Some IT professionals describe cloud computing as an “amorphous” thing. It is hard to clearly understand what it is, and most importantly, to know if it works for your organization. The cloud is not only difficult to understand, but it is growing and changing at such a fast pace that it is hard to keep up with it and understand what it offers. Nonetheless, the cloud is not an ‘all or nothing’ deal; you need to assess the readiness of each application of your organization.

To understand cloud computing, you need to assess what technical, monetary, and marketing benefits it offers for each of your applications. There are five simple patterns that serve to assess if the applications in your organization are suitable for the cloud or not, more specifically, if they are suitable for Microsoft’s cloud computing platform, Windows Azure.

1. Transferance. This is about understanding how you actually take what the application has on-premise and push it out to the Azure platform. This is really about migration – what does the app look like in the cloud? You might even want parts of the application hosted in Azure while still keeping parts of it on-premise. For example, you might want to manage identity on-premise and have the rest of the application in Azure. If so, then you have to understand how these parts would communicate – Windows Azure offers services for effective communication. This pattern also considers the type of data that you manage and store in the application; if the data is regulated you might want to keep it on-premises – there is still some debate as to whether the cloud is compliant with PCI, HIPAA, and SOX.

2. Scale and multi-tenancy. Windows Azure differentiates the web tier of your application from the worker tier (back-end compute tier) for different reasons, one of them scalability - in case you need to achieve scale on only one tier. This pattern involves the web tier. If you are not sure how big and at what rate your application will grow or shrink, Windows Azure’s cloud provides real time capability to increase or decrease the number of web tier instances. For example, if you are creating a new web site that your team estimates will be receiving 10,000 hits per month in 6 months and you are hosting it on-premises, you will most likely buy the capacity now for 10,000 hits and expect that it will need exactly that. While if you host it on Windows Azure, you can, on a daily basis, set the number of web-tier instances you need based on the hits you are receiving. Since Windows Azure offers a pay as you go model, you only pay for the capacity you use per day.

• A recent (July 2010) survey of IT and business decision makers sponsored by Savvis showed that 76 % of survey takers see the “lack of access to IT capacity” as a barrier to business progress, hence Windows Azure can help with business agility. Kelley Blue Book migrated its applications to Windows Azure and it now takes them 6 minutes to boost capacity (vs. six-week turnaround for on-premise hardware).

3. Burst compute. This pattern involves the worker/compute tier of your applications. You can use Windows Azure for some tasks on the computing tier of your application that might need to be scaled up and down really quickly, for high compute power for short periods of time. For example, if your application needs to process heavy imaging at the end of every month, you can use the “infinite” compute power of Windows Azure. More importantly, if one month you need to process 100 times the number of images that you normally process, you can quickly increase the number of instances of your application’s worker tier for one day and then shrink it back to normal. To illustrate further, Windows Azure could also be used to host a tax application that needs a lot of capacity for only a couple of weeks per year – 2 to 3 weeks before Apr 16.

4. Elastic storage. Currently, storage is non-expensive on-premise. However, the actual maintenance of the storage is the greatest expense; adding, removing, swapping disks in a changing environment can become very difficult to handle. In addition, you need to worry about backing up, recovering, etc. On Windows Azure, you can smoothly add/remove storage capacity, paying as you go, and Microsoft takes care of everything else such as automatically double-backing up your data behind the scenes.

• Furthermore, Windows Azure Content Delivery Network (CDN) has 18 global locations strategically placed to provide maximum bandwidth for delivering content to users. For example, Glympse, who provides a location-sharing application for GPS-enabled phones, moved from Amazon’s cloud to Windows Azure and mentioned that performance of Azure exceeded that available on Amazon

5. Inter-organizational communication. This pattern involves Azure’s offering through its Service Bus component, by ensuring easy and effective communication of applications that have firewalls in between. For example, if your cloud-based or on-premise application needs to share some functions with a partner’s application, they can use the Service Bus functionality to give direct access without worrying about the firewall. Otherwise, you need to create specific mediums/packages of communications, which then becomes even more difficult to handle if you add a third partner application to the communication.

• The inter-organizational communication issue will grow further since we are running out of public v4 IP addresses and a lot of organizations are doing network address translation which makes communication more difficult.

Again, deciding where your applications should be hosted is not an ‘all or nothing’ deal, you need to determine what will be the best place for each application. It is about having a good strategy for your organization’s applications considering your current investments on hardware, the specifications of your applications, and future expectations for the use and growth of each of them.

In case you want to test Windows Azure, Microsoft is currently offering a Introductory Special until October 31, 2010. If you want to assess the cost savings of using Windows Azure, you can use Azure’s TCO and ROI calculator.

I like to say that Management Consulting requires a combination of ambiguity tolerance and rational problem solving. And a fellow associate frequently quips when asked what he does, “I bring clarity to complex situations.”

My favorite work comes out of projects which are perceived as ridiculously complex, or stuck in the stratosphere of executive vision, and boiling the delivery down into simple steps which are both reasonable and actionable. The process of getting there frequently requires a framework, or methodology, of appropriate comparison in order to drive the right comparative results.

Below, then, are my seven favorite frameworks, from the treasure trove of Management Consulting:

Framework #1: Porter’s Five Forces

I’d be remiss if I didn’t mention the grand-daddy framework from Harvard strategy professor and respected author Michael Porter, who single handedly explained why economists were wrong in stating that competition among rivals drives profits to zero (okay, maybe an exaggeration, but the dude’s wicked smart). Porter developed a model of industry analysis, and his book Competitive Strategy: Techniques for Analyzing Industries and Competitors has become a must read for business strategy.

Briefly, then, the Five Forces for analysis include (by category):

· Supplier Power – including supplier concentration, importance of volume to supplier, differentiation of inputs, impact of inputs on cost or differentiation, switching costs of firms in the industry, presence of substitute inputs, threat of forward integration, and cost relative to total purchases in industry

Porter's Five Forces

· Barriers to Entry – including absolute cost advantages, proprietary learning curve, access to inputs, government policy, economies of scale, capital requirements, brand identity, switching costs, access to distribution, expected retaliation, and proprietary products

· Buyer Power – including bargaining leverage, buyer volume, buyer information, brand identity, price sensitivity, threat of backward integration, product differentiation, buyer concentration vs. industry, substitutes available, and buyers’ incentives

· Threat of Substitutes – including switching costs, buyer inclination to substitute, and price-performance trade-off of substitutes

· Degree of Rivalry – including exit barriers, industry concentration, fixed costs to the value added, industry growth, intermittent overcapacity, product differences, switching costs, brand identity, diversity of rivals and corporate stakes

Framework #2: The Value Net

As an alternative to Porter’s Five Forces, Adam Brandenburger of Harvard Business School and Barry Nalebuff of the Yale School of Management explained not only “win-lose” but the “win-win”

The Value Net

scenario of “co-opetition.” Their book, Co-Opetition: A Revolutionist Mindset That Combines Competition and Cooperation: The Game Theory Strategy That’s Changing the Game of Business, is another must read in the business strategy section.

Within the Value Net, a complement is defined as any other product or service which adds to the attractiveness of the subject product. In my opinion, while Porter’s Five Forces is useful in determining business strategy within its given industry, the Value Net is most helpful in exploring entry into new products/services and industries.

Framework #3: The Project Prioritization Framework

Created by Credera’s own Justin Bell, the Project Prioritization Framework is especially helpful when running Agile projects (in both risk- and client-driven iterative development scenarios). Notes Justin,

Project Prioritization Framework

“The framework is based on a very simple and common sense premise.  You should prioritize and work on the projects that provide the highest (relative to other projects being considered) business value (measured in increased profitable revenue or decreased cost) and lowest cost.”

I don’t have room here to explain the Agile process and why the Project Prioritization Framework is a best practice fit, but the Agile Alliance explains in the Agile Manifesto values of:

· Individuals and interactions over processes and tools

· Working software over comprehensive documentation

· Customer collaboration over contract negotiation

· Responding to change over following a plan

When assessing the relative business value and technical cost of each project (or even project components), the Project Prioritization Framework is spot on. And in the Agile process, the tech gurus and business guys are in constant communication, changing project priority regularly.

Framework #4: SWOT Analysis

SWOT Analysis

Simply stated, the SWOT Analysis framework is a basis for developing competitive advantage. It assesses internal Strengths (S) and Weaknesses (W) against external Opportunities (O) and Threats (T).

Charting out the internal against the external in quadrants, then, the following competitive strategies can be developed:

· S-O Strategies play to a company’s strengths

· W-O Strategies must overcome company’s weaknesses

· S-T Strategies identify ways to use a company’s strengths against external threats

· W-T Strategies identify a company’s risk against external threats

Framework #5: The Strategy Matrix

At the risk of unabashed self aggrandizement, since this is a blog entry of my favorite frameworks, Favorite Framework #5 is my own, so you won’t see it elsewhere about it unless you hire Credera! The Framework came from an amalgamation of articles I’d read out of Harvard Business Review combined with a client need to look at their strategic values against operational decision making.

The Strategy Matrix

Using a traffic light approach to the matrix, each relative decision is highlighted with green (all systems are go), yellow (watch out for landmines) and red (what were you thinking) sections. The Strategy Matrix is helpful in strategy workshops and in defining the core, critical and commodity values of a business.

Framework #6: Force Field Analysis

Force Field Analysis

Yes, this is a Jedi Framework. The Force Field Analysis is a step beyond a traditional list of plus and minus points to a decision, or positive and negative aspects of a project. Force Field Analysis assigns relative numbers to each of the discreet points in order to come up with the ‘equilibrium’ of an issue.

Used to analyze influence, power and opposition, charting out Driving vs. Restraining forces of any given issue, with points given to each force as they are relative to each other is a great way to get to the bottom of political problems, as well as those more clear cut.

Framework #7: Affinity Diagram

Every use a bunch of sticky notes to categorize and group information? The Affinity Diagram, or KJ method (after author, Kawakita Jiro), is used to sift through data and let groupings emerge naturally, rather than according to already set categories. The Affinity Diagram method helps you look at data in new ways, and many times can reveal new patterns or ways of looking at business. I’ve even used the method, below, to brainstorm blog entries and categorize ideas.

Affinity Diagram

I’ve also used the Affinity Diagram framework in changing organizational perception of product (which usually focuses on technology and resources) to one of process (which usually takes portions of technology and resources). For example, rather than considering all of the cost considerations surrounding a billing system for customers, breaking apart all the activities associated with collections could lead to strategic business decisions surrounding market, partnership, or cost savings opportunities.

Putting It All Together

Putting together a business strategy analysis and plan could well involve all seven frameworks listed above. From looking at operational decisions on the Strategy Matrix to analyzing competitive threats using a SWOT Analysis, then looking at a given industry using Porter’s Five Forces and complementors using the Value Net, an organization can break down political hurdles using the Force Field Analysis and employ the Affinity Diagram to determine logical project groupings, which can be prioritized using the Project Prioritization Framework.

Click here to read more about Credera’s Business and IT Strategy offering, which uses a proven IT Strategic Planning Framework – an overarching framework which very well could use the seven listed above!

Sometimes the best advice comes from the worst experience. Especially when presenting to large audiences or C-level execs, each of which have their own particular way of letting you know when you might as well finish your speech…now. When piecing together a cohesive story in order to build your delivery, whether through a product webinar or conference speech, I have found the following seven rules to be a trustworthy guide. With a background in Sales, Product and Account Management, these have stood the test of time.

Rule # 1: The Thematic Rule

Quite simply, every slide must prove one central point. If your audience doesn’t walk away at least knowing what your ‘meta narrative’ or major point was, then you lost ‘em. After looking at every slide you talk to, ask yourself the question, “Does this defend or detract from my central point?”

Rule # 2: The ‘Beg the Question’ Rule

Everyone who has experience presenting knows not to read everything off the slide directly, but not many people are good at building slides that drive the story rather than telling the whole story. In other words, a good presenter creates mystery, and invites the audience to think for themselves, rather than telling them what to think. To use a tired allegory (my apologies in advance), ask yourself, “Am I catching fish for my audience, or teaching them how to fish?”

Rule # 3: The Rule of Three

Ever heard, “Tell them what you’re going to tell them, then tell them, then tell them what you told them?” The rule of three is a general guide to both repeatability and consistency – three sub-bullets for every category; three repetitions of each main point; three people but one being in the Trinity. Here’s why the rule of three works for repetition: if you repeat something once, the audience might hear it. If you repeat something twice, the audience should be able to quote it. If you repeat something three times, you risk the perception of being patronizing. So, say something once and repeat it twice if you want to make a point.

Rule # 4: The Rule of Surprise

Remember, half the people you know are below average. The rule of surprise keeps people awake, as humor, creativity and suspense drive engagement, no matter the subject. Just think about your favorite scene in your favorite movie. If there’s a grandiose line an actor drives home, it’s most likely on the verge of a climactic battle or delivered just after a really funny moment. Humor drops defenses so people listen, while building to a big point creates suspense. Just don’t overdo it in the drama department!

Rule # 5: The Climactic Rule

While we’re on the cinema kick, The Climactic Rule is taken from screenwriting guidelines. When you see a movie, the first 20% is generally building interest in the protagonist, then 60% builds to the climax about 80% of the way into the film. The last 20% concludes the story, and draws out conclusions from the journey. Taking the same method into a presentation (either from a timing or number of slides perspective) is a good general guide when you’re driving to a central point. Again, tell them what you’re going to tell them (20%), tell them (60%), then tell them what you told them (20%).

Rule # 6: The Rule of Proper Perspective

If a picture is worth a thousand words, a framework is worth a million. Dictionary.com defines a framework as “a skeletal structure designed to support or enclose something.” Those familiar with Management Consulting are indeed familiar with different frameworks, whether for problem solving, prioritization, categorization, or a variety of other issues (but that’s for a later post). The Rule of Proper Perspective, and the associated framework one might use to drive perspective, enclose your presentation in a defensible skeletal structure. Just make sure your framework is appropriate for your presentation if and when you use one!

Rule # 7: The Weakest Link Rule

A proper rule to end on, you should know your presentation is only as good as its’ weakest slide, as well as your weakest phrase. In fact, in listening to various vendor demonstrations in software selection processes through the years, I can easily compile a Bingo card of overused words and phrases. “At the end of the day, we think the bottom line is a best of breed solution that will drive synergies.” Barf.

Again, these rules aren’t hard and fast, but guides for presentations driving a point or a story. Each come out of times when I’ve fallen flat on my face and resolved to not make the same mistake again, lest it turn into a failure.

Based on an original article by Manish Limaye

Confession: I have never pre-judged Project Management quality by PMP certification, as much as the Project Management Institute might object. Not that there’s not inherent value in certification. Good certification (such as the PMP) is an obvious bar set for fundamentals of a given line of work. Quality Project Management, however, doesn’t rest on the fundamentals – it shines through relationship management, conflict resolution and negotiation skills. After all, everyone asks for a strong project manager – when they get one, they don’t want one.

Power to the People

More artists than scientists, good project managers excel at managing not only expectations, but also relationships. In the best cases, they can:

• Lead and motivate to ensure that all team members move with purpose toward a common goal
• Establish peer-like camaraderie with staff, thereby bridging power distance between supervisor and subordinate
• Manage stakeholders, customer, and sponsor expectations to ensure success at every level
• Recognize the power-alley (i.e. stakeholders, customers, and other individuals or groups with the most influence on the overall success or failure of the project) and take the actions required to secure and maintain sponsorship

Understanding how to talk to the right person at the right time to build consensus with the right people can be a challenge! And understanding not only a company’s, but a project’s culture can go a long way in mitigating project risk on the back end. After all, a project is one small step for the project sponsor, one giant leap for the project manager.

Negotiating Change

Goal setting, project planning, execution and monitoring are the hallmarks of an effective project manager. And those traits are often considered “commodity” skills in today’s environment.

Perhaps nowhere is this more evident than in the case of change management. Changes to project scope are inevitable in any long-term initiative. Good project managers rely upon the standard mechanisms (i.e. change management processes, etc.) to facilitate the decision on whether to execute a change in the project. Unfortunately, competing agendas and differences of opinion often sidetrack and hamper the process — resulting in the potential for poor decisions that may do more harm than good.

Through skilled negotiation and influence, exceptional project managers are able to minimize conflicts. As a result, their decisions are more likely to be made for the benefit of the project and company as a whole. And in negotiations, always remember Eleanor Roosevelt’s advice to “Never allow a person to tell you ‘no’ who doesn’t have the power to say ‘yes.’” After all, if everything is going exactly to plan, something somewhere is going massively wrong.

Communication Breakdown – It’s Always the Same

Sometimes proactively addressing conflict is good! (I try to convince my wife of that as well). Proactively addressing conflict starts with putting issues on the table rather than trying to manage around or put off a frank discussion. And while Type-A personalities will definitely engage head on in any challenges or assertions, the passive-aggressive personalities are more difficult to proactively engage. If each personality type is properly engaged, your project has a much better chance of success. Below is a list of potential conflict topics:

• Goals/Objectives
• Priorities
• Schedule
• Costs
• Features
• Quality
• Competitive Posture
• Follow-ons
• Flexibility
• Extensions
• Deliverables
• Outcomes
• Political Agenda
• Attitude
• Resources
• Policies
• Constraints
• Urgency

Mapping the appropriate conflict against the right personality type and exhibited behavior can greatly assist in conflict management. As a side note, constructive conflict is always based on objective analysis, not subjective opinion. Behavior is objective. Personality traits are subjective. ‘Nuff said.

Ultimately, great Project Managers possess the uncanny ability to keep the project interests at heart — while at the same time making sure that every constituency stays satisfied. After all, anything that can be changed will be changed until there is no time left to change anything.

Click here to learn more about Program/Project Management

One of the main areas businesses are always concerned about is security & disaster recovery plans, especially when moving information to a location that is outside of their physical control. To settle these concerns, all of Microsoft’s online offerings come with financially backed SLAs with 99.9% uptime guarantee, secure access via SSL, Cyber Trust, SAS70 compliance, multi-layered antivirus and spam filtering, and geo-redundant data centers.

For those that already have on-premise servers established another option you are presented with is the concept of coexistence. This will allow businesses to retain their established Active Directory and Exchange servers with the ability to work alongside their BPOS implementation through the use of AD synchronization and Exchange migration tools.

• The AD synchronization is one-way, from on-premise to cloud, so there is no risk to your on-premise AD implementation.
• For the Exchange migration from on-premise to online, this can be performed on an account-by-account basis in order to allow for the establishment of a migration plan or you can choose to migrate specific users and leave the rest using the on-premise server.

What does the future of BPOS hold?

As of today, the service offerings included in BPOS are based upon the 2007 software offerings. Unfortunately there currently are some noticeable gaps between the on-premise and online functionality, mainly around SharePoint Online. However, with the release of Exchange 2010 and SharePoint 2010 there are plans in the works to get the online offerings up-to-speed to match the on-premise functionality.

It is important to note that you will not be forced to automatically update to 2010 features. You will be presented with the option to upgrade in order to allow a planned transition to newer features and functionality.

Based on an original article by Manish Limaye

My wife and I used to joke that at home, I helped handle three-year-old problems, and at work, I helped handle three-year-old problems. In reality, much of the frustration caused by internal business issues, particularly between business and IT functions, comes down to the basics of communication and teamwork.

Planetary Alignment

Consider this: the misalignment of IT priorities and business objectives is as much the fault of the business as that of the IT function — if not more so. For years, the IT model has been saddled with the responsibility of aligning its agenda with that of the business plan. Many a business manager has uttered, “Our IT people simply don’t understand our business objectives.”

But how many business managers have actively sought out and engaged IT? Furthermore, how many business managers can clearly articulate how their project, group, and/or teams contribute to the company’s objectives? In other words, how can IT be expected to support the needs of the business if the business does not truly know what it needs? Not to mention, who really can tell which internal business division throws the best parties?

The Crazy Business Cycle

At the end of the day, the IT department is usually the one who gets a reputation for not playing nice in the sandbox. Clearly, no one can deny the difficulties of working with an insular IT department who, through years of misalignment with the business, now struggles to demonstrate its legitimacy and value to the company. And not surprisingly, that misalignment has a price. Larger business units hire their own IT support staffs. They make haphazard, knee-jerk technology decisions that benefit their own interests as opposed to those of the organization as a whole. It all happens when the business reduces its reliance on IT — because IT priorities don’t align with those of the business. And the crazy business cycle continues.

But fear not - there is hope! Before IT can begin to address the needs of the business, however, the business must clearly define its own objectives. Business unit managers must be able to explain how their function supports corporate objectives. Only then can IT become a productive participant in decisions about how information technology can enable the company to meet its objectives.

ABC…Easy as 123…

Through the realignment process, the lines of communication slowly begin to open. IT starts to understand the needs of the business — and can assess the existing application and technology infrastructure to determine how well it can support those needs. This typically results in the identification of functional and technical gaps, and the identification of projects that can fill the voids. At this point, the lines in the corporate sandbox become clearly drawn, and business owners start playing nice.

It can be very tempting for the business to start to let IT work on its own. But if success is the goal, then this can’t be allowed to happen. The company must remain actively engaged in the process of alignment — and provide input about which projects offer the potential for the highest returns or added value. Projects must have the appropriate level of sponsorship from key business leaders, and they have to be seen within the organization as legitimate.

Throughout the entire alignment process, IT begins to understand the business, and business begins to understand IT. With both organizations marching toward a common goal (to meet the company’s objectives), the process of alignment must be nurtured through mechanisms like IT governance and steering committees. Literally and figuratively, IT must be given a chair at the corporate table (and shovel in the sandbox) — where it can help transform the company. Only then can IT shed its classic form as a tactical delivery group and become a powerful strategic advisor.

Click here to learn more about Business/IT Strategy

Click here for a case study on Business/IT Strategy

Yes, I have received that subject line, and no, I did not open the piece, and yes, I did promptly flag the email as ‘spam.’ Other email campaigns at more reputable institutions, however, might have you similarly asking, “Why you speak like preschool toddler?!”

Here’s why: according to the Direct Marketing Association in their October 2009 Annual Economic Impact Study, email continues to deliver the highest ROI of any marketing channel, with an average of $43.62 returned for every dollar spent. In a distant second is internet search advertising, with a still strong $21.85 return for every dollar.

Pruning the Digital Money Tree

With the low cost and high return, marketing departments run the risk of taking a laissez- faire approach to email marketing. Because new revenue is always good, right?! How can anyone argue with results? Let’s try.

MailerMailer.com recently published their 2009 results study, showing over the past two years, they have seen the open rate percentage fall from 14% to 11.2%. With ‘list fatigue’ cited as one of the major factors, and all the emails sent on a daily basis from <insert retailer’s name here>, I think I can hear a collective “amen.”

The other main factors MailerMailer.com cited in the reason for the drop, however, appear to be interrelated: image blocking and handheld devices. Though many smart phones are indeed image capable, image wrapping just isn’t the same as text wrapping at the end of the day. It is a trend that should be noted, as The Radicati Group* estimates mobile phones accessing email will increase from just under 200 million in 2009 to a billion (yes, that’s a ‘b’) by 2013! Note to self: make sure to account for mobile devices in email campaign.

But, images themselves aren’t that bad in email campaigns (just image-only emails). Consider a couple of stats side-by-side. MarketingSherpa** released findings that only a third of email campaigns contained an image, while Forrester Research*** found video in email (even as an image with click-thru to the video) could increase click rates by two to three times! There’s a lot of room for video in the other two thirds of email campaigns! Note to self: get that multimedia crew back in here for the next email campaign.

What is completely unforgivable, however, is a really bad email campaign which drives not just potential customers, but loyal customers away. Poor grammar, inappropriate humor, ineffective promotional offers and bad decisions in general might show new revenue for a time, but erode a company’s future. All it takes is one really big mistake. Just consider this: Richard Nixon ended segregation, was the only President to achieve a balanced national budget between 1961 and 1998, is largely responsible both for creating the EPA and helping to end the Cold War, and had one really big lack in judgment. What do you remember Nixon for?

Getting Email Right

Matt Levy here at Credera, has written of several important factors in considering an email marketing implementation. Here’s a good process to follow:

“First, leverage existing customer information stored within internal IT systems. The goal is to provide a personalized and relevant experience and therefore, mining and utilizing existing customer information is a tremendous resource to the savvy marketer. Understanding the steps required to integrate customer data into the email marketing solution can make or break a successful campaign. One recent client required 39 different customer data fields to ensure the customer relationship was managed effectively once an email marketing solution was deployed.

Next, recognize that email marketing is a responsibility as much as an opportunity. Email marketing is a primary touch point for many organizations and must also be utilized to update and keep customer information reliable. Most departments within the marketer’s organization don’t have the resources or the ability to enable updates to customer information with the same magnitude or significance that marketing does when utilizing email marketing as a tool. The words from a popular movie a few years ago come to mind, “With great power, comes great responsibility”, I believe this was Spiderman’s uncle, but this seems relevant here too.

Have a plan. Email marketing is only one component of your integrated marketing and communications plan. Implementing email marketing should be tightly integrated with this plan. Understanding the implications of the various moving parts of email marketing will affect your plan. For example, implementing an internal or outsourced email marketing solution will affect budgets, timelines and internal resource requirements. Similarly, have you decided to use the email solution for internal communications as well? If so, how does this solution tie to the internal communications plan? If you are like many of our clients, internal and external communications are handled by different people within marketing. The need for a well understood plan across marketing and affected departments becomes the foundation to build consensus and direction while providing the necessary leadership to keep the ship moving in the right direction.”

Beyond building and deploying an effective email campaign, then, consider your best way to monitor and measure results, whether through tracking of total opens from time of delivery or click-thru rate to that cool new video you just embedded as a picture with a play icon. And don’t forget to get social. From 2008 to 2009, the number of marketers planning to grow their email list via social media rose by 32%.** Joining social media and rewards programs appears to be one area receiving current attention (but that’s for another article).

What do you want from me?

In an interesting study on restaurant email marketing at Bennigan’s**, personalized coupons were offered to customers in a four-day-only offer. The offer was relatively big: two entrees for the price of one. But the payoff was also big: a 12% lift in overall sales, including a 12.7% lift in beverage sales, 7% lift in appetizers, and 10.8% lift in dessert sales. The study notes Bennigan’s restaurants which even ran out of menu items!

Being personalized and purposeful, the email coupons were coded in order to track the exact effect of offline sales, providing the stats for the campaign. The personalized part was the time boxing: rather than sending on a specific day of the week for a mass blast, the email was sent to a restaurant customer based on how they plan visits.

Without a purpose, email marketing might as well not be done. Without personalization, it might as well be a mass mailing. Always remember you are unique. Just like everyone else.

We’ve been getting a lot of questions about SharePoint 2010 and if and why companies should upgrade from 2007 to 2010.  As with any new product out there, upgrading just for the sake of it is usually not a good idea and does not guarantee ROI.  Having worked with Microsoft directly through the Office 14 Developer Advisory Council, we have some specific insight into some of the key benefits a company can expect to gain by upgrading or migrating to SharePoint 2010.  If any of these appeal to you, you may want to look at making the move to 2010.

Enhanced UI - Microsoft has done a great job with the new UI of SharePoint 2010.  Aside from taking advantage of Silverlight and Ajax to create a much richer user experience, MS has also taken advantage of the ever popular ribbon UI and incorporated that into SharePoint 2010.  In general MS is working to converge SharePoint 2010 and Office products so that eventually, you won’t be able to tell where SharePoint stops and Office begins, or visa-versa.  This means less training and greater efficiency for your end users.

Empowered Users — SharePoint 2010 was built with the notion that IT cannot deliver all mission critical systems to all departments all of the time. By greatly enhancing and adding to the set of building blocks that users can incorporate into their own pages and workspaces (referred to as Composites in 2010), users can create powerful and practical business applications on their own.  In 2007, anything that was remotely complex would typically require Visual Studio, XML, or SharePoint Designer expert to build something practical.  Non technical users can also take existing solutions such as Access databases and convert them into SharePoint web-based data entry applications so that existing investments are not thrown away in order to become centrally managed.

Enterprise Level Social Collaboration - Microsoft has made some great strides in defining collaboration.  They have done a great job of emulating mainstream social collaboration utilities such as Facebook, Wordpress, Wikipedia, etc. and making them ideal for corporate usage.  This makes it much easier for your users to make the leap from traditional back and forth email communication to a social networking centric communication model.  This means, much more efficient communication and the constant capturing of tacit business knowledge without burdening your workforce.

Two-way Interaction with Business Data – SharePoint 2010 has reengineered the business data catalog to no longer require complex XML configurations.  Line of business systems can be integrated quickly and easily into SharePoint. Through an interface that is very similar to SharePoint lists, users can edit Line of Business data directly in SharePoint in a secure and efficient manner.  This is a big deal because most end users will only end up using 10-15% of a line of business system but you still have to train them on the overall system.  If they can interact with only the data they need to through a consistent and streamlined interface like SharePoint, the benefits are apparent.

Control for IT — Ok, so we have all of this great functionality and users can create their own powerful business applications with minimal involvement of IT.  Although this sounds like a great thing for the customer, this also tends to make most IT departments cringe.  SharePoint 2010 has added several control features that allow for IT to retain control and not let rogue applications and solutions hijack your company resources.  Through a robust throttling mechanism, IT can “Sandbox” end user solutions and only allow them to leverage a certain number SharePoint Server Resources (a Server Resource is a point system comprised of memory, disk space, CPU cycles and several other parameters that you can configure and put weights to).  The nice thing is you can Sandbox a site, page, web part, list, workflow, etc.  This granularity allows for lots of control.

On Premise or In the Cloud — SharePoint 2010 also unlocks several compelling deployment scenarios for your organization. With its new architecture, control mechanisms, and scalability features, companies can deploy either on premise or in the cloud without losing functionality or control.  In previous versions, only Windows SharePoint Services could be deployed in the cloud.  The biggest hindrance to MOSS 2007 in the cloud was the Shared Service Provider made MOSS difficult to fit on a shared, hosted environment.  SharePoint 2010 has gotten rid of the SSP and moved to an architecture that is conducive to this.

I’ll bet you didn’t know my laptop (a Dell Latitude E6510) could have been ordered in exactly 4,777,574,399 different combinations than the one I have now, did you?!

“Five billion different combinations for a single laptop?!” you say? And how many Dell employees does it take to make a laptop, much less screw in a compact fluorescent light bulb?! Enter B2B eCommerce…

Experiencing Technical Difficulties

“Occupational specialization continues within multinational supply chain.” It’s a headline you’re liable to see in any business publication within the past two decades, whether discussing Dell’s process for building computers or Kraft’s approach to food and beverage manufacturing and distribution. Business-to-business (B2B) eCommerce transactions are no exception, with purchase orders, invoices and payments rolled-up into an automated solution.

Where B2B has business-to-consumer (B2C) beat in terms of complexity, though, is in supplier’s negotiation ability, the natural outcome of volume aggregation cost savings associated with channel, rather than customer, management. Don’t you expect a discount when you’re purchasing hundreds of units rather than a single item? Aside from order volume, wouldn’t you expect a B2B eCommerce solution to track purchase frequency, account settings, product-level pricing based on customer contracts, inventory location and availability, and have advanced specialized shipping and freight settings? Assuming so, how are the lines blurred between B2B eCommerce and a full-fledged Customer Relationship Management (CRM), or even Enterprise Resource Planning (ERP) solution?

Technical configuration considerations include the process complexity of tying multiple customers, each with the potential to have multiple accounts, locations, and contracts, to multiple suppliers, each with the potential to have multiple products, locations, and prices. If that conundrum doesn’t get the database dude named Erwin and his fancy diagrams fired up, I don’t know what will.

Throw on top data integrity standards, governance issues and master data management considerations and the complexities exponentially increase.

Alphabet Soup

For purposes of defining scope, we will limit the role of B2B eCommerce to solutions with a more traditional eCommerce (online shopping cart-esque) flavor, but retrofitted with advanced supplier management tools and better back-end integration, including CRM and ERP integration. While there are B2B eCommerce solutions that uniquely focus on Electronic Data Interchange (EDI) applications (better called B2B Integration solutions), for the purposes of our discussion, a B2B eCommerce system discussed herein would support EDI (and XML) translation, but not be centered around the translation.

Analyst Brian Walker of Forrester has even identified the following “range of models” (read: favorite new acronyms) in the B2B eCommerce world. He notes these models are at times supported by a single solution. Most of the acronyms, though, like most tech talk, leave executives wondering “so what?!”

B2C - .com site
B2B – large wholesale account site to dealer
B2B2b - dealer to distributor portal to small parts dealer
B2b2C – product extranet to distributor portal to dealer B2C shop to consumer
B2E – sales support intranet to support materials
B2C/B2B – call center
B2B2C – B2B2C platform to .com retailer site

Besides, at the end of the day, do you really need to know if your B2B system offers A2A interfaces for CRM and ERP integration through EAI? Not to mention whether your CSR has CTI through your CRM so the ACD/PBX can pass-thru what came through the IVR?!

Quarter Ton Monkeys

Now that we’ve completed the B2B eCommerce vs. B2B Integration solutions discussion, effectively setting aside such offerings as IBM’s WebSphere and Oracle’s Fusion solutions, then who are some of the 500 lb. gorillas in the space? Glad you asked!

On the supplier side, Ariba is a clear leader, with impressive website collateral stating their Supplier Network includes 300 buying organizations purchasing from 150,000 suppliers, clearing over $8B per month across 66 currencies and 115 countries. The online environment allows a new supplier to become ‘Ariba Ready’ by incorporating Ariba’s web standards and therefore have immediate access to the buying organizations. Not to miss out on the capitalization of strategic sourcing, contract management, spend analysis and supplier management services (and by services, I mean deployed in a Software as a Service, or SaaS model), Ariba acquired Procuri, further developing the buyer-side of the B2B equation.

Speaking of M&A activity, then, I’d be remiss if I didn’t mention the pending GXS and Inovis merger. Purporting to have a combined 6M trading partner relationships and 10B annual transactions with over 40,000 customers and 2,500 employees all exclusively focused on B2B eCommerce and integration, it would be safe to say this ape’s going to be eating a lot of bananas. Though much of the product offerings do hinge on the B2B integration solution, there are core B2B eCommerce plays here as well.

Finally, NetSuite has an interesting offer in the deployment of (as their website states) “full-featured financials, CRM, inventory and eCommerce software – all in a single system.” ERP, CRM and eCommerce all together?! I thought they were supposed to be sold separate by the likes of SAP, Oracle and Microsoft!

Though not a comprehensive list, you at least now have a broad market overview and starting point for looking at the technical and functional considerations for your organization.

Because You’re Mine, I Walk the Line

As an example of growing your corporation’s top line through broadened reach or bottom line through decreased transaction costs, consider the health care sector in the States. According to Steve Keifer, VP of Industry and Product Marketing at GXS, US health care providers process between 8B- 18B transactions annually. With only 30-50% of payer transactions being electronic, you can do the math! There is plenty of room to grow.

NetSuite even compiled a white paper on Cartridge World, touting bottom line impact of $200,000 in annual IT and administrative costs removed, and a staggering $320M top line growth enablement.

The most significant bottom line impact, regardless of industry affiliation, is widely regarded to be environments where:

a) The supply chain is highly fragmented

b) Suffering exists in the area of inventory management

c) The business’ suppliers are willing to collaborate using the web

Because of these obvious cost-benefit ratios, back in Y2K, research firms Forrester and Gartner were predicting close to a $4 trillion B2B eCommerce industry by 2003. No, the number was not hit. Yes, much of the reason was the sunk investments and lack of integration between traditional B2B platforms already deployed. The systems were integral to businesses and also lacked easily configurable integration engines (producing the gi-normous B2B Integration space).

The End of the Beginning

Back to Dell. The cornerstone example of the just-in-time (or lean) manufacturing space, Dell was able to revolutionize the custom computer order experience both at the customer and business level. They electronically tied in their supply chain, highlighted by a five to seven day build and deliver process*:

Though the Dell model is not new, the overall benefits are widely lacking within the industries Dell does not operate. Industry verticals such as Healthcare, Utility, Education, Transportation, and Retail (to name a few), have significant room for waste reduction and productivity improvements.

Focusing on efficiency and effectiveness, then, is the measuring stick for effective B2B eCommerce in 2010 and going forward. Just as Peter Drucker penned, “Efficiency is doing things right; effectiveness is doing the right things.”

We, Credera, can partner with you to “do things right” and to help ensure you are “doing the right things” by:

• Assessing and rationalizing your corporations’ eCommerce Solutions across the complex B2B spectrum
• Engaging in a Software Selection ensuring fit and value across the varied and growing range of B2B eCommerce suppliers
• Equipping your business through Business Process Reengineering for the best results possible with your B2B eCommerce deployment, and/or
• Implementing the right B2B solution for your organization

Though many businesses have yet to unearth the transformational promise touted by B2B eCommerce in the wake of supplier integration complexities and dubious cost-benefit analysis, the results are in. B2B eCommmerce has proven its value, as varied as the applications are, and is here to stay.

*Dell example based on Lucas, Henry C., Jr. (2005). Information Technology: Strategic decision making for managers. New York: John Wiley and Sons. Page 53.

Looking for those hours of ongoing education you need for professional development, but don’t want to spend your hard earned nickels this year? Maybe you thought you should at least see what the inside of a University class actually looks like after prioritizing the social benefits of collegiate life?

Whatever the driver, there’s plenty of online education available, most that come with a price tag and a note that “you get what you pay for.” Every once in a while, though, that crazy price-to-value ratio tips in favor of the consumer that has already sunk a capital investment into a computer with ongoing expenses of Internet charges – or visited a public library. So here’s to letting (online business education) freedom ring…

Favorite site #1: QuickMBA

A great overview/refresher along all the major disciplines within an MBA, QuickMBA does a great job of not only giving you the essentials from accounting to strategy, but also provides a great recommended reading list further exploring each summary.

Favorite site #2: MIT’s EE Open Courseware

What better place to learn about EE than from MIT?! MIT also has open courseware around Economics, and the Sloan School of Management is highly regarded as some of the best open courseware on the web.

Favorite site #3: Yale’s Economics courses

Yale’s Economics courses include game theory and financial markets, and as an added bonus include audio and video, easier for me to personally get engaged in an online environment.

Favorite site #4: Berkeley

Berkeley also does a good job of webcasting audio and video, and has an Introductory Probability and Statistics for Business course in particular, distinguished from other sites.

Favorite site #5: The Open University

For the more traditional read and click online learning, out of the UK comes The Open University, with courses specific to Business and Management which are rated by users and focus on more practical applications associated with the courseware.

Favorite site #6: University of Southern Queensland

While we’re going international, then, the University of Southern Queensland has an interesting course on Communication, Technology and Policy.

Favorite site #7: Carnegie Mellon’s Open Learning Initiative

Finally, along the lines of interactivity (including quiz/refresher interactive questions while you read), Carnegie Mellon’s Open Learning Initiative spans multiple subject areas and allows anyone to ‘peek in’ to a course to take it anonymously (without a login).

Just remember in your studies the advice from my last fortune cookie, “Learning without thought is labor lost.” Or as Jim Rohn envisaged, “Formal education will make you a living; self-education will make you a fortune.”