I (Peter O'Neill here again) had the pleasure of visiting Twickenham rugby stadium in London last week – sadly, not on the Saturday to watch my national team beat England but on the following Monday to meet Dell executives and hear about their Enterprise Spring Launch of new products and services. As I listened to the speeches about new servers, storage, networking, and end-to-end applications, I kept thinking to myself how difficult it is these days to sound different from other infrastructure vendors who do the same thing - and often with the same technologies. I remember making those same speeches over 15 years ago and it was difficult enough then! My colleague Richard Fichera has commented on the product details, so I’d like to review the most important one, for me: Dell’s solution program. As far as I am concerned, only those IT infrastructure vendors who market at the business technology level will enjoy success in the future – and that means solutions marketing with commitment.
Those of you who know me (Peter O’Neill) know that I’ve lived in Germany since 30 years. Now, when I grew up in the UK, I remember so well the BBC journalist Alistair Cooke reading his “Letter From America” each Sunday night on the wireless (as we called radio then!): It was a great familiarization exercise and stood me in good stead when I visited and worked in the US many years later. As I do at least one inquiry per week for Forrester clients describing the state of the European and/or German tech market, I thought I’d kick off a regular blog in the same vein – probably bi-monthly – where I highlight something I think is important for you that has or is about to happen in Germany.
As mentioned in my last blog, I (Peter O'Neill) was at the Distree EMEA event last week and met with many executives from tech industry vendors and distributors. I also swapped impressions about market trends with colleagues in other research organizations, such as Context, GfK, IDC, and Regent.
The most discussed section of my keynote presentation was “Apple takes a bite at B2B business,” where I quoted research from my illustrious colleague Frank E. Gillett. I said that Apple had an 8% share of new “corporate PCs” in 2011, which we predict will grow to 13% in 2013. Apparently, many vendors and distributors haven’t noticed this: They aren’t getting the same message from their usual research providers. Later in the week, I listened to such a presentation in which it was reported that “the PC market slowed in 2011 but will pick up again in 2012.” Another researcher made a similar observation in his presentation. No mentioned of any new vendors or devices: “Not significant” was the tenor.
Peter O'Neill here. I’ve been invited to speak, again, at the annual Distree EMEA event in Monte Carlo next week. Now in its tenth year, Distree gathers together top executives from tech industry vendors and distributors plus, in recent years, retailers from around EMEA for three days that include a trade show, presentation sessions, and meetings to discuss industry-specific channel topics. The 2011 event drew 950 delegates from 127 tech vendors and over 400 distributors. One of the event highlights for everybody is a process to request and set up formal one-on-one meetings between the various players, similar to our own one-on-one sessions at the Forrester Forums (only their software is better). A total of 5,000 such sessions are scheduled: some at tables in larger rooms around the trade show, many others in private meeting rooms elsewhere in the conference center. I still have some slots open for those of you who are interested and are going to the event.
My keynote presentation continues on from my speech last year (still being watched on YouTube, I am told) where I described what changes we see happening in the channel due to recent industry trends. The title is "The Emerging Engagement Channel Model” and leans heavily on Tim Harmon’s October reports with his permission. I will discuss the effect of industry trends such as cloud, consumerization of IT, app stores, and “Apple takes a bite at B2B business” (see below for the agenda).
Peter O'Neill here. My first report on content management came out last week and it has already generated several conversations – please keep those comments and inquiry requests coming. Content management was also a significant part of a one-day workshop I delivered to a client in Lisbon last week. They offer eProcurement and eMarketing software-as-a-service. So an interesting discussion we had was, “Do you need different content as a SaaS provider compared to a product vendor?” We concluded that the information would be the same, but the sense of urgency about delivering digital content to a SaaS audience is greater than a more conventional buyer community, which changes the content style and vehicles. This question is on my 2012 research calendar and will be the basis for a report later in the year, so I would love to hear your opinions on that one.
Well, it finally got published by Forrester! Peter O'Neill here and my long-promised overview of lead-to-revenue management (L2RM) vendors "Made in Europe" got out last week. We were delayed because I had to wait for my US colleague to publish on some of our research ideas on L2RM automation in her introductory report, to which I refer in my report - and she had to negotiate her text around the wishful thinking of around 45 different vendors, all of whom have their own view of a L2RM architecture. That meant that my research done in the summer of this year may look a little out of date. But I fully expect to be able to update this report for Q2 2012 in response to many other European software vendors briefing me on their experience with tech marketing customers.
Anyway, without any further ado, here is the list of European vendors I did feature. The report goes into more detail, of course, on each vendor. I have also included a list of those North American L2RM automaton vendors who have offices in Europe.
My first job, writes Peter O'Neill, after university was as a business analyst at Ford Motor Company, assisting an executive who sat on the monthly Project Appropriation Committee (PAC) where investments were approved. I learned to calculate the time-averaged rate of return and net present value for a project, proving it was better to invest in it than keeping the money in the bank. My executive ran an organization called General Services, which in those days (1978) included generating our own electricity within the factory complex in Dagenham, England. Now they take their power from the national grid and the generating plant is no more.
Now this is not a discussion of cloud computing and where enterprise IT will end up. What I most remember from those monthly PAC briefing books at Ford was the marketing project submissions. They also had documented TARR and NPV numbers. They would predict that by investing a sum of money in a promotional campaign (e.g., a special car model, dealer incentive, discounts), their market share would go up by, say, 0.7 percentage points – Ford was the UK market share leader in those days at around 30%, selling mostly company cars to businesses. I often checked out whether or not the predicted market share change actually happened and it mostly did – marketing was able to quantify its contribution very well indeed.
Peter O'Neill here. I took advantage of an invitation to dine with around 15 CIOs this week in Frankfurt and our topic of conversation was “Managing The Online Customer Journey.” This is the regular event organized by CIO Magazine, and I go along, calendar permitting, when I am invited to present or if the topic interests me. In this case, my fascination was to hear what these CIOs think about the prevailing trends of IT consumerization and social media.
But I was most interested in their ideas on how marketing aligns with the IT organization; a concept that I’ve encountered a lot recently in my engagements with tech marketers as well as working with tech automation vendors in their go-to-market activities. Forrester has published a lot on this recently, led by my illustrious colleagues Nigel Fenwick and Luca Paderni who serve the CIO and CMO, respectively.
My fascination with the topic is that I see a new business opportunity for savvy systems integrators. I am calling it the “emerging digital marketing service provider,” and I will focus my next Forrester Teleconference on this observation next week. That provider will need to be tooled with marketing creative skills plus IT skills and services and it will sell to the CMO and CIO equally: a new market coming together out of the marketing budget and the IT budget, as the figure shows.
Hurray! Peter O'Neill here, and it’s great to be back in my home office for a couple of weeks after some hectic weeks of travelling. During the last weeks, we’ve hosted research reviews in several cities; we met over a hundred tech channel professionals to match our 2012 research agenda against their topics of interest; there has been other client business; and we held our latest Marketing & Strategy Forum in London. This is the third year that I have been involved in our EMEA Marketing Forum, always in London. Perhaps we might want to go somewhere else in 2012 — there are already so many marketing events in that city, and I’ve noted that over half of the attendees were from outside the UK. Please let me know if you have any ideas of where to meet.
I am also waiting here at my desk with bated breath for the preliminary results of our latest Marketing Organization and Investment (MOI) survey — I cannot wait to see how things have changed since our last marketing-spend benchmarking exercise last year. Our team wrote several reports off the Q1 2011 survey (e.g., I discussed how European tech marketing is different and why) showing how tech marketing executives were spreading their resources among eight different categories. In the next quarter, in addition to updating those reports, we also hope to be able to be able to map and understand the marketing differences between small, medium, and large tech vendors.
Last week Forrester published a further report in my name (Peter O'Neill here) based on some great insightful work done by my illustrious researcher colleague Zachary Reiss-Davis. We had discussed this type of analysis the last time I was in our San Francisco office the other month but he did all the work. Our Q1 2011 US And European B2B Social Technographics® Online Survey For Business Technology Buyers marked the third year we've conducted this survey, so it is interesting to observe some trends over that period of time by looking at the Social Technographics® ladder profile in more detail. Interesting conclusions we could make from our drill-down include:
Many Creator* behaviors are not engagement after all (see below), they are broadcasting opinions
Critic* behaviors are often collaborative – and this demonstrates the biggest growth
Collector* behaviors are actually somewhat misleading – they are not really “collecting”
While the high Spectator* numbers might imply that most people are just browsing, that is wrong
Joiners* and Conversationalists* behavior is tailing off as decision makers fail to see the value