions that IBM can offer, in order to identified potential customization to the LIC segment Before getting started it is important to consider the following key points: Accept that the company knows very little about the segments, which is necessary to begin to research into it in a systematic way Understand in depth how they live, their habits, values and traditions, expectations, fears, environment in which they operate, restrictions that have developed innovative mechanisms to meet their needs, etc. Design solutions tailored to consumers, reducing access barriers and that really fulfill their unmet needs Form alliances with non-traditional partners and even evaluate opportunities outside the industry itself Develop solutions models that will allow to increase the quality of life of consumers so that the clients and consumers become strategic partners Apply these concepts to the LIC segment requires to develop solutions that will go beyond the traditional practices of doing business
  • Lets end with a look at our solutions marketing Bible. RelationshipManagement Managing Client Relationships Internal/External Communications Building Client Relationships SolutionsManagement Meeting ClientNeeds Strategy & Market Planning UnderstandingClients BUSINESSRESULTS Voice of the Customer Market Segmentation Opportunity Analysis Competitive Analysis Core Competency Identification Brand & Positioning Solutions Development Life-Cycle Management Portfolio Management Pricing Go-to-Market Strategy Value Proposition Development Brand Communications Thought Leadership Integrated Marketing Communications Public Relations Internal Communications Field Marketing Programs Value Proposition Communication Loyalty Programs Solution Quality & Satisfaction Monitoring Reference Management Account Management Marketing Operations — Organizational Development, Management, and Metrics Sales Support —Training,Support, and Business Development Processes and Tools Business Partners — Strategy, Relationship Management, and Communications