Upload
brian-hurley
View
582
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
Lead to Win
Lead to WinInternet as go-to-market platform
May 2009
Michael Weiss and Peter Carbone
1
Lead to Win
Objective
• Upon completion of this module, you will know:– how to enter networked markets– about ways to scale using the Internet
• And you will be able to:– determine when to use the Internet as part of your
product or your operations
2
Lead to Win
Agenda
• Push vs pull marketing• Entering a networked market• Mapping your ecosystem• Internet-centric tools to scale
3
Lead to Win
Networked markets
• Locus of competition is shifting from the firm to the network: network position matters
• Entry strategies that focus on push marketing are less effective than those that focus on identifying market players and aligning them
• Need to envision the new market status quo and align the players across the market
• Mapping an ecosystem allows us to understand how firms access complementary resources
4
Lead to Win
Traditional push marketing
5
Traditionally, companieshave pushed their products to players they know
Lead to Win
Traditional push with network
6
Markets are hostile to innovations the more inter-connected players are
Lead to Win
From push to pull marketing
7
Market players will only adopt a product when they believe others will do so
Lead to Win
From push to pull marketing
8
Networked markets allow for quick diffusion of ideas, but also present barriers
Lead to Win
From push to pull marketing
9
Breaking into a networked market requires care
Lead to Win
Entering a networked market
10
Adobe PDF reader and creator
Reason back from endgame
Hard to change PDF documents: meets needs of creators to protect their content; offer reader for free, and creator as complement to (not substitute for) content creation products
Complement power players
Ally with Microsoft, AOL, and Google
Orchestrate incentives
Three types of players: developers, distributors, adopters (content creators, users)
Maintain flexibility
Separate reader from creatorOffer reader for free
Chakravorti (2004)
Lead to Win
Mapping your ecosystem
11
Core
Node size: number of interactionsEdge width: number of interactions peredge (measure of strength) Weiss & Gangadharan (2009)
Lead to Win
Lessons from mashup ecosystem
• Positions of API providers are mutually reinforcing• Users will select APIs based on how many other
mashups use a given API, as well as the collective experience in combining the API with other APIs
• New API providers should seek out opportunities to complement existing APIs that are strongly positioned in the ecosystem (enter a niche around keystone)
• Complexity of mashup drives the development of mashup platforms that help search for APIs, enforce design rules in compositions, and certify APIs
12
Lead to Win
Go-to-market design options
13
Option DetailsMarket Leverage network to reach market (eg sell
online, use download-and-try model)Distributor Eg Apple App store to reach customers (then
focus on getting into top 50 for visibility)Free Drive volume through a free service, monetize
some other business model (eg support) Long tail Offer large number of low volume items (Lulu
enables niche authors to sell their books)Embedded Reach market via a partner (eg Intuit software
ships with Windows)
Lead to Win
Sample tools
14
Option DetailsAdmin oDesk is a service to find, hire, and pay
workforce: can scale with demandInfrastructure EC2 is Amazon’s cloud computing service:
can rent infrastructure as neededDevelopment Google Code provides canned hosting for
software development projectsDesign Eclipse as platform for product: can reuse
shared pool of building blocksCommunication enablement
Coral CEA provides integrated set of communications technology components
Lead to Win15
Lead to Win
Google Code
16
Lead to Win
Key messages
• Know your position in the ecosystem• Enter a networked market by reasoning back
from the endgame (new status quo) • Design GTM as you would a product – even more
important in a knowledge economy• There are many Internet-centric tools to
facilitate collaboration in GTM• Name of the game is to “herd the cats”• Room to innovate in GTM tools
17
Lead to Win
Breakout activity (1 hour)
• Break into 3 teams and discuss – 30 min • Present back to class – 10 min each• Nominate a moderator, scribe and presenter• Pick one person's opportunity • Identify specific ways the opportunity does or
could take advantage of open source, mashups, open API’s and/or business ecosystems to reduce costs, reduce time to revenue, ...
• Discuss and prioritize your recommendations
18
Lead to Win
References
• Chakravorti, B. (2004), The new rules for bringing innovations to market, Harvard Business Review, 82(3), 58-67
• Weiss, M., & Gangadharan, G.R. (2009), Growth of the mashup ecosystem, submitted to R&D Management (posted on wiki)
19