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Understanding the M-Commerce Target Audience January 17, 2001

Understanding the M-Commerce Target Audience January 17, 2001. Table of Contents. Purpose Section I: Who makes technology decisions and how are they made? Section II Part I: Technology target audience insights Section II Part II: Communicating with the technology target

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Understanding the M-Commerce Target Audience January 17, 2001

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  1. Understanding the M-Commerce Target AudienceJanuary 17, 2001

  2. Table of Contents • Purpose • Section I: Who makes technology decisions and how are they made? • Section II Part I: Technology target audience insights • Section II Part II: Communicating with the technology target • Section III: Wireless specific insights

  3. Purpose • Provide an overview of those involved in technology decisions and insight into their mindset. • Define roles in the process as well as challenges and concerns • Provide the clearest definition possible regarding insights into Mobilocity’s target audience and their behavior. • This will come from • Existing work LBTG has done • Additional secondary sources we have (analyst studies, white papers, articles, industry contacts, etc.) • Media-provided market and target audience studies including syndicated research such as Intelliquest.

  4. Titles • Needs • Challenges • Perceptions • Demographics • Implementation Plans Approach to Target Audience Definition Who and How Tech Business Groups Technology Decision Process CxO Insights IT What Do We Know About Them? LOB Wireless

  5. Section I Who Makes Technology Decisions and How are They Made?

  6. Technology Decision Makers and Process • Technology decisions are now business decisions • IT and business collaborate on a strategic level • Decision process involves multiple titles • Each title is involved at different stages in the process • Each title has different goals and need states

  7. Involvement: Who Does What When? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% IT Tech InvolvedCorporate Mgmt. % Involved Tech InvolvedLine of Business Determining Setting Creation Technical Specifying/ Recommending Final Needs Business Info Sys Evaluation Selecting Acquisitions Approval for Goals, Budget Strategies or Specs Brands/Vendors Acquisitions Base = Total Study Simmons CompPro VII - 1999

  8. Involvement: Who Does What When? RFP Vendor Select. Contract Proposal Review Participate in negotiation Define Scope Final Selection Initiate CIO CEO/COO CFO Purchasing Manager Business Unit Manger 3rd Party Consultant IT Manager 38.3 61.7 61.7 6.4 12.8 6.4 6.4 72.9 14.6 20.8 6.3 18.8 35.4 31.3 57.4 23.4 38.3 12.8 38.3 48.9 42.6 58.3 4.2 35.4 27.1 33.3 45.8 52.1 70.0 32.5 45.5 15 30.0 37.5 22.5 46.8 19.1 57.4 38.3 19.1 27.7 6.4 Source: 1998; The Gartner Group

  9. IT IT Business 1980 1990 2000 Decision Process: Convergence of Business and IT • IS strategy and business strategy are no longer extricable from one another. • Technology strategy is now a driving force behind a business' competitive strategy. • Companies are demanding that IT projects produce bigger returns and deliver a clear competitive advantage. • Essentially, IT is viewed as a means to increasing a business' bottom line profits. • Increased role of IT has raised the profile of IT and increased the willingness to invest in IT projects in US businesses today. Source: IDC

  10. CIO Top Execs IS Mgmt Tech Business Mgmt Dept. Management IS/Network Staff End Users Decision Process: A Team Approach • Titles with specialized areas of expertise, are involved in the purchase process: CIO's, IS Management, IS/Network Staff, Business Executives, Department Managers, and End Users • Technological business groups have emerged to facilitate the integration of business strategy and IT decisions • CIOs operate as liaisons between IS and business departments on a strategic level • Business managers with technical expertise serve as liaisons on a functional level Source: IDC

  11. Business Goals Business Strategy Drive ITStrategy Drive Product Strategy Drive Decision Process: Goals Drive Strategy • IT and business collaborate on a strategic level • Purchase process involves different groups at different stages in a typical enterprise-wide project • The process starts at the top with business goals, which drive the business strategy. It is the business strategy which drives the IT, or technology strategy • The technology strategy in turn drives the product strategy Source: IDC

  12. Decision Process: Stages of Strategy • Business strategy is based on a project decision that has an effect on the entire business. • Criteria is ROI, or how much the technology will benefit the company and is collaborative • IT strategy is based on core technology decisions (types of software, hardware, operating systems, etc. needed). • Strategy based on making the right choice looking into the near future. • Here, process begins shifting toward the middle-level IS and business management types and to specialized analysts, as it is a very consultative process.

  13. Decision Process: Stages of Strategy • Product strategy is based on individual products, such as desktop PCs • Based on traditional criteria like reliability and performance. • Little interest in this stage by those involved in the more strategic phases • It is a very centralized phase within IS staff-level personnel, which will then pass along recommendations to the middle management

  14. Stage Decision Criteria Process Business Strategy Project ROI Collaborative IT Strategy Core Technology Right Choice Consultative Reliability Performance Product Strategy Products Centralized Decision Process: Stages of Strategy Source: IDC

  15. Decision Process: Decision Maker Involvement • The decision makers involved differ at each stage. • Project decision is highly collaborative, and involves the widest range of decision-makers from Senior-level/CXOs on down to user input on functionality • Core technology decision on the other hand is consultative and involves middle management-level personnel from both IS and Business • Product decision is very centralized, and involves the IS staff testing products to report back to the management level Decision Process Decision Makers CxO, LOB, IS/Networking, User Input Project Collaborative Core Technology IS, Networking, LOB Consultative IS, Networking, IS Staff Products Centralized Source: IDC

  16. Decision Process: Decision Types • Four types of decisions are associated with each IT purchase. • Strategic, Technical, Functional, Financial • Decisions are made by an individual person, or several groups may collaborate on one type of decision. • Strategic decisions are high-level business decisions made by examining how well the project fits in with the overall strategy, and whether it will forward the business. • Technical decisions are mainly spec-driven. Brand and model specifications are examples. • Functional decisions are those which determine how the product is going to work, or will it do what it's designed to do. • Financial decisions are driven by budgetary concerns.

  17. Decision Process: Implications and Conclusions • Communication must be to the technology buying group • Communication must speak to the end benefit which is a business benefit that addresses a business strategy • Business benefit must be supported by core technology choices/decisions and product benefits • Marcom programs must be designed to address the mindset of each technology decision team at each point in the decision making process

  18. Section II: Part I Technology Target Audience Insights

  19. Review of Target Title Insights Target Titles Role CxO Initiator/Approver IT Director/VP Decision Maker LOB Project Mgr, Dept. Head Implementer/User

  20. CxO Title Insights and Statements CEO CFO CIO IT LOB

  21. CxOs in General: Adjusting to Change • Let’s talk about speed. It took 38 years for 50 million US users to get radio. It has taken four years for 50 million US users to get on the Web. • “This rate of change, this speed, is phenomenal. It means that senior executives no longer need to - and simply cannot - act with certainty. Instead, they must make decisions quickly and try to be directionally correct. They have to learn to say, ‘You know what, I’m not certain precisely what our end point is, but I believe we’re headed in the right direction. So let’s go.’ “ • “Learning to be directionally rather than certainly correct means they have to develop an exit strategy. ‘We’re moving, I think in the right direction - but I could be wrong. And if I am, we have to figure out the consequences and how to resolve them.’” Source: Inside the Mind of the CEO [The 2000 Global CEO Survey], PriceWaterhouseCoopers

  22. CxO: A Day in the Life CXO: • Busy, hectic • “I’ll give anyone 60 seconds” (but that’s it unless you interest me) • “Always putting out fires” (sound familiar?) This often diverts them from a focus on long-range planning • Usually have the final say in software decisions • Feel that their role within their company is changing.

  23. Chief Executive Officer

  24. CEOs: Pioneers of the [Virtual] Frontier • CEOs are globally upbeat about growth and prospects for their companies over the next three years • North American CEOs by far most bullish with 42% reported as extremely optimistic • Have been treated well by domestic and global economy in recent years • Very “American” characteristic to be excited at the prospect of new challenges; in the spirit of the original pioneers and the West • Drivers of companies’ entry into the e-economy • It’s at their request that companies begin their move online • Appoint a committee usually consisting of CFO and CIO; rely on their due diligence Source: Inside the Mind of the CEO [The 2000 Global CEO Survey], PriceWaterhouseCoopers; Online Focus Groups, 2/00

  25. CEOs: Teaching an old dog new tricks “E-business means that CEOs must learn fundamental new ways of thinking.” Source: Inside the Mind of the CEO [The 2000 Global CEO Survey], PriceWaterhouseCoopers

  26. CEOs: Agents of Change • “Change is a leadership challenge... What counts is passionate, purposeful change. The reason successful small companies change is that, for their leaders, the locus of change is not in their heads but in their hearts. They change by making their dreams come true. CEOs of large organizations too often dictate change like dispassionate generals. You can't command change; it needs to be experienced.” • “People will change only if they know why their lives will improve and how they can contribute to making a difference.” Source: “Letters to the Editor”, Fast Company 4/97

  27. CEO Concerns • “Our future depends on nothing less than transforming our company into a full-fledged E-business. Now.” • Transform traditional business model online • Brick to Click • Time-to-market • Embrace change; minimize risk • Recognize, seize and respond to new business opportunities • What is the competition doing? • How can I do it better and faster? Source: “The Secrets of Their Success” Fast Company 7/97; “What Every CEO Needs to Know”, BusinessWeek, 3/99

  28. CEO: Speaking Their Language • You can change your company’s business model without changing your company.

  29. Chief Financial Officer

  30. CFO: A Growing Role • Traditional role of CFO as “financial mechanic” is changing • CEOs want finance chiefs who can fill a multitude of roles: confidant, champion, communicator, creator of value • In 1994, CFO magazine’s survey of what CEOs wanted in a CFO, strategic vision was just beginning to emerge. In the 1999 survey, it was a routine requirement. Source: “What CEOs Want” ,CFO Magazine, 7/99

  31. CFO: A CEOs Best Friend • Because of the growing role CFOs are playing, their relationship with the CEO is incredibly strong and personal • “CEOs will almost always overlook experience and credentials for that strong, trusting personal relationship...basic personality will make or break a deal” • 53% of CEOs claim their CFO as their main professional confidant • 92% of CEOs claim they rarely have have serious disagreements with their CFO • 48% of CEOs say their CFO regularly changes their mind in an argument Source: “What CEOs Want”, CFO Magazine, 7/99; One-on-one interview, 3/00

  32. CFOs: So, What? • CFOs are becoming primary decision-makers in transforming organization’s vision into action Important title for for high technology companies

  33. CFO Concerns • “Wouldn't you like less errors, less management, less supervision, lower costs, better service, faster turn around, bigger savings...all because of e-commerce?” Message posted on CFO Discussion Group CFOnet.com

  34. CFO Needs • “I would prefer a consultant that has “real world” experience, working within a corporation, dealing with the day to day problems facing [issues] such as market share, pricing pressures, staffing, corporate structure and culture as well as the “special needs” of an owner, entrepreneur or the board of directors of a publicly held corporation.” Message posted on CFO Discussion Group CFOnet.com

  35. CFO: Speaking Their Language • You can decrease risks and unnecessary resources while increasing profitability, with a business partner you’d be proud to introduce to your CEO.

  36. Chief Information Officer

  37. CIOs: From Techies to Executives • “CIOs are becoming widely recognized as key executives in many major corporations.... That's a big change from when I entered the field...Over the last 5 to 10 years, we've seen business [people] learning how to harvest business benefits from IT and IT people learning how to talk with their business peers-and, in the process, becoming business leaders” Pat Wellington Former CIO, Xerox CIO, 4/99

  38. CIOs: From Techies to Executives • Much like the evolution of the CFO role, the CIO is “not just a supporting actor anymore” • CIOs are “leading their organizations to new ways of doing business enabled by IT” • CIOs are in a unique position to understand the business from an enterprise-wide perspective; beginning to capitalize on that vantage point to become a business partner to CEOs • 70% of CIOs report that they are now part of their company's executive committee and are expected to make contributions on business as well as technology issues Source: “Perspective Report”, CIO.com; “CIOs Rise from Crisis to Confidence”, CIO Magazine, 1/00

  39. CIOs: From Techies to Executives • “I used to spend 90% of my time on IT stuff. Today I probably spend 80% of my time on corporate business projects.” Source: E.P. Rogers, CIO of The Money Group

  40. CIOs: From Techies to Executives • Profile of typical CIO is evolving from gray-haired technical specialist to modern day whiz kid • CIO positions are being filled by professionals younger than 40; not surprising as current trends such as the rapid pace of technology favor younger workers • Position increasingly seen as a steppingstone to CEO therefore more attractive to those who aspire to be a part of the business strategy • This younger CIO perceive themselves to be general business managers who employ technology to reduce complexity, cut costs and enable better collaboration and communication • As true agents of change, need to take risks and have a skill set not typical to IT: strategic thinkers, creative, leaders, value relationship-building between IT/IS and senior executives Source: “Perspective Report” & “Profiles”, CIO.com

  41. CIO Concerns • “CIOs face a...challenge: They scan the inventions of the day and decide which have the potential to shape their businesses' future and which will never meet the inventors' expectations.” • “Smart CIOs should be thinking about how the ability to stay in constant contact with employees, partners and customers can change their business models and open up new opportunities” Source: “Stormy Weather”, CIO 1/00 Source: Online groups 2/2000 and One-on-ones, 3/2000

  42. CIO Concerns • How soon will we have to upgrade? • Managing competing demands for limited resources • Time-to-market • Budget constraints • Fire fighting vs. focus on long-term goals • Integration • Flexibility Source: “Stormy Weather”, CIO 1/00

  43. CIO: Speaking Their Language • Company X will help you capitalize on the opportunities of the New Economy - and have plenty of time left to fire fight.

  44. IT Managers

  45. IT Titles: A Day in the Life • Everyone feels pressured- too busy, too little time to do everything. • “Always putting out fires.” • Need to be reachable 24/7- most wear beepers • Like juggling multiple products • Workaholics: they love their job, live it 24/7. • Hate the long hours, but love accomplishing things. • Things change constantly- this makes for a stimulating environment. • Very goal-oriented- they want to “win” or at least persevere over technology. • They are “passionate” about that they do.

  46. IT Manager Concerns • More skeptical of software claims- they have more to lose by making the wrong decision (their job) • #1 benefit- Wants software that can pinpoint problem, report and take pre-emptive action- but needs proofthis is believable • Customer service very important • Security also an issue • Need to prevent downtime- fix the yellow light before it turns red • If X product can do everything it says, it will “blow the doors off the industry”- but can I afford it?

  47. IT Manager Concerns • More willing to try and review new ideas • Security is a big issue • #1 benefit- Want software that can pinpoint problem, report and take pre-emptive action • Out-of-box integration important • Need to prove product benefits, attributes through facts and referrals • Prove it, prove it, prove it!

  48. IT: Speaking Their Language • Our solution will integrate seamlessly with your IT infrastructure, streamline your network, lessen down time and make you look like a hero.

  49. Line of Business

  50. Target Audience Insights Line of Business Managers are • Concerned with the efficiency and effectiveness of their departments performance within the overall organization • They are looking for solutions that will relieve the daily headaches and roadblocks they face • They are searching for ways to take their department into a leadership role within the organization • They want simplification of function….ease of use • Frustrated that they sometimes can not move as quickly as they’d like in the direction of a technology solution

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