[En] MIB Dauphine - ICT1

1
information and communications
technology (ICT) products and
services
the marketing of technological innovation
day one

Paris, 2011

some rights reserved - CC 2011 - visionarymarketing.com - Yann A. Gourvennec

way back mid 2008

some rights reserved - CC 2011 - visionarymarketing.com - Yann A. Gourvennec Paris, 2011

but in times of crisis


unless…


understanding/decyphering bubbles: a must for innovators

1956-1966 1966-1976 1976-1984 1984-1992 1992-2000 2000-2008 2008-2016 2016-2024
Innovation Refinement Innovation Refinement Innovation Refinement Innovation Refinement
& Growth & Digestion & Growth & Digestion & Growth & Digestion & Growth & Digestion
7%

6%
IT investment to GDP ratio

5%

4%
“Ubiquitous
3% IP
Networked Computing”
2% computing – IT
enterprise Everywhere
Personal applications
1% Mainframe computers and Internet
computers
0%
1956 1964 1972 1980 1988 1996 2004 2012 2020
Source: Forrester Research 2006


preparing for the upturn (dec 2010)

http://slidesha.re/gIBgCA

• Laggards focus on
optimizing current
operations
• Leaders, streamlined
organization during the
downturn, focus on
expansion
• not cutting back on
innovation and R&D
efforts during downturn 
better positioned in long-
term
• Leaders betting on upturn
 potential early-mover
advantage


still … the sky is the limit


mobile phone
bracelet
Nokia
5-7 years?

source: JDNet - 2010


bionic contact lenses

5-7 years?



self charging
garments

3-5 years?

Professor Zhong Lin Wang shows a
prototype of self power generating
microfibre © Georgia Tech Photo / Gary
Week



test tube meat

8-10 years?



etc.

http://bit.ly/futurityjdnet


a matter of perspective

a night at the Opera – Albert Robida cs. 1882


yet … are we the most innovative century for all that?


Paris Metro – circa 1900

disclaimer as per http://www.parisenimages.fr: reproduction of Paris en Image photo stock authorised in order to
illustrate an educational or research project not commercialised in any form (e.g, classes, lectures, theses).


Paris – early 1888



Paris – July 1888



Paris – Sept 1888, Feb 1889 and



NYC – Empire State Building 1930-1931



Paris Metro – circa 1899



appearances can be deceiving


who I am? What we‘ll do

and where I‘m coming from …

Paris, 2011


my personal research online… since 1995

• http://visionarymarketing.com
• http://visionary.wordpress.com

a French Web 2.0 website


my (former) role at Orange Business Services

•multimillion € innovation funds
•team work with MNC clients
•joint innovation to achieve
mutual benefit
•not just generating ideas but
making it happen

to download the Orange innovation whitepaper click here

my new role at Orange

http://orange.com


my our objective


objectives

what we aim at what we don’t aim at
• defining innovation • not your average
• analysing innovation
• innovation in ICT
innovation presentation
• use examples such as Internet • not a publicity for Apple
& Social Media
• being up to date • not a social media course
• substantiating with numbers • (repeat) not aiming at
• personal point of view turning you into SM
• inspire
experts
• fighting prejudice
• surprising you
• battling myths


agenda

module timing topic
one 2*1½ ICT marketing and innovation, main
hours characteristics and principles

two 2*1½ innovation management: towards wikinomics
hours

three 2*1½ online marketing innovation
hours

material will be made available online at http://visionarymarketing.com/mibdauphine

a few questions

•is the ICT sector different?
•what is and what isn‘t innovation?
•why is everybody talking about
innovation now?
•innovate or die: is it only true?
•what are the most common ways
of managing innovation?
•what are the guiding principles?
•what are the main/classic pitfalls?
•how are people really working on
innovation? a survey
•is economics moving towards
wikinomics?
•…


module one
a few thoughts about ICT marketing and
innovation

Paris, 2011


module one agenda

day one
• part one: innovation is in the eye of the beholder
• part two: basic principles in marketing related to ICT
products and services
• part three: reinventing marketing? marketing 2.0
day two
• part four: a critical look at product life-cycles
• part five: solution selling – the vertical factor
• part six: marketing alliances, a cornerstone of ICT
marketing


where good ideas come from …


module one – part one

innovation is in the eye of the
beholder

Paris, 2011


what is technological innovation?

•―creativity is the generation
of new ideas. innovation is
the implementation of
creative ideas‖ jeffrey
baumgartner
http://jpb.com

•you may get it wrong, clients
won‘t

•source:
•http://www.strategic-
innovation.dk/Engelsk/Consult.html


http://slidesha.re/ibminnovpreso


ICT: no longer called new technologies

Robida, invented IPTV before ADSL existed (the phonoscopic newscast system - 1870) ?

another example: telepresence

innovation or product?

link to video of visit to Cisco telepresence demo centre

what is technological innovation?

youtube video

•―MIT digital drawing board‖

•circulated extensively on the
web in October 2006


‗everything to all people‘ (Brianna Sylver) 1/2

• It is critical to establish a baseline read of what innovation really
means to the hiring organization (or client), so that the
"innovation process" can be uniquely— and appropriately— tailored
to address the specific challenges and requirements of that
organization. But getting this foundational knowledge of what an
"acceptable output of an innovation project" is...well, more difficult
than one would suspect.

true of b2b clients … but also of consumers

what clinched it for the iPOD?

•―Apple Cult Becoming a Religion‖ (NYtimes, 2007)
•Apple "has a whole mystique and iconic value,"
says Rakesh Khurana, a Harvard professor (WSJ, Sept 6)


cult product?


not convinced yet?

lenovo ultra mobile
laptop video

self explanatory – yet, guess which is the
coolest/most successful product?

anyone listening to this?

1. outstanding Iphone 3 problems
2. 4th Gen mobile phone but still 3G
3. Iphone 4 has trouble with WiFi
4. FaceTime limited to WiFi networks
5. easy to slip out of your hands shape
6. 16GB model at $199, 32GB sells for $299. The markups on the devices are outrageous.
7. Judging by Apple's previous behaviour the Iphone 4 will be out of date within a year, although most mobile phone contracts
are for two years.
8. Something more Androidish in a smartphone does more for the same price, without the Apple lock in.
9. The Iphone 4 built by Chinese wage-slaves working 12-hour shifts in conditions that have led to a rash of suicides, and Apple
has called police to suppress freedom of the press. While the Iphone 4 is not 'less moral' than the Iphone 3G, users now have
less excuse to turn a blind eye to how the product is made.
10. It uses Bing instead of Google for Internet search


is success predictable?

•source: http://telephonyonline.com/iptv and comments by Lynnette Webb on flickr

equipment rates in French households (source: ft, 2003)
2003 figures with progression rates
Growth of equipment rate in French households - Q12003/Q12001

DVD Readers
Digital cameras Equipment: 25%
Growth: 430%
Equipment: 9,5%
Growth: 350%
300%

Mini DV’s
250%

200% CD-Rom burners

150%
Home Mass consumption
Cinema appliances
Video Tape Recorders
100% Equipment : 76%
16/9 TV sets Growth : +4%

50% Camcorders PC’s
Video recorders
Gaming consoles
Analog & digital

TV sets
Pay TV Equipment: 95%
0%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Equipment rate (Q22003)
Source: Médiamétrie&France Télécom

Multimedia is key

2006-2010 IPTV status

•IPTV subscribers worldwide
>2006: 2.7 million
>06/2010: 35 million
>+9 million subscribers in 12 months
since end of Q2 2009

•source: http://telephonyonline.com/iptv and
source : IDC (06) screen digest (2010) comments by Lynnette Webb on flickr


the most important innovation capabilities
Booz Allen – Global Innovation 1000

consumer
insights

market
potential

prove
feasibility

pilot


3 types of innovative companies


more perception issues: innovative sectors

NET CHANGE/R&D
spending (2008-9)

source: Booz & Co 2011


yet more perception issues … again
the innovation top 10 in terms of R&D


yet more perception issues … again
r&d top 10 vs. top 10 highest reputations


R&D and spending and financial results

question : what is
financial performance
linked to?

― our annual global innovator 1000 study has
shown time and time again there is no
statistically significant relationship between
financial performance and innovation
spending in terms of total R&D dollars or
R&D as a percentage of revenues

part one - what have we learnt?

•innovation not = creativity
•don‘t overestimate (or
underestimate) ‗innovativeness‘
factor  pragmatism
•fine line between products and
innovation (who cares?)
•innovation in the eye of the
beholder
•marketing > technicality
•no relationship with financial
performance
•―always the unexpected happens‖


module one – part two
basic principles in marketing related to ICT
products and services

Paris, 2011


ICT vs. mainstream marketing

similarities differences
•importance of trends and fads •hype cycles
>apple brought fashion in IT •ecosystem a must
•technology is being trivialised •a minimum of technicality must
>the ‗broadband‘ factor be understood
•b2b players  consumer >dual profiles welcome
advertising •market maturity
>ibm, microsoft, Cisco … >staggering number of players
•accelarating pace of change (user/market) acceptance issues
•blurred frontiers •paves way other markets
>entertainment/IT (wikinomics)
•chaotic (unfinished products…)
ICT marketing mixes engineering+ marketing, it has
its own rules, trends and techniques

(within ICT) one-size fits all marketing recipe don’t exist

•products: •Service
>products are packaged >time and material
>aka bespoke service
>starts from the client‘s
requirements‘ definition
>or… elicits the requirement

•serviceS
>are dematerialised products •solutions
>but are products anyway >is a package addressing a
particular business problem
• horizontal solution: hr, book
keeping, etc.
– shrink-wrap software
• vertical solution:
– e.g. data dissemination for
Finance Industry


the complexity of ICT marketing (mobility example)
(Source: Marc Fesler, Unisys)

SEAMLESS INTEGRATION
Access Phone, PDA Pocket PC Clamshell Notebook
Device Access Device
Smartphone (Palm, Symbian) (XDA, Dell, iPaq) Handheld Tablet PC
Manageability (Asset Management, Configuration, App. Deployment)
Profile
Mgmt. Profile Management
Personalization
Authentification

Business & IT Consulting
Transport (Bandwidth, Compression, Seamless Network Roaming)
Link Synchronization (On-/Offline)
Link Layer

Delivery
Maintenance
Layer Session Management

Integration
Security (Encryption)
Carrier-less Carrier (Telco, VNO, XSP, …)
Network
Wired Network Layer
PAN (Bluetooth,..) wLAN (802.11, ..) wWAN (GPRS,..)
Phone,
Presentation Layer
PDA Pocket PC Clamshell Notebook
Present. Smartphone (Palm, Symbian) (XDA, Dell, iPaq) Handheld Tablet PC
WFM

... etc, etc
Finance

KM (Oracle, ..)
Apps Applications
CRM, SCM, ERP
Mail & (Unified)Messaging
Personal Productivity
Infrastruct. Windows Infrastructure
Unix/Linux Mainframe


however, should innovation remain technical?

•how Internet users were seen in
1996 (aol advert, London, 1996)

•to many banks, it wasn‘t on the
agenda

•10 years later, 50-60% of bank
users doing banking operations
online


internet banking has worked for users

Internet banking activity in the US
year number of households with Internet share of Internet banking
banking activity (millions) users
2006 (estimate) 45.41 58%
2005 41.53 55.9%
2004 36.51 52.3%
Source: emarketer, may 2006 last update date: 02/08/2006

First two common operations on the Internet in France ( several answers possible,
total > 100%)
operation type dec. 2004 variation
news search 64% -3%
internet banking operations 53% +3%
Source: JDnet

2003 average Internet banking usage = 31%
no significant regional differences

not for the reasons one thought in 1996

2 main trends, in opposite directions

consumers B2C commodities mass-customisation
SMB’s - SOHO

B2B Commodities Bespoke B2B
MNC’s
mass produced bespoke
one-size fits all


2 main trends, in opposite directions

consumers B2C commodities mass-customisation

innovation not happeninggrade technology
and consumers use high in b2b markets
SMB’s - SOHO

home equipment > business equipment
frontiers are blurred
what consequences?
B2B Commodities Bespoke B2B
MNC’s
mass produced bespoke
one-size fits all


so where does traditional marketing fit in this picture?

frog reflex procedure won’t work here
(if it ever did anywhere though)

2 common myths about ICT marketing

•it‘s all about technology •it‘s all about asking what the
client/user wants

> innovation >the survey mythology
>the customer sat delusion


what is driving ICT sales? marketing or technology

• can disruption arise from market surveys?
• what is really measured in customer sat surveys?


reverse-engineering: marketing the unknown

• Desmarest-Krycève: ―It must be easier to improve
something that people know about, rather than ask them
to specify what they ignore or even fail to understand‖"
1 2
Pilot test Pilot
Assumptions users/clients

Changes Changes

Feedback Survey
control
system 3
Sample application of the "reverse-engineering" approach in ICT Marketing
Source: Yann Gourvennec (2001-2002)


NO! not all perfect products/services will sell

•and vice versa

•msdos, winword, windows
•nabaztag
•…

•hence, a product/service does
not have to be perfect

•so, what is the importance of
marketing?


2 questions (2001)

• who knows what webconferencing is?

• who had ever used it?

• a webconference recording example


a real-life example

•question: how do you build the
marketing mix for
products/services that people don‘t
understand?

10 years on, webconference is now a commodity


part two - what have we learnt?

•ICT is really different from
mainstream marketing
•ICT marketing is segmented
>products/service/services/solutio
ns
•minimum understanding a must
•but technicality isn‘t sufficient
•consumer and b2b markets:
shifting grounds
•clients aren‘t decerebrate frogs
•easier to correct than design


module one – part three

reinventing marketing? marketing 2.0

Paris, 2011


what is many people‘s view of marketing?

not invented, but translated and adapted from www.cybercartes.com


is marketing dead or is it being re-invented?


unleashing the ideavirus

Marketing by interrupting people isn‘t cost-effective anymore. You
can‘t afford to seek out people and send them unwanted marketing
messages, in large groups, and hope that some will send you money.
Instead, the future belongs to marketers who establish a foundation
and process where interested people can market to each other. Ignite
consumer networks and then get out of the way and let them talk.
(still) available at http://visionarymarketing.com
to read the ideavirus, display slideshow (F5) and click here


top 10 truths about the digital ecosystem

Geoffrey Moore

1. omnipresent distractions increase the need for inner peace
2. symbolic competence creates competitive advantage
3. outsourcing and offshoring are inevitable
4. everything is media
5. services displace products
6. games tell all
7. wikis rule and “crowd-sourcing” works!
8. there is no place to hide
9. songs are the spiritual property of the young
10.images are king


Pinko Marketing manifesto

―stop thinking in military analogies. no more campaigns. no more market
penetration. if you're thinking of it as a war, you've lost already‖


part three - what have we learnt?

•ICT marketing not = nonsense
•a networked economy
•clients want to be talked to and
listened (not talked at)
•but organisations still struggle
with this
•marketing is being reinvented
•digital ecosystem is reshaping the
economy


FUTURELAB

A Reflection Feel free to re-use or mash-up this

On Marketing Accountability presentation under Creative
Commons 2.0 licence (non-
commercial, attribution)


end of day one

the marketing of technological innovation
day one

Paris, 2011


assignment no.1: twitter now and then, a different perspective

read assignment sheet #1

and answer those 3 questions:

1. was twitter considered a
fad, back in 2007? why?
2. is it still now? why? 2007-2011
3. what is in store for
twitter, in your HTG
opinion, for the
foreseeable future?
innovation in the eye of the beholder assignment …


about Yann Gourvennec

•since 02/2008, director, Web, Digital & Social Media, Orange
•01/2008-02/2011 head of Internet & digital media, Orange Business
Services
•06/2005-01/2008, innovation principal, Orange Business Services
•2003-06/2005, alliance partner manager, france telecom
•1999 – 2002 - director e-business: france telecom teleconferencing
services
•1997 - 1999 – consultant, Internet, marketing & information systems,
cap gemini
•1995-1997 – internet marketing consultant, unisys europe
•1992-1995 – business systems manager, unisys europe
•1988-1992 – business systems manager, unisys france
•1985-1988 – account executive, philips france

my research is available online at: http://visionarymarketing.com/

http://www.linkedin.com/in/ygourven


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