MANAGING BUSINESS MARKETS

Name Roll Number

Ravi Kumar Nethi EPGP-15B-072
Arularasu Velusamy EPGP-15E-012
Debasis Bhattacharjee EPGP-15B-023
Asha Krishnan EPGP-15A-011
Group-1 Shresth Sharna EPGP-15E-082
EPGP-15B
Project Task
Review and analyse the following case studies

S.No Description
1 R9: Building the right Ecosystem for innovation
2 R4: B2B Elements of Value
3 R6 Road Map for Branding in Industry Markets
4 D4 :Thriving in an Increasing Digital Ecosystem
5 D5:Surviving in an Increasing Digital Ecosystem
6 D6:Driving Growth in Digital Ecosystem
7 D10: Product to platforms
8 D9-Pipelines, Platforms and New rules of Strategy
9 C4- SAP- Branding in the Digital Age
10 C5-SAP AG-Orchestrating the Ecosystem
R9: Building the right
Ecosystem for innovation
• How Amazon Can develop the Kindle yet work with array of publishers
who sells books on Amazon.com ?
• Why Samsung need to collaborate with Nestle for developing the new
consumer electronic gadget ?
• What makes Pizza Hut, Master Card and Softbank comes together ?
• Why are Companies engaged in user conferences & Meetings with
uncommon partners ?

How Can Companies
build ecosystems that
are geared for
Innovation ?
Organizations need to move away from
Traditional way of operating as a
“broker” connects the partner but keep
them separate to a “Orchestrator” who
connects multiple partners and
encourage them to work directly with
each other
Define the “battlefield : Area to Explore to be
defined to start the pulling the partners together
Use “Bat Signals” to attract the partners –
Advertisements, Conferences, meetings to create and
attract the potential partners.
In Adaptive ecosystem collaborations don’t follow
set pattern – Connect uncommon partners and
encourage the cross fertilization of idea,
Glue the partners together to by bringing the
unique value proposition of each.
Leverage Opportunities to transform from inside
out. Make sure to empower and make system open
to explore and leverage the new opportunities
through adoptive ecosystem
…Yet, Adoptive ecosystem is not free of risk but an area of
uncertainty. So, being flexible allows companies to discover
new forms and thus aligning to industries lifecycle helps to
extend its own over a period enabling to come out as real
winners…..
R4: B2B Elements of Value
• What Business Customer Really Wants, What is Value Here ?
• Is Cost being really a big deal in B2B transactions ?
 • Price optimization, meeting specifications &
Elements Of Value Pyramid regulations and following ethical practices are table
stakes now.

• Organizations need to come out of commodity trap

by recognizing the full range of emotional and
rational factors.

• Elements Of Value Pyramid with Five Categories

defines the “What Value is” ? I.e. Objective at base
and Subjective at higher up.

• Customers value the Quality more than Cost.

Expertise and Responsive follows it. Cost is not even
in Top-10 !!

• Benchmark the value proposition against the

Competitors.
• Talk To Customers
• Imagine Ways to Increase the Value
• Refine Test and Learn
• Apply the Acid Test
R6: Road Map For Branding in
Industry Markets
• Is branding same in consumer & Industrial Market ?
• Does Capital Goods need advertisements & Brand Building ?
• Does Business buy decisions are dependent on brand or cost or both ?
• Biggest brands in world or consumer brands or Industrial ?
What is Branding ?
• Brand is a psychological Phenomenon. It is a name, Sign, Symbol or Logo that identifies the goods & service
of one seller and differentiates from others.

• Brand is much more than a name – Branding is a strategy problem and not a naming problem.

• Psychological Meaning Of Brand – Brand Awareness (…what products/services are associated with brand) &
Brand Image (… what attributes & benefits brand offers to make it distinctive and better)

• Every touch point between company & customer is an input to brand image.

• Brand Position should have – Points of Parity (Breakeven with Competitor) and Points of Difference (Strong,
favourable & Unique brand)

• Brand Mantra – Internal Marketing Expression, whereas slogan is for external.

• Brand Charter is the summary of development, history and positioning of brand – Every marketing action must
be evaluated against and be consistent with brand charter.

• Branding should start with Marketing strategy – Segmentation, Targeting & positioning, It should start with
focus on customer needs and not product
Branding Industrial Markets…. • Most Valuable & powerful brands are
industrial : ABB, Caterpillar, Cisco,
GE, FedEx…etc.
• Marketing strategy remain same for Industrial & Consumer markets • Nike : Brand Mantra is “Authentic
– But industrial buying is different to that of consumer buying. Athletic Performance”, and Brand
Slogan is “Just Do It”
• Industrial Markets are characterized by buyers and not products.
• Guidelines for Successful Industrial
• Association with a particular brand would help suppliers. Ex : Intel Inside Brands
• Brand to be tied for the profit model
• Industrial companies need to brand their differentiation come out of • Understand the role of the brand in
commodity play. Organizational buying
• Emphasize a corporate branding
approach
• Industrial Buyers – Branding Receptive (Highly educated and Open
• Avoid confusing brand strategy
minded), Highly Tangible (modified re-buys, goes by book) & Low Interest • Adopt top-down and bottom-up
(Straight re-buy, low involvement of brand) approach for brand management
• Educate the organization on
• Buying Centres : Initiators, Users, Buyers, Deciders, Influencers & delivering brand value
gatekeepers

• Industrial buying is a relationship management and not transactional

D4: Thriving in an Increasing Digital
Ecosystem
• How to get ready for digital disruption ?
How to Adapt Digital Ecosystem ?
• … Per Survey, 32% companies' revenues would be
impacted by digital disruption in next 5 yrs.

• Digital Ecosystem poses threats but offer opportunities

also.

• More revenues from digital ecosystem makes companies

to understand their customers better

• Uber Disrupted Taxis, Airbnb Disrupted hotels

• Preparing For Future :

• Use Digital capabilities to obtain customer Info.
• Amplify Customer Voice inside company
• Emphasise evidence-based decisions making
• Develop integrated Multi product channel CX.
• Become first choice in your space
Four Business Models for Digital Era
• Become great at building partnerships
• Create service enabled interfaces that others can use
• Treat efficiency & compliance as competence
D5: Surviving in an Increasing Digital
Ecosystem
• How Survive in a Digital Ecosystem surviving through Consolidation ?
How to Survive in Digital Ecosystem ?
• Companies need to reinvent to survive.

• Ecosystem Drivers & Modular Producers are shaking

out the market and consolidating it – Darwinian
Approach. So, there is limited place for new players here.

• More companies are embracing the omnichannel model

– But only few could get good customer engagement.

• Competition reduced due to mergers & technology – First

movers established in ecosystem space.

• Companies may operate in multiple channels of the

mentioned 4 channels - They need to calculate % of
revenues from each model and carefully plan the
expectations from each next 5 year to migrate through
Four Business Models for Digital Era plan
D6: Driving Growth in Digital
Ecosystem
• How Survive in a Digital Ecosystem surviving through Consolidation ?
 How to Grow in Digital Ecosystem ?
• Successful Ecosystem driver companies do
not go alone, rather they built complementary
services around their products that add
immense value to its customers leading to much
higher customer penetration and profits.
• Partnership is crucial – It should be Digital
and not traditional.
• Digital Readiness - Being prepared to leverage
digital tools and technologies. Digital Curation
-Managing and organizing digital information
effectively.
• Ping an insurance company China created a
good doctor platform with about 10,000 doctors
, enabled 67% of customers used its services –
important measure of ecosystem success.
• Fidelity’s approach of upgrading systems,
networks, creating APIs for third-party and
moving to clouds environments are examples of
Digital Readiness.
• Bayer's Field View, which provides the services
in satellite imaging, soil assessment, drone
mapping and planting programs, has 5 million
paid subscribers is a best example of Digital
Curation.
D10 : Product To Platforms
• In an era of Digital Ecosystem , who is king – Product or Platform ?
How to Grow in Digital Ecosystem ?
• Product = Single Revenue Source (iPhone)
• Platform = Multiple Revenue Sources (App
Store)
• Steps to Convert the Product to Platform
1. Create a Defensible Product – Enough value
to differentiate themselves from competitors
2. Apply a Hybrid business Model – Base is
product but enable a platform around it.
3. Provide Rapid Conversion to Platform –
Create a value my moving from product to
platform
4. Identify & act on Opportunities : Act quicky
and respond to threats and exploit the opportunities
• Products tend to become platforms on basis of
market environment.
• Qihoo360 created 360 Safeguard, security
software and distributed it freely to users and
this popularity brought revenue from other
software makers. They further added lot of
services, but 360 Safeguard was a core product
• SF Express in China created a platform. Where
users can order products to store to check
before making a purchase, failed as Chinese e
tailers allowed customers to test at home
before making a purchase.
• 3D Printer maker MakerBot’s Thingiverse
failed after initial success because they relied
on open-source spec, which competitors could
also use. They didn’t act quicky.
D9 : Pipelines, Platforms and
New Rules of Strategy
• How to move from Traditional “Input to Output” business model to
ecosystem ?
 Pipelines to Platforms…
• Pipeline – Creates value by controlling ta linear series of
activities – Input at one end and output at another end. But
platforms works in a brining a community together to
create an ecosystem of services, with Owners, Providers
Producers and Consumers in it.
• How to move from Pipeline to Platforms
• Move from Resource Control to resource Orchestration
• Move from Internal optimization to external interaction
• Move from customer value to ecosystem value
• When platform
enters the pipeline
business, it always
• In 2007, Apple 0% mares share in mobiles handsets ,
where Nokia, Samsung, Motorola, Sony Ericsson & LG
had 90% share . By 2015,Apple made 92% profits in
mobiles and 0% by others.
• Network effects helps platforms to grow big & stronger –
Alibaba in Chinese e-Commerce , Facebook in Social
network , Google in Mobile OS
How Platforms Change Strategy
• Forces within the ecosystem – Owner, user may change as
per need (Uber driver can also be a passenger)
• Forces Exerted by Ecosystem
• Focus
• Access & Governance
• Metrics- Monitor and boost performance.
• Interaction Failure – Less viability will further diminish the
platform visibility.
• Engagement – Maintain engagement of users
• Match Quality – Maintain good match between user needs
& platform offerings
• Negative Network Effect – Manage through governance
tools
C4- SAP- Branding in the
Digital Age
 CASE OVERVIEW • In 2016, SAP was trying to determine what should be it’s
marketing strategy in order to fulfil their ‘5 Year Vision’
for the year 2020.
• The CEO of SAP Bill McDermott believed that digital
space had to be utilized fully by the marketing team
creating SAP as a well known brand image. He strongly
felt that the digital space would soon become a winner-
takes-all and would eventually be dominated by the few
ear movers.
• He authorized out-of-budget spending for the marketing
team’s campaigns like the SAP advertisement in the
game seven of 2016 NBA finals.
• With the task of creating a new marketing plan to cater
to the new digital market left the marketing team with a
lot of questions.
✓ How should they allocate funds and prioritize the
requirements of marketing, sales, finance and now
• To compete with it’s rivals in this new age, SAP was working strongly the CEO?
on acquiring companies working in the could technologies since ✓ How could they help the sales team with the new
2010, spending over $45 billions on it. brand revamping for the digital age?
• SAP was rapidly moving from it’s on-premise services towards it’s ✓ Could the marketing team really pull off recasting
cloud suite, introducing products like SAP HANA, which offered SAP’s brand image as a company of the digital era?
their users easy to user experiences like plug and play, business
apps, SaaS and PaaS solutions.
MARKETING • SAP already had internally developed model RoI based
marketing models that influenced the customer CIOs buy
the SAP Suites.
• Less than 5% of the total marketing budget was
available for new spendings like market Brand
Development.
• Due to the digital transformations now on an average
5.4 individual roles were involved to close a deal unlike
just the CIO in the licensing models.
• Due to this Brand Value and Brand Marketing was
becoming essential part of the SAP growth plan.
• At the same time the Senior Management believed that
Field Marketing was as important as Brand Creation in
order to create solid leads and effective sales. While
Brand led them beyond demographics it was still not
enough to land sales.
• As seen from the charts along-side more than 75% of the
marketing revenue was towards fixed expenditure with
little to none chances of moving to new spendings.
COMPETITORS
• SAP was having a wide range of ‘born-in-digital’ era
competitors like Salesforce, Workday and NetSuite along
with the incumbents like Oracle, IBM and Microsoft
each trying to make their position in the cloud based
offerings.
• The competitors had better pricing models providing
subscription based plans, keeping the prices low and
working on user experience targeting high volumes.
• The Born-In-Digital players were focused on the end-
user experience creating a brand halo.
• At the same time, as seen in the chart along-side most of
SAP’s competitors were already spending more part of
their revenue in marketing, with Microsoft spending
almost 10 times than them.
• If they moved towards the renewal-based revenue
systems they would have to focus more on user-
experiences else they would loose on renewals and
brand loyalty and value as well eventually.
 • Under it’s Marketing Vision 2020 SAP brought a lot of
CAMPAIGNS value propositions for it’s customers. The ran two major
campaigns in 2014 Run Simple and Run Live.
• These campaigns help the company connect the
campaigns directly to the products, unlike the old
campaigns like “Customer <Name> Runs On SAP”
which were successful earlier in creating a strong
corporate brand image for SAP.
• With it’s learnings SAP’s management believed that
Brand is quite a lot about customer experience and they
wanted to provide the best experience to the customer.
• While SAP was trying to make user experience better by
making 70% of the buyers journey without human
intervention, another challenge at marketing was that
less than half of it’s marketing team was proficient in
digital marketing with a majority of the rest learning on
the job with no formal training on it.
• Eventually as Marketing Vision 2020, it was decided that
marketing needed to be well aligned with on ground
Sales operations. The marketing had to be done on a
regional basis and not just though TV commercials or
public run ads.
C9- SAP AG : Orchestrating the
Ecosystem
SAP AG Orchestrating the Ecosystem • In 2003, SAP embarked its application platform
strategy.

• SAP Ecosystem was designed to enabled customers to

view IT as Core asset that not only allowed cost
reduction in short-term bit enabled adaption &
innovation in long-term

• Concept of Community is core to SAP Ecosystem and It

✓ 5,000 post per day, 500,00 unique visitors per month
✓ Reduced load on SAP customer care
✓ Increased innovation & collaboration
✓ Fostered productivity for organizations
✓ SAP enabled Enterprise Service (ES), SAP
developers Network (SDN), Industry Value Network
(IVN), which covers overall value system of all
players.

• SAP managed four types of partners – System

Integrators, Channel Partners, Technology Partners &
software Partners. It built some great solutions by
SAP Business Process Platform working with Adobe, Microsoft and other big players,
SAP AG Orchestrating the Ecosystem

• SAP made ecosystem & community trust as

integral part of its product development process.
So, their product management really become a
customer engagement.

SAP Ecosystem Components

SAP Communities Of Innovation

SAP AG Orchestrating the Ecosystem -
Nakisa • Nakisa, founded in 2000 is a consulting company
in the field of organization management, creating
customer applications for its clients.

• HCM was a fast-growing market, where SAP yet

to figure out all valuable solutions customer is
seeking.

• Over the years, Nakisa built the relation with

SAP by integrated solution with an aim to
becoming a Tier-1 partner.

Nakisa Applications • Nakisa and SAP begun strategic discissions as a

part of succession planning product development

• On basis of SAP’s development and their

Strategic vision, it makes sense to integrate
Nakisa as a Tier-1 partner or if possible have a
strategic investments in this company.