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Lead to Win
Lead to WinInternet as go-to-market platform
May 2009
Michael Weiss and Peter Carbone
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Lead to Win
Objective
• Upon completion of this module, you will know:– how to enter networked markets– about ways to scale using the Internet
• And you will be able to:– determine when to use the Internet as part of your
product or your operations
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Lead to Win
Agenda
• Push vs pull marketing• Entering a networked market• Mapping your ecosystem• Internet-centric tools to scale
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Lead to Win
Networked markets
• Locus of competition is shifting from the firm to the network: network position matters
• Entry strategies that focus on push marketing are less effective than those that focus on identifying market players and aligning them
• Need to envision the new market status quo and align the players across the market
• Mapping an ecosystem allows us to understand how firms access complementary resources
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Lead to Win
Traditional push marketing
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Traditionally, companieshave pushed their products to players they know
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Lead to Win
Traditional push with network
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Markets are hostile to innovations the more inter-connected players are
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Lead to Win
From push to pull marketing
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Market players will only adopt a product when they believe others will do so
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Lead to Win
From push to pull marketing
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Networked markets allow for quick diffusion of ideas, but also present barriers
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Lead to Win
From push to pull marketing
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Breaking into a networked market requires care
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Lead to Win
Entering a networked market
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Adobe PDF reader and creator
Reason back from endgame
Hard to change PDF documents: meets needs of creators to protect their content; offer reader for free, and creator as complement to (not substitute for) content creation products
Complement power players
Ally with Microsoft, AOL, and Google
Orchestrate incentives
Three types of players: developers, distributors, adopters (content creators, users)
Maintain flexibility
Separate reader from creatorOffer reader for free
Chakravorti (2004)
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Lead to Win
Mapping your ecosystem
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Core
Node size: number of interactionsEdge width: number of interactions peredge (measure of strength) Weiss & Gangadharan (2009)
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Lead to Win
Lessons from mashup ecosystem
• Positions of API providers are mutually reinforcing• Users will select APIs based on how many other
mashups use a given API, as well as the collective experience in combining the API with other APIs
• New API providers should seek out opportunities to complement existing APIs that are strongly positioned in the ecosystem (enter a niche around keystone)
• Complexity of mashup drives the development of mashup platforms that help search for APIs, enforce design rules in compositions, and certify APIs
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Lead to Win
Go-to-market design options
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Option DetailsMarket Leverage network to reach market (eg sell
online, use download-and-try model)Distributor Eg Apple App store to reach customers (then
focus on getting into top 50 for visibility)Free Drive volume through a free service, monetize
some other business model (eg support) Long tail Offer large number of low volume items (Lulu
enables niche authors to sell their books)Embedded Reach market via a partner (eg Intuit software
ships with Windows)
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Lead to Win
Sample tools
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Option DetailsAdmin oDesk is a service to find, hire, and pay
workforce: can scale with demandInfrastructure EC2 is Amazon’s cloud computing service:
can rent infrastructure as neededDevelopment Google Code provides canned hosting for
software development projectsDesign Eclipse as platform for product: can reuse
shared pool of building blocksCommunication enablement
Coral CEA provides integrated set of communications technology components
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Lead to Win15
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Lead to Win
Google Code
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Lead to Win
Key messages
• Know your position in the ecosystem• Enter a networked market by reasoning back
from the endgame (new status quo) • Design GTM as you would a product – even more
important in a knowledge economy• There are many Internet-centric tools to
facilitate collaboration in GTM• Name of the game is to “herd the cats”• Room to innovate in GTM tools
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Lead to Win
Breakout activity (1 hour)
• Break into 3 teams and discuss – 30 min • Present back to class – 10 min each• Nominate a moderator, scribe and presenter• Pick one person's opportunity • Identify specific ways the opportunity does or
could take advantage of open source, mashups, open API’s and/or business ecosystems to reduce costs, reduce time to revenue, ...
• Discuss and prioritize your recommendations
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Lead to Win
References
• Chakravorti, B. (2004), The new rules for bringing innovations to market, Harvard Business Review, 82(3), 58-67
• Weiss, M., & Gangadharan, G.R. (2009), Growth of the mashup ecosystem, submitted to R&D Management (posted on wiki)
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