Intranet Portal, Solution Services and CPL

Intranet Portal, Solution Services and CPL

Summer Training ReportDate of Submission: 03-Aug-2011

Submitted To: Sonam Lal Head, Marketing & Communication SAP Global DeliverySubmitted By: Arpit Bansal Roll No: 1070370012

Table of ContentsAcknowledgement6Preface71. About SAP81.1 History in the Making91.2 Business and Markets102. Enterprise Service-Oriented Architecture112.1 Products112.2 Partnerships132.3 Organization132.4 SAP Endorsed Business Solutions (EBS)143. SAP - SAP Global Delivery: Enabling and Delivering Services153.1 Consolidation of services163.2 Added Value Through Industrialization173.3 Working Arm-In-Arm With A Partner Ecosystem184. Introduction to Marketing204.1 Approaches for Marketing214.2 Marketing Mix264.3 Four 'P's284.5 Marketing Strategy304.6 Business Marketing Vs. Consumer Marketing324.7 The Marketing Environment394.8 Segmentation, Targeting, and Positioning464.9 International Marketing535.0 PROJECT 1- Intranet Portal645.1 SAP NetWeaver Portal and Collaboration645.2 Portal Look & Feel765.3 Enterprise Web Portal Questionnaire775.4 Findings - Existing Portal835.5 Survey Within the Organization845.6Suggestions845.7Solution For Findings - Existing Portal855.8 Portal Phases875.9 Proposed Features885.10 Proposed Look and Feel for SAP Touch885.11 Key Components on SAP Global Delivery Home Page916.0 Project 2 Solution Services for Caterpillar1026.2 History1036.3 Caterpillar Strategy1046.4 Five Year Goals1056.5 Major Challenges1086.6 CAT Dealer Business Opportunity1096.6.1 Opportunity1096.7 Opportunity Challenges1106.8 Significant Project Variations1106.9 Solution Approach1116.10 Questions for Clients/Prospects1136.11 SAP Cat Dealer Program1146.12 SAP Strategy to Monetize the CAT Dealer1156.13 What is the Ask of SAP Management?1176.14 SAP Global CAT Dealer Center of Excellence1186.15 SAP Cat Dealer Program1196.15.1 Application Strategy1196.16 Approach1206.17 Benefits1206.18 SAP CAT Dealer Template1217.0 Project 3 CPL (Competency Premier League)1237.1 Corporate Innovation Leadership Questionnaire1237.2 Findings1257.3 Solution for Findings Launch Of CPL1257.3.1 What is the Competency Premier League?1257.3.2 Go Beyond The Boundary1257.4 CPL Phases1267.4.1 Power Play - Make Your Pitch1267.4.2 Power Play - Thought Leadership1287.4.3 Pinch Hitting - Innovation1297.4.4 The Doosra - QUIZ1317.5 The CPL Official Web Page1317.6 Winners1348.0 BIBLIOGRAPHY135

Acknowledgement

I, Arpit Bansal, a student of MBA-Finance & Marketing Management, Shri Siddhi Vinayak Institute of Management, Bareilly would like to take this opportunity to thank SAP Global Delivery for providing me the opportunity and platform for carrying out my summer training project. Without their response, support and help, I would have never been able to manage as efficiently.

I would not have been able to carry this project out without the help and guidance of my Project Head Sonam Lal, project guide Amrita Nandi; Surabhi Singh, Arun Baindur, S.Sajish, and Nisha Sinha. Also my college faculty guide and respected Deputy Director Abhijit Das Gupta Sir was another key contributor in the project completion. They all wholeheartedly supported me in my endeavor, and provided me with valuable inputs and insights at each stage. Lastly, I would like to thank all colleagues who helped me clear my doubts. This project would have never been able to see this stage, had it not been for their co-operation.

Preface

M.B.A. program is one of the most reputed professional courses in the field of management. This course includes both theory and its application contents of curriculum.Research Report is an integral part of the M.B.A. program of GAUTAM BUDDH TECHNICAL UNIVERSITY. Each student is required to undergo research from the company in his/her third semester. As complimentary to that, every trainee has to prepare and submit a report on the research work conducts by the student. This report is at continuation of the above tradition. The topic of the report was Intranet Portal, Solution Services and CPL in SAP Global Delivery, SAP India Pvt. Ltd.At Bangalore (Karnataka) which is relevant to this research report. This research is an attempt to present a report on SAP Global Delivery Intranet Portal Solution Services and CPL at the work place under theSAP Global Delivery, SAP India Pvt. Ltd.

Arpit Bansal

1. About SAP

1.1 History in the Making

SAP AG is a German Global Software corporation that provides enterprise software applications and support to businesses of all sizes globally. Headquartered in Walldorf, Baden-Wrttemberg, with regional offices around the world, SAP is the largest enterprise software company in the world. It is also the largest software company in Europe and the fourth largest globally. The company's best known products are its SAP Enterprise Resource Planning (SAP ERP) and SAP Business Objects software. SAP is the world's largest business software company with more than 53,000 employees at sales and development locations in more than 50 countries worldwide.

SAP was founded in June 1972 as Systemanalyse und Programmentwicklung ("System Analysis and Program Development") by five former IBM engineers in Mannheim, Baden-Wrttemberg (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther).The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data Processing").In 1976, "SAP GmbH" founded, and moved its headquarters the following year to Walldorf. SAP AG became the company's official name after the 2005 annual general meeting. AG is short for Aktiengesellschaft (corporation).

In August 1988, SAP GmbH transferred into SAP AG (a corporation by German law), and public trading started 4 November. Shares are listed on the Frankfurt and Stuttgart stock exchanges.

1.2 Business and MarketsSAP is the world's largest business software company and the third-highest revenue independent software provider (as of 2007). It operates in four geographic regions: EMEA (Europe, Middle East, Africa), AMERICA (United States and Canada), LAC (Latin America and Caribbean), and APJ (Asia Pacific and Japan), which represents Japan, Australia, India, and parts of Asia. In addition, SAP operates a network of 115 subsidiaries, and has R&D (Research & Development) facilities around the globe in Germany, India, the US, Canada, France, Brazil, Turkey, China, Hungary, Israel, Ireland and Bulgaria.

SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service industries, financial services, and public services. It offers more than 25 industry solution portfolios for large enterprises and more than 550 micro-vertical solutions for midsize companies and small businesses.

2. Enterprise Service-Oriented Architecture

Service-oriented architecture moves the ERP (Enterprise Resource Planning) landscape toward software-based and web services-based business activities. This move increases adaptability, flexibility, openness, and efficiency. The move towards E-SOA helps companies reuse software components and not rely as much on in-house ERP hardware technologies, which makes ERP adoption more attractive to small and mid-sized companiesAccording to a press fact sheet from SAP, "SAP is the only enterprise applications software vendor that is both building service-orientation directly into its solutions and providing a technology platform SAP Net Weaver and guidance to support companies in the development of their own service-oriented architectures spanning both SAP and non-SAP solutions."

2.1 ProductsSAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The current version is SAP ERP 6.0 and is part of the SAP Business Suite. Its previous name was R/3. The "R" of SAP R/3 stood for real time even though it is not a real time solution.

The number 3 related to the 3-tier architecture: database, application server and client (SAPGUI). R/2, which ran on Main frame architecture, was the predecessor of R/3. SAP ECC is one of five enterprise applications in SAP's Business Suite. The other four applications are: Customer Relationship Management (CRM) helps companies acquire and retain customers, gain marketing and customer insight Product Lifecycle Management (PLM) helps manufacturers with product-related information Supply Chain Management (SCM) helps companies with the process of resourcing its manufacturing and service processes Supplier Relationship Management (SRM) enables companies to procure from suppliersOther major product offerings include: the Net Weaver platform, Governance, Risk and Compliance (GRC) solutions, Duet (joint offering with Microsoft), Performance Management solutions and RFID. SAP offers SOA capabilities (calling it Enterprise SOA) in the form of web services that are wrapped around its applications.While its original products were typically used by Fortune 500 companies, SAP now actively targets small and medium sized enterprises (SME) with its SAP Business One and SAP Business All-in-One.

2.2 PartnershipsSAP partners include Global Services Partners with cross-industry multinational consulting capabilities, Global Software Partners providing integrated products that complement SAP Business Suite solutions, and Global Technology Partners providing user companies with a wide range of products to support SAP technology, including vendors of hardware, database, storage systems, networks, and mobile computing technology.

Solution extensions partnersThis is a small number of companies which provide functionality that complements SAP solution capabilities. These enhancements fulfill high quality standards and are certified, sold and supported by SAP directly. These partner companies include Adobe, CA Technologies, Hewlett-Packard, IDS Scheer, OpenText, Nakisa, Inc, ICON-SCM, and Smart Ops.

2.3 OrganizationFunctional units of SAP are split across different organizational units for R&D needs, field activities and customer support. SAP Labs are mainly responsible for product development where as the field organizations spread across each country are

responsible for field activities such Sales, Marketing, Consulting etc. Head office located in SAP AG is responsible for overall management as well as core engineering activities related to Product Development. SAP customer support, also called Active Global Support (AGS) is a global organization to provide support to SAP customers worldwide.

2.4 SAP Endorsed Business Solutions (EBS)One of SAP's highest partnership levels lead to a product being designated as an Endorsed Business Solution (EBS). Globally, only 33 companies are SAP Endorsed Business Solution providers. The EBS partnership is an invitation only partnership. These companies are: Aris Global CA Conformia Development Epic Data ESRI FRS Global Greenlight HCL Implico InQuira Invensys Wonderware KSS Fuels Meridium NRX Global Open Text Oracle ORSoft OSIsoft MDUS Oversight Systems Prologa Questra Quorom RIB Software SPSS StreamServe (Open Text) TechniData cFP Triple Point

3. SAP - SAP Global Delivery: Enabling and Delivering Services

SAP Global Delivery provides a flexible mix of on-shore, off-shore, and near-shore services delivered remotely from its various locations across the globe to maximize customer success. Using SAP Global Delivery, SAP consultants can provide consistent quality worldwide and complete projects successfully and quickly. "SAP Global Delivery is an integral part of SAP Consulting. It is a delivery methodology that allows the distribution of services at low risk, some of them provided locally, regionally, or globally from locations with specialized consulting skills," explains Animesh Parihar, Director of SAP Global Delivery in Bangalore, India. A "follow the sun" approach for its consulting services ensures that SAP Global Delivery is operational the world over, 24 hours a day. "We can use the different centers for the development of any project, always taking care of its specificity. The combination of global and local consultants along with the SAP ecosystem means a reduction in the total cost of

ownership. This strategy also allows us to raise the level of skills," adds Animesh Parihar.

3.1 Consolidation of servicesThe consultancy business underwent a transformation in 2000. Customers required services adapted to a global model of business. SAP Global Delivery, launched in 2002, answered those needs without affecting the quality of the consulting services.

Today, SAP Global Delivery works with SAP subsidiaries, labs and global service and support units, with partners and other elements of the SAP ecosystem to deliver services from Bangalore, Bucharest, Buenos Aires, Dalian and Gurgaon. "We provide development, upgrade, implementation and roll-out services so that our customers get the best value from their investment in SAP products. In 2006, we reached 670 deliveries and we have about more than 1.000 engagements in 2007," states Parihar.

Once SAP solutions arrive in the market, it is time for consolidation. With SAP Global Delivery, that model is applied to services. "We are speaking of industrialization in the area of services. We understand that industrialization offers two perspectives. First, it allows offering a product in a shorter period of time. Second, it enables cost reduction by means of reusable resources," says Parihar.

3.2 Added Value Through IndustrializationSAP productized services offer predictable, cost-effective results across a variety of IT projects. Implementations and upgrades can be piloted and evaluated quickly and then rolled out across the organization based on proven business results. SAP Consulting currently offers the productized services leveraging the SAP Global Delivery model.

The productized services are reusable work packages fixed in scope, cost and effort and increase benefits to customers in terms of time and dependability. The development of these service packages with the partner network has accelerated the "industrialization mode" in the services industry. The recent inauguration of a new SAP Global Delivery location in Buenos Aires, which is added to the existing ones in India, China and East Europe, fits well into this strategy.

"We understood that it was necessary to reduce service implementation time," adds Stefan Gruler, Chief Operations Officer of SAP Field Services. "Through SAP Global Delivery, we are closer to the development centers, innovation hubs, and customers, and can respond quicker with a larger scope. This strategy allows us to accompany projects from the initial steps onward globally analyzing and comparing the main topics in development. It is more efficient to approach development from a global perspective than doing it only in a specific country," says G ruler.

The productized services do not restrict the client's needs. "For example, upgrades are productized services that are a combination of resources," says Gruler. "These upgrades usually have similar requirements in various cases, which gives us an opportunity to provide the same service in less time." Combining the productized service with the experience provided by SAP creates added value, as the predefined, reusable service package is standardized on industry best practices and proven business processes, meeting the need for greater consistency and reduced risk in service delivery. "The tendency is to make small productized services that easily provide advantage to larger projects. This is a great way to leverage SAP Global Delivery," says Gruler.

3.3 Working Arm-In-Arm With A Partner EcosystemThe SAP Global Delivery model feeds into an ecosystem of partners. "The ecosystem works in conjunction with us. We have trusted a good part of the consultancy business to them, which is why they play a significant role in the distributed delivery of services," says Parihar. "For any development, it is essential to count on partners to provide first-hand information, collect data, and communicate data. In that sense, the multiple locations of SAP Global Delivery work like receivers and distributors of productized services.

In the future, we plan even greater participation, creating new productized services on the basis of input provided by the partners on site," Gruler adds.

Professional work in the network is performed by a global team as SAP Global Delivery promotes interchange and cultural multiplicity. The project structures are global, so that a project manager of one nationality can work jointly with managers of other nationalities and cultures. Project managers are located in their own countries and can offer the required solution with localization.

4. Introduction to Marketing

Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

4.1 Approaches for MarketingEarlier approachesOrientationProfit driverWestern European timeframeDescription

ProductionProduction methodsuntil the 1950sA firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale until the minimum efficient scale is reached. A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation).

ProductQuality of the productuntil the 1960sA firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.

SellingSelling methods1950s and 1960sA firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible. Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand.

MarketingNeeds and wants of customers1970 to present dayThe 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.

Contemporary ApproachesRecent approaches in marketing include relationship marketing with focus on the customer, business marketing or industrial marketing with focus on an organization or institution and social marketing with focus on benefits to society. New forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing, online marketing, search engine marketing, desktop advertising or affiliate marketing. It attempts to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and is sometimes called personalized marketing or one-to-one marketing. Internet marketing is sometimes considered to be broad in scope, because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media.

OrientationProfit driverWestern European timeframeDescription

Relationship marketing / Relationship managementBuilding and keeping good customer relations1960s to present dayEmphasis is placed on the whole relationship between suppliers and customers. The aim is to provide the best possible customer service and build customer loyalty.

Business marketing / Industrial marketingBuilding and keeping relationships between organizations1980s to present dayIn this context, marketing takes place between businesses or organizations. The product focus lies on industrial goods or capital goods rather than consumer products or end products. Different forms of marketing activities, such as promotion, advertising and communication to the customer are used.

Social marketingBenefit to society1990s to present daySimilar characteristics as marketing orientation but with the added proviso that there will be a curtailment of any harmful activities to society, in either product, production, or selling methods.

BrandingBrand value1980s to present dayIn this context, "branding" is the main company philosophy and marketing is considered an instrument of branding philosophy.

4.2 Marketing MixThe term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The marketing mix (price, product, distribution,

promotion) forms the entire promotional campaign. As stated in Management of a Sales Force by Rosann L. Spiro, Gregory A. Rich, William J. Stanton, when these are effectively blended, they form a marketing program that provides want-satisfying goods and services for the companys market." The term became popular in the article written by Niel Borden called, The Concept of the Marketing Mix, as explained on the site netmba.com. He started teaching the term to many after he himself learned about it with an associate of his. The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution. Those are the four main ingredients of the marketing mix, but there are other components not already mentioned on the Wikipedia site, including, planning, branding, packaging, display, distribution channels, personal selling, advertising, servicing, and physical handling. All in all the current description of the marketing mix is accurate, but missing some vital pieces of information which will allow individuals to gain a better understanding and implement a more effective marketing mix. A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use.

4.3 Four 'P's Product - It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when

promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline.In recent years the addition of a 5th P has become common place. The 5th P being people. This is to represent the people who you are targeting but also the people

who will physically conduct each part of the campaign. Some people even go up to as many as 10 P's.

Extended Marketing Mix (4 P's)More recently, three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix. People: All people involved with consumption of a service are important. For example workers, management, consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular class of people for whom the product or service is made available. Process: Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product will reach the end user. Physical Evidence: The marketing strategy should include effectively communicating their satisfaction to potential customers."Posture" it represents a friendly behavior with people and make a relation.

4.5 Marketing StrategyThe field of marketing strategy encompasses the strategy involved in the management of a given product. A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries.

Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing strategy models.

B2C Buying BehaviorThis mode of behavior concerns consumers and their purchase of a given product. For example, if one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends. If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may mean buying leather shoes,

sandals, etc. The purchase decision is then made, in which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be made. This could then develop into consumer loyalty to the firm producing the sneakers.

B2B Buying BehaviorBusiness Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. Also known as industrial marketing, business marketing is also called business-to-business marketing, or B2B marketing, for short. (Note that while marketing to government entities shares some of the same dynamics of organizational marketing, B2G Marketing is meaningfully different.)

4.6 Business Marketing Vs. Consumer Marketing

Although on the surface the differences between business and consumer marketing may seem obvious, there are more subtle distinctions between the two with substantial ramifications. Dwyer and Tanner (2006) note that business marketing generally entails shorter and more direct channels of distribution.While consumer marketing is aimed at large groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business marketing. According to Hutt and Speh (2004), most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct

mail efforts and trade journals. While that advertising is limited, it often helps the business marketer set up successful sales calls.Marketing to a business trying to make a profit (business-to-business marketing) as opposed to an individual for personal use (Business-to-Consumer, or B2C marketing) is similar in terms of the fundamental principles of marketing. In B2C, B2B and B2G marketing situations, the marketer must always: successfully match the product or service strengths with the needs of a definable target market; position and price to align the product or service with its market, often an intricate balance; and Communicate and sell it in the fashion that demonstrates its value effectively to the target market.These are the fundamental principles of the 4 Ps of marketing (the marketing mix) first documented by E. Jerome McCarthy in 1960.

While "other businesses" might seem like the simple answer, Dwyer and Tanner (2006) say business customers fall into four broad categories: companies that consume products or services, government agencies, institutions and resellers.The first category includes original equipment manufacturers, such as large automakers who buy gauges to put in their cars and also small firms owned by 1-2 individuals who

purchase products to run their business. The second category - government agencies, is the biggest. In fact, the U.S. government is the biggest single purchaser of products and services in the country, spending more than $300 billion annually. But this category also includes state and local governments. The third category, institutions, includes schools, hospitals and nursing homes, churches and charities. Finally, resellers consist of wholesalers, brokers and industrial distributors.

So what are the meaningful differences between B2B and B2C marketing?A B2C sale is to a "Consumer" i.e. an individual who may be influenced by other factors such as family members or friends, but ultimately the sale is to a single person who pays for the transaction. A B2B sale is to a "Business" i.e. organization or firm. Given the complexity of organizational structure, B2B sales typically involve multiple decision makers. The marketing mix is affected by the B2B uniqueness which include complexity of business products and services, diversity of demand and the differing nature of the sales itself (including fewer customers buying larger volumes). Because there are some important subtleties to the B2B sale, the issues are broken down beyond just the original 4 Ps developed by McCarthy.

Business To Business (B2B) Marketing StrategiesB2B BrandingB2B Branding is different from B2C in some crucial ways, including the need to closely align corporate brands, divisional brands and product/service brands and to apply your brand standards to material often considered informal such as email and other electronic correspondence. it is mainly of large scale when compared with B2C.

Product (or Service)Because business customers are focused on creating shareholder value for themselves, the cost-saving or revenue-producing benefits of products and services are important to factor in throughout the product development and marketing cycles.

People (Target Market)Quite often, the target market for a business product or service is smaller and has more specialized needs reflective of a specific industry or niche. A B2B niche, a segment of the market, can be described in terms of firmographics which requires marketers to have good business intelligence in order to increase response rates. Regardless of the size of the target market, the business customer is making an organizational purchase decision and the dynamics of this, both procedurally and in terms of how they value what they are buying from you; differ dramatically from the consumer market. There may be multiple influencers on the purchase decision, which may also have to be marketed to, though they may not be members of the decision making unit.

PricingThe business market can be convinced to pay premium prices more often than the consumer market if you know how to structure your pricing and payment terms well. This price premium is particularly achievable if you support it with a strong brand.

PromotionPromotion planning is relatively easy when you know the media, information seeking and decision making habits of your customer base, not to mention the vocabulary unique to their segment. Specific trade shows, analysts, publications, blogs and retail/wholesale outlets tend to be fairly common to each industry/product area. What this means is that once you figure it out for your industry/product, the promotion plan almost writes itself (depending on your budget) but figuring it out can be a special skill and it takes time to build up experience in your specific field. Promotion techniques rely heavily on marketing communications strategies (see below).

Place (Sales and Distribution)The importance of a knowledgeable, experienced and effective direct (inside or outside) sales force is often critical in the business market. If you sell through distribution channels also, the number and type of sales forces can vary tremendously and your success as a marketer is highly dependent on their success.

B2B Marketing Communications MethodologiesThe purpose of B2B marketing communications is to support the organizations' sales effort and improve company profitability. B2B marketing communications tactics generally include advertising, public relations, direct mail, trade show support, sales collateral, branding, and interactive services such as website design and search engine

optimization. The Business Marketing Association is the trade organization that serves B2B marketing professionals. It was founded in 1922 and offers certification programs, research services, conferences, industry awards and training programs.

Positioning StatementAn important first step in business to business marketing is the development of your positioning statement. This is a statement of what you do and how you do it differently and better and more efficiently than your competitors. Developing Your MessagesThe next step is to develop your messages. There is usually a primary message that conveys more strongly to your customers what you do and the benefit it offers to them, supported by a number of secondary messages, each of which may have a number of supporting arguments, facts and figures.

Building A Campaign PlanWhatever form your B2B marketing campaign will take, build a comprehensive plan up front to target resources where you believe they will deliver the best return on investment, and make sure you have all the infrastructure in place to support each

stage of the marketing process - and that doesn't just include developing the lead - make sure the entire organization is geared up to handle the inquiries appropriately.

Briefing An AgencyA standard briefing document is usually a good idea for briefing an agency. As well as focusing the agency on what's important to you and your campaign, it serves as a checklist of all the important things to consider as part of your brief. Typical elements to an agency brief are: Your objectives, target market, target audience, product, campaign description, your product positioning, graphical considerations, corporate guidelines, and any other supporting material and distribution. Measuring ResultsThe real value in results measurement is in tying the marketing campaign back to business results. After all, youre not in the business of developing marketing campaigns for marketing sake. So always put metrics in place to measure your campaigns, and if at all possible, measure your impact upon your desired objectives, be it Cost Per Acquisition, Cost per Lead or tangible changes in customer perception.

4.7 The Marketing Environment

Elements of the environment. The marketing environment involves factors that, for the most part, are beyond the control of the company. Thus, the company must adapt to these factors. It is important to observe how the environment changes so that a firm can adapt its strategies appropriately. Consider these environmental forces: Competition: Competitors often creep in and threaten to take away markets from firms. For example, Japanese auto manufacturers became a serious threat to American car makers in the late 1970s and early 1980s. Similarly, the Lotus Corporation, maker of one of the first commercially successful spreadsheets, soon faced competition from other software firms. Note that while competition may be frustrating for the firm, it is good for consumers. (In fact, we will come back to this point when we consider the legal environment).Note that competition today is increasingly

global in scope. It is important to recognize that competition can happen at different levels. At the brand level, two firms compete in providing a very similar product or service. Coca Cola and Pepsi, for example, compete for the cola drink market, and United and American Airlines compete for the passenger air transportation market.

Firms also face less directbut frequently very seriouscompetition at the product level. For example, cola drinks compete against bottled water. Products or services can serve as substitutes for each other even though they are very different in form. Teleconferencing facilities, for example, are very different from airline passenger transportation, but both can bring together people for a meeting. At the budget level, different products or services provide very different benefits, but buyers have to make choices as to what they will buy when they cannot affordor are unwilling to spend onboth. For example, a family may decide between buying a new car or a high definition television set. The family may also have to choose between going on a foreign vacation or remodeling its kitchen. Firms, too, may have to make choices. The firm has the cash flow either to remodel its offices or install a more energy efficient climate control system; or the firm can choose either to invest in new product development or in a promotional campaign to increase awareness of its brand among consumers.

Economics. Two economic forces strongly affect firms and their customers:

Economic Cycles. Some firms in particular are extremely vulnerable to changes in the economy. Consumers tend to put off buying a new car, going out to eat, or building new homes in bad times. In contrast, in good times, firms serving those

needs may have difficulty keeping up with demand. One important point to realize is that different industries are affected to different degrees by changes in the economy. Although families can cut down on the quality of the food they buygoing with lower priced brands, for examplethere are limits to the savings that can be made without greatly affecting the living standard of the family. On the other hand, it is often much easier to put off the purchase of a new car for a year or hold off on remodeling the family home. If need be, firms can keep the current computerseven though they are getting a bit slowwhen sales are down. The economy goes through cycles. In the late 1990s, the U.S. economy was quite strong, and many luxury goods were sold. Currently, the economy fluctuates between increasing strength, stagnation, or slight decline. Many firms face consequences of economic downturns. Car makers, for example, have seen declining profit margins (and even losses) as they have had to cut prices and offer low interest rates on financing. Generally, in good economic times, there is a great deal of demand, but this introduces a fear of possible inflation. In the U.S., the Federal Reserve will then try to prevent the economy from overheating. This is usually done by raising interest rates. This makes businesses less willing to invest, and as a result, people tend to make less money. During a recession, unemployment tends to rise, causing consumers to spend less. This may result in a bad circle, with more people losing their jobs due to lowered demands. Some businesses, however, may take this opportunity to invest in growth now that things can be bought more cheaply.

Inflation. Over time, most economies experience some level of inflation. Therefore, it is useful to explicitly state whether a reference to money over time involves the actual dollar (or other currency) amount exchanged at any point (e.g., one dollar spent in 1960 and one dollar in 2007) or an inflation adjusted figure that anchors a given amount of money to the value of that money at some point in time. Suppose, for example, that cumulative inflation between 1960 and 2007 has been 1,000%--that is, on the average, it costs ten times as much to buy the same thing in 2007 as it did 47 years earlier. If the cumulative inflation between 1960 and 1984 had been 500%, we could talk about one 1984 dollar being worth fifty 1960 cents or two 2007 dollars. It is important to note that inflation is uneven. Some goods and servicessuch as health care and college tuitionare currently increasing in cost much higher than the average rate of inflation. Prices of computers, actually decline both in absolute numbers (e.g., an average computer cost $1,000 one year and then goes for $800 two years later) and in terms of the value for money paid once an adjustment has been made for the improvement in quality.

That is, two years later, the computer has not only declined in price by 20%, but it may also be 30% better (based on an index of speed and other performance factors). In that case, then, there has actually been, over the period, a net deflation of 38.5% for the category.

Political. Businesses are very vulnerable to changes in the political situation. For example, because consumer groups lobbied Congress, more stringent rules were made on the terms of car leases. The tobacco industry is currently the target of much negative attention from government and public interest groups. Currently, the desire to avoid aiding the enemy may result in laws that make it more difficult for American firms to export goods to other countries. Many industries have a strong economic interest in policies that benefit the industry may have a negative impact on the nation as a whole but enhance profits for the industry. For example, regulations that limit the amount of sugar that can be imported into the United States is estimated to cost each American approximately $10.00 a year. The total increase in profits to the sugar industry is difficult to estimate because many of the large producers of refined sugar are privately held corporations, but it is likely that the net gain to the industry is as much as the roughly $3 billion lost by Americans a whole. However, the interests of the industry are much more concentrated.

The industry can rally its stockholders, unions and employees, and suppliers (e.g., fertilizer manufacturers and manufacturers of sugar cane processing equipment) together to lobby for their special interests. In turn, the industry can join forces with other agricultural interests which each support each others programs.

Legal. Firms are very vulnerable to changing laws and changing interpretations by the courts. Firms in the U.S. are very vulnerable to lawsuits. McDonalds, for example, is currently being sued by people who claim that eating the chains hamburgers caused them to get fat. Firms are significantly limited in what they can do by various lawssome laws, for example, require that disclosures be made to consumers on the effective interest rates they pay on products bought on installment. A particularly interesting group of laws relate to antitrust. These laws basically exist to promote fair competition among firms. We will consider such laws when we cover pricing later in the term.

Technological. Changes in technology may significantly influence the demand for a product. For example, the advent of the fax machine was bad news for Federal Express. The Internet is a major threat to travel agents. Many record stores have been wiped out of business by the trend toward downloading songs (or illegally ripping songs from friends CDsan act to which even the President of the United States has confessed). Although technological change eliminates or at least greatly diminishes some markets, it creates opportunities for others. For example, although Federal Express has lost a considerable amount of business from documents that can now be faxed or sent by the Internet rather than having to be physically shipped, there has been a large increase in demand for packages to be delivered overnight or second day air. Just-in-time

manufacturing techniques, in addition to online sales, have dramatically increased the market for such shipments. Online sites such as eBay now makes it possible to sell specialty products that, in the old days, would have been difficult to distribute. Although it has been possible for more than a hundred years to sell merchandise by catalog, buyers of these specialty products often had no easy access to the catalogs.

Social: Changes in customs or demographics greatly influence firms. Fewer babies today are being born, resulting in a decreased demand for baby foods. More women work outside the home today, so there is a greater demand for prepared foods. There are more unmarried singles today. This provides opportunities for some firms (e.g., fast food restaurants) but creates problems for others (e.g., manufacturers of high quality furniture that many people put off buying until marriage). Today, there are more blended families that result as parents remarry after divorce. These families are often strapped for money but may require duplicate items for children at each parents residence.

4.8 Segmentation, Targeting, and PositioningSegmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while

others are much more concerned about roominess and safety. In general, it holds true that You cant be all things to all people, and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable.

Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really cant offer much that another one cant. Usually, this is the case only

for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travelersusually business travelerspay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over.

Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time.

Thus, we need to determine which variables will be most useful in distinguishing different groups of consumers. We might thus decide, for example, that the variables that are most relevant in separating different kinds of soft drink consumers are (1) preference for taste vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price sensitivitywillingness to pay for brand names; and (4) heavy vs. light consumers. We now put these variables together to arrive at various combinations.

Several different kinds of variables can be used for segmentation. Demographic variables essentially refer to personal statistics such as income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size. Campbells soup, for instance, has found that Western U.S. consumers on the average prefer spicier soupsthus, you get a different product in the same cans at the East and West coasts. Facing flat sales of guns in the traditional male dominated market, a manufacturer came out with the Lady Remmington, a more compact, handier gun more attractive to women. Taking this a step farther, it is also possible to segment on lifestyle and values. Some consumers want to be seen as similar to others, while a different segment wants to stand apart from the crowd.

Another basis for segmentation is behavior. Some consumers are brand loyali.e., they tend to stick with their preferred brands even when a competing one is on sale. Some consumers are heavy users while others are light users. For example, research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumerspresumably a rather intoxicated group. One can also segment on benefits sought, essentially bypassing demographic explanatory variables. Some consumers, for example, like scented soap (a segment likely to be attracted to brands such as Irish Spring), while others prefer the clean feeling of unscented soap (the Ivory segment). Some consumers use toothpaste primarily to promote oral health, while another segment is more interested in breath freshening. In the next step, we decide to target one or more segments. Our choice should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow? (Note that a downside to a large, rapidly growing segment is that it tends to attract competition). Thirdly, do we have strengths as a company that will help us appeal particularly to one group of consumers? Firms may already have an established reputation. While McDonalds has a great reputation for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonalds now offers gourmet food. Thus, McDs would probably be better off targeting families in search of consistent quality food in nice, clean restaurants.

Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for non-geeks. The Visual C software programming language, in contrast, is aimed a techies.

Michael Treacy and Fred Wiersema suggested in their 1993 book The Discipline of Market Leaders that most successful firms fall into one of three categories: Operationally excellent firms, which maintain a strong competitive advantage by maintaining exceptional efficiency, thus enabling the firm to provide reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. The emphasis here is mostly on low cost, subject to reliable performance, and less value is put on customizing the offering for the specific customer. Wal-Mart is an example of this discipline. Elaborate logistical designs allow goods to be moved at the lowest cost, with extensive systems predicting when specific quantities of supplies will be needed. Customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, which is sacrificed for providing more precisely what is wanted by the customer. Reliability is also stressed. Nordstroms and IBM are examples of this discipline. Technologically excellent firms, which produce the most advanced products currently available with the latest technology, constantly maintaining leadership in innovation. These firms, because they work with costly technology that need constant refinement, cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. Intel is an example of this discipline.

Treacy and Wiersema suggest that in addition to excelling on one of the three value dimensions, firms must meet acceptable levels on the other two. Wal-Mart, for example, does maintain some level of customer service. Nordstroms and Intel both must meet some standards of cost effectiveness. The emphasis, beyond meeting the minimum required level in the two other dimensions, is on the dimension of strength.Repositioning involves an attempt to change consumer perceptions of a brand, usually because the existing position that the brand holds has become less attractive. Sears, for example, attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered everyday low prices. Repositioning in practice is very difficult to accomplish. A great deal of money is often needed for advertising and other promotional efforts, and in many cases, the repositioning fails.

To effectively attempt repositioning, it is important to understand how ones brand and those of competitors are perceived. One approach to identifying consumer product perceptions is multidimensional scaling. Here, we identify how products are perceived on two or more dimensions, allowing us to plot brands against each other. It may then be possible to attempt to move ones brand in a more desirable direction by selectively promoting certain points. There are two main approaches to multi-dimensional scaling. In the a priori approach, market researchers identify dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. This is useful when (1) the market researcher knows which dimensions are of interest and (2) the customers perception on each dimension is relatively clear (as opposed to being made up on the spot to be able to give the researcher a desired answer).

In the similarity rating approach, respondents are not asked about their perceptions of brands on any specific dimensions. Instead, subjects are asked to rate the extent of similarity of different pairs of products (e.g., How similar, on a scale of 1-7, is Snickers to Kitkat, and how similar is Toblerone to Three Musketeers?) Using a computer algorithms, the computer then identifies positions of each brand on a map of a given number of dimensions. The computer does not reveal what each dimension meansthat must be left to human interpretation based on what the variations in each dimension appears to reveal. This second method is more useful when no specific product dimensions have been identified as being of particular interest or when it is not clear what the variables of difference are for the product category.

4.9 International MarketingScope. A number of issues are involved in marketing internationally and cross-culturally:

Protectionism: Although trade generally benefits a country as a whole, powerful interests within countries frequently put obstaclesi.e., they seek to inhibit free trade. There are several ways this can be done: Tariff barriers: A duty, or tax or fee, is put on products imported. This is usually a percentage of the cost of the good. Quotas: A country can export only a certain number of goods to the importing country. For example, Mexico can export only a certain quantity of tomatoes to the United States, and Asian countries can send only a certain quota of textiles here. Voluntary export restraints: These are not official quotas, but involve agreements made by countries to limit the amount of goods they export to an importing country. Such restraints are typically motivated by the desire to avoid more stringent restrictions if the exporters do not agree to limit themselves. For example, Japanese car manufacturers have agreed to limit the number of automobiles they export to the United States. Subsidies to domestic products: If the government supports domestic producers of a product, these may end up with a cost advantage relative to foreign producers who do not get this subsidy. U.S. honey manufacturers receive such subsidies.

Non-tariff barriers, such as differential standards in testing foreign and domestic products for safety, disclosure of less information to foreign manufacturers needed to get products approved, slow processing of imports at ports of entry, or arbitrary laws which favor domestic manufacturers.

Cultural lessonsWe considered several cultural lessons in class; the important thing here is the big picture. For example, within the Muslim tradition, the dog is considered a dirty animal, so portraying it as mans best friend in an advertisement is counter-productive. Packaging, seen as a reflection of the quality of the real product, is considerably more important in Asia than in the U.S., where there is a tendency to focus on the contents which really count. Many cultures observe significantly greater levels of formality than that typical in the U.S., and Japanese negotiator tend to observe long silent pauses as a speakers point is considered.

Product Need Satisfaction. We often take for granted the obvious need that products seem to fill in our own culture; however, functions served may be very different in othersfor example, while cars have a large transportation role in the U.S., they are impractical to drive in Japan, and thus cars there serve more of a role of being a status symbol or providing for individual indulgence. In the U.S., fast food and instant drinks

such as Tang are intended for convenience; elsewhere, they may represent more of a treat. Thus, it is important to examine through marketing research consumers true motives, desires, and expectations in buying a product.

Approaches to Product IntroductionFirms face a choice of alternatives in marketing their products across markets. An extreme strategy involves customization, whereby the firm introduces a unique product in each country, usually with the belief tastes differ so much between countries that it is necessary more or less to start from scratch in creating a product for each market. On the other extreme, standardization involves making one global product in the belief the same product can be sold across markets without significant modificatione.g., Intel microprocessors are the same regardless of the country in which they are sold. Finally, in most cases firms will resort to some kind of adaptation, whereby a common product is modified to some extent when moved between some marketse.g., in the United States, where fuel is relatively less expensive, many cars have larger engines than their comparable models in Europe and Asia; however, much of the design is similar or identical, so some economies are achieved. Similarly, while Kentucky Fried Chicken serves much the same chicken with the eleven herbs and spices in Japan, a lesser amount of sugar is used in the potato salad, and fries are substituted for mashed potatoes.

There are certain benefits to standardization. Firms that produce a global product can obtain economies of scale in manufacturing, and higher quantities produced also lead to a faster advancement along the experience curve. Further, it is more feasible to establish a global brand as less confusion will occur when consumers travel across countries and see the same product. On the down side, there may be significant differences in desires between cultures and physical environmentse.g., software sold in the U.S. and Europe will often utter a beep to alert the user when a mistake has been made; however, in Asia, where office workers are often seated closely together, this could cause embarrassment.

Adaptations come in several forms. Mandatory adaptations involve changes that have to be made before the product can be usede.g., appliances made for the U.S. and Europe must run on different voltages, and a major problem was experienced in the European Union when hoses for restaurant frying machines could not simultaneously meet the legal requirements of different countries. Discretionary changes are changes that do not have to be made before a product can be introduced (e.g., there is nothing to prevent an American firm from introducing an overly sweet soft drink into the Japanese market), although products may face poor sales if such changes are not made. Discretionary changes may also involve cultural adaptationse.g., in Sesame Street, the Big Bird became the Big Camel in Saudi Arabia.

Another distinction involves physical product vs. communication adaptations. In order for gasoline to be effective in high altitude regions, its octane must be higher, but it can be promoted much the same way. On the other hand, while the same bicycle might be sold in China and the U.S., it might be positioned as a serious means of transportation in the former and as a recreational tool in the latter. In some cases, products may not need to be adapted in either way (e.g., industrial equipment), while in other cases, it might have to be adapted in both (e.g., greeting cards, where the both occasions, language, and motivations for sending differ). Finally, a market may exist abroad for a product which has no analogue at homee.g., hand-powered washing machines.

Country of origin effects. Traditionally, a products country of origin has had a considerable impact on how the product is perceived by consumers. Some countries were thought to be good at making certain things (e.g., the French being famous for wine and cheese with the Germans and Japanese being known for manufacturing excellence). One country could have a good reputation for one type of product but not for another. For example, the British might be perceived as a high quality maker of sports automobiles but a poor quality maker of food. A beer brewer in France and a wine maker in Germanyboth being near the border to the other countrydeliberately obscured the origin of the products to avoid being judged negatively. Some firms may engage in the dubiously ethical practice of giving a product an appearance of being associated withif not being outright manufactured ina country with a favorable origin

impact on the product. For example, a manufacturer of perfume might print the instructions on the container in French even if there is no intention of exporting the product tolet alone making the product inFrance.Today, the world of manufacturing is more complicated. Consumers are increasingly aware that products are often not made in the country associated with the brand. Many Sony products, for example, are produced in countries other than Japan. Many Japanese cars made for the U.S. market are now manufactured in North America. It is now also recognized that high quality products can be designed and made in countries such as South Korea and even China. Few people know in which country a particular model of the Apple iPod has been made. The country-of-origin effect today, then, is considerably less than it has been in the past.

Measuring country wealth. There are two ways to measure the wealth of a country. The nominal per capita gross national income (GNI) refers to the value of goods and services produced per person in a country if this value in local currency were to be exchanged into dollars. Suppose, for example, that the per capita GDP of Japan is 3,500,000 yen and the dollar exchanges for 100 yen, so that the per capita GDP is (3,500,000/100)=$35,000. However, that $35,000 will not buy as much in Japanfood and housing are much more expensive there. Therefore, we introduce the idea of purchase parity adjusted per capita GNI, which reflects what this money can buy in the

country. This is typically based on the relative costs of a weighted basket of goods in a country. The actual formula is very lengthy and complicated, but as a simple illustration, one might example a weighting based on 35% of the cost of housing, 40% the cost of food, 10% the cost of clothing, and 15% cost of other items. If it turns out that this measure of cost of living is 30% higher in Japan, the purchase parity adjusted GPD in Japan would then be ($35,000/(130%) = $26,923. In general, the nominal per capita GNI is more useful for determining local consumers ability to buy imported goods, the cost of which are determined in large measure by the costs in the home market, while the purchase parity adjusted measure is more useful when products are produced, at local costs, in the country of purchase. For example, the ability of Argentineans to purchase micro computer chips, which are produced mostly in the U.S. and Japan, is better predicted by nominal income, while the ability to purchase toothpaste made by a U.S. firm in a factory in Argentina is better predicted by purchase parity adjusted income.

It should be noted that, in some countries, income is quite unevenly distributed so that these average measures may not be very meaningful. In Brazil, for example, there is a very large underclass making significantly less than the national average, and thus, the national figure is not a good indicator of the purchase power of the mass market.

Similarly, great regional differences exist within some countriesincome is much higher in northern Germany than it is in the former East Germany, and income in southern Italy is much lower than in northern Italy. The relevant figures, then, should generally be based on the segments of interest within the respective country. For example, if it is estimated that only homes in the upper 30% of income in a given country would be able to afford the product in question, this is the group that should be used for comparison.

PROJECT 1SAP GLOBAL DELIVERYINTRANET PORTAL

5.0 PROJECT 1- Intranet Portal

5.1 SAP NetWeaver Portal and Collaboration

The SAP NetWeaver Portal offers a single point of access to SAP and non-SAP information sources, enterprise applications, information repositories, databases and services - all integrated into a single user portal experience. SAP NetWeaver Portal provides you the tools to manage and analyze this knowledge, and to share and collaborate on the basis of it. The SAP NetWeaver Portal also delivers collaboration features that enable individuals, teams, and interested parties to work closely together towards common goals.

SAP NetWeaver Portal is one of the building blocks in the SAP NetWeaver architecture. With only a Web Browser, users can begin work once they have been authenticated in the portal which offers a single point of access to information, enterprise applications, and services both inside and outside an organization. The Net weaver Portal also provides the tools to manage this knowledge, to analyze and interrelate it, and to share and collaborate. With its coherent interface, role-based content, and personalization features, the portal enables you to focus exclusively on data relevant to your daily decision-making processes.

Knowledge Management offers capabilities that everyone can use to distribute and access unstructured information within an organization through a heterogeneous repository landscape.Collaboration brings users, information, and applications together to ensure successful cooperation. All collaboration tools and channels are easily accessible directly from the portal. These tools include collaboration rooms, discussion forums, instant messaging, chat, e-mail, and calendar integration.The Portal is used for different purposes. Internationalization Personalization Integration AuthorizationSAP NetWeaver Portal is the platform for running Web Dynpro applications or Dyn Page applications created by SAP or custom designed for connecting to some ERP functionality.

AuthenticationSAP NetWeaver Portal allows different forms of authentication: Username and password SAP Logon Tickets x.509 certificates (i.e., Single Sign-On) via Secure Network Communications or Secure Socket Layer

SAP Logon Ticket SAP Logon Tickets represent user credentials in SAP systems. When enabled, users can access multiple SAP applications and services through SAPgui and web browsers without further username and password inputs from the user. SAP Logon Tickets can also be a vehicle for enabling single sign-on across SAP boundaries; in some cases, logon tickets can be used to authenticate into 3rd party applications such as Microsoft-based web applications.

How Does It Work1. User opens SAP2. User logs on to SAP3. SAP enterprise portal server issues (against user persistence specified in the portal user management engine (UME)) an SAP Logon Ticket to the user4. SAP Logon Ticket is stored in the user's browser as a non-persistent HTTP cookie5. User gains access to multiple SAP applications and services

Composition User ID Validity date(s) Issuing system Digital signature Authentication method

Notable PropertiesBelow is a short list of important properties for SAP Logon Tickets. login.ticket_client - a three-character numeric string used to indicate the client that is written into the SAP logon ticket login.ticket_lifetime - indicates the validity period of the ticket in terms of hours and minutes (i.e., HH:MM) login.ticket_portalid - yes/no/auto for writing the portal ID into the ticket ume.login.mdc.hosts - allows the enterprise portal to look for logon tickets from servers outside the portal domain ume.logon.httponlycooki - true/false for security again malicious client-side script code such as JavaScript ume.logon.security.enforce_secure_cookie - enables SSL communication ume.logon.security.relax_domain.level - determines which domains the SAP logon ticket is valid

Single Sign-OnSAP Logon Tickets can be used for single sign-on through the SAP Enterprise Portal. SAP provides a Web Server Filter that can be used for an authentication via http header variable and a Dynamic Link Library for verifying SSO Tickets in 3rd party software which can be used to provide native support for SAP Logon Tickets in applications written in C or JAVA.

Integration with Identity & Access Management Platforms Tivoli Access Manager has developed an authentication service compatible with SAP Logon Tickets Sun ONE Identity has developed a solution where companies can use the SAP Internet Transaction Server (ITS 2.0) and SAP Pluggable Authentication Service (PAS) for integration with SAP for single sign-on. This method uses logon tickets for single sign-on and the SAPCRYPTOLIB (SAP encryption library) for SAP server-to-server encryption. Sun's solution utilizes the dynamic libraries (DLL) external authentication method. IBM Lotus Domino can be used as a technical ticket verifier component

Availability Windows, Microsoft Internet Information Server Apache, iPlanet Web Server

Dynamic Link LibrarySAP provides Java and C sample files that can provide some hints how the library can be implemented in the source code of a high level programming language such as Visual Basic, C or JAVA.

Single Sign-On to Microsoft Web ApplicationsMicrosoft web based applications usually only support the authentication methods basic authentication or windows integrated authentication (Kerberos) provided by the Internet Information Server. However, Kerberos does not work well over the internet due to the typical configuration of client-side firewalls. SSO to Microsoft backend systems in extranet scenarios is limited to the user id password mechanism. Based on the new feature called protocol transition using constrained delegation SAP developed the SSO22KerbMap Module. This new ISAPI Filter requests a constrained Kerberos ticket

for users identified by valid SAP Logon Ticket that can be used for SSO to Microsoft web based applications in the back end.

Single Sign-On to Non-SAP Java EnvironmentsIt is possible to use SAP Logon Tickets in a non-SAP Java environment with minor custom coding.

Integration into SAP SystemsABAPLogon tickets allows for single sign-on into ABAP application servers. However, there are prerequisites: Usernames need to be the same for all SAP system that the user wants single sign-on for. Passwords can be different. Web browsers need to be configured to accept cookies. Any web servers for ABAP servers need to be placed on the same DNS The issuing server must be able to digitally sign logon tickets (i.e., public-key and private-key are required).

Systems that accept logon tickets must have access to the issuing server's public-key certificate.

Security Features Digitally signed by the SAP portal server Uses asymmetric cryptography to establish unidirectional trust relationship between users and SAP systems Protected in transport via SSL Validity period that can be configured in the security settings of the SAP Enterprise Portal

Security Challenges SAP Logon Tickets do not utilize Secure Network Communications (SNC) Typical security-related issues around cookies stored in a web browser. Examples include: Copying the SAP Logon Ticket via network traffic sniffing or social engineering and storing it on another computer for access to the SAP Enterprise Portal

Alternatives to SAP Logon Tickets Account aggregation via SAP Net Weaver Utilize Secure Network Communications-based single sign-on technology from independent software security providers

Secure Network Communications-Based Single Sign-OnAccount AggregationThe Enterprise Portal Server maps user information, i.e., user id and password, to allow users to access external systems. This approach requires that to maintain changes of username and/or password from one backend application to the portal. This approach is not viable to web-based backend systems because past security updates from Microsoft

no longer support handling of usernames and passwords in HTTP, with or without Secure Sockets Layer (SSL), and HTTPS URLs in Internet Explorer.

The usage of account aggregation has several drawbacks. First of all it requires that a SAP portal user has to maintain a user id and password for each application that is using account aggregation. If the password in one backend application changes the

SAP portal user has to maintain the stored credentials too. Though account aggregation can be used as an option where no other solution might work it causes a significant administrative overhead.

Using account aggregation to access a web based backend system that is configured to use basic authentication results in sending a URL that contains user name and password. A security update from Microsoft that has been published recently removes support for handling user names and passwords in HTTP and HTTP with Secure Sockets Layer (SSL) or HTTPS URLs in Microsoft Internet Explorer. The following URL syntax is no longer supported in Internet Explorer if this security patch has been applied.

Benefits Include Reduces phishing success, because users are not trained to enter password everywhere without thinking. Reducing password fatigue from different user name and password combinations Reducing time spent re-entering passwords for the same identity Can support conventional authentication such as Windows credentials (i.e., username/password) Reducing IT costs due to lower number of IT help desk calls about passwords Security on all levels of entry/exit/access to systems without the inconvenience of re-prompting users Centralized reporting for compliance adherence.

SSO uses centralized authentication servers that all other applications and systems utilize for authentication purposes, and combines this with techniques to ensure that users do not actively have to enter their credentials more than once. SSO users need not remember so many passwords to login to different systems or applications.

5.2 Portal Look & FeelThis is how a SAP Portal looks like for the employees within SAP:

5.3 Enterprise Web Portal Questionnaire

Your response is important to us - please take a few moments to complete these questions!

1) How satisfied are you with your overall visit to SAP Corporate Portal? Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

2) Did you find the information you needed? Yes Partially No Just Browsing

3) Please indicate the type of information you look for on SAP Portal. (Check all that apply.) Company Specific News Events Find employees Technical Information

Benefits & Compensation Company Policies Other

4) Clarity and understanding greatly affect how satisfied people are with the Portal. Please indicate your level of agreement with the following statements. As you were reading the information on our corporate portal.a) The language was easy to understand? Completely Agree Strongly Agree Agree Disagree Strongly Disagree Completely Disagree

b) The level of technical terms used was appropriate? Completely Agree Strongly Agree Agree Disagree Strongly Disagree Completely Disagree

5) Please rate your level of satisfaction with the following aspects of our portal:a) Ability to navigate around Web site Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

b) Time to download information Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

c) Information is Up-to-date Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

d) Ability to search for information Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

e) Usefulness of information Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

f) Information assists in making new employee friends under your domain Extremely Satisfied Very Satisfied Satisfied Dissatisfied Very Dissatisfied Extremely Dissatisfied

g) How often do you visit our Corporate Portal? This is my first visit Daily Weekly Monthly Yearly

6) What things would you change about this existing portal? Thanks again for completing this questionnaire.

SAP GLOBAL DELIVERYINTRANET PORTALFINDINGS

5.4 Findings - Existing Portal

One of the key points defining the problem statement for development of Intranet portal, even when a Main portal already exists was:1) Employees from One Country interact with employees from other countries mostly when working together in one project.2) Employees from one work stream does not know their counterpart experts in other countries or other domains.3) Main portal enables linkage to the benefits and information for one employee only and has no way of communication with other employees. 4) The above mentioned problem statements arose a need for a new Intranet Portal. To eradicate the above mentioned short comings new intranet portal will focus on the below mentioned four key points. 5) The solution is based on the survey level done within the SAP Global Delivery employees.

5.5 Survey Within the Organization

5.6 Suggestions

5.7 Solution For Findings - Existing Portal

Connecting people across different Global Delivery centers: With unprecedented speed and vigor, the outsourced economy is deeply entrenched across the business landscape. In today's tough business environment, most of the companies are seeing a tremendous opportunity in this downturn to streamline their resource operations, to integrate their global delivery centers, to rationalize their cost structures and put in place a lean and agile organization that can adapt quickly to the changing business needs.

Intranet Portal will be able to emphasize and implement new ways to dynamically connect our employees across the globe, and empowering them through process automation and information visibility so that they can accelerate on the next upturn.

Common platform to discuss various topics: One of the most important purposes of the intranet portal is for the SAP community to discuss, in technical detail, the ongoing development of new technologies and to discuss relevant issues and derive solutions that benefit all concerned parties.

This will also serve purpose of a social networking service within SAP that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities. It will essentially consist of a representation of each user (often a profile), his/her social links, and a variety of additional services. This will be a web based and provide means for users to interact over the Internet, such as e-mail and instant messaging. Though in a broader sense, this new service can be differentiated with other social networking services as the already existing portal usually means an individual-centered service whereas Intranet portal will be group-centered. It will allow SAP users to share ideas, activities, events, and interests within their individual networks.

Fun at work: All work and no play make Jack a Dumb boy! It's been well accepted that there is a direct relationship between 'fun at work' and employee motivation, productivity, creativity, satisfaction and retention. A planned programme of occasional and surprise activities at our workplace will bring staff, at all levels, to work with a smile, never knowing what might happen today. Humor is in the unexpected and it is well known to help relieve stress and improve health, there is little else that will make a person feel as good as a laugh and at the same time will lead to a balanced Work Life balance.

The new portal will provide all employees a chance to post and share their ideas regarding fun at work and the most accepted idea can be implemented in Friday afternoon or any feasible time to keep everyone in good shape and in motivated mood. Recognition and accolades.

5.8 Portal PhasesThe New Intranet Portal can be named as SAP Touch. The development of SAP Touch will be divided into 3 phases:

First Phase: SAP Touch will be developed with the proposed features for SAP Global Delivery India location and will be tested for various functionalities and usage amongst the employees. Second Phase: During the second phase SAP Touch will be integrated with other Business Centers of SAP Global Delivery and will be checked for the performance and popularity amongst employees. Third Phase: Once SAP Touch is tested, integrated and validated amongst all centers, a final rollout/Go live will be in place, after which everyone can start

using SAP Touch and can take SAP to a totally high cloud with new innovative ideas beneficial for the organization.

5.9 Proposed FeaturesSAP Touch will have the following mentioned proposed features in first phase: Global Delivery Home page User Profiles and User home page Employee Points System (EPS ) Regular contests and events Video and Photo Uploads Blogs, Groups, Polls and Discussions Travelogues, Food Reviews, Movie and Book reviews etc.

5.10 Proposed Look and Feel for SAP TouchWith the proposed look and feel SAP Touch will basically consist of 2 Home Screens:1) SAP GD Home Page : Global Home Page2) My Home Page : Employees personal home page

SAP Global Delivery Home Page As per the proposed features SAP Global Delivery Home page will look like:

My Home PageAs per the proposed features My Home page will look like:

5.11 Key Components on SAP Global Delivery Home Page

GD Home ->The main news center: This will be one of the prominent features on SAP Global Delivery home page which will display and act as a main news center. The block of news center will contain latest news from all the five centers and important official announcements for SAP Global Delivery. Overall content of the news block will be categorized as follows:News will be displayed as a slide show.News With a picture and short description of the news/event.Topic headline will be a hyperlink and on clicking will lead to main article.Slide show will be updated by team of moderators based on the input provided by different teams and departments.

SAP Global Delivery Home ->Menus: Menu Bar block on SAP Global Delivery home page will have provision for upload of:1) Videos: Videos related to the latest and important events happening at SAP and at different SAP Global Delivery centers.2) Photos: Photos related to the latest and important events happening at SAP and at different SAP Global Delivery centers.

GD Home -> The Buzz AreaThe Buzz area will be one of the most prominent features of the SAP Global Delivery home page.The block will be updated by moderators and will display the key elements like:1) Holds the updates of competition winners, any flash news.2) Reminders of the latest events like Howzzat, FKOM.

SAP Global Delivery Home -> Top posts:This prominent feature will help to showcase the most important articles on the site, encouraging viewers to click on more articles and read what matters. New and interesting blog posts can be submitted by SAP employees, which after validation will be posted by the moderators. It can maximize the value of our archive by helping your readers discover the most engaging topics or overall content.

Extra Features:

PROJECT 2SAP ServicesFor

6.0 Project 2 Solution Services for Caterpillar 6.1 About the CompanyCaterpillar is a global leader, a genuine enabler of sustainable world progress and opportunity. While they