Situation: A web-based software solution company wants to expand their customer base. They have several large clients, and want to expand their presence both geographically and to additional sectors. How do you position the offering to appeal to a larger audience? How do you expand your customer base?
Advice from the CEOs:
In customer presentations, talk about out-tasking versus out-sourcing. This is less threatening to the customer’s existing IT and analyst infrastructure. It allows you to focus on your strength and to build a pitch that augments the customer’s current capabilities.
Is there a trade-off between customer depth and breadth of adoption?
Test doing both on a limited scale. Go deeper in four accounts, and simultaneously focus on one application that you can rapidly sell to 20 accounts.
This exercise will help you to find the right balance.
Look at customers with whom you have had early success. Those customers are proof cases. Look for similar prospects who will respect the experience of the early adopters.
Take a current client who has had success with your applications. Go to similar state and regional companies who will respect the first company’s experience. This will help you to create a national presence in a sector or industry.
Build strategic alliance partnerships.
For example, take a potential customer that wants to be an application service provider.
Look for other companies serving that customer who could benefit from an alliance with your company. Build an alliance to offer bundled services to the potential customer.
If you do not have someone in this important business development role, you need it.
The Association of Strategic Alliance Professionals is a great place to start strategic alliances.
Work more deeply with your current clients. Offer additional applications, subscriptions and offer combinations of services.
Situation: A company seeks the best way to introduce a novel health monitoring solution. The challenge is that people don’t want to change their routines. If you can creatively fit into existing routines with minimal behavior change this facilitates adoption. How have you introduced a new solution without asking for a change in behavior?
Advice from Kiran Kundargi:
As the population ages health care costs rise. A solution that can reduce healthcare costs while allowing more seniors to remain in their homes this can significantly reduce health care costs. The sticky part is making this solution a part of the elder’s and their family-caregiver’s daily routine.
Our solution is to seek the low hanging fruit – post-hospital discharge recovery at home. Seniors who have been discharged from the hospital following treatment or surgery often receive strict instructions to take their medication, adjust their diets and engage in regular exercise. This requires changes in the senior’s routine, and non-compliance is a leading cause of readmission.
Effective October 2012, Medicare will stop paying hospitals for readmissions that it deems avoidable. This forces hospitals to take a more active role in follow-up care following discharge. Our online health monitoring service, Nclaves, provides a low cost solution.
Nclaves facilitates communication between the elder and his or her children and grandchildren using Internet and hand-held technology. This enables family to help their senior comply with post-hospital instructions.
We approach this opportunity in four phases.
We start by using the Internet. We have made our solution easy for physicians and hospitals to find. Internet activity is supplemented with presentations to monthly meetings in hospitals. By acting as an information resource on the change in Medicare regulations, we can introduce our solution to those who will suggest it to patients. Early adopters will enable us to build case studies demonstrating both technical viability of our solution, benefit provided to patients, and impact on readmission rates and cost of care.
Next, we will approach large employers. Employers understand that increases in hospital costs will adversely affect the cost of insurance benefits for their employees. We want them to include Nclaves as part of their employee health and wellness programs.
The third step is insurance companies. These companies have the leverage to specify and suggest options to both patients and providers.
Our final step is broad market acceptance. Once both payers and providers are on-board, we will be ready to work through alliances, the Internet and broader public relations and advertising campaigns to build market acceptance.
Interview with Jim Kaskade, Global Executive (most recently SVP and General Manger, SIOS Technologies, Inc.)
Situation: Cloud computing as a concept dates back to the 1960s. “Cloud” became a more prominent concept in 1990s as a metaphor for service delivery over the Internet. The technology that makes it a practical reality has advanced significantly. Broad business adoption, however, has varied depending on the deployment architectures used. What are some of the barriers to enterprises “crossing the chasm” and embracing moving to the cloud?
Definitions: There are three cloud deployment architectures or market segments when defining the opportunities and barriers to entry:
Software as a Service – SaaS – represented by distinct B2B applications like Salesforce.com and Google Apps, and B2C applications like Apple’s iCloud.
Platform as a Service – PaaS – represented by application platforms targeted at application developers and including Microsoft Azure and Amazon Beanstalk.
Infrastructure as a Service – IaaS – represented by on-demand access to low-level IT infrastructure such as virtualized computer, storage, and networking infrastructure.
The elephant in the room is that, relative to global IT spend, use of public cloud is in its infancy.
Adoption of the cloud varies by business size and IT structure.
Start-ups – particularly technology start-ups – use all three segments. The rationale is simple. It is easier and conserves capital to use all three delivery segments as an expense rather than invest in IT infrastructure. Another benefit is time to market.
Mid-sized companies – up to hundreds of employees – have more challenges.
They start with SaaS applications to get their feet wet. Primary concerns are availability and security. If they have good, dependable Internet access, barriers to entry can be low.
Using a PaaS is also attractive but begins to compete with internal, existing platforms. Mid-sized companies typically have their own IT and developers who may prefer an internal platform. The company’s choices are also limited to a PaaS system that is similar to current development platforms.
The barrier to IaaS adoption is the IT staff itself. If the IT staff is savvy, they can maintain and run their internal data center less expensively than IaaS services. The question comes down to whether building and maintaining a “crazy smart” IT group is core to the company’s business model.
Enterprise companies – Fortune 100s or even 1,000s – have far greater challenges.
Their current IT model already has moved to a mix of 30% in-house and 70% outsourced with partners like CSC and Accenture.
Most Enterprise CIOs begin their use of “cloud” with a migration to SaaS. The barriers to PaaS are that their systems are tailored to customer-specific applications and internal infrastructure, limiting PaaS use to small, non-critical applications which require quick, global deployment.
The barriers to using IaaS services are similar to PaaS, where CIOs struggle with tradeoffs between agility and issues of cost, security, and availability.
The Achilles’ heel of these companies is that 80% of their IT spend is just keeping the lights on.
The implications of all this are that the cloud is ideally for small to medium companies, some of which will become large enterprises. If you can succeed with a migration of legacy applications to cloud-based services you will become more nimble in responding to customer’s needs – the biggest upside to cloud services in general.