Download - Net App Presentation Innovate Carolina 2012
NetApp’s Original BEMI
You could attach specialized data storage devices – filers – to a network
NAS = Network Attached Storage
Internal operating system is called Data ONTAP® and is optimized for storage requirements
Today
Data ONTAP® 8• Continuously improved and enhanced• Excellent technology• Cluster-mode just released
But…• Technology evolves• Product life cycles accelerate
Three Phases of Value MigrationM
arke
t Val
ue/R
even
ue
Value Inflow Stability Value Outflow
• Limited competition• High growth• High profitability
• Competitive stability• Stable market share• Stable margins
• Competitive intensity• Declining sales• Low profits
Talent, resources, and customers leave at an accelerating rate
2
1
Characteristics of the Transition
Volume is high.Revenue is growing. Customers are happy.
Strong repeat business.
Focus on superior execution – this is the “comfort zone”.
But…your time here is limited, and the stability phase is getting shorter.
Horizon 10 to 12 months
Horizon 212 to 36 months
Horizon 336 to 72 months
Current Businesses
Generate today’s cash flow
High Growth Businesses
Today’s revenue growth + tomorrow’s cash flow
Growth Options
Options on future high-growth businesses
Expected Window of Returns
Acc
umul
ated
Tot
al R
etur
ns
TCG Horizon ModelHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
TCG: Innovation OpportunityHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
TCG Advisors noted a “Horizon 2 vacuum” in most companies.
Two Transitions to ManageHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
Two distinctly different transitions; managing them is key
Totally Different TransitionsHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
α
β
Two Different Questions: FirstHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
Is there a business?
Two Different Questions: SecondHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
Is there a business?
Is there a BIG business?
Two Different Skill SetsHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
Entrepreneurial
Operations
NetApp’s FocusHIGH
GROWTHLOW
GROWTH
MATERIAL TOCURRENT EARNINGS
NOT MATERIAL TOCURRENT EARNINGS
Horizon 1
Hor
izon
2
Horizon 3
Create Customer ValueThrough Partnerships
“The Whole Product”
The minimum set of products and services
necessary to ensure that
the target customer will achieve his or her
compelling reason to buy.
04/14/2023 35Week 11
Premise
Success is achieved by:– Engaging the right resources,– At the right cost, time, and place, according to the– Buying behavior of the customer.
04/14/2023 Week 11 37
What do you mean by “resources”?
Original Equipment Manufacturer (OEM)Distributors
– Volume vs. Value AddedResellerIntegratorsSolution ProviderRetailersSales AgentsDirect SalesInfluencers
04/14/2023 Week 11 38
Types of Partnerships
Acquire
Joint Venture/Equity Stake
R&D/Technology Transfer
OEM/Licensing/Private Label
Joint
Marketing/Distribution
04/14/2023 39
Demand Generation
04/14/2023 41
Demand Generation
Pre-Sales
Close the
DealDeploy Support
Providing information to prospective customers or end-users• Advertising• Press• Direct mail• Promotions• Loyalty programs
Pre-Sales
04/14/2023 42
Demand Generation
Pre-Sales
Close the
DealDeploy Support
Provide information on:• Pricing• Availability• Terms and conditions• Configuration options• Specifications• Competitive information
Key element: Understand prospect’s wants and needs (pain points)
Close the Deal
04/14/2023 43
Demand Generation
Pre-Sales
Close the
DealDeploy Support
Get the order!
Activities include:• Final negotiations• Sign the contract• Complete financial arrangements
• Immediate payment• Terms (i.e. Net 30)
Deploy
04/14/2023 44
Demand Generation
Pre-Sales
Close the
DealDeploy Support
Receive and fulfill the customer’s order
Activities include:• Order processing and confirmation• Shipment and installation• Customization, integration, and training
Support
04/14/2023 45
Demand Generation
Pre-Sales
Close the
DealDeploy Support
Ensure the proper operation of the offering and the customer’s ongoing level of satisfactory performance
Look for opportunities to make the customer more successful
NetApp
One Vision for Unified Infrastructure
Cisco VMware
Jointly Validated Solutions
New Cooperative Services and Support
Mutual, Open Partner Ecosystem
Imagine Virtually Anything: FlexPod
Summary
Successful growth organizations need to allocate resources across current, emerging, and new areas of customer value
Three Horizons Model offers a resource allocation model and roadmap.
NetApp has chosen a partnership-based model to turn Horizon 2 opportunities into Horizon 1 businesses to deliver new customer value quickly and efficiently.