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Apps, Clouds and App Clouds

  Nikhil Hasija
  azuqua




                  For Microsoft Dynamics CRM Partners
For Microsoft Dynamics CRM Partners
For Microsoft Dynamics CRM Partners
Objectives of the session
• Understand the shift in business that the
  cloud imposes
• Why Cloud transformation is tricky
• How should business leaders think about
  rationalizing capabilities in the cloud.
• How to build product and service capabilities
  that evolve with and involve the customer.
• A tangible framework to formulate strategies.


                       For Microsoft Dynamics CRM Partners
controversial statement #1



The era of monolithic systems is coming to an end




                       For Microsoft Dynamics CRM Partners
what was, what is, and will be..
             mainframes application service provider          cloud
       (dumb client, operation on client + data center)
                            (smart                    (browser + services)
                server)          motivation: cost       motivation: speed
           motivation: cost
19xx                 19xx- 200x              late 200x




                                                              near future


                                        cloud + apps
                                   (device + subscription)
                                   motivation: productivity


                                       For Microsoft Dynamics CRM Partners
how did this come about?




           For Microsoft Dynamics CRM Partners
First things first


   I don’t believe that anyone today questions the
viability of the cloud, the debate is about speed and
          the essence or the “how” not the “if”




                         For Microsoft Dynamics CRM Partners
factor 1




   For Microsoft Dynamics CRM Partners
The cloud itself
• Everyone knew it was going to happen

•   Some denied it (out of fear)
•   Some laughed at it..
•   Some tried it 10 years ago
•   Some tried to escape it

• In the end.. It simply is an idea whose time
  has come

                         For Microsoft Dynamics CRM Partners
Benefits realized
• Variable cost models

• Anytime, anywhere computing

• Low ops costs (massively lowers TCO)

• Best of all – Speed of implementation

                     For Microsoft Dynamics CRM Partners
factor 2




   For Microsoft Dynamics CRM Partners
Consumerization of IT
• Consumers want to use simple, beautiful
  technology

• Consumers want personalized experiences

• Want Corporate data on personal devices

• Trust the cloud implicitly

                        For Microsoft Dynamics CRM Partners
The Prosumer



is bringing these expectations to work every day




                       For Microsoft Dynamics CRM Partners
controversial statement #2



       B2B is dying




            For Microsoft Dynamics CRM Partners
B2B (Shedding more light)
• Business selling to Businesses is not going anywhere but let’s
  not confuse the players with the game.

• It is the game that is changing.

• Business is developing Affects, Behaviors and Cognition.

• Consumers are innovating their lives and expect similar
  behavior from business

• Therefore B2B is being re-incarnated as B2C(B) for techies in
  the room it’s a typecast 




                               For Microsoft Dynamics CRM Partners
factor 3




   For Microsoft Dynamics CRM Partners
Marketplaces
• Discovery necessitates participation

• Purchasing necessitates commerce

• Marketplaces in v1 right now

• Try and Buy behavior truly becoming the norm

• Expect targeted and statistical recommendations


                         For Microsoft Dynamics CRM Partners
the virtuous cycle



                                               resist
adapt




                For Microsoft Dynamics CRM Partners
business still runs on performance




                For Microsoft Dynamics CRM Partners
Business Success Drivers

66% of CEOs believe                                  “Products and services can
their organizations                                  be copied. Our business
need to introduce                                    processes and our business
fundamental/ radical                                 models are our
changes in the next 2                                differentiators.”
years                                                 CEO – Global Enterprise




Business process        Business productivity      Flexibility to rapidly
innovation as key       innovation is needed       implement global innovation
competitive advantage    now more than ever        is a key enabler


                                 For Microsoft Dynamics CRM Partners
Key IT Challenges

Too much time and                                         Identifying the right
money is required to                                      application is costly.
efficiently                                               Maintaining applications
develop, deploy and                                       from multiple vendors is
maintain custom                                           cumbersome
applications




Limited budget            Not equipped to                     Difficult to deliver
 and resources            rapidly respond to                  business ROI and
                          business change                     differentiators


                                     For Microsoft Dynamics CRM Partners
Business wants more for less




             For Microsoft Dynamics CRM Partners
For Microsoft Dynamics CRM Partners
For Microsoft Dynamics CRM Partners
The Consumer (who works in the office)
 Has new influencers in social networks
 Involved in conversations about brands
 Formulating opinions on Social networking platforms
 Is trained in try then buy consumption model




                        For Microsoft Dynamics CRM Partners
Consumer is bringing their thinking to work!




                     For Microsoft Dynamics CRM Partners
The Economics




      For Microsoft Dynamics CRM Partners
For Microsoft Dynamics CRM Partners
For Microsoft Dynamics CRM Partners
Understanding Change




         For Microsoft Dynamics CRM Partners
Software Consumption Model




       R                 P




            For Microsoft Dynamics CRM Partners
Cloud Consumption Model


        C                    P


    A



                                 R




            For Microsoft Dynamics CRM Partners
Case Studies




     For Microsoft Dynamics CRM Partners
Angry Birds
• A game that drives device sales
• Microsoft tried to get AB into WP7 at launch
• In China, HK, Japan if you buy a tablet, they
  show you that it runs angry birds
• Emotional captivation (the grunting pigs)
  prevents churn
• Realization and Affirmation happen so fast
  that you can’t churn out
• The Eagle help prevents churn and
  monetizes in-game

                       For Microsoft Dynamics CRM Partners
Zynga
• Biz model built on in-game monetization
• Heavy Community based (only FB)
• Once you are in the game they keep you
  affirming and communicating the value
• Launch new games as old ones peak
• New games are easier to sell to current
  customers. Prevents Churn
• A subscription business of sorts

                    For Microsoft Dynamics CRM Partners
Putting the above to practice




             For Microsoft Dynamics CRM Partners
CRM ISV




   For Microsoft Dynamics CRM Partners
The Software has you covered
• CRM since v4 has given ISVs choice

• CRM Online 2011 highly capable as an
  ISV platform

• The non-software tangibles still need
  attention


                     For Microsoft Dynamics CRM Partners
Business needs: to be addressed
      ?
     ! !?
 !

!?
     ?




              For Microsoft Dynamics CRM Partners
Cloud Requirements
 Business Model        Operations               Support             Infrastructure

Pricing             App Monitoring        Call Center            Provisioning and
                                                                 Configuration
Sales Incentives    Administration        Helpdesk
                                                                 Directory and
Compensation        Tier 1 – 3            Customized SLAs        Security Services
                    procedures
Customer service                          Customer Service       Self-Service, Co-
                    Comms plans                                  Creation

Up-sell strategy                          Billing Support
                    Failover planning                            Automated Billing
                                                                 and Collections



                                        For Microsoft Dynamics CRM Partners
ISV Opportunities
• Add-On Cloud based Services

• Accessible through CRM

• Priced as a transaction or subscription




                      For Microsoft Dynamics CRM Partners
CRM SIs




   For Microsoft Dynamics CRM Partners
Services Pyramid
specialized services




general services             apps

                              For Microsoft Dynamics CRM Partners
SI Opportunities
• Add focused applications to portfolio

• Diversify deal portfolio towards agile deals

• Partner tightly with select ISVs – focus on
  industry



                      For Microsoft Dynamics CRM Partners
Type of partners to seek
• Platform makers

• Vertical apps

• Collaboration apps

• Apps that add speed to your engagements

                       For Microsoft Dynamics CRM Partners
SI + ISV + Platform = Success




             For Microsoft Dynamics CRM Partners
We help organizations build engaging, enduring, and profitable
relationships with customers through the use of cloud & social
                          platforms




                                                       cloud + socia
                              For Microsoft Dynamics CRM Partners
Nikhil Hasija
                       azuqua
                       nikhil@



        Thank You to all of our Sponsors
         And Thank YOU for Attending
           extreme 2011 Las Vegas!

Please remember to fill out your session evaluation form.



                         For Microsoft Dynamics CRM Partners

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Extreme crm 2011 nikhil hasija apps clouds and app clouds v1

  • 1. Apps, Clouds and App Clouds Nikhil Hasija azuqua For Microsoft Dynamics CRM Partners
  • 2. For Microsoft Dynamics CRM Partners
  • 3. For Microsoft Dynamics CRM Partners
  • 4. Objectives of the session • Understand the shift in business that the cloud imposes • Why Cloud transformation is tricky • How should business leaders think about rationalizing capabilities in the cloud. • How to build product and service capabilities that evolve with and involve the customer. • A tangible framework to formulate strategies. For Microsoft Dynamics CRM Partners
  • 5. controversial statement #1 The era of monolithic systems is coming to an end For Microsoft Dynamics CRM Partners
  • 6. what was, what is, and will be.. mainframes application service provider cloud (dumb client, operation on client + data center) (smart (browser + services) server) motivation: cost motivation: speed motivation: cost 19xx 19xx- 200x late 200x near future cloud + apps (device + subscription) motivation: productivity For Microsoft Dynamics CRM Partners
  • 7. how did this come about? For Microsoft Dynamics CRM Partners
  • 8. First things first I don’t believe that anyone today questions the viability of the cloud, the debate is about speed and the essence or the “how” not the “if” For Microsoft Dynamics CRM Partners
  • 9. factor 1 For Microsoft Dynamics CRM Partners
  • 10. The cloud itself • Everyone knew it was going to happen • Some denied it (out of fear) • Some laughed at it.. • Some tried it 10 years ago • Some tried to escape it • In the end.. It simply is an idea whose time has come For Microsoft Dynamics CRM Partners
  • 11. Benefits realized • Variable cost models • Anytime, anywhere computing • Low ops costs (massively lowers TCO) • Best of all – Speed of implementation For Microsoft Dynamics CRM Partners
  • 12. factor 2 For Microsoft Dynamics CRM Partners
  • 13. Consumerization of IT • Consumers want to use simple, beautiful technology • Consumers want personalized experiences • Want Corporate data on personal devices • Trust the cloud implicitly For Microsoft Dynamics CRM Partners
  • 14. The Prosumer is bringing these expectations to work every day For Microsoft Dynamics CRM Partners
  • 15. controversial statement #2 B2B is dying For Microsoft Dynamics CRM Partners
  • 16. B2B (Shedding more light) • Business selling to Businesses is not going anywhere but let’s not confuse the players with the game. • It is the game that is changing. • Business is developing Affects, Behaviors and Cognition. • Consumers are innovating their lives and expect similar behavior from business • Therefore B2B is being re-incarnated as B2C(B) for techies in the room it’s a typecast  For Microsoft Dynamics CRM Partners
  • 17. factor 3 For Microsoft Dynamics CRM Partners
  • 18. Marketplaces • Discovery necessitates participation • Purchasing necessitates commerce • Marketplaces in v1 right now • Try and Buy behavior truly becoming the norm • Expect targeted and statistical recommendations For Microsoft Dynamics CRM Partners
  • 19. the virtuous cycle resist adapt For Microsoft Dynamics CRM Partners
  • 20. business still runs on performance For Microsoft Dynamics CRM Partners
  • 21. Business Success Drivers 66% of CEOs believe “Products and services can their organizations be copied. Our business need to introduce processes and our business fundamental/ radical models are our changes in the next 2 differentiators.” years CEO – Global Enterprise Business process Business productivity Flexibility to rapidly innovation as key innovation is needed implement global innovation competitive advantage now more than ever is a key enabler For Microsoft Dynamics CRM Partners
  • 22. Key IT Challenges Too much time and Identifying the right money is required to application is costly. efficiently Maintaining applications develop, deploy and from multiple vendors is maintain custom cumbersome applications Limited budget Not equipped to Difficult to deliver and resources rapidly respond to business ROI and business change differentiators For Microsoft Dynamics CRM Partners
  • 23. Business wants more for less For Microsoft Dynamics CRM Partners
  • 24. For Microsoft Dynamics CRM Partners
  • 25. For Microsoft Dynamics CRM Partners
  • 26. The Consumer (who works in the office) Has new influencers in social networks Involved in conversations about brands Formulating opinions on Social networking platforms Is trained in try then buy consumption model For Microsoft Dynamics CRM Partners
  • 27. Consumer is bringing their thinking to work! For Microsoft Dynamics CRM Partners
  • 28. The Economics For Microsoft Dynamics CRM Partners
  • 29. For Microsoft Dynamics CRM Partners
  • 30. For Microsoft Dynamics CRM Partners
  • 31. Understanding Change For Microsoft Dynamics CRM Partners
  • 32. Software Consumption Model R P For Microsoft Dynamics CRM Partners
  • 33. Cloud Consumption Model C P A R For Microsoft Dynamics CRM Partners
  • 34. Case Studies For Microsoft Dynamics CRM Partners
  • 35. Angry Birds • A game that drives device sales • Microsoft tried to get AB into WP7 at launch • In China, HK, Japan if you buy a tablet, they show you that it runs angry birds • Emotional captivation (the grunting pigs) prevents churn • Realization and Affirmation happen so fast that you can’t churn out • The Eagle help prevents churn and monetizes in-game For Microsoft Dynamics CRM Partners
  • 36. Zynga • Biz model built on in-game monetization • Heavy Community based (only FB) • Once you are in the game they keep you affirming and communicating the value • Launch new games as old ones peak • New games are easier to sell to current customers. Prevents Churn • A subscription business of sorts For Microsoft Dynamics CRM Partners
  • 37. Putting the above to practice For Microsoft Dynamics CRM Partners
  • 38. CRM ISV For Microsoft Dynamics CRM Partners
  • 39. The Software has you covered • CRM since v4 has given ISVs choice • CRM Online 2011 highly capable as an ISV platform • The non-software tangibles still need attention For Microsoft Dynamics CRM Partners
  • 40. Business needs: to be addressed ? ! !? ! !? ? For Microsoft Dynamics CRM Partners
  • 41. Cloud Requirements Business Model Operations Support Infrastructure Pricing App Monitoring Call Center Provisioning and Configuration Sales Incentives Administration Helpdesk Directory and Compensation Tier 1 – 3 Customized SLAs Security Services procedures Customer service Customer Service Self-Service, Co- Comms plans Creation Up-sell strategy Billing Support Failover planning Automated Billing and Collections For Microsoft Dynamics CRM Partners
  • 42. ISV Opportunities • Add-On Cloud based Services • Accessible through CRM • Priced as a transaction or subscription For Microsoft Dynamics CRM Partners
  • 43. CRM SIs For Microsoft Dynamics CRM Partners
  • 44. Services Pyramid specialized services general services apps For Microsoft Dynamics CRM Partners
  • 45. SI Opportunities • Add focused applications to portfolio • Diversify deal portfolio towards agile deals • Partner tightly with select ISVs – focus on industry For Microsoft Dynamics CRM Partners
  • 46. Type of partners to seek • Platform makers • Vertical apps • Collaboration apps • Apps that add speed to your engagements For Microsoft Dynamics CRM Partners
  • 47. SI + ISV + Platform = Success For Microsoft Dynamics CRM Partners
  • 48. We help organizations build engaging, enduring, and profitable relationships with customers through the use of cloud & social platforms cloud + socia For Microsoft Dynamics CRM Partners
  • 49. Nikhil Hasija azuqua nikhil@ Thank You to all of our Sponsors And Thank YOU for Attending extreme 2011 Las Vegas! Please remember to fill out your session evaluation form. For Microsoft Dynamics CRM Partners

Editor's Notes

  • #6: Instead think of many single purpose appswhich over time will connect and form a fabric of capabilitiesusers will subscribe to these capabilities
  • #8: does it matter to understand how the change came about? We all do agree that it is here.. however, I believe that every great strategy lies in understanding the parameters of what makes it work so that you can identify when it stops working for you.. So let’s take a look at the factors influencing the change.
  • #9: and I also don’t think anyone here needs convincing on the importance of the cloud.. we will look at the inter-connectedness between the factors so that we can formulate execution strategies that are relevant today and position us for tomorrow.
  • #11: It is the culmination of 30 years of technologyAt no time in the history of tech.. has it been so affordable and so quick to do anything
  • #12: That cloud is realIt will affect all types of businessesWe will look at the strategies can companies use to transition to resilient business modelsWhile CRM is an integral part of this, I’ll explain why.. I will only discuss it in passing.
  • #14: How many of you ever backed up your Gmail? We expect it to be there always..
  • #17: It’s the expectations: While dealing with businesses we expected to engage with a person who would disavow all personal judgment criteria and look at all things equally.. People are asking WHY? How much ugly software is out there.. We always seek beauty, simplicity and emotional engagement (iphone, angry birds). So B2B has to mature and emulate start it’s journey towards a C2C model – back to the handshake.Why simply because the people in the Business are exposed to consumer tech. Their vantage point is now different. (For SciFi fans currently it’s like Frankenstein but will grow into Commander Data – Resembling human, striving to be better, but not quite..)Don’t believe me? Every big org. today has twitter, facebook profiles, pagesEvery Social Pundit(+1) is telling that to succeed in the social web, you have to become a “company like me” i.e. a business is becoming more human-like.
  • #19: Rudimentary rating engines
  • #20: Cloud is highly relevantApps are highly relevantThese two are changing the enterprise in very drastic ways
  • #22: The pressures to achieve profitable growth has introduced a new mandate, the need to innovateBeyond product or service innovation, more CEOs are looking to business process innovationas a key competitive advantage. Innovation is driven through collaboration to solicit ideas (internal and external)The flexibilityto rapidly implement innovation is the key enabler
  • #23: The pressures to achieve profitable growth has introduced a new mandate, the need to innovateBeyond product or service innovation, more CEOs are looking to business process innovationas a key competitive advantage. Innovation is driven through collaboration to solicit ideas (internal and external)The flexibilityto rapidly implement innovation is the key enabler
  • #27: The consumer has new influencers on:Twitter - “Faster than Seismic activity”Facebook - Trusted network of friends and peersOther networks…Conversations are taking place about brands outside their controlOpinions are being formed on Social networking platformsOnline commerce is pervasive and consumers are really savvy
  • #31: Agility talks to consumption
  • #33: P* = Perception of ValueR* = Realization of ValueTransfer of Risk to Customer at Purchase
  • #34: P* = Perception of ValueR* = Realization of ValueA* = Affirmation of Value and Advocacy/AmbassadorshipC* = Contribution of Value Recognize that the if you turn your customers into Raving Fans, they will recommend your products.Shared Risk ownershipCost transfer between Marketing and Support so you can move dollars form mktg. to support and get better ROI’s.