I like to go back a little. So let me take you to back to 1934 and a chap called John Commons. John wondered how you might isolate each and every aspect of a firm such that you could identify which activites and attributes created competitive advantage and which detracted from it. Every transaction should be analysed - from procurement, through contract terms, delivery, premises and discounts, etc etc. Commons was way ahead of his time, and it took another 35 years before this found common (pun unintended) acceptance in Michael Porter's now famous five forces.
So what has all this to do with the cloud? Bear with me...
The reason I bring up Commons is that it takes us back to the bean-counting side of realising competive advantage and value. Once we got all of Porter's fancy diagrams, some of the meaning got lost - it was just something you had to put in the marketing plan.
Now fast forward to Vargo and Lusch - a couple of guys that decided to give the startegy hegemony a good shake. They argue that the concentration of marketing on "goods" and transactional exchanges of tangible items was based on a now out-dated economic model dating back to colonial times. This paradigm needs to be updated to reflect a more service-oriented economy where value is derived not chiefly from the producers of goods, but from the owners of knowledge, expertise and skills. VAR's - that's you.
Sorry, I'll say that again - VAR's that's you, you, you, you YOUUUUUUUUUU!!!!!!!!! Its the very V and the very A of VAR.
So why do you now learn to love the Cloud?
Because the Cloud takes away a lot of the confusion caused by ISV's, hardware companies, hosters etc. claiming that they provide the value. They don't - they ship lumps of tin and bits and bytes. They may be very clever bits and bytes and the tin may have an inordinate number of slots in the back and flashing lights on the front - but in the hands of a customer they are about as useful as the proverbial bicycle to a fish.
Until you come in. You make it work. You make it real. You may even claim to make it dance and sing - you certainly should make sure it 'performs' (punny again!). You know how it should work for the industry of your customer, and what value it will afford them in saved man-hours, improved efficiency and savings from bottom, top and all lines in between.
And you do all of this becuase you provide the Service, and Mr Vargo and Mr Lusch say that service is dominant. Ipso facto you are dominant - and the dominant player gets to monetise the most. Unless, of course you are hung up on those ever-decreasing margins given out by the ISV's.
So, next time you are told by an ISV such as Microsoft or SAP that you have to love the Cloud, tell them that you do - and then tell them that you sympathise with the terrible position they will find themselves in. For there's only one thing worse than not being dominant, and that's having once been dominant.
Wednesday, 8 February 2012
Friday, 27 January 2012
Getting the hang of Fridays
I vaguely remember someone saying "I never could get the hang of Thursdays" - was it Arthur Dent?
In any case, I've been wondering if there is anything inherenly special about Friday. With very little empirical evidence at all I do seem to have noticed over the last few years that:
1) If there is a big customer issue it tends to come to a head on a Friday after lunch.
2) Deals get done on a Friday. That's why I am in a happy mood today :)
3) Meetings for next week get organised
4) Recruitment consultants call you
Now, if it hasn't happened already I would like to call on the marketing guru's from Harvard and Henley and all points elsewhere, to set up a study. There's something in this, I'm sure. We could all guess at the practical reasons why very practical things happen on a Friday (the "finishing up" impulse perhaps, or even a deeper seated psychological feeling that the week has been pretty awful, so let's panic-buy a better next week.
Perhaps...
... but if there is something in it, there's a great marketing angle here. Along with "never do a breakfast breifing on a Monday" and don't do webinars on any morning, there could be some great insights here on how we manage and plan our commnications.
Finally, at my last employer there was a trend of "working from home" on a Friday. A trend I usually bucked. Sure the roads were bad on the way home, but what a great day to get things done - and in a nice quiet office too. Oh, and there was fish and chips for lunch ... may that was the real reason.
Happy Friday all.
In any case, I've been wondering if there is anything inherenly special about Friday. With very little empirical evidence at all I do seem to have noticed over the last few years that:
1) If there is a big customer issue it tends to come to a head on a Friday after lunch.
2) Deals get done on a Friday. That's why I am in a happy mood today :)
3) Meetings for next week get organised
4) Recruitment consultants call you
Now, if it hasn't happened already I would like to call on the marketing guru's from Harvard and Henley and all points elsewhere, to set up a study. There's something in this, I'm sure. We could all guess at the practical reasons why very practical things happen on a Friday (the "finishing up" impulse perhaps, or even a deeper seated psychological feeling that the week has been pretty awful, so let's panic-buy a better next week.
Perhaps...
... but if there is something in it, there's a great marketing angle here. Along with "never do a breakfast breifing on a Monday" and don't do webinars on any morning, there could be some great insights here on how we manage and plan our commnications.
Finally, at my last employer there was a trend of "working from home" on a Friday. A trend I usually bucked. Sure the roads were bad on the way home, but what a great day to get things done - and in a nice quiet office too. Oh, and there was fish and chips for lunch ... may that was the real reason.
Happy Friday all.
Tuesday, 10 January 2012
Product Positioning Pitfall
I was reading an article yesterday about the relative positioning of Dynamics AX, GP and NAV - yes, that old chestnut. The reviewer from dynamicsuser.net remarked on how much easier it was for the competition because they mostly only had one product.
My hackles were raised - Sage, Infor, SAP, Oracle? If anything their lives are much more complicated than that of any Dynamics product marketer. But the issue remains: why is this such a bugbear for Microsoft.
In Microsoft Dynamics (and this goes back to the acquisitions and Project Green) there has been an obsession with trying to get product positioning between AX, GP and NAV correct: or at least as correct as the market and the analysts can be content with. Various "solutions" have been offered from the ridiculous (let's give them each a colour), to the downright dangerous (the infamous product assessment tool that, when all else was even, recommended based on alphabetical order).
And there have been other, more noble and valiant attempts in between, but I am increasingly of the opinion that it was all a waste of time. The problem is one of depth.
In order to be successful, relative product positioning (that is to say the positioning of one product against stable mate) must apply at the level of the buying criteria of the consumer and be delivered by the creator of both products. This sounds both obvious (all marketing is) and easy to apply.
The problem with ERP solutions is that the buying criteria are often given artificial tags in order to make them comprehensible: company size, multi-national or local/ vertical, industry etc. The truth (we all know) should lie at a level of complexity far deeper than this. Unfortunately, though, sometimes it doesn't.
These days I increasingly work with organisations who are in the throes of implementation. And they have got lost. The product they bought is not the one which will cure their ills and deliver the much-vaunted promise of greater efficiency and ROI. The product is a square peg in a round hole, and in one case, far from delivering ROI, the company now needs more staff than to run their old system and orders are now out of the door two days later. They are looking for rescue, yes, and this can be achieved with time and money. But they are also looking or reason. 'Why was I told to go down route A, when route B (or indeed G or N:)) is clearly better for me?'
Well, the phrase 'caveat emptor' could be applied - it’s your own stupid fault for not looking hard enough, or in enough detail. But that's hard on the buying organisation - their job is to describe their business - as it is and how they want it to be - not to tral through feature and function. Or maybe it’s the Microsoft Partner - their job is to sell what they have though. If they don't represent GP, they are hardly likely to sing its praises: ask a blind man the way...
And so we come back to Microsoft. Customers get angry, questions are asked and the product teams take another shot at positioning. It’s a thankless task, most staff and partners will be dissatisfied with the results and it will help customer snot one jot. So, is there another way?
Yes, the relative product positioning of Dynamics ERP must apply at the level of the buyng criteria of the consumer and be delivered by Microsoft. The corollary of this statement is that Microsoft must deliver more depth and here lies the rub. There are a number of reasons they don't feel able to do so:
- There are very few people in Microsoft commercial positions (sales, marketing) who understand the depth of these products, or can talk knowledgably about more than one of them. This leads to "default" behaviours, ie. bland positioning, talk to a partner for more, or, my product is best. These default behaviours reinforce the marketing positioning of the products and further mislead potential customers. Caveat emptor has replaced officium curae.
- Microsoft will not give depth because it could compromise a partner. All partners are not equal, especially when a partner brings a nice juicy lead to MS. I'm sure you can imagine the conversations that take place, but the mantra - nice lead, wrong partner, nothing we can do - is a common one. 6 months down the line, of course, there is work for me and others sorting out the mess.
- Microsoft is not really that used to having multiple similar products which compete. Once they had Word, they didn't bother acquiring WordPerfect or DisplayWrite, and the same is true for the whole of the Office Suite, Windows and Server/Tools. It’s very easy to keep your eye on the ball when there is only one ball. Moreover, providing positioning is about positioning with regards to the competition - and that's easy to provide a load of depth on.
So the cures for Microsoft are not easy, and not cheap. They could take on a whole bunch of product experts and risk the wrath of annoyed partners, they could get rid of a couple of ERP's and finally anoint "the chosen one", or they could go back to Project Green. Now there's a thought... what was it that was so wrong about Green? So long ago I can hardly remember.
Tuesday, 20 December 2011
The 12 Books of 2011
I am truly rubbish at New Year's resolutions, and for many years have simply not bothered. But last year was different for some reason - I made 2 resolutions and felt determined to follow them.
The first resolution was to read at least one work of literary fiction each month. 12 books in a year doesn't seem too much but my reading had slipped so much over the years, what with a) work and family commitments and b) not spending time on aircraft, as my job has been predominantly UK-based the last 7 years or so.
So here are the books as they sit on the bookshelf:
Highlghts are definitely The Book Thief, Markus Zusak - my kind of book and The Hare with Amber Eyes, Edmund de Waal. The former appealed to my love of the magical and mysterious with a modern history background set as it is in Germany during WW11. The latter also appeals to my love of history as it charts the history of a Jewish family from around 1870 to the present day. The obvious interregnum of WW11 is of course important, but I found myself liking the earlier parts of the book as they were more educational. Paris in the time of impressionists and Proust, the building of imperial Vienna, were subjects I knew little of. While reading this book you need access to the Web as you are always wanting to find out more about the detail. In particular you will want to look at the paintings that play such an important part in Charles's story.
What of the other 10? Well the first admission is that there are only 9 - the year isn't out yet and Doris Lessing's the Fifth Child is working out very nicely.
The second admission is that Bill Bryson appears with a work of non-fiction. It is very long however (and took much longer than the allotted month to read) and is sumptuously frabjous - so no apologies. At Home is a brilliant return to form.
Most disturbing has to be a two horse race between the Mc's: John McGregor's Even The Dogs and Ian McEwan's Cement Garden. I'm afraid to say that McEwan won by a country (or distopian urban) mile. A great shame as I had enjoyed McGregor's previous with constant wonder at how he had pulled it off (do seek out If Nobody Speaks of Remarkable Things). The Dogs though taught me nothing and McEwan reminds us that it is far more disturbng what is left to the imagination. Has nobody tried to film Cement Garden?
On the 'curate's egg' list go When God Was a Rabbit and A Week in December. Sarah Winman's first novel is brilliant for 2/3 of the way, and then gets horribly lost in a 911 plot that is neither relevant nor credible. Truly loved the first part though (there are some mgical elements that are really subtly played: the way I like them). Seb Faulks left me a bit cold with A Week. This is clearly a very clever book with masses of detail, but I'm just not clever enough to understand the whole message. Also, I was left wondering whether everyone he writes about has to be such a psycho.
The big disappointment was Jonathan Coe's The Terrible Privacy of Maxwell Sim. Nearly good, but not quite and, again, a dumb ending. I was quite hoping that Maxwell would die and we could hear more about his father's story: now there is a sub plot crying out for elaboration. And the whole yacht race piece - a true story and a huge tradegdy on at least 3 facets - Coe could just retell this and end up with a better book. All that said I will probably buy the next Jonathan Coe just as I have bought all the others - and hope that the next is another Carve Up or Rotters Club.
That leaves just Mark Haddon's masterpiece and The Finkler Question. To be perfectly honest I read the Curious Incident to make up time after Mr Bryson sidelined me for 7 weeks or so. The reason it leapt off the shelf was that it was short. Short, and brilliant too - there is nothing I can say that hasn't already. And so on to Finkler.
This was the book that started off the whole resolution 12 months ago, and is the one that has stayed in my brain the most. I find myself thinking about the characters in the wee small hours, or while reading something else. I know that a lot has been said about it being Jacobson's turn to win the Booker, and that other works of his are superior, but for me this is a book where you start to care: about the chracters, yes, but more about the issues that are raised and the consequences these have for all of us living in the UK. There is s strong political and social message here, but it isn't blasted from the brass section, but is a counterpoint offered by bassoons and oboes and cellos. It gives the whole piece extraordinary depth and I wonder whether others may have read Finkler too fast and only heard the high notes. My plodding style was maybe more suited.
So, if that resolution was 11/12ths complete, what of the other. Well, it is 12/12ths, but I'm not going to tell you what it was.
2012? More Howard Jacobson certainly. 12 books? Definitely, you need the rigour! However, if Hilary Mantel finally gets round to finishing off Wolf Hall it will be a vast undertaking, so I claim now that it counts as 2 of my 12.
Happy Resolutions.
The first resolution was to read at least one work of literary fiction each month. 12 books in a year doesn't seem too much but my reading had slipped so much over the years, what with a) work and family commitments and b) not spending time on aircraft, as my job has been predominantly UK-based the last 7 years or so.
So here are the books as they sit on the bookshelf:
Highlghts are definitely The Book Thief, Markus Zusak - my kind of book and The Hare with Amber Eyes, Edmund de Waal. The former appealed to my love of the magical and mysterious with a modern history background set as it is in Germany during WW11. The latter also appeals to my love of history as it charts the history of a Jewish family from around 1870 to the present day. The obvious interregnum of WW11 is of course important, but I found myself liking the earlier parts of the book as they were more educational. Paris in the time of impressionists and Proust, the building of imperial Vienna, were subjects I knew little of. While reading this book you need access to the Web as you are always wanting to find out more about the detail. In particular you will want to look at the paintings that play such an important part in Charles's story.
What of the other 10? Well the first admission is that there are only 9 - the year isn't out yet and Doris Lessing's the Fifth Child is working out very nicely.
The second admission is that Bill Bryson appears with a work of non-fiction. It is very long however (and took much longer than the allotted month to read) and is sumptuously frabjous - so no apologies. At Home is a brilliant return to form.
Most disturbing has to be a two horse race between the Mc's: John McGregor's Even The Dogs and Ian McEwan's Cement Garden. I'm afraid to say that McEwan won by a country (or distopian urban) mile. A great shame as I had enjoyed McGregor's previous with constant wonder at how he had pulled it off (do seek out If Nobody Speaks of Remarkable Things). The Dogs though taught me nothing and McEwan reminds us that it is far more disturbng what is left to the imagination. Has nobody tried to film Cement Garden?
On the 'curate's egg' list go When God Was a Rabbit and A Week in December. Sarah Winman's first novel is brilliant for 2/3 of the way, and then gets horribly lost in a 911 plot that is neither relevant nor credible. Truly loved the first part though (there are some mgical elements that are really subtly played: the way I like them). Seb Faulks left me a bit cold with A Week. This is clearly a very clever book with masses of detail, but I'm just not clever enough to understand the whole message. Also, I was left wondering whether everyone he writes about has to be such a psycho.
The big disappointment was Jonathan Coe's The Terrible Privacy of Maxwell Sim. Nearly good, but not quite and, again, a dumb ending. I was quite hoping that Maxwell would die and we could hear more about his father's story: now there is a sub plot crying out for elaboration. And the whole yacht race piece - a true story and a huge tradegdy on at least 3 facets - Coe could just retell this and end up with a better book. All that said I will probably buy the next Jonathan Coe just as I have bought all the others - and hope that the next is another Carve Up or Rotters Club.
That leaves just Mark Haddon's masterpiece and The Finkler Question. To be perfectly honest I read the Curious Incident to make up time after Mr Bryson sidelined me for 7 weeks or so. The reason it leapt off the shelf was that it was short. Short, and brilliant too - there is nothing I can say that hasn't already. And so on to Finkler.
This was the book that started off the whole resolution 12 months ago, and is the one that has stayed in my brain the most. I find myself thinking about the characters in the wee small hours, or while reading something else. I know that a lot has been said about it being Jacobson's turn to win the Booker, and that other works of his are superior, but for me this is a book where you start to care: about the chracters, yes, but more about the issues that are raised and the consequences these have for all of us living in the UK. There is s strong political and social message here, but it isn't blasted from the brass section, but is a counterpoint offered by bassoons and oboes and cellos. It gives the whole piece extraordinary depth and I wonder whether others may have read Finkler too fast and only heard the high notes. My plodding style was maybe more suited.
So, if that resolution was 11/12ths complete, what of the other. Well, it is 12/12ths, but I'm not going to tell you what it was.
2012? More Howard Jacobson certainly. 12 books? Definitely, you need the rigour! However, if Hilary Mantel finally gets round to finishing off Wolf Hall it will be a vast undertaking, so I claim now that it counts as 2 of my 12.
Happy Resolutions.
Fried Pickles
An odd choice of title I'm sure you'll agree. Fried Pickles appear on the menu at the Texas Roadhouse restaurant in Fargo, ND and eating there last week our server Jamie urged the party that they really had to be tried. Mmm, we wondered.... fried pickles?
Jamie explained how they were made - dill pickles were sliced into rounds, dipped in a spicy tempura batter and then deep fried.
We still weren't convinced.
And then Jamie clinched the deal by explaining that they were "like nothing you've tried before". Temptation got the better of us, and who could resist such a sales pitch for the risking of no more that $3.99.
The Fried Pickles duly arrived, we sampled them, and they were pretty horrid. But never mind, we had tried, Jamie was happy and no falsehoods had been exchanged in marketing a truly disgusting product. They were indeed like nothing I had tried before, and, to go further, they were exactly like a whole range of things I will never want to try in the future!
The power of marketing will never cease to amaze me. Especially when it is done with such elan as that showed by our server at the Texas Roadhouse. It does though beg the question as to what idiot decided to make Fried Pickles an integral part of that establishment's menu?
I hope, I pray, that is goes somethng like this. Owing to an admin error in procurement (Dave swears he will now finally get his galsses changed) the Texas Roadhouse get a truckload of pickles delivered last month instead of the usual two cases. What to do? Implore the vendor to take them back, or try to make the most out of an unusal windfall. A hasty staff meeting is called and it is there that out plucky hero Jamie suggests deep frying the little critters. "How d'ya suppose selling those?" comes that obvious question from owner "Houston" Hal Stetson III.
"Well, with a degree in marketing from University ND, I see this challenge as a mere bagatele", says Jamie "leave everything to me. I may be just a server to you, but in real life I'm a product strategist without parallel". Over the next 36 hours Jamie racks his brains for the killer strap line, the one that will make him rich perhaps....
...and perhaps not, because I will certainly not be going back to a restaurant that serves me such food and I imagine that others in Fargo will make a similar choice. Fried Pickles were a blip and Jamie was a shrewd tactician, not a cunning strategist. In the long term the truth will out and good products will beat bad ones.
Now I must go as my daughter is imploring me to come and watch X-Factor with her. "It's fun" she tells me, and I guess I can risk an hour of my life for a little fun.
Jamie explained how they were made - dill pickles were sliced into rounds, dipped in a spicy tempura batter and then deep fried.
We still weren't convinced.
And then Jamie clinched the deal by explaining that they were "like nothing you've tried before". Temptation got the better of us, and who could resist such a sales pitch for the risking of no more that $3.99.
The Fried Pickles duly arrived, we sampled them, and they were pretty horrid. But never mind, we had tried, Jamie was happy and no falsehoods had been exchanged in marketing a truly disgusting product. They were indeed like nothing I had tried before, and, to go further, they were exactly like a whole range of things I will never want to try in the future!
The power of marketing will never cease to amaze me. Especially when it is done with such elan as that showed by our server at the Texas Roadhouse. It does though beg the question as to what idiot decided to make Fried Pickles an integral part of that establishment's menu?
I hope, I pray, that is goes somethng like this. Owing to an admin error in procurement (Dave swears he will now finally get his galsses changed) the Texas Roadhouse get a truckload of pickles delivered last month instead of the usual two cases. What to do? Implore the vendor to take them back, or try to make the most out of an unusal windfall. A hasty staff meeting is called and it is there that out plucky hero Jamie suggests deep frying the little critters. "How d'ya suppose selling those?" comes that obvious question from owner "Houston" Hal Stetson III.
"Well, with a degree in marketing from University ND, I see this challenge as a mere bagatele", says Jamie "leave everything to me. I may be just a server to you, but in real life I'm a product strategist without parallel". Over the next 36 hours Jamie racks his brains for the killer strap line, the one that will make him rich perhaps....
...and perhaps not, because I will certainly not be going back to a restaurant that serves me such food and I imagine that others in Fargo will make a similar choice. Fried Pickles were a blip and Jamie was a shrewd tactician, not a cunning strategist. In the long term the truth will out and good products will beat bad ones.
Now I must go as my daughter is imploring me to come and watch X-Factor with her. "It's fun" she tells me, and I guess I can risk an hour of my life for a little fun.
Thursday, 3 November 2011
Old friends and old ideas
Met an old colleague today to talk about VAR's in the IT industry. All vendors want to tie VAR's to their products - an understandable instinct. If they can get loyalty then the sales will follow. But often the sales don't follow. Why?
I think this is because VAR's and vendors mistake software for solutions. Bits of software, from individual apps to whole technology stacks get called "solutions" too easily and too readily. They simply are not.
And so the role of the VAR get's confused. The "V" in VAR just means the implementation and support of the software they are selling - but that is very limited and not at all what customers want. They want solutions to their problems - not "software solutions" but real solutions.
So I ended up thinking about something I had been talking to TES about. Ie the immortal words of David James at Henley MC. Try turning the phrase:
"Finding customers for products"
into
"Finding products for customers"
Just turning that phrase around gives you a totally different perspective on what the V could be in VAR. Get it right and you will avoid the competition over day rates and make yourself your customer's trusted advisor.
Now, and only now can you start thinking about CLV with any hope of exploiting the opportunity to the full.
Steve
I think this is because VAR's and vendors mistake software for solutions. Bits of software, from individual apps to whole technology stacks get called "solutions" too easily and too readily. They simply are not.
And so the role of the VAR get's confused. The "V" in VAR just means the implementation and support of the software they are selling - but that is very limited and not at all what customers want. They want solutions to their problems - not "software solutions" but real solutions.
So I ended up thinking about something I had been talking to TES about. Ie the immortal words of David James at Henley MC. Try turning the phrase:
"Finding customers for products"
into
"Finding products for customers"
Just turning that phrase around gives you a totally different perspective on what the V could be in VAR. Get it right and you will avoid the competition over day rates and make yourself your customer's trusted advisor.
Now, and only now can you start thinking about CLV with any hope of exploiting the opportunity to the full.
Steve
Tuesday, 9 August 2011
The Meeting as Marketing
Have been mulling too long on this idea. Time to put some thoughts to paper (or pixels, at least).
The 2 most importamt phases, IMHO, of the sales cycle are the handling of an incoming lead and the first meeting with the prospect. The difference between the former and the latter, indeed between the latter and virtually all other parts of the cycle, is that that it is not controlled by Marketing Communications = marcomms.
What if it were? Go with me here.
If marcomms controlled the meeting with the prospect, they would apply the same rigour as they do to the advert, the logo, the telemarketing script... etc etc... The brand would be spot on. The words that came out of our mouths would be checked and double-checked for legality, honesty, correctness and, and this is most important, for conveying the MESSAGE properly.
There is a side-thought here, a tributary that tells us something about UK politics and its obsession with being on-message. Are they the first to get the reality of this? Today, we all need to be on-message all the time: the message is controlled by marketing.
So, do we throw the message away when the meeting room door is closed? Do we wing it? See how it goes? Or do we take a more professional approach?
If Marketing controlled the Meeting what would we wear, what questions would we ask and what message would we give?
The 2 most importamt phases, IMHO, of the sales cycle are the handling of an incoming lead and the first meeting with the prospect. The difference between the former and the latter, indeed between the latter and virtually all other parts of the cycle, is that that it is not controlled by Marketing Communications = marcomms.
What if it were? Go with me here.
If marcomms controlled the meeting with the prospect, they would apply the same rigour as they do to the advert, the logo, the telemarketing script... etc etc... The brand would be spot on. The words that came out of our mouths would be checked and double-checked for legality, honesty, correctness and, and this is most important, for conveying the MESSAGE properly.
There is a side-thought here, a tributary that tells us something about UK politics and its obsession with being on-message. Are they the first to get the reality of this? Today, we all need to be on-message all the time: the message is controlled by marketing.
So, do we throw the message away when the meeting room door is closed? Do we wing it? See how it goes? Or do we take a more professional approach?
If Marketing controlled the Meeting what would we wear, what questions would we ask and what message would we give?
Subscribe to:
Posts (Atom)