Title: Understanding the M-Commerce Target Audience January 17, 2001
1Understanding the M-Commerce Target
AudienceJanuary 17, 2001
2Table of Contents
- Purpose
- Section I Who makes technology decisions and how
are they made? - Section II Part I Technology target audience
insights - Section II Part II Communicating with the
technology target - Section III Wireless specific insights
3Purpose
- Provide an overview of those involved in
technology decisions and insight into their
mindset. - Define roles in the process as well as challenges
and concerns - Provide the clearest definition possible
regarding insights into Mobilocitys target
audience and their behavior. - This will come from
- Existing work LBTG has done
- Additional secondary sources we have (analyst
studies, white papers, articles, industry
contacts, etc.) - Media-provided market and target audience studies
including syndicated research such as
Intelliquest.
4Approach to Target Audience Definition
Who and How
Tech Business Groups
Technology Decision Process
CxO
Insights
IT
What Do We Know About Them?
LOB
Wireless
5Section I
- Who Makes Technology Decisions and How are They
Made?
6Technology Decision Makers and Process
- Technology decisions are now business decisions
- IT and business collaborate on a strategic level
- Decision process involves multiple titles
- Each title is involved at different stages in the
process - Each title has different goals and need states
7Involvement Who Does What When?
90 80 70 60 50 40 30 20 10 0
IT
Tech InvolvedCorporate Mgmt.
Involved
Tech InvolvedLine of Business
Determining Setting Creation Technical Specifying
/ Recommending Final Needs Business Info
Sys Evaluation Selecting Acquisitions Approval
for Goals, Budget Strategies or
Specs Brands/Vendors Acquisitions
Base Total Study
Simmons CompPro VII - 1999
8Involvement Who Does What When?
RFP Vendor Select.
Contract Proposal Review
Participate in negotiation
Define Scope
Final Selection
Initiate
38.3 61.7 61.7 6.4 12.8 6.4 6.4
72.9 14.6 20.8 6.3 18.8 35.4 31.3
57.4 23.4 38.3 12.8 38.3 48.9 42.6
58.3 4.2 35.4 27.1 33.3 45.8 52.1
70.0 32.5 45.5 15 30.0 37.5 22.5
46.8 19.1 57.4 38.3 19.1 27.7 6.4
CIO CEO/COO CFO Purchasing Manager Business
Unit Manger 3rd Party Consultant IT Manager
Source 1998 The Gartner Group
9Decision Process Convergence of Business and IT
- IS strategy and business strategy are no longer
extricable from one another. - Technology strategy is now a driving force behind
a business' competitive strategy. - Companies are demanding that IT projects produce
bigger returns and deliver a clear competitive
advantage. - Essentially, IT is viewed as a means to
increasing a business' bottom line profits. - Increased role of IT has raised the profile of IT
and increased the willingness to invest in IT
projects in US businesses today.
Source IDC
10Decision Process A Team Approach
- Titles with specialized areas of expertise, are
involved in the purchase process CIO's, IS
Management, IS/Network Staff, Business
Executives, Department Managers, and End Users - Technological business groups have emerged to
facilitate the integration of business strategy
and IT decisions - CIOs operate as liaisons between IS and business
departments on a strategic level - Business managers with technical expertise serve
as liaisons on a functional level
Source IDC
11Decision Process Goals Drive Strategy
- IT and business collaborate on a strategic level
- Purchase process involves different groups at
different stages in a typical enterprise-wide
project - The process starts at the top with business
goals, which drive the business strategy. It is
the business strategy which drives the IT, or
technology strategy - The technology strategy in turn drives the
product strategy
Source IDC
12Decision Process Stages of Strategy
- Business strategy is based on a project decision
that has an effect on the entire business. - Criteria is ROI, or how much the technology will
benefit the company and is collaborative - IT strategy is based on core technology decisions
(types of software, hardware, operating systems,
etc. needed). - Strategy based on making the right choice looking
into the near future. - Here, process begins shifting toward the
middle-level IS and business management types and
to specialized analysts, as it is a very
consultative process.
13Decision Process Stages of Strategy
- Product strategy is based on individual products,
such as desktop PCs - Based on traditional criteria like reliability
and performance. - Little interest in this stage by those involved
in the more strategic phases - It is a very centralized phase within IS
staff-level personnel, which will then pass along
recommendations to the middle management
14Decision Process Stages of Strategy
Source IDC
15Decision Process Decision Maker Involvement
- The decision makers involved differ at each
stage. - Project decision is highly collaborative, and
involves the widest range of decision-makers from
Senior-level/CXOs on down to user input on
functionality - Core technology decision on the other hand is
consultative and involves middle management-level
personnel from both IS and Business - Product decision is very centralized, and
involves the IS staff testing products to report
back to the management level
Process
Decision Makers
Decision
CxO, LOB, IS/Networking, User Input
Collaborative
Project
Core Technology
IS, Networking, LOB
Consultative
IS, Networking, IS Staff
Products
Centralized
Source IDC
16Decision Process Decision Types
- Four types of decisions are associated with each
IT purchase. - Strategic, Technical, Functional, Financial
- Decisions are made by an individual person, or
several groups may collaborate on one type of
decision. - Strategic decisions are high-level business
decisions made by examining how well the project
fits in with the overall strategy, and whether it
will forward the business. - Technical decisions are mainly spec-driven. Brand
and model specifications are examples. - Functional decisions are those which determine
how the product is going to work, or will it do
what it's designed to do. - Financial decisions are driven by budgetary
concerns.
17Decision Process Implications and Conclusions
- Communication must be to the technology buying
group - Communication must speak to the end benefit which
is a business benefit that addresses a business
strategy - Business benefit must be supported by core
technology choices/decisions and product benefits - Marcom programs must be designed to address the
mindset of each technology decision team at each
point in the decision making process
18Section II Part I
- Technology Target Audience Insights
19Review of Target Title Insights
Target Titles
Role
CxO
Initiator/Approver
IT Director/VP
Decision Maker
LOB Project Mgr, Dept. Head
Implementer/User
20CxO Title Insights and Statements
21CxOs in General Adjusting to Change
- Lets talk about speed. It took 38 years for 50
million US users to get radio. It has taken four
years for 50 million US users to get on the Web.
- This rate of change, this speed, is phenomenal.
It means that senior executives no longer need to
- and simply cannot - act with certainty.
Instead, they must make decisions quickly and try
to be directionally correct. They have to learn
to say, You know what, Im not certain precisely
what our end point is, but I believe were headed
in the right direction. So lets go. - Learning to be directionally rather than
certainly correct means they have to develop an
exit strategy. Were moving, I think in the
right direction - but I could be wrong. And if I
am, we have to figure out the consequences and
how to resolve them. - Source Inside the Mind of the CEO The 2000
Global CEO Survey, PriceWaterhouseCoopers
22CxO A Day in the Life
- CXO
- Busy, hectic
- Ill give anyone 60 seconds (but thats it
unless you interest me) - Always putting out fires (sound familiar?) This
often diverts them from a focus on long-range
planning - Usually have the final say in software decisions
- Feel that their role within their company is
changing.
23Chief Executive Officer
24CEOs Pioneers of the Virtual Frontier
- CEOs are globally upbeat about growth and
prospects for their companies over the next three
years - North American CEOs by far most bullish with 42
reported as extremely optimistic - Have been treated well by domestic and global
economy in recent years - Very American characteristic to be excited at
the prospect of new challenges in the spirit of
the original pioneers and the West - Drivers of companies entry into the e-economy
- Its at their request that companies begin their
move online - Appoint a committee usually consisting of CFO and
CIO rely on their due diligence
Source Inside the Mind of the CEO The 2000
Global CEO Survey, PriceWaterhouseCoopers
Online Focus Groups, 2/00
25CEOs Teaching an old dog new tricks
- E-business means that CEOs must learn
- fundamental new ways of thinking.
Source Inside the Mind of the CEO The 2000
Global CEO Survey, PriceWaterhouseCoopers
26CEOs Agents of Change
- Change is a leadership challenge... What counts
is passionate, purposeful change. The reason
successful small companies change is that, for
their leaders, the locus of change is not in
their heads but in their hearts. They change by
making their dreams come true. CEOs of large
organizations too often dictate change like
dispassionate generals. You can't command change
it needs to be experienced. - People will change only if they know why their
lives will improve and how they can contribute to
making a difference. - Source Letters to the Editor, Fast Company
4/97
27CEO Concerns
- Our future depends on nothing less than
transforming our company into a full-fledged
E-business. Now. - Transform traditional business model online
- Brick to Click
- Time-to-market
- Embrace change minimize risk
- Recognize, seize and respond to new business
opportunities - What is the competition doing?
- How can I do it better and faster?
- Source The Secrets of Their Success Fast
Company 7/97 What Every CEO Needs to Know,
BusinessWeek, 3/99
28CEO Speaking Their Language
- You can change your companys business model
without changing your company.
29Chief Financial Officer
30CFO A Growing Role
- Traditional role of CFO as financial mechanic
is changing - CEOs want finance chiefs who can fill a multitude
of roles confidant, champion, communicator,
creator of value - In 1994, CFO magazines survey of what CEOs
wanted in a CFO, strategic vision was just
beginning to emerge. In the 1999 survey, it was
a routine requirement.
Source What CEOs Want ,CFO Magazine, 7/99
31CFO A CEOs Best Friend
- Because of the growing role CFOs are playing,
their relationship with the CEO is incredibly
strong and personal - CEOs will almost always overlook experience and
credentials for that strong, trusting personal
relationship...basic personality will make or
break a deal - 53 of CEOs claim their CFO as their main
professional confidant - 92 of CEOs claim they rarely have have serious
disagreements with their CFO - 48 of CEOs say their CFO regularly changes their
mind in an argument
Source What CEOs Want, CFO Magazine, 7/99
One-on-one interview, 3/00
32CFOs So, What?
- CFOs are becoming primary decision-makers in
transforming organizations vision into action
Important title for for high technology companies
33CFO Concerns
- Wouldn't you like less errors, less management,
less supervision, lower costs, better service,
faster turn around, bigger savings...all because
of e-commerce?
Message posted on CFO Discussion Group CFOnet.com
34CFO Needs
- I would prefer a consultant that has real
world experience, working within a corporation,
dealing with the day to day problems facing
issues such as market share, pricing pressures,
staffing, corporate structure and culture as well
as the special needs of an owner, entrepreneur
or the board of directors of a publicly held
corporation.
Message posted on CFO Discussion Group CFOnet.com
35CFO Speaking Their Language
- You can decrease risks and unnecessary resources
while increasing profitability, with a business
partner youd be proud to introduce to your CEO.
36Chief Information Officer
37CIOs From Techies to Executives
- CIOs are becoming widely recognized as key
executives in many major corporations.... That's
a big change from when I entered the field...Over
the last 5 to 10 years, we've seen business
people learning how to harvest business
benefits from IT and IT people learning how to
talk with their business peers-and, in the
process, becoming business leaders
Pat Wellington Former CIO, Xerox CIO, 4/99
38CIOs From Techies to Executives
- Much like the evolution of the CFO role, the CIO
is not just a supporting actor anymore - CIOs are leading their organizations to new ways
of doing business enabled by IT - CIOs are in a unique position to understand the
business from an enterprise-wide perspective
beginning to capitalize on that vantage point to
become a business partner to CEOs - 70 of CIOs report that they are now part of
their company's executive committee and are
expected to make contributions on business as
well as technology issues
Source Perspective Report, CIO.com CIOs Rise
from Crisis to Confidence, CIO Magazine, 1/00
39CIOs From Techies to Executives
- I used to spend 90 of my time on IT stuff.
Today I probably spend 80 of my time on
corporate business projects.
Source E.P. Rogers, CIO of The Money Group
40CIOs From Techies to Executives
- Profile of typical CIO is evolving from
gray-haired technical specialist to modern day
whiz kid - CIO positions are being filled by professionals
younger than 40 not surprising as current trends
such as the rapid pace of technology favor
younger workers - Position increasingly seen as a steppingstone to
CEO therefore more attractive to those who aspire
to be a part of the business strategy - This younger CIO perceive themselves to be
general business managers who employ technology
to reduce complexity, cut costs and enable better
collaboration and communication - As true agents of change, need to take risks and
have a skill set not typical to IT strategic
thinkers, creative, leaders, value
relationship-building between IT/IS and senior
executives
Source Perspective Report Profiles, CIO.com
41CIO Concerns
- CIOs face a...challenge They scan the
inventions of the day and decide which have the
potential to shape their businesses' future and
which will never meet the inventors'
expectations. - Smart CIOs should be thinking about how the
ability to stay in constant contact with
employees, partners and customers can change
their business models and open up new
opportunities
Source Stormy Weather, CIO 1/00 Source Online
groups 2/2000 and One-on-ones, 3/2000
42CIO Concerns
- How soon will we have to upgrade?
- Managing competing demands for limited resources
- Time-to-market
- Budget constraints
- Fire fighting vs. focus on long-term goals
- Integration
- Flexibility
- Source Stormy Weather, CIO 1/00
43CIO Speaking Their Language
- Company X will help you capitalize on the
opportunities of the New Economy - and have
plenty of time left to fire fight.
44IT Managers
45IT Titles A Day in the Life
- Everyone feels pressured- too busy, too little
time to do everything. - Always putting out fires.
- Need to be reachable 24/7- most wear beepers
- Like juggling multiple products
- Workaholics they love their job, live it 24/7.
- Hate the long hours, but love accomplishing
things. - Things change constantly- this makes for a
stimulating environment. - Very goal-oriented- they want to win or at
least persevere over technology. - They are passionate about that they do.
46IT Manager Concerns
- More skeptical of software claims- they have more
to lose by making the wrong decision (their job) - 1 benefit- Wants software that can pinpoint
problem, report and take pre-emptive action- but
needs proof this is believable - Customer service very important
- Security also an issue
- Need to prevent downtime- fix the yellow light
before it turns red - If X product can do everything it says, it will
blow the doors off the industry- but can I
afford it?
47IT Manager Concerns
- More willing to try and review new ideas
- Security is a big issue
- 1 benefit- Want software that can pinpoint
problem, report and take pre-emptive action - Out-of-box integration important
- Need to prove product benefits, attributes
through facts and referrals - Prove it, prove it, prove it!
48IT Speaking Their Language
- Our solution will integrate seamlessly with your
IT infrastructure, streamline your network,
lessen down time and make you look like a hero.
49Line of Business
50Target Audience Insights
- Line of Business Managers are
- Concerned with the efficiency and effectiveness
of their departments performance within the
overall organization - They are looking for solutions that will relieve
the daily headaches and roadblocks they face - They are searching for ways to take their
department into a leadership role within the
organization - They want simplification of function.ease of
use - Frustrated that they sometimes can not move as
quickly as theyd like in the direction of a
technology solution
51LOB Speaking Their Language
- We can remove the obstacles to departmental
effectiveness, improve your performance in the
corporation, and allow for increased success in
the eyes of your management.
52Target Title Conclusions
- CxOs want a solution to a business issue. They
do not care about product or product category
solutions. (I have a sales problem NOT I have
a wireless access problem) - CxOs need a solid ROI and business benefit story
- IT needs proof that a particular solution will
enhance their IT infrastructure. - Business Managers want solutions that make their
job easier and support their departments
performance. Remove headaches and roadblocks to
success. - Again, marcom must address individual need states
and communicate relevant benefits.
53Section II Part II
- Communicating with the Technology Target
54Most Trusted Sources of Information
- CxOs
- Internet
- Colleagues
- Publications
- (New York Times, Wall Street Journal
- IT/Network Managers
- Internet
- (ZDNet, Yahoo, Manufacturer Web sites)
- Gartner, Meta Group
- Colleagues
- Magazine reviews
IT Managers look more to research for
information, while CXOs look to colleagues and
news publications.
55Most Effective Ways to Communicate Information
(in order of preference)
- IT/Network Managers
- 1. Product reviews by experts
- 2. VAR/partner visits
- 3. Vendor-sponsored introductory
- seminars
- 4. Company Web sites
- 5. Trade shows
CxOs 1. Trade shows/ vendor- sponsored
introductory seminars 2. E-mail/e-mail
newsletters 3. Product reviews by experts
While e-mail scored well with CxOs, it ranked at
the bottom of the list with IT Managers.
56What Magazines Do They Read?
- CXOs
- Information Week
- Wall Street Journal
- Computer World
- Fortune
- CIO
- IT/Network Managers
- Information Week
- Wall Street Journal
- E Week (formerly PC Week)
- Business Week
- Network World
- Infoworld
- Also read Popular Science, National Geographic,
Scientific American
57Frequently Visited Web Sites for Business and
Pleasure
- IT/Network Managers
- ZDNet
- Yahoo News
- MSNBC
- Oracle
- Gartner
-
- CxOs
- Change!!!!!!!
- Yahoo
- MSN
- CNN
- Shopper.com
-
Although there are similarities, IT Managers
visit more research oriented sites, while CxOs
opt for news sites.
58Favorite TV Programs
- IT/Network Managers
- ABC, NBC and CBS News
- CNN
- 20/20
- Discovery Channel
- History Channel
- X-Files
- Some sports
- CXOs
- ER
- Wall Street Week
- Frasier
- SportsCenter
- The Practice
All in all, IT Managers tend to prefer more
serious, intellectual programming than the CxOs.
59Off Time Activities Fly me away to . . .
- Both IT Managers and CXOs listed remote, quiet
places as an ideal vacation destination. - Caribbean
- Aruba
- Tahiti
- Hawaii
- West Indies
- Australia
- Want to get away from everything- really rest.
- I dont want work to be able to bug me.
60Section III
- Wireless Specific Insights
61Target Viewpoints on Wireless
62Wireless Viewpoints
- Consultants View
- start seeing CIOs take a look at wireless as a
delivery channel to the customers - Banking, Finance, location-based services,
advertising and impulse purchases will be the
first to use m-commerce - IT managers need to step back and evaluate how
important it is to get wireless access to their
customers now.
Source Kelly Quinn, Aberdeen senior research
analysts
- This field is for the brave, for early adopters
Source Kenneth Kleinberg, Gartner Research
Director
63Wireless Viewpoints
- Consultants View on Usage
- The fact is, people will only take up these
products (wireless apps) when there is a real
reason to do so. If youre a business user, you
need to check email. A salesperson needs to place
orders. The market is not going up to a Coke
machine and buying a Coke
Source Jack Gold, Meta Group President
64Wireless Viewpoints
- Managements View
- Wireless is the second coming of the Internet
- If you dont have a wireless offering, I dont
believe you can compete in financial services - Wireless will contribute to corporate Revenue
Source Joseph Ferra, VP Fidelity Online
Brokerage
65Wireless Viewpoints
- Vertical Market View Medical
- The medical community tends to be very cautious
of new technologies - We feel it is important to determine whether a
new product really provides any benefits and if
those benefits are worth the cost
Source Bruce Elkington, CIO of Overlake Hospital
Medical Center
66Wireless Viewpoints
- IT Management View
- You cant have the same end-to end secure pipes
in the wireless world. Thats whats different.
Thats what keeps us up at night. - Internal wireless expertise is lacking
Source Ian Hunneybell, Internet Strategy and
Security Team with Egg Englands largest online
bank
67Inside the minds of Wireless Initiators A
review of Executive Survey Findings
Summary Report Key Findings, Isurus, 9/19/00
68Who We Talked To
- Organizations that have already adopted a mobile
commerce solution or are planning to do so within
18 months - Companies/divisions of companies culled from a
DB list to represent Fortune 1000
corporations, leading .coms tech co.s having
75 million or more in annual revenue - Vertical market segments
- Education
- Financial Services/Insurance
- Healthcare
- Media/Entertainment
- Retail
- Travel Leisure
- Transportation/Warehousing
69Who We Talked To
- Respondents play a critical role in the
organizations decision to bring in new
technologies such as CRM, e-commerce, and
knowledge management - 100 IT and non-IT titles are represented,
including Director of Marketing, VP of
e-business, CIO, VP of IS, Director of IT, VP
Operations, and CEO
70The Question
The Survey was designed to get a feel for the
inclination of prospective Wireless Initiators to
work with consultants toward the realization of
their mobile commerce vision versus other
approaches, and the behavior around that
inclination.
Mobile commerce was defined as using
wireless networks to conduct transactions, access
information and communicate through various
wireless devices
71Focus on Future Mobile Users
Financial services companies make up the bulk of
Future Users
N52
72Focus on Future Mobile Users
- Technology Consumption, generally
- 75 of Future Mobile Users use technology to
enhance existing business models rather than to
create new revenue streams - 75 will wait for proof that a technology
works before bringing it into their organization - Although, a very recent CMP Mobile Commerce
Agenda Study found that IT management is
beginning to risk moving ahead with wireless
implementations rather than having their
stockholders see waiting as a missed opportunity - The majority have implemented e-commerce
solutions, while any are also planning to
implement other technology solutions such as KM
CRM
73Focus on Future Mobile Users
Primary Drivers of Mobile Commerce, specifically
74Focus on Future Mobile Users
- Use of a Consultant
- 82 plan to use some type of consultant in the
implementation of their wireless solution
because - Vendor Evaluation Criteria
75Focus on Future Mobile Users
- Use of a Consultant
- However, 37 cited specialized mobile commerce
firms as the vendor they would be most likely to
turn to for assistance - Vendor Evaluation Criteria
Versus local SI/VAR, business consultant,
hardware provider, or specialized internet
consulting firm
76Focus on Future Mobile Users
- Therefore, one conclusion which may be drawn from
the Survey is that specialized mobile consulting
firms, such as Mobilocity, are perceived as
lacking in PROVEN expertise (although they may be
seen as having expertise), established reputation
and solid partnerships. - Whether or not this is an accurate assessment, it
affords a key insight into the target audience
with regard to crafting messaging.
77Wireless Implementer Demographics
78Wireless Implementer Demographics
- Intelliquest provides this profile of those
individuals charged with having
installed/planning to install wireless LAN
technology - 77 Male
- 1000 employees in company
- Average age 40
- Average income 85,000
- College educated
- Activities
- Aerobics/Weightlifting
- Bicycling
- Fitness Walking/Running
- Swimming
- CxO titles index high in purchase involvement
- IT/CIO index high in having or planning to
install wireless LAN technology
Source 2000 Intelliquest Study
79CMP Mobile Commerce Agenda
- A study done by CIC Research among 375 IT
professionals in five industries and across all
revenue sizes
80Primary Findings
- A study done in December 2000 by Information
Week - Most popular wireless applications deployed are
the basics corporate email (65), intranet
access (58) - Next tier implementations will extend the
enterprise further e-newsletters (51), order
status (49), web site access (48),
customer/database profile access (42) - Organizations who realize mobile commerce will
contribute to sales revenue are much more
aggressively adopting wireless applications. - Once infrastructure is in place, two thirds of
users are stated to be non-employees (customers,
suppliers, partners)
Source CMP/Information Week Mobile Commerce
Agenda Report, December 2000
81Primary Findings
- A study done in December 2000 by Information
Week - Interestingly (and a positive for Mobilocity),
those indicating that they are not currently
implementing wireless site the following reasons - Lack of senior management understanding and
support - Lack of customer demand
- 36 of of these people claim their IT staff lack
proficiency to implement wireless solutions (good
news for the outsourcing focus)
Source CMP/Information Week Mobile Commerce
Agenda Report, December 2000
82Early Adopter Wireless Implementations
- Examples of Business Supporting Wireless
Implementations
83Wireless Implementations/Uses
- To improve current business model
- McDonalds using Mobils Speed Pass to pay for
food at drive throughs - We think allowing customers to pay with a quick
wave of the wand is a great way to cut service
time and create convenience for them - McDonalds is using wireless technology to
support their core business benefit speedfast
food
84Wireless Implementations/Uses
- To extend customer access
- America West has implemented a wireless strategy
that allows flyers to wirelessly access real-time
flight arrival/departure times, gate info,
city-by-city flight schedules, and frequent flyer
account activity on Palm PDAs, WAP-enabled
phones, and Blackberry devices. - Much frustration is generated among flyers by the
lack of knowledge surrounding flight info,
status, etc. If the airlines cant improve
performance, at least they can allow customers to
be fully informed. It gives a version of peace of
mind.
85Challenges
- What Implementers are Facing
86Challenges
- Implementers and potential implementers are
realizing that the gap between the dream of
wireless and the reality of wireless is huge - There is not a true understanding of the clear
business benefit of a full scale wireless
implementation - Lack of internal IT expertise
- Lack of senior management understanding and
support - The array of offerings is bewildering
- Is it secure? Will it work with existing
infrastructure?
87Opportunities
- While there is some hesitation, companies are
beginning to realize they must take the leap or
the risk and explore wireless - Companies know there are many options and that
they need help sorting through them - Companies realize that they may not have the
necessary expertise or resources in-house - Many companies see the business ROI of a wireless
implementation. Some do not. Both positions play
well into the need for consultants
88Thank You