SAP Has Managed A Turnaround After Léo Apotheker’s Departure
In February 2010, after Léo Apotheker resigned as CEO of SAP, I wrote a blog post with 10 predictions for the company for the remaining year. Although the new leadership mentioned again and again that this step would not have any influence on the company’s strategy, it was clear that further changes would follow, as it doesn’t make any sense to simply replace the CEO and leave everything else as is when problems were obviously growing bigger for the company.
I predicted that the SAP leadership change was just the starting point, the visible tip of an iceberg, with further changes to come. Today, one year later, I want to review these predictions and shed some light on 2010, which has become the “Turnaround Year For SAP.”
The 10 SAP Predictions For 2010 And Their Results (7 proved true / 3 proved wrong)
The words of "War," Edwin Starr's 1969 Motown classic, began ringing in my head this morning. It was brought on by a Harvard Business Review blog post by Steve W. Martin, "Why Sales and Marketing Are at Odds — or Even War." Within tech vendors, sales and marketing teams often fail to communicate or align go-to-market strategies. Forrester's sales enablement visionary Scott Santucci discussed the different languages of sales and marketing in his blog over two years ago. As for my own experience with sales and marketing:
A few years ago, I sat with the chief marketing officer and chief sales officer of a Fortune 100 tech vendor. The conversation didn't focus on customer problems, which should be the starting point for sales enablement professionals. The conversation didn't focus on sales efficiency issues such as sales cycle duration or win rates, which should be critical imperatives for all sales and marketing professionals. Each of these executives controlled massive budgets but neither one sincerely trusted the other. Their words were about aligning sales and marketing programs, but the real conversation, when read between the lines, was about control, boundaries, and politics. They were at war!
In Rob Reiner’s 1984 “rockumentary,” This Is Spinal Tap, one of the main characters, Nigel Tufnel, proclaims that they are different than other bands because their amplifiers “go to ll.” (You have to watch this clip if you don't know what I am talking about).
What a perfect analog of how B2B companies are trying to differentiate themselves today. I have the opportunity to work with sales and marketing professionals on the topic of competitive preference, and here are some actual quotes from vendors about how they think they separate themselves from “other blokes”:
“But we are truly global and our competitors are not” – a managed services provider
“We are much more scalable than them” – a software provider
“We deliver our services in the cloud” – a software-as-a-service provider
Translation? “These go to 11.”
You know the show MythBusters?
Forrester’s Sales Enablement team is testing the conventional wisdoms of sales and marketing by asking executive level buyers what they think.
Lately, a lot of our clients have been asking about how to manage their social media programs across more than one country. It's a real challenge: While some sites (like MySpace) have long offered solutions to help marketers direct users from different countries to the correct branded page, the current social media leaders (Facebook, YouTube and Twitter) don't seem to do this nearly as well. How, then, do you make sure that the Facebook page on which you post UK-specific content doesn't misinform your European fans? How do make sure the support community designed to help your US customers doesn't confuse your Canadian audience? Do you create multiple pages in each social network to serve all the countries in which you operate? Or do you maintain a single presence in each network, and avoid posting any country-specific material? If you offer different product lines in different countries -- or use radically different marketing strategies market by market -- it only gets more difficult.
Would you classify your marketing organization as "highly accountable"? What I mean is, are you always able to accurately measure the true business value of your marketing efforts, and do your senior leaders trust the results? If you're like most marketers, the honest answer to that question is a resounding "no". Proving the business value of multichannel marketing is getting progressively harder—and more important—because:
Traditional marketing measurement practices are rooted in stable but inflexible tactics that leave marketers ill-equipped to keep pace with the real time nature of channel digitization.
CFOs wield ever-more influence over marketing budgets, which is driving your CMO to lean harder on you to measure business results with scientific rigor.
Your customers are in control; uncertainty and unpredictability are the norm; and marketers that can't adapt appropriately are doomed to fail.
This is where you come in. I believe that Customer Intelligence professionals are remarkably well positioned to address these challenges head on, and improve marketing accountability across the enterprise. Why? Because you sit at the cross-section of unfettered access to mountains of customer data from a dizzying array of online and offline sources. "Big data" as the recent article data, data, everywhere in The Economist puts it, is big business. CI professionals are right in the middle of it all helping firms capture customer data, analyze it, measure business results, and act upon the findings.
Coming to you live this morning from the kick off keynote of the Adobe (nee Omniture) Summit in Salt Lake City. And I'm pleased to report that so far the event is as thumping and hued in neon green as in years past.
A nice change from past summits: Instead of discussing developments to Omniture's online marketig technology, today's Omniture keynote by Josh James is themed around "The New Principles Of A Successful CMO." These are Josh's principles for how marketing execs can succeed.
Target is now allowing gift cards to be loaded onto an online account that can be accessed from your cell phone. You can actually pay for stuff with your cell phone. Yay! See Target's press release.
I know they aren't the first. Many versions I've seen before, however, have been small scale pilots or in foreign countries. Many scenarios I've seen also are "closed" pilots among the 3-4 parties in an ecosystem that it took to string a trial together. Target has 1740 stores ... there's a bit of scale in this solution.
So, how does it work?
First, you buy a gift card. I bought the one with the cute Target dog.
Then you pull the sticker off of the back so you can see the codes. I purchased a $20 gift card.
Instructions for using mobile gift cards as well as promotions are on Target.com. Using their available media - Web site - to promote the new offer? Well done.
Interestingly though, this site ONLY had instructions for the mobile gift cards. I couldn't find a link on this site to regisiter my mobile gift card. This confusion for me is probably the only thing I could find to "ding" them on, so to speak. I'd expect that one of their next rounds of Web site updates would add this link.
I've had the opportunity over the past year to work with a lot of banks and credit unions, insurance providers, and investment management firms. Marketers at financial services companies face a number of challenges other marketers don't -- most importantly, confusing and often ill-defined government regulations -- but yet I've been impressed with the social media efforts I've seen from many companies in this category.
I've decided to research and write a report on how financial services marketers can most effectively use social media. We'll be including lots of our data on how different types of financial customers engage with social media, of course -- but I'd also like to collect more insight from the marketers' perspective.
If you're a financial services marketer, and you're willing to walk us through examples of how you've used social media, talk to us about how you manage risk and work with your legal and compliance departments, and share with us some of the lessons you've learned in social media marketing, then we'd love to talk to you. You can contact me directly at: nelliott at forrester dot com. Thanks!