The IT Business is...Well, Squirrely!
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This speech delivered at PARTNER VIP in France in 2014 focuses on the CHANGE in the industry for B2B IT technology resellers.
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The IT Business is...Well, Squirrely!
- 1. Bob Snyder Editor in-Chief Channel Media Europe Ltd.
- 2. Page 2 I Know How You Really Feel About IT
- 3. Page 3 If you are reading this on SlideShare: please watch before proceeding further https://www.youtube.com/watch?v=_2a5AA30RTY The video is 1 minute long and called “MISSION IMPOSSIBLE SQUIRREL”
- 4. Page 4 Squirrely Adjective: 1. mildly insane 2. Unpredictable and jumpy 3. nutty: like a squirrel looking for nuts Squirrely Adjective: 1. mildly insane 2. Unpredictable and jumpy 3. nutty: like a squirrel looking for nuts
- 5. Page 5 Coming Around the Corner: The Future
- 6. How Fast Does Change Occur? The iPad was announced on January 27, 2010
- 7. Page 7 The Tablet As a Way of Life Now… 88% of US tablet owners use tablets while watching TV at least once a month January 2014: it’s just 4 years that iPad is in this world… January 2014: it’s just 4 years that iPad is in this world…
- 10. Even airplane pilots are using instead of traditional charts
- 11. “iPad gives our pilots access to more accurate information more quickly. It’s the best, most comprehensive technology that not only United, but the FAA has approved and supported.” Pete McDonald, COO, United Airlines
- 12. Page 12 Consumerization of IT …now consumers get the tech before the enterprises
- 13. Page 13 More Than Just the IT Landscape • Apple is changing the IT landscape ...but it’s also changed another... mobile phones • Mobility
- 14. World’s Most Expensive Tombstones
- 15. Page 15 A New World of Mobile Devices CONNECTED DEVICES According to GSMA, 9 billion connected devices in the world today. By 2020, there will be 24 billion and over half of them will be non- mobile devices such as household appliances.
- 16. Page 16 More Smartphones Than People On The Planet Cisco predicts by the end of this year there will be more smartphones than people on the planet. The forecast also predicts by 2016 there could be 10 billion smartphones. That’s 1.4 mobile devices per capita.
- 17. Page 17 The Knock-On Effect on Networks
- 20. Page 20 The Connected Age We are still learning what it means to live and work in the Connected Age vs the Information Age Connected devices will be a US$1.2 trillion market by 2020.
- 21. Page 21 The Very Way We Do Business is Changing
- 22. Your customers are now making the tech decisions that will lock them in for the next 10-15 years
- 23. Page 23 OUR FUTURE IS CLOUDY By 2020, there will be a shift from an IT department for end users to a "follow me" IT service provider mentality. In other words, IT itself will move to the cloud. The department that manages cloud services will become a cloud service itself.
- 24. What you describe as Cloud Computing depends upon where you stand in the industry, who your partners, customers and suppliers are.
- 25. Page 25 Different Cloud Roles Cloud Advisors Cloud Builders Cloud Providers (as a Service) Cloud Resellers Cloud Integrators (they construct ‘the glue’ between private and public Clouds or between traditional IT and other Cloud infrastructures)
- 26. Page 26 Channel Future is Cloudy More than 90% of the channel has cloud offerings in their portfolios. BUT, the channel has relegated itself to basic applications and services – backup, email, productivity apps, storage – and these offerings will commoditize quickly.
- 27. Page 27 Sailing the 7Cs Cash Churn Client Pipeline Consolidation Concomitant Monthly Revenue Customer Acquisition Cost Customer Value over Life Time
- 28. Page 28 The Climb Up By 2016, 30% of Enterprise Architecture efforts will a collaboration between business and IT, says Gartner Inc. Corporate I.T. networks will move from defence (infrastructure and cost-savings) to offense (building business opportunities and marketplace advantages.) 2016: 30% up from 9% in 2011)
- 29. How Hard is the Climb?
- 30. How Cloud Changes IT Integrators Forrester says cloud transformation will lead to the elimination of up to 15% of the channel. Gartner says attrition under cloud transformation will eliminate 40% of the existing channel
- 31. “In times of rapid change, experience could be your worst enemy." J. Paul Getty For most , success is believed to come from defending and extending what was done in the past, every day, every week, every month and every year.
- 32. The end of one world is nothing more than the beginning of another. You don’t drown by falling in the water. You drown by staying there.
- 33. New Way to Evaluate Clients The End of Solution Sales by Brent Adamson, Matthew Dixon, and Nicholas Toman
- 34. The New Sales Approach …from The End of Solution Sales
- 35. Page 35 Move to “Architecture” from “Verticals”
- 36. 1. Establish Your Core Values & Skills.
- 37. 2. RE-EVALUATE YOUR CUSTOMERS How profitable are each of my customers? Which vertical industries do I invest in?
- 38. 3. RETRAIN YOUR SALES FORCE
- 39. 4. ADD REAL MARKETING Many integrators lead with their vendors’ brands and reputation. Solution providers need to do a better job of marketing themselves and creating their own value proposition.
- 40. And It Won’t Be Your Father’s Marketing...
- 41. 5. VERTICAL INDUSTRY & SYSTEMATIC SALES
- 42. 6. GROWTH IS NOT A CHOICE. • The channel is under- capitalized: an average integrator doesn’t have the financial resources to fund transformation. The only way is through growth. • Adding 2 or 3 jobs a month and a dozen or so net-new customers per year won’t do the trick. You need HYPER-GROWTH.
- 43. ARE YOU WILLING TO SURRENDER WHAT YOU ARE…? FOR WHAT YOU COULD BECOME? Ask Yourself the BIG Question
- 44. I Know What You Are Feeling… Remember, in the end, the SQUIRREL is willing to JUMP, to LEAP, and CLIMB to get his reward. Even the humble squirrel is fearless and unrelenting in pursuit of a goal.
- 45. Any other way would be… of course, just plain.. NUTS!
- 46. www.IT-SP.eu Thank you for Listening
Notes de l'éditeur
- If you are reading this on SlideShare: go to https://www.youtube.com/watch?v=_2a5AA30RTY
- How fast will change occur? How different could 2015 really be? Let me remind you that the iPad was launched at the end of January in only 2010. Coming up on January 2014, it will be just four years that iPad is in this world…
- Source Spiceworks
- http://www.apple.com/ipad/business/profiles/united-airlines/ United Airlines Cleared for takeoff with iPad. Countless business travelers rely on iPad as an essential flight companion. But at United Airlines, iPad isn’t just for passengers. Following extensive testing and FAA approval, iPad recently became standard equipment on the flight deck, providing pilots with one-touch access to charts, maps, and other crucial navigation tools that help keep United flights on track and on time. “United has always been a technology leader in the airline business,” says Pete McDonald, Chief Operations Officer of United Airlines. “We’ve always had the most advanced aircraft, and our flight planning systems have always been the most efficient. iPad gives our pilots access to more accurate information more quickly. It’s the best, most comprehensive technology that not only United, but the FAA has approved and supported.” Featherweight flight charts In a business where extra weight translates directly into extra costs, choosing iPad means fewer pounds on every route United flies—not to mention less baggage for United pilots to lug through the airport. “A pilot’s flight bag weighs about 45 pounds,” says Captain David Sambrano, who has flown United planes for 22 years. “With iPad, we get rid of that big 45-pound bag. Being able to take all those books and charts and bring it down to about a pound and a half is incredible.” Eliminating all that paper translates into serious savings, says Captain Joe Burns, Managing Director of Technology and Flight Test, another 20-year United veteran. “With iPad we’re able to save 16 million sheets of paper a year. Just removing the weight of that paper works out to 326,000 gallons of fuel saved per year.” But replacing traditional flight charts with electronic documents on iPad does more than merely lighten the load. It also helps United pilots pinpoint essential flight information the moment they need it. “In the past we’d have to pull a binder out, find the airport and the approach code, pull the paper out, clip it onto a chart holder somewhere, then enter that data into the flight control computer on the aircraft,” Burns recalls. “We view iPad as a big safety and time saver.” “The iPad display allows us to see the chart very clearly,” Sambrano adds, “and it’s readable in different types of lighting, which is extremely important. And you can get to that particular chart or that particular piece of information so quickly.” In-air Apps United Airlines is no stranger to mobile tools that ease the way for passengers, from mobile-friendly booking and travel management tools to boarding passes that can be scanned directly from an iPhone or iPad display. Bringing iPad into the cockpit signals a new phase in the airline’s commitment to technology that improves both efficiency and service. “United flies to 61 countries on six continents,” Sambrano says, “and no matter where I am in the world, I have all that flight planning information at my fingertips on iPad. Having the best technology allows you to make the best decisions to fly efficiently and arrive safely. If you have an accurate display like iPad on board, you’re able to plan a better route.” The airline’s in-house development team has created several custom applications that help pilots quickly locate flight information on iPad. For example, the Content Locker app automatically pushes the latest flight data to each iPad, so pilots don’t have to spend time searching for and uploading the correct materials before each flight. They also have access to the Jeppesen Mobile Flight Deck application, which displays approach charts and en route chart data on iPad. “Other applications include our flight operations manual, aircraft flight manual, and worldwide operations manual, which encompasses all the charts and approach plates we routinely use,” says Burns. iPad also supports United’s stringent security requirements with both built-in security settings and compatibility with third-party Mobile Device Management (MDM) systems. “Security is paramount to United Airlines,” Burns notes. “We’re very confident that both the data and the device itself will stay secure throughout our operation.” Smooth flying with iPad With iPad and custom apps onboard, United is ready to launch a new era of flexible, compact resources for its flight staff. “iPad is a breakthrough from a technology and efficiency standpoint,” says McDonald. “I’m very proud that we’ve been able to put something as sophisticated and efficient as iPad in the hands of our pilots.” The pilots couldn’t agree more. “With iPad we have a device that’s almost custom-built for our application,” Burns says. “One that’s lightweight, runs on battery power for a long time, is easy to program, and give us the information we need at the moment we need it.” Most importantly, iPad helps the airline do what it does best: get people to their destinations safely and on schedule. “One of the greatest things about being a pilot is being able to connect people,” says Sambrano. “We’re able to bring businesses and families together across the globe, and we’re able to bring our soldiers back home to their families. iPad helps us do this-and in my opinion, there’s no better job.”
- http://www.apple.com/ipad/business/profiles/united-airlines/ United Airlines Cleared for takeoff with iPad. Countless business travelers rely on iPad as an essential flight companion. But at United Airlines, iPad isn’t just for passengers. Following extensive testing and FAA approval, iPad recently became standard equipment on the flight deck, providing pilots with one-touch access to charts, maps, and other crucial navigation tools that help keep United flights on track and on time. “United has always been a technology leader in the airline business,” says Pete McDonald, Chief Operations Officer of United Airlines. “We’ve always had the most advanced aircraft, and our flight planning systems have always been the most efficient. iPad gives our pilots access to more accurate information more quickly. It’s the best, most comprehensive technology that not only United, but the FAA has approved and supported.” Featherweight flight charts In a business where extra weight translates directly into extra costs, choosing iPad means fewer pounds on every route United flies—not to mention less baggage for United pilots to lug through the airport. “A pilot’s flight bag weighs about 45 pounds,” says Captain David Sambrano, who has flown United planes for 22 years. “With iPad, we get rid of that big 45-pound bag. Being able to take all those books and charts and bring it down to about a pound and a half is incredible.” Eliminating all that paper translates into serious savings, says Captain Joe Burns, Managing Director of Technology and Flight Test, another 20-year United veteran. “With iPad we’re able to save 16 million sheets of paper a year. Just removing the weight of that paper works out to 326,000 gallons of fuel saved per year.” But replacing traditional flight charts with electronic documents on iPad does more than merely lighten the load. It also helps United pilots pinpoint essential flight information the moment they need it. “In the past we’d have to pull a binder out, find the airport and the approach code, pull the paper out, clip it onto a chart holder somewhere, then enter that data into the flight control computer on the aircraft,” Burns recalls. “We view iPad as a big safety and time saver.” “The iPad display allows us to see the chart very clearly,” Sambrano adds, “and it’s readable in different types of lighting, which is extremely important. And you can get to that particular chart or that particular piece of information so quickly.” In-air Apps United Airlines is no stranger to mobile tools that ease the way for passengers, from mobile-friendly booking and travel management tools to boarding passes that can be scanned directly from an iPhone or iPad display. Bringing iPad into the cockpit signals a new phase in the airline’s commitment to technology that improves both efficiency and service. “United flies to 61 countries on six continents,” Sambrano says, “and no matter where I am in the world, I have all that flight planning information at my fingertips on iPad. Having the best technology allows you to make the best decisions to fly efficiently and arrive safely. If you have an accurate display like iPad on board, you’re able to plan a better route.” The airline’s in-house development team has created several custom applications that help pilots quickly locate flight information on iPad. For example, the Content Locker app automatically pushes the latest flight data to each iPad, so pilots don’t have to spend time searching for and uploading the correct materials before each flight. They also have access to the Jeppesen Mobile Flight Deck application, which displays approach charts and en route chart data on iPad. “Other applications include our flight operations manual, aircraft flight manual, and worldwide operations manual, which encompasses all the charts and approach plates we routinely use,” says Burns. iPad also supports United’s stringent security requirements with both built-in security settings and compatibility with third-party Mobile Device Management (MDM) systems. “Security is paramount to United Airlines,” Burns notes. “We’re very confident that both the data and the device itself will stay secure throughout our operation.” Smooth flying with iPad With iPad and custom apps onboard, United is ready to launch a new era of flexible, compact resources for its flight staff. “iPad is a breakthrough from a technology and efficiency standpoint,” says McDonald. “I’m very proud that we’ve been able to put something as sophisticated and efficient as iPad in the hands of our pilots.” The pilots couldn’t agree more. “With iPad we have a device that’s almost custom-built for our application,” Burns says. “One that’s lightweight, runs on battery power for a long time, is easy to program, and give us the information we need at the moment we need it.” Most importantly, iPad helps the airline do what it does best: get people to their destinations safely and on schedule. “One of the greatest things about being a pilot is being able to connect people,” says Sambrano. “We’re able to bring businesses and families together across the globe, and we’re able to bring our soldiers back home to their families. iPad helps us do this-and in my opinion, there’s no better job.”
- The label IT consumerization has been around since at least 2005 when Gartner Inc. pronounced consumerization "the most significant trend affecting IT in the next 10 years." Gartner traced the trend to the dot-com collapse, when enterprise IT budgets shrank and many IT vendors shifted focus to the potentially bigger consumer IT markets. The result has been a change in the way technology enters the marketplace. Instead of new technology flowing down from business to the consumer, as it did with the desktop computer, the flow has reversed and the consumer market often gets new technology before it enters the enterprise.
- Motorola from 18.4% in 2007 the market share fell to just 6.0% by Q1 2009 SOLD TO GOOGLE Q4 2012 Nokia had a global markets share of 18%..now 3.2% SOLD TO MICROSOFT In 2010, Blackberry had 43% US market share… down to 3.8% in 2013 SOLD TO a consortium led by FAIRFAX Financial
- Imagine you are standing outside Paris, far enough away from the city lights to view the sky in all its splendor…the stars, the constellaltions. Your friend in Australia who is also looking at the sky…How beautiful the sky is tonight, the stars, the constellations– your friend agrees. Both the stars and the constellations you see depend upon where you are standing. Yes, you both see similar phenomenon but nonetheless different. This is the problem when we start to talk about Cloud. What cloud means is shaped by who is talking and what role in cloud they play. Like in the natural world, there is not just one cloud.
- Because they believe Corporate IT will move from “defense” (building infrastructure as requested by business groups) to “offense” (creating new ways to do business, driving business group value through innovation). Gartner suggests that by 2016 more than 30% of the IT business will be done via this new collaboration between IT and business. Tier 1 companies, especially those based in Silicon Valley, move in herds when they see the Next Big Thing. And the NBT in channel is making sure your partners are prepared for the future, prepared to add value by adding vertical industry expertise.
- How hard will it be for the channel to get on board with what Tier 1 vendors want? How difficult will the climb be to the new partner requirements?
- It will be so difficult that Forrester says 15% of the channel will NOT make this transition into the future. Research company Gartner disagrees: they believe almost 40% of the channel will DIE in the next few years. Remember how fast the iPad change came on…
- What made you successful in the past will not make you successful in the future. "What got you here will not get you there." - Marshall Goldsmith Using the past to understand the future When we look to the past to understand the future we compromise our ability to envision change and see a different possible future. Never take it for granted that your last successes will continue into the future. In fact, your past successes may be your biggest obstacle: every situation, every market, every customer engagement is different, and you cannot assume that what worked before will work today or tomorrow. You must cut yourself free from the past and open your eyes to the present. "In times of rapid change, experience could be your worst enemy." - J. Paul Getty Here are 3 things that hold most organisations back: 1. Defend and Extend Mindset For most people and organisations success is believed to come from defending and extending what was done in the past, every day, every week, every month and every year. Success is believed to come from seeking out extensions to prolong what was previously done successfully. In Defend and Extend thinking the manager's first priority is to understand the existing business and work to maintain and continue what worked in the past. This means focusing on core capabilities, core customers, core services, core assets, core functionality - whatever is considered core to the business - and firstly defending the core and then secondly looking for incremental opportunities to extend it. Having done this, Defend and Extend Managers believe that the future will successfully take care of itself. They believe that avoiding mistakes is their No. 1 priority and they believe that those who don't screw up are more likely to succeed than those who take chances. The longer management tries to Defend and Extend its old business, the larger the Reinvention Gap becomes. The larger the gap, the less likely a business will ever reinvent itself, innovate and create new growth opportunities. Creating growth = disrupting or inventing your business. Read the rest of the post Question: What are you going to do to break with the past and align your business with future growth? Read the rest of the post Read blog post: Disrupt or be Disrupted Read blog post: Thinking at 3 Time Horizons View slideshare: Strategic Change Read the book: Create Marketplace Disruption by Adam Hartung Make it happen: Lead first, manage second.Sincerely, David Ednie SCE
- You will evaluate clients in a new way. This is just one example, from the guys who wrote The End to Solution Sales. This form profiles your client. It no longer speaks of clients in terms of statistics… the way you have been tracking clients has been so 2-dimensional. How many employees, how many branch offices, how much sales volume…blah, blah, blah…that’s all just STATISTICS not a profile. Now you’ll be tracking the culture of the client’s company, how it operates, and whether it is a first-mover or a follower. Your big business, according to these authors who modelled it AFTER researching America’s most successful IT salespeople, will come from identifying and motivating companies who want technology as their differentiation in the marketplace. And, Cisco, as an example again, wants you to show you know this customer and how it will embrace technology.
- The New Sales Approach suggests YOU have be the one suggesting a provocative way to change their business. Remember you are no longer waiting for the client to show “pain points” that you can hang a solution on. No, we are no longer going to be playing a defensive game. We are going ouot on attack.
- Please let me summarize some of the steps you will need to take. First, establish your CORE VALUES and CORE SKILLS. You have heard this before and you’ve probably casually thought about, made a mental list or two. But today’s message is different. You need to systematize this self-profile, to embrace it and make it a formal procedure that you review with frequency as your employees and your business changes. You need to find your differentiator and woe is to your company if you don’t find a way to set yourself apart.
- I’ve already talked about Client Profiles and Evaluation but STEP 3 encourages you to FORMALIZE the procedure and implement this as a business process.
- STEP 4 will not be easy. Experts like Gartner suggest that 2 out of every3 salespeople you have today will NOT have a job tomorrow. Because they could not make the switch to selling cloud, to selling services, to moving to a business leadership role instead of solution selling. Solution selling today is as bad as box moving was yesterday. We are moving up the food chain to preserve profit margins and avoid the part of the cloud that will quickly—with iPad speed– become commodity. The move to verticals may find you firing and hiring, as you replace Old World salespeople with people who are already experts in vertical markets. How else will you add experience to your portfolio?
- STEP 5. You’ve been avoiding this for year’s. You prefer to rely on vendors doing the marketing for you. When you do any marketing at all, you push the vendor’s brand ahead of your own. Now it’s your turn…
- It’s your turn because it is no longer your father’s marketing. It’s not about print ads, radio ads, TV ads…although you may work yourself up to that level. Today it’s all micro-marketing…social media marketing…being a part of your client’s COMMUNITY. Does your customer have Twitter? Or maybe an internal chat messaging system? How you influence decisions will depend upon your ability to talk to Generation Y.
- STEP 6. We’ve talked about selling and here we can only add it is the systemization that we are looking for. The business process that links your selling with your new business mission of cloud and verticals. Once you’ve re-trained (or hired a new) sales force, the way they approach the market needs a process. I can’t tell you how many companies ask me where to find customers in other countries and I know they have never made a sales call on the hotel I am staying in. If I was an integrator, the first thing I would do is AUDIT every prospect with 50km. Historically we left this to a salesperson with a local territory or we depended on leads from our vendors: but I would own the responsibility to AUDIT my immediate market and make it part of the process that it is served first.
- Some experts are saying even seemingly spectacular growth numbers of 25%, 35% or 45% are not enough. Integrators need hyper-growth in the healthy triple digits to ensure sustained profitability and viability. If this shocks you, think about the early decades of the computer industry. How did an Ingram Micro, a Dimension Data, a Cap Gemini get so big? They didn’t do this by setting their goals on growing with 10 or 12 new customers a year. Cloud is a transformation, a new start, a refresh so to speak… a chance for new winners, a chance for challengers to outrun incumbents. Believe it first, then make it happen.
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