CouncilTel presentation, 012709

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January 27, 2009
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Who is in the room

• Burley Kawasaki, Microsoft
• Alex Bentley, Initiate Systems
• Aijit Dutta, Novell
• Scott Pulsipher, Sterling Commerce
• Gareth Fraser-King, Symantec
• Guido Sanchidrian, Symantec
• Todd Scallan, Interwoven

• Lynne VanArnsdale, Rolta/TUSU
• Andrew Rosenberger, Sungard
• Belinda Yung-Rubke, Fluke Networks
• Robert Mol, Symantec
• Alex Saric, Ariba
• Martin Warren, Symantec
• Duncan Painter, Experian
• Stephen Johnson, AppLabs

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To navigate this downturn successfully,
listening to your customers must take on new
meaning and importance
YOU
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Agenda

• How far will the downturn go?
• Where are the real opportunities?
• What strategies will help during the downturn?

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Agenda

• How far will the downturn go?
• Where are the real opportunities?
• What strategies will help during the downturn?

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CIOs arent panicking yet
Is the current economic uncertainty affecting
your IT organization's plans and budgets?
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32
35
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Base 129 global IT decision-makers
Source Forrester Research, October 2008 Global
Economic Downturn Online Survey
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North America IT Purchases Down, But Not Out
January 2009 Global IT Market Outlook 2009
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Canada Latin America Harder Hit, But Will
Recover
January 2009 Global IT Market Outlook 2009
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W. Europe Hard downturn, but big recovery
January 2009 Global IT Market Outlook 2009
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E. Europe, Middle East, Africa Weaker Outlook
January 2009 Global IT Market Outlook 2009
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Unless The Recession Deepens, That Is
US real GDP growth (quarterly percent change at
annual rate)
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65 probability
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4
3
2
1
0
Q2
Q3
-1
Q4
Q1
Q2
Q3
Q4
Q1
Q2
-2
2007
2007
2007
2008
2008
2008
2008
2009
2009
-3
-4
35 probability
-5
Forrester forecast
Source US Department of Commerce
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Member Pause Thoughts/Questions
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Agenda

• How far will the downturn go?
• Where are the real opportunities?
• What strategies will help during the downturn?

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Focus on the Tech Twelve, not the BRIC countries
January 2009 Global IT Market Outlook 2009
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Hardware vendors likely to feel the greatest pinch
2005 to 2010 US IT purchases forecast (percentage
change)
Forrester forecast
January 9, 2009, "US IT Market Q4 2008 Update And
2009-2010 Outlook"
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Some software will do better than others
Percentage change in US business and government
purchases of commercial software from 2008 to 2009
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Opportunities remain, but some verticals cut back
Percentage change in industrys IT purchases from
2008 to 2009
January 9, 2009, "US IT Market Q4 2008 Update And
2009-2010 Outlook"
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Areas of opportunity

• Economic stimulus targets
• Healthcare information systems, alternative
  energy, education
• Need specialized apps, but also the basics (ERP,
  CRM, HR, etc.)
• Opportunities for managed services for new
  projects, companies
• Recession-resistant industries
• Utilities, health care, insurance
• Looking for as much ROI from existing IT
  investment as possible
• Cost-saving technology
• Business intelligence, server virtualization,
  videoconferencing, SaaS-based apps/solutions
• Enterprise applications likely to get a lot of
  attention
• Mandatory technology
• Security, compliance, risk management
• Includes financial fall-out confidence,
  recovery, transparency
• Same challenges as last compliance/risk
  management wave

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Quick Take Alternative energy needs IT
Where do you fit into this picture? And where?
January 20, 2009, "Emerging Energy Technologies
Open Opportunities For The Technology Industry"
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Member Pause Thoughts/Questions
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Agenda

• How far will the downturn go?
• Where are the real opportunities?
• What strategies will help during the downturn?

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Some select strategies

• Embrace business technology (BT) over information
  technology (IT)
• Why should your existing customers continue doing
  business with you?
• How can you develop new markets more quickly, at
  less risk?
• Change underlying assumptions to survive and
  prosper in a BT world
• Ride the Web 2.0 wave, without trying to be the
  wave

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BT creates improves marketing, development

• Iron Mountain
• Developed personas for marketing
• Changed content, targets of campaigns
• E-mail campaigns saw a 300 increase in
  responsiveness
• ILoveRewards.com
• Wanted to get past the spec as weapon problem
• Switched to persona-based requirements
• Reduced time to writing, clarifying, presenting
  requirements by 50 or more

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Technology still behind in meeting business needs
December 2008 Closing The Business Technology
Alignment Gap
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Creating value with your customers

• Some deep-rooted habits in the tech industry
  habits must change
• Focus on customers, not competitors
• Develop customer value, not new features
• Expose more of your roadmap
• Get creative about how to elicit ideas that
  contribute value (serious gaming, innovation
  management, etc.)

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Vendors still focusing on competitors, their own
ideas
October 2008 The Priorities Of Tech Strategists
And Marketers
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How Web 2.0 helps during the downturn

• Bridges the gap to customers
• Community marketing
• Market development through communities
• Communities and co-development
• Rewards better listening skills
• The customers questions, not yours
• The customers language, not yours

• Rapid social networking site adoption
• 56 in 2007 75 in 2008
• Social media enters the workplace
• Internal efficiencies, synchronization
• Pre-sales market intelligence, indirect
  influence
• Post-sales creating value with customers

A bigger opportunity using Web 2.0 than being a
Web 2.0 vendor
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The real challenge is community marketing

• What informs IT decisions?
• Top 3 answers
• 76 Peers and colleagues (word of mouth)
• 62 Technology or business publications,
  magazines
• 60 Vendor, industry trade, or professional Web
  sites
• Which sources will become more important
• Top 3 answers
• 60 Technical support forums, discussion groups
• 32 Virtual trade shows, conferences
• 29 Ratings and reviews (Digg, Delicious, etc.)

Note Forrester also has social media and
behavior of IT buyers (e.g. IT networking/comm.,
security, IT services, IT hardware) Software to
be released later in Q1, 2009
B2B Marketing Technographics data
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Develop markets through Web 2.0
December 2008 Sow Web 2.0 To Target Emerging
Tech Markets
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Innovate with your customers, not at them
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Thank you

• Tom Grant
• 1 650.581.3846
• tgrant_at_forrester.com
• http//www.forrester.com
• http//blogs.forrester.com/product_management

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Open Member Discussion
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Upcoming TPM Council Activities

• CouncilTels
• February 17th So How Will You Marketing To IT
• Meetings/Roundtables
• Boston Roundtable Revenue/Marketing
  Innovation - March 4th
• London Roundtable Driving Revenue/Innovation
  March TBD
• Bay Area Roundtable TBD - April 9th
• Member Meeting Las Vegas (IT NA Forum) - May
  17/18th
• Member Meeting Berlin (IT EMEA Forum) - June
  21st
• Council Research
• Best In Class Product/Solution Management
  Organizations
• How The Best Product/Solutions Leaders
  Understand, Market and Make More With Customers

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Recommended Reading

• Global IT Market Outlook 2009
• B2B Digital Marketing A Deep Dive Into IT
  Services Decision-Makers
• Emerging Energy Technologies Open Opportunities
  For The Technology Industry
• Predictions 2009 Emerging Tech Markets
• Community Marketing Self-Assessment Tool