Oracle SCIP Presentation

8/4/2019 Oracle SCIP Presentation

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Paul Senatori

Ridding the Market ofCompetition

Paul SenatoriCompetitive Intelligence

June 18, 2001


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Disclaimer


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The information, views, ideas andstatements in this presentation aremine and do not reflect the policies,

practices and operating procedures ofOracle Corporation.

All references to Oracle are purely coincidental.


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Speaker Bio Sr. Director Competitive Intelligence, Oracle Corp.

Oracle 34 quarters (CI)

Ingres 3 Years (CI)

Sybase 3 Years (CI)

Apple Computer 3 Years (MR)

Bank of America 3 Years (MR/CI)

ComputerLand 2 Years (MR)

Survey Research Center 2 years (MR)

Education BS Information Management, USF


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Agenda

Disclaimer and Safe Harbor Statement

The (competitive) DNA of Oracle

Moving CI into the Value Chain, RevenueStream, etc.

CI Experiences at Oracle


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Sun Tsu Attila The Hun Larry Ellison


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Sun Tsumeet Attila The Hun(Strategic and Operational Mentors, respectively)

Both actively deployed intelligence agents

The later was a relentless field commander The former made clever strategic use of

mans greed and natural failings understressful conditions

LJE is a impassioned advocate of ancient

Japanese customs and practices


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Attila-the-Hun.com Whos the faster barbarianin Europe?

Whos empire costs 7 timesthe Huns?

The Huns Extend their Lead

over the Romans


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oracle.com


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Unique Market/Industry Environment Two major cycles can quickly end any vendors run

in the market

Product cycles are now 3-6 months(could become days in next 2-3 yrs.)

Product weaknesses can be backfilled in a matter of

weeks (soon to be days) Management at competing vendors are former

Oracle alumni

Hyper-aggressive competitive actions are tolerated

Defections to competing firms are common place


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Competitive Landscape

Consolidation Acuity Advanced Planning

Solutions

Appnet Artistry Aurum Baan Beologic

Business Evolution Clarify CommerceBid.com Concentra Darwin

Datasage Epicon Exactium Geotel ICC

Periphonics Prospect Premisys

RightPoint Scopus Silknet Simbad Digital Solomon SupplierMarket.com Tinoway The 20-20 Group Tradex Trading Dynamics Transitif

Vantive Versatility Voicetek Webline

Interleaf Janna Matrix

Mergent Mustang.com NetDialog Numetrix Metropolis Newtonian Oberon Octane OnDisplay OnLinkTechnolo

gies OnTarget OpenSite Paragren


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Competitive Landscape

Consolidation Acuity Advanced Planning

Solutions

Appnet Artistry Aurum Baan Beologic

Business Evolution Clarify CommerceBid.com Concentra Darwin

Datasage Epicon Exactium Geotel ICC

Periphonics Prospect Premisys

RightPoint Scopus Silknet Simbad Digital Solomon SupplierMarket.com Tinoway The 20-20 Group Tradex Trading Dynamics Transitif

Vantive Versatility Voicetek Webline

Interleaf Janna Matrix

Mergent Mustang.com NetDialog Numetrix Metropolis Newtonian Oberon Octane OnDisplay OnLinkTechnolo

gies OnTarget OpenSite Paragren

62 VendorsConsolidated, Acquiredor Merged with Larger

Competitors


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Guiding Objective of CI at Oracle

Maximize global competitive win-ratewhile minimizing potential

competitive, market and industry-related risks


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CI Management Strategies Build and maintain an infrastructure capable of

supporting the Global CI needs of Oracle

Monitor and track competitors activities and alertkey groups to appropriate response options

Develop and maintain an effective and efficientsystem of delivering competitive intelligence to theField, Development and Senior Management


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Roll within the Organization Custodians of Competitiveness: Continuity,

consistency and cross-functional coordination

Leverage Field Operations Data Collection and Feedback mechanism Global competitive picture (reduce US-bias)

Provide leverage across 172 field offices in 90+ countries

Competitive review teams in every product category

Institutionalize the competitive function(legal, thorough, consistent and delivered with surgicalprecision)


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Competitive Foundation

(ongoing development)Company Profile

Management ProfileTop Knockoffs

FinancialsChannels/Alliances/Partnerships

Other (company-related)Product Descriptions

Product Availability/PlatformsProduct Pricing/Licensing

Other (product-related)Competitive Positioning

Objection Handling

Frequently Asked QuestionsFeature ComparisonsProduct Demos/Screenshots

BenchmarksThird-Party Quotes

(analysts, customers, press,partners, mgmt.)

Customer StoriesCrystal Ball/Strategic Outlook

Strategic OutlookCost-of-Ownership

RFI QuestionsUnderlying Technology

Discussion(s)Additional Competitive Resources


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From Paper to Dynamic PortalCompany ProfileManagement ProfileTop KnockoffsFinancialsChannels/Alliances/PartnershipsOther (company-related)Product DescriptionsProduct Availability/PlatformsProduct Pricing/LicensingOther (product-related)Competitive PositioningObjection Handling

Frequently Asked QuestionsFeature ComparisonsProduct Demos/ScreenshotsBenchmarksThird-Party Quotes

(analysts, customers, press, partners, mgmt.)

Customer StoriesCrystal Ball/Strategic OutlookStrategic OutlookCost-of-OwnershipRFI QuestionsUnderlying Technology Discussion(s)

Additional Competitive Resources

90+ competitors(~5 new competitors added

monthly)


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Fitting CI into the Sales Cycle

Get in the GameRelationship

First Call Qualification

Discovery

Advertising Exec Breakfasts CIO Conferences

Press Releases Product Announc. Realtime Updates 3rd Party Advantage Series Technology Series

Investigationand research

Rep Tour Detailed Survey

Requirements Company Pres

Seminars Direct Mail White Papers

Product Collateral Realtime Updates Fact Sheets Sales Guides Competitive

Training and

Briefings

RequirementsPositioning

Demos Benchmarks

Solution Pres RFP / RFI

Seminars Direct Mail White Papers

Product Reviews Fact Sheets Sales Guides Snapshots Training Advantage Series

Technology Series

The OrderProof

References Endorsements

Exec Visit Customer Visit

CB90 Reference Prgm Sales Guides

Snapshots TCO Comparisons Pricing Guides Discount Guides

LoyaltyRepurchase

References Endorsements

CAB

Reference Prgm Comp References Sales Guides

SalesObjective

SalesProcess

InformationTool

Awareness Interest Consideration Purchase Post Sales


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Neutralizing Your Competitors Best

Weapon - references

Suspects Prospects Customers RepeatCustomers

ReferenceableCustomers

Traditional Competitive Battlefield

Customer

Advocates

Counter or neutralized

Migration, Switch, Trade-in

and Competitive UpgradePrograms

Uneducated Prospec ts

Ti re K icker s

I ndec isi ve Prospec ts

Secre t i ve Pro spects

Yo u ' r e - I n - T h i s- Ju s t - To - M ake - I t - Com pe t i t i ve Prospec t

Consu l t an t s as Prospect s

Dys func t ion a l Prospec ts

The Van ish i ng Prospect


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Competitive Ads (CNN spots)


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Oracles Market Position

IBM

24%

Microsoft

7%

Other

23%

Oracle46%

SAP

18%

JDE

13%

Other

26%

Peoplesoft

15%

Oracle

28%

2000 DatabaseMarketshare

2001 E-Business SuiteMarketshare


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Highjacking Your Competitors News

Coverage

Using:

Keywords

Paid searchindex listings


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Aggregate Competitive Profiling 10 competing vendors

10 product categories

1 competitive statement

1 lead proof statement

Plays well in a Globalmarket


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Multi-pronged Attack on IBM


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Only 4% use

competingproducts

Direct

Challenge to

BEA

Attack SingleProduct

Companies

Migrate from

Siebel and

Survive

Attack 10

separate

Vendors


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Larrys Favorite Ad.Performance

Challenge with $$$ on the Table

Our high-speed cache,coupled with our

database, will run your

web site at least 3x fasterthan IBM, Microsoft or

BEA or we will give you

$1,000,000 in cash.


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Attacking IBM and BEA with 3x

Performance Guarantee


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Competitive Battle spills onto Hwy. Gorilla Marketing at

its worst?

Current campaignattacks IBMscodernauts

Key: multi-yearlease on keycompetitor buildingbillboard locations(Informix tool a 5

yr. Lease in front ofOracle HQ)

Oracles Homepage


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Oracle s HomepageA study in outbound competitive assault

practices


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Anatomy of Oracles Homepage


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Ruthless Competitive Pressure

3 Part CompetitiveAttack on IBM

Turning attacks intoa call-to-action forcustomers

Ariba

Informix

H dli N US C titi


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Handling Non-US Competitive

Restrictions

H dli Gl b l C titi


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Handling Global Competitive

Advertising RestrictionsNorth AmericaNorth America

EMEA / APAC


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The Clever use of Press Releases


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Use of Competitive materials on


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Use of Competitive materials on

Product Pages


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Rhetorical Comp Questions

2

1

Maximizing Outside


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Maximizing Outside

Sources

Customer focused Competitive Msgs


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Customer focused Competitive Msgs.(Technology Series)

Select a key weakness or failing inyour competitors product/service

Phrase the attack as a question(Why should you care about X?)

Keep it short w/ third-partyevidence

Create a whole series of these, I.e.one per key competitor weakness

C stomer foc sed Competiti e Msgs


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Customer focused Competitive Msgs.

(Advantage Series) Straightforward repurposing of

typical internal competitivecontent

Three parts:

1. Comparison Attribute

2. Proof Point

3. Advantage to Your Business

Proof points should highlightindependent evidence

12 3


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Fact-based Competitive Collateral Multiple Audiences Prospects

Customers

Analysts Press

Partners

Sections (1-2 pgs)

Financials (viability) Buying Intentions (validation)

Analyst Quotes (expert concur)

Customer Quotes (piers concur)

Functional Differences(technical)


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Your Competitive Message Novel concept?

Embodies core product benefits

Key competitive differentiation

Competitors weaknesses

Unique to each competitor

Multiple CMs per product

Constantly revisited and updated

Press and Analysts love it

Littered with FUD

Effective strategy when your product is a dog


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Debriefing New Hires

Larry (just hire the entire departmentor inour case, their entire Portland DevelopmentLab 20 developers)

Systemic vs. adhoc

Legal issues

Swimming with Sharks


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Swimming with Sharks(working with lawyers)

Best friend or worst enemy?

Establish early communication

Professional standards and ethics

Play-up SCIP, code-of-ethics

Offer profiles of third-parties

My experiences


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Avoiding EEA violations

Know the law

Know the cases since 96

Brief your Legal Dept. on EEA particulars

FBI/US Attorney are on the lookout for

poster CI efforts

All it takes is one misrepresentation to land

you in Jail

Management and Deployment of Third


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Management and Deployment of ThirdParties

Use 3-4 firms

Avg. engagement

3 weeks (duration) $10-20k

Fewer $2-5k engagements

Issues:

Quality - unpredictable

lack of industry-specific knowledge

Lack of technical expertise

Non-exclusive business practices Some are a little too covert

Selling use of third-parties to management


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Competitor Conference Coverage

A leading East Bay ERP and CRM vendor conference(5 days attendance + 5 days post-event debriefings)

A large CRM vendor whos Founder owns a ranch (Annual User

Conference)(5 days attendance + 2 weeks post-event debriefings)

A newly crowned subsidiary of a large Canadiantelecommunications equip. supplier (User Conference)(3 days attendance + 3 days post-event debriefings)

A Company with only 2 letters to their name (User Conference)(4 days attendance + 2 weeks post-event debriefings)

Company named after a joyous Spanish cheer (Annual UserConference)(3 days attendance + 1 week debriefings)

Just moved their East Bay HQs (User Conference)(3 days attendance + 1 week debriefings)

IMPORTANCE OF AN ADEQUATE BUDGET.


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No budget for 3rd Parties?

How do you approach competitors directly?

Can you use the EEA to justify the use ofthird parties?

Striking a balance (ethics, legality and

business objectives) Estimated cost of being shutdown at a

competitive event vs. cost of third party

Cease-and-Desist Letters


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Cease and Desist Letters(Cause for concernora badge of courage?)

Common or rare occurrence?

Precursor to more dire actions?

Panic, ignore, respond or cost of engaging ina competitive market

When do issues escalate?

Large vendors vs. small startups

PR factor


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Information Contribution Incentives

Information contributors

Self-supporting program

Put major dollars behind effort

Never underestimate the value of a free tee-

shirt

Tier Incentives

Automate logistics for daily contributions Recognize frequent contributors


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Coopetition partners and alliances

Unique Situation

Almost every competitor is also a partner

Microsoft, IBM, Sun, HP, PeopleSoft, SAP

Some of our competitors are also our largest

resellers (SAP, PeopleSoft)

Interesting competitor selling dynamics

(IBM) Implications to CI practice


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Careful Who Your Friends are

Andersen Consulting

Siebel

KPMG

Calico Blue Martini

MarketingCRM

Cambridge TechnologyPartners

E.piphany

MarketingeCommerceConfigurator

PriceWaterhouseCoopers

InformaticaE-CommerceAnalytics


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Anatomy of a Field CI Deliverable

Deliverables are audience specific(sales, sales consultants, acct. management, marketing, alliances,

PR, AR, IR, Exec, development, alliances, partners)

Deliverable structure is situation specific (time,mobility, access, remoteness, bandwidth, language, etc.)

Economics Drive Changes multi-purposecompetitive content

Competitive Foundation


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p(ongoing development)

Company ProfileManagement Profile

Top KnockoffsFinancials

Channels/Alliances/Partnerships

Other (company-related)Product DescriptionsProduct Availability/Platforms

Product Pricing/LicensingOther (product-related)

Competitive PositioningObjection Handling

Frequently Asked Questions

Feature ComparisonsProduct Demos/Screenshots

BenchmarksThird-Party Quotes

(analysts, customers, press,partners, mgmt.)

Customer StoriesCrystal Ball/Strategic Outlook

Strategic OutlookCost-of-Ownership

RFI QuestionsUnderlying Technology

Discussion(s)Additional Competitive Resources

50% of Competitive Sales Materiald d i Obj i H dli


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are grounded in Objection Handling

Supporting field sales can be tough or easy

Avoid hotline support model like the plague

Majority of request are for the same information

Field information requirements can be classified

Meet their needs and theyre your best source

Dont underestimate turnover

Your best CI materials leave via the field first Teach

the field that the competitor is not always acompeting vendor (basic sales techniques apply)

L lt Obj ti it P ti


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Loyalty vs. Objectivity Perception

A byproduct of a monarchial and youthfulmanagement team

Call it drinking the Kool-Aid, loyalty, faith,team-player or whatever

Impact on career advancement and intra-company mobility

Marketing vs. Sales vs. Development

Diff t H Diff t E i


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Different Homes, Different Experiences

Field Marketing

Field Sales

Development

Corporate Marketing

Product Marketing

PR/AR/IR

Orphaned CI function?

Research Approaches andTechni es


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Techniques

On-line information sources Web- sources

Factiva, Nexus, Dialog, Profound and Disclosure Industry Analysts (Gartner, IDC, Meta, Forrester + 20 others) Financial Analysts (specific analysts tracking competitors)

VC community (and supporting service firms) Competitive email subscription lists Internal Competitive Networks (HQ & Field)

Channel Partners Staff at competing firms

Sampling of Syndicated ResearchServices


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Creative Research Approaches


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User groupsAnnual customer conferences/tradeshowsRegional user group meetings.

Seminars, executive breakfasts, demo-days,

etc. Press and analyst briefings Tradeshows Partner/channel events



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New employee debriefing Trade/industry article sponsorship

Usenet and discussion board monitoring Legal discovery

Demo / evaluation copies of competing products

Release calendar mapping Channel / reseller programs

GSA contract schedules Foreign technology/product disclosures



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Venture capital firms: technology evaluation Patent and trademark postings

Infrastructure targeting Earnings conference calls Headhunters and executive recruitment firms

On-line/web resume listings Competitors beta customers

If lost for sources: look at how you would find similarinformation about your own company

Hyper-Competition requires Hyper-Responsive Practices


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Responsive Practices

Quick turnaround

Attack or be attacked

Its the competitors responsibility to disproveyour claims

Attack and move ondont get caughtprolonging existing programs

Automate inbound feeds as much as

possible Automate alert and warning capabilities

Tips for CI Survival in the TechSector


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Sector

Marketing is a dangerous home for CI

Assume your content has legs and no loyalty

Customers insatiable appetite for CI content

Use the press and analysts to your advantage

Tread carefully in the land of partners

Its easier to ask for forgiveness than for permission,I.e. take the initiative for competitive response andattack programs

Measuring Your Effectiveness andEfficiency


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Efficiency

Win-Loss rates

Revenue impacted

Marketshare

Downloads

Press/analyst mentions (channel noise)

Peer reviews

Cease and desist letters Classic content delivery objectives

Content Delivery my experiences


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Content Delivery my experiences

From paper to portals

Dynamic content dictates media

Authoring tools

Feedback mechanisms

Personalization

Maintaining voice and presence

In-person briefings Multi-purpose content

My Biggest CI Success


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My Biggest CI Success

Assembling an unrivaled team of competitiveanalysts

Competitive Pocket Guide

Competitive Intelligence Portal

32 City Competitive Training Campaign Crush Sybase and Kill Informix programs

Repurposing competitive content for useoutside the firewall

My Biggest CI Failure


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My Biggest CI Failure

Failure to fully quantify our aggregate effecton revenue and marketshare

Interaction with industry and financialanalysts

Not playing the political game when budgetand headcount were in jeopardy

Not cross-training staff in multiple product

categories (coverage exposure)

One of the most valuable tacticaltools at your disposal


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tools at your disposal

Competitive weakness validated by a reputable andrespected third-party

Dissatisfied customers willing to go on record withthe press and analysts

Financial analysts negative commentaries oncompetitors short and/or long term prospects

Poor showing on industry standard benchmarks

Attacking/Defending vs. CreatingNew Products


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New Products

The Catalyst: Consequence of poorly policedpatents, few true trade secrets, absence ofproprietary processes and a highly transientengineering workforce

The Result: Industry littered with me-too productsand messages

(begs attack/defend tactics) Typical Response: Disproportionate % of

marketing budget spent on competitor relatedprograms

Highjacking market coverage behavior

Lure vendors into your agenda(and away from their own agendaSybases Classic Move against Oracle in 90-91)

Article and Editorial ContentPlacement


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ace e t

Killer competitive program

Intercepting customers below competitors radar

Built-in credibility

Surprising level of receptiveness amongst trade andtechnical publications

Shelf-life of competitive articles is longer thaninternal materials

Subtlety is the name of the game

Great tool for building relationships with engineeringstaff

A Global FootprintAdvantages and Disadvantages


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g g

Field sales

Cultural issues

Regional competitors

Product release / version issues

Massive opportunitiesmassive tragedies

HQ disconnect with remote office at

competing firms (great opportunity for FUD)

Competitive Moles(yes, it does happen)


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(y , pp )

Be on the lookout within your ownorganization

Warn analysts/staff against using moles incompeting vendors (ENORMOUS legal

repercussionsnot to mention loss of job) Dont ask, dont tell approach (doesnt work

if youre manager of a CI organization)


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New Directions,New Directions,

Programs and InitiativesPrograms and Initiatives


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Key CompetitiveKey Competitive

IndicatorsIndicators(Competitor/Market/Industry)(Competitor/Market/Industry)

Key Performance Indicators(Competitive)


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p

Share of voice Win-loss Stats Market position

Market share Analyst ratings, rankings,

evaluations Customer references

Share of major industry lists Attrition by position type Financial metrics Closure rates

Product downloads (demo,samples, trials)

Subscription rates

Product release calendars

Ratios of macro indices

(product, industry, market,organizational, financial)

Sales and lead Pipeline

Ad/promo/dm/banner stats

Partners, developers, ISVs,downloads, transactions,size of transactions

Geographic penetration

Key performance ratios

Pipeline, closure rates, etc.


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Q U E S T I O N SQ U E S T I O N S

A N S W E R SA N S W E R S


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Documents

Oracle SCIP Presentation