Over the past few months, SAP Services has embarked on a major software-enabled services transformation of its offerings and operating models. The strategic intent is to increasingly rely on IP-based solutions (including SAP’s Rapid Deployment Solutions portfolio and assemble-to-order methodology) to deliver outcomes faster, with lower risks for clients and, eventually, support value-based pricing. Next on SAP Services’ transformation road map? I believe that the organization needs to quickly change the perception of the rest of the SAP ecosystem, which still views SAP Services as a competitor.
SAP Services’ business model used to merely rely on staffing “rock star” consultants on client projects in order to facilitate the implementation of complex solutions. The new strategy aims at positioning the 15,000 service professionals on SAP’s newer solutions (e.g., cloud, mobile, HANA . . .) in order to ensure that early projects generate the promised outcomes. In order to achieve this goal, the delivery teams need to be much more focused on collaborating internally (with the R&D team, for instance) as well as externally (with clients). SAP Services will also need to increasingly work collaboratively with its partners in order to ensure the success of the overall SAP-as-a-Platform strategy.
In “Competitive Strategy In The Age Of The Customer,” Forrester shows that “in a world where empowered customers are disrupting every industry . . . the only sustainable competitive advantage is knowledge and engagement with customers.” This is not about mere customer centricity. This is about customer obsession.
This customer obsession is particularly crucial in the world of big-box and online retail. With so much pricing and product information available at customers’ fingertips — at home and in the store — retailers are highly vulnerable to price undercutting and switching. Big-box retailers compete fiercely on price, and providing good value is a customer requirement. But our research shows that to be a leading retail brand, retail marketers must differentiate through the promise and delivery of superior customer experience.
In May 2013, Forrester conducted Consumer Technographics® research with 4,575 US online adults to uncover the drivers of a successful 21st century big-box retail brand. This research is part of Forrester’s TRUE brand compass framework designed to identify which brands are winning the battle for consumer mindshare and to help marketers build a brand that is trusted, remarkable, unmistakable, and essential (TRUE). This framework has two core components:
The TRUE brand compass ranking gives a snapshot of a brand’s resonance — the emotional connection a customer has with a brand. Is your brand a trailblazer — winning consumer mindshare — or astray — lost its way and connection to consumers?
The TRUE brand compass scorecard reveals a brand’s progress along the four dimensions. Is your brand strong on being trusted? Weak on being essential?
Brands deals with human needs and wants. Leo Burnett, the advertising executive, said: "The work of an advertising agency is warmly and immediately human. It deals with human needs, wants, dreams, and hopes." Smart brands know not to initially focus on what they have to sell but rather on how it meets consumers' needs. If you can address a strong consumer need, you will get those consumers to act. If you can get them to act, then you have opened an all-important channel of dialogue.
The fulfillment of consumer needs, however, is not always a linear hierarchic approach as proposed by Maslow and effectively debunked by Forrester analyst James McQuivey in his book Digital Disruption. Human needs take place simultaneously and are fuelled by a mix of short- and long-term motivations — some conscious and some unconscious. As a student, I would sometimes forgo food on a Friday so I could afford to go to a concert that night; or consider a Spanish couple postponing the short-term comfort of a much-needed upgrade to their central heating so they can put their child through the next year of college.
The pyramid diagram below shows how the foundation of this needs-based thinking is built from the ground up, from customer descriptions through to the technology and KPIs applied.