Packaging, Pricing and Positioning Cloud. Solutions(and IP)

Transcription

1 Packaging, Pricing and Positioning Cloud Solutions(and IP)

2 About Sharka Chief Transformation Officer, Neural Impact 30 year marketing executive (Simply Acctg (Sage), Pivotal CRM, ATI Technologies, Epicor ERP/Vantage Point) Professor Marketing & Behavioral Science Advisor to Microsoft & Tier 1 & 2 Microsoft AX/NAV/CRM Partners: Europe, North America Creator: CRM Product Category Creator: Microsoft EIPP Content Sharka s contact info: (604) Sharka@neuralimpact.ca

3 Industry Solutions

4 Macroeconomic Macro level economic shifts. Rapid industrialization of 3 rd world Cost of energy increasing Cost of labour increasing Unpredictable commodity prices Mining & Construction sectors fluctuating Automotive sector rebounding Fracking, Oil & Gas industries strong Emerging Economies : Brazil, Russia, India and China still growing Public sector infr. projects flat Renewable energy projects (solar, wind) drive demand Regulatory Anticipated or legislated changes EPA Wastewater treatment OSHA/Dept. of Labor increasing workplace safety regulations Clean Air Solvents and Lubricants Focus on Explosion Proof Compliance Industry Consolidation Merger and acquisition activity Expand geographic reach, expand customer base and entering new lines of business and primary M&A drivers New Prod. Development Labor Costs Warranty Periods Cost of Sale Capital investments New Services Offerings Penalties Receivables New Equipment Sales Differentiation Field Service Contracts Profitability Automation Investments Technology Investments Skills Training Product/Service Commoditization Inability to differentiate based on product or service offering. Extremely difficult to differentiate Competitive Behavior Changes in competitor behaviour/new entrants. BRICs producing lower cost machines (no regulatory constraints, lower energy prices, lower labor costs, China & Mexico) High labor content cost advantages Customer Demand/Behavior Shifts Changes in Customer Behavior Personalization & Customization - customer driven configurations & packages (product + service offerings) Demand for improved service Asset management (EAM) and flexible Manufacturing is also expected to drive factory-enterprise integration, significant potential for automation and customized service solutions in industrial applications.

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6 Microsoft Social Engagement INTEGRATED INDUSTRY SOLUTION Collect club mentions and other data from Twitter, Facebook, and other social media sites Real Madrid C.F. 450 million fans around the globe, with the Microsoft Cloud Azure aggregated data into social segmentation of the individual fan Microsoft Office 365 Microsoft Dynamics CRM Online, Power BI Azure Fan Engagement Platform Captures and stores every interaction with a fan, including mobile check-ins at the club s stadium, online fan profile updates on the club s official website, and online merchandise purchases. Extended Video Platform Azure Media Services, App Service Media Player, Search New and past video of Real Madrid matches.customer App NET Framework + Microsoft Visual Studio 2013 Fans access the app on their mobile phones, tablets, or wearable devices Search data & stats on club s players and games March 14, 2016

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8 Need Low Investment High Investment Full Product Minimum Feasible Concept Minimum Viable Product MVP

9 What is in an MVP? Emotional Emotional This is the MVP Reliable Reliable Pretty Much Usable Pretty Much Usable Not the MVP Basic Functionality Basic Functionality

10 50% of Features in New Releases are Never Used!!!

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12 Recurring Services One Time Implementation Ongoing Recurring Product Revenue Up Front Perpetual Licenses Reactive Services IP Revenue Services Revenue 80% Product Revenue 20%

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14 Partner Revenue Capitalize on the Market Opportunity Project Services Average Revenue: $2.5-$15K3 Margin: 35% Solution Analysis, Scope, & Design Integration and Data Migration Cloud Readiness Assessment Deployment Business Process Transformation Managed Services Average Revenue: $2-$5K3 Margin: 45% Reporting & Analytics Online Training & Self-paced Learning Support Services Social Listening and Sentiment Analysis Packaged IP Average Revenue: $2 - $5K 3 Margin: 65% Industry-specific Workflows Function-specific Workflows (e.g. HR, Procurement) Mobility Solutions Office Connectivity & Other Plug- Ins & Add-ons External Portals for End Customer Information Pre-Configured Dashboards Source: The Future of Corporate IT, CEB Survey of 165,000 employees 2012 Survey on Self-Service BI and Analytics, Unisphere Research 3. MDC Research, Microsoft Cloud Profitability Scenarios May 2015

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16 Future 20% One time 80% Recurring High Value Professional Services Packaged Vertical Industry IP High Value Strategic Professional Services Strategy Advisory Cloud Transformation Business Impact Workshop Industryspecific Workflow s (e.g. complianc e, food manufact uring) Functionspecific Workflow s (e.g. HR, Procurem ent) Mobility Solutions 3 rd Party Add-ons- (ISV External Portals for End Customer Informati on MS Office Connectiv ity & Other Plug-Ins & Addons Pre- Configure d Dashboar ds Industry Related Content Social Monitoring Sentiment analysis Optimization Services Benchmarking Service Non Strategic Project Services Differentiation MS Online Service Marketing Rebate or Discount for Selling Managed Services Data Migration Deploymen t Integration Configurati on Customizati on ERP Online Customer Engagement Solution Online Microsoft Security Essentials Mobile Device Mgmt Portals Office 365 PowerBI Help Desk On Demand Training Commoditization

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18 Packaged Solutions

19 Uncertainty Confident Decision

20 Service High Risk Intangible Product Low Risk Tangible

21 Persuade Influence Aware

22 Benevolent (Caring, Compassionate) Reliable Honest TRUST = Belief

23 One Fixed Out of the Box Price is NOT an OPTION!!!

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25 Pricing Models 1. Perpetual License 2. Consumption usage based on criteria, pay as you go 3. Tiered scalable, pay based on levels criteria 4. Freemium capacity, feature, time, use case

26 Retrieved Sept

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29 Not Cheap! $315 $429 $567

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34 NetSuite OneWorld Pricing Starting from: $499.00/month 31% Year-over- Year Increase in Q4 Revenue of $206.2 Million

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37 Storage, # of Users I2GB Storage free Incrementally price 10GB - $10 per month under Pro plan Enterprise sales of 1 TB+ Negotiated Basis

38 Certain Features Locked

39 Copyright of respective owners.

40 Scarcity & Loss Pricing Approach

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43 Bundle: bundle different services and package them as one offer Incent: leverage information of usage and consumption behavior to incentivize uptake of new services Reward: give limited period bonus services once certain criterion are met and/or usage levels have been reached Inform: send near real-time notifications of key account activity or critical usage to clients Satisfy: deliver unbilled usage information or enforce credit limit checks to avoid bill shocks

44 Questions?

45 Sharka s contact info: (604) Sharka@neuralimpact.ca Conduct a Mini Digital Emotional Engagement Assessment of YOUR website Online Now: