Marketing of it services Today and in the Next Era of Business Paul Magill January 22, 2004

Marketing of IT Services Today and in the Next Era of Business

• Paul Magill

• January 22, 2004

Agenda

IBM Global Services

• World’s largest business and technology services provider

• $42 billion in revenue
• More than 150,000 employees
• Largest outsourcing company
• Largest consulting company
• Largest product support services company

• Helps customers:

• Capitalize on IT to improve business performance
• Manage IT operations and resources

• Principal lines of business:

• Business Consulting Services
• Integrated Technology Services
• Strategic Outsourcing Services

IBM Global Services Value Framework

IBM Heritage of Service

IBM Equals Service Again

“e-culture”

The Market Context -- Invisible Factories Driving Productivity

The Market Context – Business/Technology Co-Evolution

• Clients seeking new levels of productivity

• Technology is ready or nearly ready

• Companies have learned about

• Reengineering business processes
• Outsourcing and alliances
• Driving productivity gains from IT

• Co-evolution and Fusion of IT with Business

• New Enterprise Forms and a New Era of Business – “On Demand Business”

Services Marketing is moving beyond product-related marketing techniques

• Emerging Services Marketing approaches include:

• Enhancing the client service experience with supplementary thought leadership, making client aware of additional perspectives, approaches
• Leveraging client referral networks (e.g. Board interrelationships)
• Disrupting competitive client relationships with breakthrough points of view and distinctive DNA
• Enabling clients to learn and teach others

Content is critical to Services Marketing

• Offering content is not enough

• Services Marketing requires non-offering content that

• is relevant to an educated audience in sophisticated organizations
• addresses today’s challenges in a distinctive and compelling way
• illustrates our vision of the future (on demand) and proves our claims
• is deliverable across multiple touch points (client-facing teams, events, web, etc.)
• commands attention and engages the executive

What is Content? Content Spectrum

Marketing a Future Vision

The Role of “Managerial Innovation”

• It is extremely difficult to differentiate IBM by asserting a superior vision of the enterprise of the future and/or the nature of the future era of business

• Most clients already receive multiple inputs on the general direction they should take their business

• Clients lack the “how” – the repertoire of management approaches through which the new management challenges of the next era of competition can be addressed

• New management frameworks, tools, theories, and/or research activity in domains relevant to on demand provide a reason for clients to include IBM in their thinking about transformation

• This is “managerial innovation” not descriptive thought leadership

• We need to provide clients the confidence to act

Marketing Managerial Innovation requires relationships and networks

• To demonstrate the broadest, deepest point of view on impact of on demand, IBM will need:

• Ideas on impact areas
• Experience of challenges clients face
• Pragmatic, tested approaches to addressing challenges
• Messages that establish approaches as the new mainstream not the latest fad

• In turn, this requires:

• Broad idea network
• Client adoption, experimentation
• Capability development, hardening
• Promotion of capabilities and experimentation options

The In-Market Innovation Cycle

Managerial Innovation Goes Beyond Business Process Redesign and Automation

Managerial Innovation Goes Beyond Productivity Benefits

• Level 1:

• Productivity Benefits

Future Vision of IBM Services Marketing

• IBM research focuses on managerial innovation for the technology-enabled enterprise of the future

• IBM expertise in Enterprise Innovation stimulates demand by providing clients the confidence to act

• IBM acts as a network hub and the engine of in-market innovation

• In-market innovation and relationship marketing become indistinguishable