Saturday, December 26, 2009

SAS Google Vs IBM SAP Oracle Growth Business models

A different topic for dscussion this month,

People who ever working for these big companies or using the products (Especially Advanced Analytics and Business intelligence products) of  SAS,Google,IBM,SAP,Oracle and other Analytic Products might be aware or knowing that these companies often come out  with new products or new updates regualarly.

The question is, how is this innovation  happening, when other companies in the  market is unable to do this?

Let me give a small example on how this innovation happens, Assume that you are a small business man working with a team of 3 to 5 for any service or any product,and consider you are the incharge of  selling,Budgeting and the cash box. Assume for a week, the regular cash inflow is decreasing  or revenue is decreasing.what can you infer out of it?

A few answers could be

1. Customers are not interested,  or demand is less for the product or service
2.Competition might be growing
3.You are not having enough inventory to do your business
4. Enough person to do work is not available, so you can add on reasons like this,

Now coming to our initial question on innovation of these BIG Companies? As these comapnies are sitting closer to the cash box or revenue box  to any business or business model.

Here the" CASH BOX LIES IN THE ANALYICS DATA OR BUSINESS DATA", (sales data, revenue data, competitor data, promotional data and CRM data  and you can add more data to this list).

As these companies, while giving solution to the consumers or customers, are also really close to their business model(Inclsive of marketing,finance and operations), and as they work for more number of similar clients alike , they are able to consolidate the business problems which are of similar nature to these business categories.

Once able to group or consolidate the business problem, for similar segment of the consumers or customers, and  with  the help of the strong R&D team and marketing team, they are able to come out with newer process,products and updates.  In addition  with their  better marketing effort they are able to sell these advanced products from the lessons learnt from the client's business model to newer set of clients, and these chain or cycle continues and these companies grow tremendously.
Coming to the growing companies,with smaller client base especially in this analytics segment, can also come out with newer innovative products, and even with a smaller RandD team and also keeping  lower price as the differentiator strategy, can even outpace these BIG companies with in the smaller product portfolio.

So , now every body can say that  innovation or new business model in Analytics space is "CASH BOX lIES IN THE ANALYICS DATA OR BUSINESS DATA"

Cheers
Ravi

Ravikumar krishnan - Linkedin