Why small is the new BIG and

BIG is the new small

@jasonstoddard & @katmandelstein

Hashtag for session: #eggcellent

Mainframe

PCs

Internet Social

Departmental

Technology enabled business transformation over the years

The Fifth Era of IT

Internet

Social

Market Forces: The 3 P’s

People Process Proximity

A Maxim "The Life of a human being does not exist merely in the sphere of goal-directed verbs. It does not consist merely of activities that have something for their object. I perceive something. I feel something. I imagine something. I want something. I sense something. I think something. The life of a human being does not consist of all of this and its like. All this and its like is the basis of the realm of It. But the realm of You has another basis.” – Martin Buber, Philosopher via I and Thou

�  I

�  You

�  It

�  Me & You

�  I & It

�  You & It

�  It & It

Scarcity is a Myth

Leverage your sausage

Competition is NOT Obvious

Don’t assume you know yours

Going Global vs Acting Local

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Social Business Characteristics

Image: getrealtypepad.com

Small Business Advantages �  Agility

�  Personalization (Inherently social: “Sometimes you wanna go, where everybody knows your name.”)

�  Specialization

�  Proximal

�  Extra-legal ;-)

Small Business Challenges �  The Handshake Problem

�  Retention (Customer and Employee)

�  Cash strapped; capital constraints

�  Continuity (brand (association transference), knowledge, service, product, deliverability)

�  Scale (The Accordion Effect)

�  Accountability

Meet the Small Business Say hello to the Liedeker family. Drew and Eileen own a residential maid service franchise. In 2010, their small business served over 700 homes in Greater Austin, Texas. In 2010, Drew’s business: •  Grossed ~$2.3M in revenue. •  Invested ~$14k, monthly in marketing

spend. •  Invested $125 - $435 to acquire a new

customer. •  Retained ~ 97.3% of his customers, week

over week. •  Drew has a MBA in finance. Drew has no

coding or design ability. Most of his marketing support is from corporate or vendors/consultants.

Drew’s Perspective:

“Dating back to 2003, I’ve seen and heard it all. I’ve made many mistakes, especially in marketing. I used to read everything I could get my hands on, be up on the latest trends, follow every guru. Now, I have a family. Every day I wear 20 hats and marketing is a weakness. Honestly, I avoid it… I don’t have time to learn a new skill much less a new platform, but I know I need to target the right customer to scale my business on my terms. I need something simple, that holds me accountable, gives me actionable information and still let’s me get away to pick up our kids from school, enjoy my wife, enjoy my life.”

Most Trusted ITCs

The Birthday Campaign

Collect Messages Self-serve Assisted-serve Types: - Sale/clearance merchandise, “deals” - Just-in time offers, coupons - Announcements, events, milestones - Third-party advertiser coupons

Formulate deals Coupons - Quantity based - Time specific - Expiration - Purchasable coupons Deal of the Day -Minimum to purchase -Maximum to purchase Gift cards

Communicate deals Web site & widgets Mobile App (geo) SMS/e-mail alerts Social -  Facebook Pages, Places -  Facebook Ads -  Twitter Print Advertising -  Reverse publishing Billboards/signage

Conduct Transactions Basic storefront Collect payment Transfer payments to business, partner, resellers if appropriate Manage fulfillment Basic Accounting Infrastructure

Process

Establish  campaign    goals.  

Implement  performance  metrics.  

Analyze    data.  

Cra:    op;mal  rewards.  

Op;mize  campaign  in    real  ;me.  

Report  results.  

Image from San Francisco Sentinel

BIG is the new small

Big Business Advantages �  Global Reach with ability to staff resources on

the ground in local markets

�  Diversification of Workforce

�  Business Process Optimization

�  Deep Pockets �  Reserve Capital �  Can afford 360 Marketing Programs �  Diversification of Offerings

�  Innovation: R & D

Big Business Challenges �  Geographically Dispersed Workforce

�  Challenging to react quickly

�  High visibility of mistakes

�  Commoditization of offerings

�  Expense pressure to reduce E:R ratio

�  Public company return to shareholders

Meet the Big Business Say hello to the IBM family. A 100 year old company built to enable businesses with technology and services. Over 430,000 IBMers globally. Owned by thousands of shareholders including Warren Buffet. Founded by TJ Watson. Led by Ginni Rommety today.

•  Revenue: $106,91B in 2011

•  Net Income: $15,855B in 2011

•  Most Patents for 19 Consecutive Year

•  IBM Stock over $200 per share

Ginni’s Perspective:

“When I say "make a new market" I really believe one of the things that will distinguish businesses into this next decade is this area of how they use information. I don't mean that as a technical point. I mean this really, truly as predictive, analytics, I think it'll change culture, it'll change everything that you do. And I believe it'll differentiate the winners and the losers no matter what business you are in and how you do it.”

Marketing Automation Interest

Awareness

Desire

Action

Prospect  Emailed    Invitation  to  BI  Event  

Registers  &  Downloads  BI  ROI  Paper  

 

LDR  Calls  to    

Qualify  

Re-­‐enforcing    Email  Topics  

10 points

Registers/  Attends    BI  Event    

50 points

Downloads  BI  Case  Study  

 

15 points

25 points

0-10 POINTS 50-100 POINTS 100+ POINTS

Qualified Lead Passed to Sales

Follows  link  or  Searches  for  ROI  Tool  

5 points

5 points

Receives  Email  for  BI  ROI  Tool    

5 points

Receives  Email  Invite  to  BI  Event  

Key Measures for Both �  Revenue to Expense

�  Customer Acquisition

�  CPM/CPC

�  Lifetime Value

Time for #eggcellent Simulation