analyst relations regional briefing · 2019-04-04 · must sales, marketing & value proposition...

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Analyst Relations

Regional Briefing

Egham, Surrey

July 30, 2014

Agenda • Welcome & “Optimizing Your Relationships With Gartner Analysts”

- Jeff Golterman, GVP and AR Community Lead

• Digital Business: Nightmare or Opportunity for High Tech Vendors

- Neil McMurchy, Managing Vice President, Gartner Research

• AR Panel Discussion: Putting Analyst Insights to Work

- Justin Anderson, CEO Flexeye; Julian Dobbins AR Cognizant; Natalie Harrington, AR Professional

• Magic Quadrant, Critical Capabilities & Other Methodological updates

- David Black, Vice President, Gartner Research

• Peer and Analyst Networking Lunch

- AR and Peers Network with Gartner Experts and Analysts

• MQ Research Process Optimization Workshop

- Claire Dessaux, Managing Vice President, Research Content Process, Gartner Research

• Advanced AR Strategies: AR program ROI Through business relevance

- Jeff Golterman; Sally Elliott, BT Consultant and Industry Analyst Relations; Tom Minarik, Director Analyst Relations Capgemini

• Wrap –up

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Neil McMurchy

Managing Vice, President

Software Applications

July 29 2014

Digital Business: Nightmare or Opportunity For High-Tech Vendors?

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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 4

50% Of the total increase in VC investment in technology

companies came from Corporates , not VCs (y/e

31/3/14 of all VC investments now comes from

Corporates

30%

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

• The New “Make” – The Impact of Digital Business on a Technology Segment

• Ecosystems : The New Battleground

• Show Me the Money

• Critical Vendor Competencies for Digital Business

• Optimizing the Gartner relationship – an analyst view

•

5


Digital Business Demands Will Drive a New “Make” Strategy for Applications

By 2020 80% of application purchases supporting digital business will be

“Make” not “Buy”

6


A New Kind of “Make”

• Assembly of application components to support innovative business designs and processes that are differentiated, innovative, not standard

• Increasingly sourced from startups, disruptors and specialized local software and services providers

Tomorrow's Application

Building Blocks to “Make”

Services Packages Custom

Business Process, Information, Collaboration


Digital Business is a Strategic Imperative for all Organizations to:

Compete Globally A source of competitive differentiation

and advantage

Attain Operational Excellence

Improve the Efficiency and Effectiveness of Business

Operations

Implement Business Diversification

Allows to embrace new business opportunities, reach new targets

Gartner Digital Business Document Collections

The creation of new business designs by blurring the digital and

physical worlds


• Introduces new business opportunities

• Is moving faster than IT's (and providers') ability to respond

• Is a platform for engagement with external and internal parties

• Increasingly incorporates the Internet of Things

Nexus of Forces Is the platform for Digital Business and…

Gartner Nexus Document Collections


Corporate Board, 15%

CEO, 44%

CFO, 5%

CIO, 30%

CMO, 1%

Business Units, 5%

Applications Must Be “Fit for Digital Business” – Business Driving the Need

Source Gartner: Survey Enterprise Backbone 2013/14 – Respondents 714 (Vice President and above only)

Corporate Board, 17%

CEO, 38% CFO, 19%

CIO, 22%

CMO, 2% Business Units,

3%

…over your organization's IT spending?

Which department or individual role has the most influence over your organization's IT

strategy?

54%

52%

53%

43%

43%

47%

45%

55%

The ability to adopt technology solutions that can be “turned on” quickly and that give immediate access and immediate value.

The ability to adopt new technology while limiting capital expenses

Ease and speed of deployment in support of targeted/specific business initiatives

Easy data integration

1-2 rating

3-5 rating

6-7 rating

When considering software purchases, how important are each of the following factors for your organization

when choosing the type of solution?

1. Not at all

important

7. Extremely

important

Applications Need Speed & Ease of Deployment,

Integration and Time to Benefit

Source Gartner: Survey Enterprise Backbone 2013/14 – Respondents 2016


13%

23%

35%

15%

14%

We develop custom standalone solutions in-house that meet all business requirements

We design an extension to our proprietary custom-built application infrastructure to

seamlessly integrate the specific business needs

We leverage our pre-existing applications to fulfill business needs while maintaining the end to end integrity of our IT environment

We look for the best-in-class out-of-the-box solutions that fulfill business needs

irrespective of whether it conforms to IT policies

We select solutions based upon the prevailing mood of the business, resource

availability and the preference of the project sponsor

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Source Gartner: Survey Enterprise Backbone 2013/14 – Respondents 2016

New technology implementation approach is diversified and subject to business needs

65% Trends to “New Make”

Already


…and CEOs are ready to invest on IT, Digital and R&D!

• 2014 Gartner CEO and Senior Executive Survey reveal:

- Top three investment areas to be:

IT up from 3rd place in 2012, 2013

Digital Capabilities (New Entry)

R&D ranks 3rd up from 7th

- Topmost Technology-Enabled Capability Investments Over the

Next Five Years:

Digital Marketing;

e-Commerce; Customer experience management;

Business Analytics

- CEOs See Digital as a Team Game, and the CIO Still Has the

Highest Visibility

16


Disconnect Example: Current Application Spend & Business Perception of Incremental Value

18

Current Application Investment

Innovation

Differentiation

Record

Business’ Application Value Perception

Innovation

Differentiation

Record

Gartner’s PACE Layer for Applications


Wish (IT dominant)

• One Suite

• One Instance

• One Vendor/Contract

• One Architecture

Vendor Promise

• Buy into my Vision

• Suite Centric

• Solves the Integration Issue

The MegaSuite Wish is Broken

Wish (Business Dominant)

• Business Agility Dominates

• Happy Users Consuming

• Speed to Use: SeeITBuyITUseIT

• Architectures is IT’s issue

Vendor Promise

• Buy into my Brand & Ecosystem

• Multi Product/Service Centric

• Provide Integration Tools

Yesterday Today/Tomorrow


Enterprises Looking for Innovation Beyond The Usual Suspects

• “Other” - the most influential vendor in 10 years time for +30% of enterprises (more than Google, any other named vendor, more than Microsoft / SAP/ Oracle combined*)

• Global telecom equipment supplier crowdsourcing its new applications

• Airbus goes Open Source – vendor risk of mega-vendors

• Corporate VC investments grown 100%+ YOY to Q1 2014

• “Rethink and extend supplier, vendor, and partner and service provider relationships, including the use of smaller, faster, more innovative partners, and working with partners in new domains such as mobile, design, etc” *

20

*Gartner 2014 CIO Survey


Apps Purchase Decision Changes, So Must Sales, Marketing & Value Proposition

21

CEO

CFO CIO Business

“CxO”

Digital Initiative

CDO

CEO

CFO

CIO

Business “CxO”

IT as an operational Cost Centre

CEO has reservations about the convenience and value of IT innovation. CFO is charged to

contain spending in this area. Decision-making and procurement of IT is centered on the CIO.

The CxO establishes the business requirements

Positioning, Selling and Account Planning changes radically based on how IT is viewed and the role it plays

in supporting Digital Business IT as a Business Value-Creating

Resource

Decision-making and procurement of IT is primarily centered on the CIO but with

higher degrees of decentralization. The CEO evaluates the importance of Digital

Initiatives. CFO influence is subordinated to the CEOs will. CxO and CIO delegates work

together in joint project teams


The Application Long-Tail Gets Longer …Ecosystems Become the Main Battleground

Application Functionality

Target Audience

Size

Long Tail Role- Specific

Employee-Specific

Enterprise Spanning

Industry-/ Enterprise-

Specific

Packaged Application

Domain

Ecosystem Domain: Middleware as a Platform

• As both Target Audience and Required Functionality expand , the Long Tail will become longer

• Mega-vendors have to date been unable to build or acquire sufficient functionality and the long tail gap will grow

• Ecosystems & participation become the key battleground for large & small vendors

Things-Specific


Much lower costs of production and distribution mean lower barriers to entry

• Innovative technologies coupled with convenient mass consumption models favor cheaper, faster and easier web app development

- Examples of client-side development technologies: HTML 5; CSS ; JavaScript; Ajax (Asynchronous JavaScript and XML); jQuery ; MooTools ; Dojo Toolkit …

- Examples of Mass Consumption Models: Freemium, OSS, Subscription-Based, Free Redistribution, Developer Communities …

• Start-Ups Galore: example Oculus, went from duct-taping prototypes in a garage to a 78-employee firm acquired by Facebook for $2 billion in just 18 months. A little over a month earlier, Facebook purchased five-year-old startup, WhatsApp, for $19 billion

• Atlassian - $3b valuation , $200m+ revenue, enterprise software company ….. no sales force

25


YOUR CUSTOMER & PARTNER COULD TURN INTO YOUR WORST COMPETITOR FOR

TALENT

Competition will intensify for best software and engineering talent

26


The Business Model will have to change!

Packaged Applications

Application Platforms/Suites for

Intranets

Digital Composites

Cloud Space/Ecosystems for

Digital Business Participation & Service

By product

Business Dimension

Large Businesses

Geography

By service / Apps

By Receiver

By Natural Language

By analysis needs

Service Providers

VARs

Technology ISV

ecommerce /Direct

Share of Developers

Media

Direct Sales force selling Product

Indirect Partner Projects/Resellers

Online Registration to an Ecosystem or Business Service

Ads – Data Analysis – Other emerging


30


Corporate VC Investments Represents 50% of the Increase in Total VC Funding


YOUR CUSTOMERS & PARTNERS COULD TURN INTO YOUR WORST COMPETITOR

FOR INNOVATION…. AND FOR ACQUISITIONS

Competition will intensify for innovation

35


Critical Capabilities & Questions for Digital Business

• Is your brand an opportunity or a problem?

• Can you buy or build new capability fast enough?

• Partnering beyond the press release

• Focus on customer segments, not products

• Recasting your business model to a consumption buyer

• Differentiation beyond product/service feature

• Selling without a sales force

• Focusing on serving the customer, not “owning” it

37


Optimizing a Gartner relationship – A personal perspective

1. Move beyond “Happy Noise”

2. Don’t have sales execs do Vendor Briefings – see point 1

3. More harm comes from “not enough” information vs. “too much”

4. Criticality of relevant customer references

5. Be prepared for Vendor Briefings ,, and have a paper-based Plan B beyond Webex ...

And ……

39


6. Beyond the Numbers - Engage the Gartner TSP analysts

40

Derry Finkeldey

Building Vertical Industry Capability

Vassil Mladjov

Startups, Incubators &

Venture Capital

Hank Barnes

Differentiation &

Go to Market

Chris Pang

Future Of Sales

Ed Cordin

Go to Market

Mark Paine

Go to Market &

Future of Sales

Bianca Granetto

Digital Business Models

Bob Anderson

SMB Market Strategy

for Large Vendors

Dan Sommer

Big Data

analyst relations regional briefing · 2019-04-04 · must sales, marketing & value proposition...

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