The Intersection of Consumer businesses and the Enterprise sector. Other - Current business and strategy trends in the technology industry. The views expressed in these blogs and posts are mine alone and do not necessarily reflect the views of Yahoo! or my other employers and other affiliations.
Description - How
has the whole product concept changed in the light of trends like cloud,
consumerization, social, self-service distribution etc.? A new present-day
whole product framework is presented and the elements that are different and
new from the categories in the original framework are discussed in this post.
The Whole Product framework/concept was first coined by Regis McKenna and imprinted in our
(technology) minds by the timeless (in technology years) book, Crossing the Chasm. The Whole Product concept refers to the need
to address the complementary set of products and experiences that a customer expects
beyond the generic product that a firm creates. The premise is that by
understanding the expectations of the mainstream customer, a company can plan
ahead to build the complementary set of partnerships and experiences to fulfil
the mainstream customers expectation thus creating a broad market for the new
I have created a framework that extends the original 'doughnut'
concept into a new 'wheel' framework that attempts to incorporate the market
dynamics and evolution in customer expectations since the book "Crossing
the Chasm" was first published. The original premise still remains that a
firm can plan market entry for a new product by understanding and addressing
the complementary set of experiences that fulfil the whole product
So what are the categories in this wheel framework that are
different or incremental from the original doughnut framework?
Marketplace here refers to the digital watering holes of today where
complementary products, professional services, tools, references, processes
etc. gather to provide a supporting set of capabilities that help complete the
generic or base product. Examples of
successful marketplaces that offer these complementary capabilities include the
AppExchange etc.. Samsung's recent
struggles in not being able to attract a rich developer community to build
apps for the Tizen mobile operating system shows us how the generic product
cannot cross the chasm to the mainstream without a supporting marketplace or
APIs - APIs can
be core to a company's approach be it a company like Twilio's whole dependence on a developer
community for its communications services or on the other side for a developer
needing data sources to build a business and income stream. APIs can be also be
internal to in-house developers for knowledge sharing, repeatable solutions and
business agility such as discussed in the Netflix
API-as-a-tactic post by Daniel Jacobson. For my framework, I refer to the "non-core"
extensibility and leverage that APIs provide to business objectives by closing
the gap between the generic product and the augmented product. On the consumer side, a familiar example is
how the social media companies have driven traffic and user engagement through
the Share APIs that allow for easy content sharing by creators on the social
media networks. On the enterprise side, the various SaaS offerings in the Amazon Web
Services Marketplace that require the SaaS partner to be primarily hosted
on AWS infrastructure is an example of extensibility of the AWS core offering.
Support and Social
Learning - Today, support includes community based learning and the leverage
that social media provides. Social media
groups, Q & A websites like Stack Overflow,
vendor specific communities like
Angie's List Answers and community
forums like Bimmerfest
for BMW present and future owners are a key part of the support model today
beyond the traditional call-in tiered support, onsite support etc. The whole
product needs to factor in the availability of these support channels to
augment the support model that comes with the generic product.
Experiential Learning - Training now goes beyond the vendor created classes
or industry body created certifications. Freemium models, free trials,
advertising-based product version allow customers an entry point to experience
a product version before committing spend to a full-scale, paid or ad-free
version respectively. Also, consumerization
of the enterprise is a strong trend, so enterprise vendors would do well to
help build products that have interfaces similar to what people experience in
their personal lives or to create consumer facing versions of enterprise
products. Vendors now need to create an
experiential dimension to augment the generic product.
Multi-Device Access - Today's distribution channels include self service
portals and an expectation of solutions that work across different form factor
device access points. If the generic product is centered around a single device
experience or high touch distribution such as field sales, then the whole
product experience must be thought about carefully to include self service and
- Given the growth of the cloud-based X-as-a-Service market, to access the broad
mainstream market, a traditional on-premise solution must be augmented with a
cloud delivery model. A generic product may be extended into the cloud market
through partnering with a cloud service provider and help them create a viable
service offering. This is the 'arm merchants' to the cloud approach to extend
the generic product to cloud-based delivery such as Desktop-as-a-Service.
The other approach is the earlier example provided where SaaS providers can
build upon an existing IaaS cloud service provider infrastructure to create a
whole product cloud solution.
The overall strategies in "Crossing the Chasm" and the tips on whole product management continue
to be quite inspirational. I suggest the new framework detailed above to take a
more current view of the new market dynamics to achieve success through the
strategies espoused by Geoffrey Moore.
Image Courtesy Kenneth Lu http://www.flickr.com/photos/toasty/
Description - What consumer behaviors today will create new incremental enterprise revenue streams tomorrow? How can enterprise solution providers prepare for where the puck is going to be?
term consumerization has a few related definitions. The reorientation of
product and service designs around the individual end user. The use of personal consumer electronics at
work. The blending of personal and business technology use. Gartner
summarizes it as " Consumerization is the specific impact that
consumer-originated technologies can have on enterprises. It reflects how
enterprises will be affected by, and can take advantage of, new technologies
and models that originate and develop in the consumer space, rather than in the
enterprise IT sector. "
oft-stated example of how consumers translated their personal device
preferences (e.g. iPhone, iPads) into enterprise class communication tools of
today is probably the best example of consumerization of the enterprise where
consumer preferences created a new enterprise market. In fact, I think about
the Apple case study as prominent and repeated as the Dell operational
excellence 'build-to-order' case study of the last decade. Other less-accounted
examples of consumerization include the consumer cloud storage space where consumers
brought their personal usage of tools like Hightail(formerly YouSendIt), Dropbox etc. into the
enterprise to share, store and collaborate work files because they found it difficult to work within the constraints of equivalent enterprise tools. SaaS, Social Media in
the enterprise, and the list goes on. Consumerization
is beyond hype and demonstrated significant economic value for enterprise
how will present day consumer behaviors and expectations translate into new future
economic streams in the enterprise? How can enterprise vendors amplify existing consumer usage or foster new
consumer usage to take advantage of these trends?
Ratings and Reviews - As consumers, we have become accustomed to
proof-points that are in the public
domain. We expect a Yelp or Zagat review before we try a new restaurant, we
expect opinions on Trip Advisor before we select a vacation destination, we
rely on crowd-sourced recommendations to pick a movie to watch on Netflix, we
look to ratings to evaluate apps in app stores or to trust a merchant in an
online marketplace. While the recommendation/ratings/reviews system is still
maturing and ironing out some wrinkles, it is here to stay. Today, the
enterprise provides proof-points via customer testimonials, 3rd party studies,
analyst influences etc. However, these proof-points are initiated and fostered
by the vendor. The democratic or public opinion system will translate over to the
enterprise. Enterprise vendors can
prepare and foster this aspect by starting with building presence in the evolving
enterprise app marketplaces and proactively building support and quantitative
proof-points in the online communities relevant to their industry.
Education - Products
used in schools, colleges, universities are habit forming. Our first bank
account, first email account etc. are sticky. The earlier in life, the stronger
the habit. I recently attended a middle school club event which required
presentation by groups of students to a large audience - Powerpoint was not the
presentation tool of choice for this particular group of middle schoolers.
Early experiences like these are what this generation will carry over into
their work lives. Enterprise vendors/service providers will be well served by
investing in low-cost or free solutions for education. Another way enterprises
can foster consumerization is by contributing knowledge, products and define
new course offerings in the evolving MOOC education
space populated by Udacity, Coursera, edX etc. The M in MOOC stands for
Experience - As
consumers, we increasingly buy experiences more than we buy products these
days. Part of the experience is manifested in the showrooming effect which the
consumer vendors such as Best
Buy are embracing to their advantage. We increasingly try before we buy. The
experience precedes the purchase. The enterprise players already have a
head-start on this through existing mechanisms such as technology centers,
centers of excellence, development environments, demo/trial programs etc. The
enterprise players should invest in and amplify these avenues.
Fun - "Happy
Streaming", "This is gonna be fun", "Why's it cool" -
These were the messages I received when opening the package of my digital streaming device. Again,
a manifestation of the experience over product trend -for example, termed as
Economy by Pine-Gilmore. Or defined by Simon Sinek in his TED
Talk as the "Start with the Why". The "Why" is more
important than the "What" and the "How". This is a tough task for the enterprise i.e.
to make the experience matter more than the product, make it fun. I will point
to the Super Bowl ads of today (incidentally) for inspiration - Think about the non-consumer companies
that captured your attention by how they appealed to your sense of fun.
Other aspects of consumerization like simplicity & aesthetics
found in our consumer app experiences that are well known as are the effects of
consumer electronics in the workplace. I have not focused on these since much
has been written
about these effects and their impact on the enterprise such as this Forbes article by Darian Shirazi. Instead, I tried to
take a forward looking view to emerging consumer behaviors that have not yet
made it over to the enterprise. Where
the puck is going to be.......
Given the MLK holiday, I got a chance to catch-up on some detail on the events in the technology space this past week. Nothing big that I missed during the course of the week while I was 'snacking' on news throughout the day and week on my smartphone. This time around in my reading, I tried to keep an eye out for what lessons can one learn from the past or for an undercurrent in the week's happenings.
Starting with the news medium itself, this WSJ article about the impact of the digital medium for magazines particularly the tablet. Given the over-exposure of revenue to advertising (75%) in the print medium and declining advertising revenue, publishers are looking to the mobile digital medium - the tablet - to derive more customer subscription revenue. With leverage i.e. digital subscription pricing in some instances being twice that of its discounted print subscription cousin. While digital subscriptions are in the single digit percentages today, the impact of the tablet is quite evident.
Five years ago or so, when I was choosing between a Plasma-TV and LCD-TV set, I choose Plasma. Turns out, so did Panasonic. My bet was smaller but for Panasonic the bet turned out to be expensive. Closure of its plasma-TV factory in the midst of LCD domination is described in this WSJ article. In the race between Plasma and LCD, LCD became the mainstream technology due to broader application in other products such as, yes, mobile phones.
Or the excitement in the LBO industry around the vested interested parties generated rumors of a Dell buyout. Dell struggles are strongly correlated to the computing shift from PCs to smartphones and tablets. PC account for half of Dell's revenue but in the 4th quarter of 2012, Dell's shipments fell 20.9% and PC related revenue declined by 19%. Other lessons from history? Competitive advantages have a limited shelf life - Rivals catch-up as in this case with Dell's direct sales model and supply chain efficiency. New adjacent lines of business need to align to your core competence as in this case printers/TVs did not align with Dell's made-to-order customization competence.
Can Intel be far behind in terms of the impact of the PC shift to smartphones and tablets? This past week saw Intel's fourth quarter profit fall by 27% while investors grumbled about its capital investment plans. A deeper look at the dynamics of the chip making industry has the mobile factor in spades.
And then, Commerce. The increased use of mobile devices by consumers to comparison shop while in brick and mortar stores was a key area of discussion at the National Retail Federation Conference this past week. EBay's revenue growth of 18% in this latest quarter was attributed significantly to enhancements the company made to the mobile shopping experience.
The mobile factor and just this week!
What's ahead? A lot but look for this.... In all this fuss about Apple growth prospects or lack thereof especially as related to the iPhone 5. I believe that an understated feature of the iPhone 5 is LTE technology and the associated speed of data download. iPhone 5 shipments and usage will correlate to increased video consumption. The video industry and associated sectors will see an impact of increased consumption in the months that follow.
It's the weekend of September 8-9, 2012 and I have had a chance to catch-up in some detail on technology news this past week. In addition, I had a chance to review my weekend entertainment choices. Despite my bias (of being in the consumer internet space), I thought the impact of the Web was an undercurrent in the expanding entertainment choices competing for our time and dollars. Consider the happenings just this past week....
Jay Leno took a 50% pay cut as part of the 20% belt-tightening at NBC's "The Tonight Show". Looking deeper into the market dynamics behind these austerity measures, most late-night shows on TV saw viewership shrink by 5% from the previous year. Not surprisingly, advertising dropped as well to the tune of more than 25% across Leno and Letterman's late night shows. Why? While cable-TV shows and the DVR viewer habit increasingly have had an impact, it's clear that viewers are voting with some of their time on Web programming and online channels.
TV Comedy of a different kind....Viacom's cable channels that include Nickelodeon and Comedy Central have seen viewership drop by 29% at Nickelodeon. To maintain ad revenue, Viacom is increasing the advertising time by over 9% over a year ago. This is a established yet controversial short term adjustment technique in this industry. The difference now though is the growing availability of internet video. Should viewers get impatient with ads, they can turn off their TV and turn to the web. For example, Nickelodeon's "SpongeBob SquarePants" can be watched commercial-free on Netflix.
On a slightly different but TV related note, investors are buying small, struggling TV stations in major markets for the value of airwaves or spectrum. Two impacts of the internet playing out here. One, the strategic acquisition of airwaves are targeted towards addressing the bottomless demand for wireless broadband services. Two, competition from the Web is one of the primary reasons cited for the struggles and often demise of the small TV stations.
Turns out, the summer box office was less than spectacular with a movie "The Oogieloves in the Big Balloon Adventure" having an all time worst opening in 2000-plus theatres, attendance being the worst since 1993 in North America and overall a summer box office down 2.8% from last year. The speculation is many factors contributed to this decline including the Olympics, the economy, the Aurora, Colorado tragedy but no doubt, newer online channels and web programs had an impact.
In the movie streaming business, this past week, Amazon bolstered its movie streaming offering through a multiyear licensing deal with cable channel, Epix. This deal will bring a set of popular films like "Iron Man 2" and "The Hunger Games" from several major studios like Lions Gate Entertainment, Paramount Pictures, MGM Studios. How big is video-streaming? According to the Wall Street Journal, Amazon subscribers have access to 25,000 TV shows and movies, Netflix about 50,000, Hulu more than 58,400. Is that enough entertainment for you?
Apple is reportedly jumping into Radio and it looks like iTunes users will be able to create their own virtual 'radio stations' along the lines of the Pandora, Spotify etc. Regardless of the consolidation and competitive battles ahead, and the problem of the high music licensing costs, one thing is clear. Online music services are here to stay and serve as an increasingly valuable revenue source for record companies. And here is the challenge to terrestrial radio (traditional radio). If as reported, Apple is successful in negotiating past restrictions to online radio such as a current ban on playing a given song too frequently, online radio will become more of a direct competitor to terrestrial radio.
I am a big believer in the potential of the 'Second Screen' products/emerging segment. A decent explanation by wikipedia can be found here. In essence, we are increasingly watching TV with an accompanying 'second screen' device mostly a tablet or smartphone thus increasing our social engagement (Tweeting, FB posts etc.) and deeper consumption of the content - "What song was that?" "What location was that?" "What shoes is she wearing?" "I have to share this play with my buddies" etc. etc. This past thursday, MTV introduced a new type of multiplatform ad service called Reverb whereby a Pepsi commercial will appear simultaneously on TV, MTV's website, or an MTV mobile app. No escaping! While the "Second Screen" is largely a social media phenomenon, the increasing impact of the online world on the traditional media of TV is compelling.
A new e-book pricing landscape is on the way and if you are a consumer, it's the good kind. E-book price cuts from three leading publishers are only a month to three months away. How low are we talking about? One past indicator, Amazon had priced e-book best-sellers at $9.99 before 2010. Not an internet phenomenon per se but definitely e-commerce impact.
There you have it. All within the past week. What's ahead of us?
Second Screen Growth. More interaction with TV content through your tablet or smartphone by apps and more context-based advertising. Not just subtle product placements like Cameron Diaz's Christian Louboutin red-soled shoes in the movie "Bad Teacher" or Daniel Craig's Omega Seamaster watch in his James Bond portrayals. But increasingly, through your second screen, this is the model he/she is wearing in this scene and here is a pointer to merchants where you can get one of your own.
More lobbying and court-room drama. Expect players like Pandora and now a heavy-weight like Apple to aggressively seek assistance to solve the high royalty costs that are weighing on the net radio business model.
The exclusivity of ESPN or HBO as a cable only offering will crack under market pressure. Alternate offerings will evolve for streaming services especially for the newer generation that grew up without ESPN.
Entertainment coverage such as listings will evolve to include original web programs. For example, this friday's Wall Street Journal covered the 2012 fall season from a traditional media/entertainment standpoint i.e. theatre, movies, TV, Art, Books and Music. Some day soon - a listing of upcoming web offerings in articles such as the before-mentioned WSJ article.
Be engaging! This is often the stated criteria for apps. Easier
said than done. Actually, if you are looking to build or grow a business, the
bar is even higher. A few weeks ago, in my Twitter feed, I saw a reference to
a Fast Companyarticlethat
described John Lilly's "first
filter" investment criteria. John Lilly is the former Mozilla CEO who
joined the prominent VC firm Greylock in 2010. The article described his
guiding principle as "Lately I obsess about whether a product can be one
of the 20 icons on my iPhone homescreen," he says. "That's my
essential question right now."
Utility and relevance are the table stakes
component of an app-based business model. If I look at the current list of Top
25 apps in my smartphone app store, beyond the game apps, SMS-alternative apps,
organizer apps, flashlight app etc. are some of the top apps. Clearly, utility
and relevance play a big role. But beyond the app providing utility to us, what
drives us to return to our apps? Think about it. You are standing in the line
at an amusement park ride, at the DMV etc., you are bored or even panicky about
unexpected 'empty' downtime, so you pull out your mobile device... What top 2-3
apps do you visit? In this scenario, utility is not the factor in your choice.
Stickiness is. Successful apps are sticky, they engage users and this
engagement is deeply rooted in our traits. And by appealing to our inherent
traits, apps can compel us to keep us coming back. Let's take a look at nine
traits that drive app engagement.
Serendipity- We love desirable discoveries by
accident. My personal examples are discovering long lost high school classmates
through Facebook's " People You May Know" feature or getting back in
touch with former colleagues through LinkedIn's "People You May Know'
feature. Or the more exciting nature of discovery through Twitter's public conversations
and hashtags. In reality, serendipity in apps is not really an accident. By
sharing our address books, educational and employment information and in
general declaring our interests, this sort of discovery is expected and only a
matter of time. In this Tech Cruncharticle, Henry Nothhaft, Jr. provides a discussion of the
dimensions of serendipity and argues that serendipity is not really accidental.
But, again, even if anticipated, these desirable discoveries are fun and keep
bringing us back.
Personalization- Me, me and more me. Whether the Pandora model of
providing the name of an artist, genre or song and enjoying the personalized
radio station or actually the ability to set up multiple personalized stations.
Or the recommendation engines that Amazon and Netflix offer such as It's
"Your-Name-Here's Amazon". Or personalized news/content apps or
declared preference-based news discovery apps. There is a reason why people
love to hear the sound of their own name. Apps that target this gratification
The effect ofSocial
Proof. The obvious phenomenon of the social network and the outstanding
success of engagement of social media apps is well understood. Instead, I will
attempt to offer how an app can tap into emerging themes or consumer
preferences derived from social influence. For example, there is increasing
comfort with location services such as social check-in found in social media
products like Foursquare, Facebook etc. As individuals, we are nervous about
declaring our location because privacy and security considerations are in the
back of our minds. However, since there is a trend in increasing user comfort
around declaring location, I believe we are relying on social proof and are
influenced by those we consider similar to ourselves. Tap into the trait of
social influence to determine influence trends and drive app engagement.
Reputation Scores and Gamification. Gamification here
does not refer to apps of the enraged feathered animals variety. Rather it
refers to the application of game design techniques and game mechanics to a
non-game context such as in this case, business. If winning doesn't matter, why do they
keep score? This quote is attributed to the football coaching legend, Vince
Lombardi. We are inherently competitive in nature and the social effect
draws out this trait even more. For example, apps like Klout generate
engagement by providing changing social media impact scores, the encouragement
to share these scores and a view into the scoreboard that includes people in
our network. Like us on Facebook. Really? Engage users by having them
participate, leverage their expertise, provide them reputation platforms for
their achievements and make them the hero.
Aesthetics- Looks Matter. Apps that are visually
appealing and a delight to use are sticky. Since beauty lies in the eye of
the beholder, I won't cite a specific example. However, I will suggest that the
evolution and competitive dynamics of map apps are a good example of how visual
dimensions of realism, the excitement of viewing places/roads less traveled,
delightful performance etc. can make the difference between active engagement
and simple utility. Mapping apps are thus increasing engagement on top of the
utility they already provide.
Out of Sight, Out of Mind. Push notifications, intriguing updates, well timed
digests bring users back. Even inactive users (termed lurkers) on Facebook will
act on a birthday notification. If you learn through a LinkedIn digest that a
colleague changed a job, you are tempted to go back to the product to learn
more about her new company. Breaking News on Twitter is another example. The
2012 Olympics will be underway soon and real-time updates are what we will
consume versus the primetime television based consumption patterns of the past.
Give your users the opportunity to set preferences and you have an endorsed
mechanism to engage with your users!
Our Stuffi.e. Data. Apps that provide utility by
storing our data such as cloud apps are also naturally sticky. At one
level, social media apps are a rolodex and address books in the cloud. When we
need to reach someone in our network, we are drawn to engage with our social
media app. File sharing apps like Dropbox is another example of utility apps
that drive engagement through providing a home for one of our key possessions
i.e. our data. Provide your users with a 'locker' and they will come back to
check in on their 'stuff'.
Scarcity- There is a human desirability associated
with scarcity. As Groucho Marx said, "I don't care to belong to any club
that will have me as a member". Whether is an invitation only
membership mechanism of Pinterest or a LinkedIn group that will have a maximum
capacity/membership limit or providing early access to new releases for a
sub-set of users. If it is scarce, we want it! By promoting the relative
scarcity of elements of your app and business offering, you can enhance its
Sense of Communitywhich often translates into the business
model of crowdsourcing. Beyond the social connections of our private social
circles of friends and colleagues, a bond that unites us is a sense of
community based on shared interests and emotions. Find the community's common
denominator. Build your business around concepts that people already care about
emotionally. An app like Waze draws upon
this sense of community to unite strangers with common interests. I also
believe there is an undercurrent of anti-establishment/rebellious trait that
drives people to contribute information on speed-traps to the community.
There you have it. The
above is not intended to be a top ten list. Nor is it intended to be a
comprehensive list of all traits that drive app engagement. Rather, the traits I
described above are influences that I am intrigued by and believe can be
leveraged as marketing practices to drive higher app engagement.
A couple of weeks ago, I attended the annual TieCon 2012 event - a technology oriented conference in the Bay Area which saw many distinguished speakers and up-and-coming leaders offer thought and opinion on the latest trends and what's ahead in technology. During this two day event, I observed that a panelist made a statement to the effect that the era of the bag carrying sales rep was over. I believe his reference was to the growing trend of the freemium model whereby a product is given away for free with the potential to upsell follow-on premium services. The assumption is that customer acquisition costs are reduced because of the experiential component and the associated advantages of word of mouth, social and referral networks, viral marketing etc. What role then would sales play in the future if we were to gravitate to this business model? While the success of many companies at the conference and at large e.g. LinkedIn, Yammer, Box and even my children's Angry Birds and other game freemium apps lend credence to the panelist's statement, I thought of the major technology trends and market inflection points underway and how they would impact the Sales function overall.
First, the trends of the Freemium model and online marketing - let me address both together since they are related. The freemium model simply means that the evaluation phase of the sales cycle is accelerated and the salesperson is liberated to focus on the other components of the sales cycle like purchase and post-purchase. If the online marketing channel were to obviate the need for sales, the assumption then is that the sale is solely a transactional sale with no consultative component. In many ways, the sales effort or role is about creating extrinsic value for customers i.e. creating value beyond the product value alone. Even before the advent of online marketing, sales personnel had little role to play in a purely transactional sale, so how does online marketing now obviate the need for the sales component? I would actually expect the sales function to evolve to take advantage of the accelerated sales cycle and the opportunity to focus on the consultative component of the sale. Why? Because of the 'timeless' concept of the 'whole product' in technology, there will always be a need to help customers acquire and complete the remaining components of the 'whole product' that complete the freemium, online offering, base functionality product. Partnerships will need to be developed, knowledge needs to be added, services need to be assembled etc. Sales can continue to play a big role if they focus on the 'whole product' sale.
Second, the trend towards the simplification of IT - the premise that we have gone overboard in a bewildering array of features, tools and functionality at the expense of ease-of-use, usability and simplicity. Regardless of the target market segment, it seems that we offer a Swiss army like spread of tools to address a single specific need. This is manifesting itself in the increasing demand for the elegance of self-service applications and the demand for the simplicity of consumer apps like Facebook in the enterprise. On the trend towards simplicity, the development of base functionality by cloud providers to address a broad user base, the trend towards faster development cycles and iteration based on user experience and feedback etc., what might be the impact to the sales function? I would anticipate that the role of the sales function around customer engagement and customer intimacy would increase significantly given the ongoing need for customization and the feedback that would result from the iterative nature of this model. Again, the thinking I applied above to 'whole product' applies to this trend of the simplification of IT as well. Simplification will enable business agility but the demands of customization, iteration and solution completeness will engage sales deeply.
Third, the consumerization of the enterprise. The most evident impact of consumerization of IT is in the phenomenal popularity of consumer-centric mobile devices like the iPad and how users have brought their personal/consumer devices into the workplace and influenced IT to support and address this need. This is not a trend anymore but a reality! Self-service app stores in the enterprise is another trend. This is a broad topic so I'll address the trend of social media in the Enterprise. To the sales function, this manifests itself in three ways; (a) Building a social media reputation and presence proactively; (b) Seeking out social media forums to build 'social intelligence' on customers and establish newer touchpoints with customers and (c) Using social tools built for the enterprise to collaborate at new levels with colleagues/partners and accelerate knowledge sharing. This area of social media is probably the best impact to the sales function in terms of change and opportunity. I would expect the sales function to evolve and for successful sales personnel to quickly embrace these forums and tools because sales folks have long understood and used the power of leverage. Second, in published analysis of the profile of successful sales person, being 'social' is a key attribute - Why would successful sales people be behind in embracing social media?
Fourth, not the trend but the established momentum of cloud computing which refers to the momentum in the delivery of IT as a service leveraging resource sharing to achieve economies of scale. To the end user, the key promises are business agility and cost structure benefits. If you are in sales working for a service provider, your challenge is only how to maximize your time to take advantage of the massive opportunity. Of course, there is some change and education that needs to be done to win over skeptics but the market momentum is in your favor. If you are in sales selling traditional on-premise IT solutions to customers, then much change is to be expected. You will have a new channel to market - the service provider.
Fifth, Big Data. It looks like data got very big over the past year! I speak with humor because having worked in the storage industry for multiple years, the volume effect of data explosion is not new and was never looking small. However, what is new is the recognition of the other dimensions of big data such as data diversity and the promise of harnessing data to drive new business insights. When I worked in the storage industry, our top sales personnel took it upon themselves to monitor and understand the machine data that was generated by 'call-home' technology because they wanted to understand the impact to their customer's systems especially problem detection, resolution and account intelligence. What a concept! Big Data will be no different. Overall, the implication is Big impact to Sales. Sales personnel will need to accelerate their education on the newer insights into their customers and newer sales analytics tools that will shape salesforce structure, design and strategy.
The more things change, the more they stay the same. Sales has been about people selling to people - in past studies, trust and problem solving are cited among the top three factors of value that customers attribute to sales. There will be newer complimentary forums to build trust such as LinkedIn Groups but the golf course (or in my case, the squash courts) won't go away. Similarly, successful sales personnel have long understood the power of leverage. A top performing sales rep once told me that EVERYONE in the company worked for his account. This was not an arrogant view. Rather, my sales colleague understood the power of leveraging the entire company not just his immediate circle. So, good sales personnel will understand and add social selling tools to their arsenal. Remember, consultative selling? Before we move on to Sales 3.0, there will be newer and more bewildering options available to customers through online channels and newer business models. This means that sales will (continue to) have a big role to play in consultative selling and adding value beyond the base product value available in freemium format, online channels and base functionality.
What will then be transformational changes? For one, the number of touch-points to the customer will increase dramatically. Furthermore, the touch-points to the customers will exist in multiple functions across the selling company and will include partner touch-points such as cloud service providers. Therefore, the notion of sales having 'full customer ownership' will be flawed. Sales personnel who continue to prescribe to 'account ownership' will be challenged. There will be transformational change, for the better, to the sales-marketing traditional silos and misalignment. Through Big Data advancements, sales will have democratic access to market intelligence and will play a bigger role in strategy. Marketing will have much more and direct access to the customer and previous inefficiencies in the customer information flow between sales and marketing will be much improved. Finally, much is being written about this but there is compelling evidence of the shift of power to the customer through social media and unprecedent access to information. I prescribe to the more balanced view that the era of sales-customer joint destinies is almost certainly upon us.