Portal & Solution Services SAP Final Intern Report V3

Intranet Portal, Solution Services
and CPL

Summer Training Report
Date of Submission: 03-Aug-2011

Submitted To:

Submitted By:

Sonam Lal
Head, Marketing & Communication
SAP Global Delivery

Arpit Bansal
Roll No: 1070370012

Table of Contents
Acknowledgement...................................................................................................... 6
Preface....................................................................................................................... 7
1. About SAP............................................................................................................... 8
1.1 History in the Making........................................................................................ 9
1.2 Business and Markets...................................................................................... 10
2. Enterprise Service-Oriented Architecture.............................................................11
2.1 Products.......................................................................................................... 11
2.2 Partnerships.................................................................................................... 13
2.3 Organization.................................................................................................... 13
2.4 SAP Endorsed Business Solutions (EBS)..........................................................14
3. SAP - SAP Global Delivery: Enabling and Delivering Services...............................15
3.1 Consolidation of services.................................................................................16
3.2 Added Value Through Industrialization............................................................17
3.3 Working Arm-In-Arm With A Partner Ecosystem..............................................18
4. Introduction to Marketing..................................................................................... 20
4.1 Approaches for Marketing...............................................................................21
4.2 Marketing Mix.................................................................................................. 26
4.3 Four 'P's........................................................................................................... 28
4.5 Marketing Strategy.......................................................................................... 30
4.6 Business Marketing Vs. Consumer Marketing..................................................32
4.7 The Marketing Environment............................................................................39
4.8 Segmentation, Targeting, and Positioning.......................................................46
4.9 International Marketing................................................................................... 53
5.0 PROJECT 1- Intranet Portal..................................................................................64
5.1 SAP NetWeaver Portal and Collaboration.........................................................64
5.2 Portal Look & Feel............................................................................................ 76
5.3 Enterprise Web Portal Questionnaire...............................................................77

2 | Intranet Portal, Solution Services and CPL

5.4 Findings - Existing Portal.................................................................................83
5.5 Survey Within the Organization.......................................................................84
5.6

Suggestions................................................................................................. 84

5.7

Solution For Findings - Existing Portal..........................................................85

5.8 Portal Phases................................................................................................... 87
5.9 Proposed Features........................................................................................... 88
5.10 Proposed Look and Feel for SAP Touch..........................................................88
5.11 Key Components on SAP Global Delivery Home Page...................................91
6.0 Project 2 – Solution Services for Caterpillar......................................................102
6.2 History........................................................................................................... 103
6.3 Caterpillar Strategy....................................................................................... 104
6.4 Five Year Goals.............................................................................................. 105
6.5 Major Challenges........................................................................................... 108
6.6 CAT Dealer Business Opportunity..................................................................109
6.6.1 Opportunity............................................................................................. 109
6.7 Opportunity Challenges................................................................................. 110
6.8 Significant Project Variations.........................................................................110
6.9 Solution Approach......................................................................................... 111
6.10 Questions for Clients/Prospects...................................................................113
6.11 SAP Cat Dealer Program..............................................................................114
6.12 SAP Strategy to Monetize the CAT Dealer...................................................115
6.13 What is the Ask of SAP Management?.........................................................117
6.14 SAP Global CAT Dealer Center of Excellence...............................................118
6.15 SAP Cat Dealer Program..............................................................................119
6.15.1 Application Strategy..............................................................................119
6.16 Approach..................................................................................................... 120
6.17 Benefits....................................................................................................... 120
6.18 SAP CAT Dealer Template............................................................................121
7.0 Project 3 – CPL (Competency Premier League).................................................123
7.1 Corporate Innovation Leadership Questionnaire...........................................123
7.2 Findings......................................................................................................... 125

3 | Intranet Portal, Solution Services and CPL

7.3 Solution for Findings – Launch Of CPL...........................................................125
7.3.1 What is the Competency Premier League?..............................................125
7.3.2 Go Beyond The Boundary........................................................................125
7.4 CPL Phases.................................................................................................... 126
7.4.1 Power Play - Make Your Pitch...................................................................126
7.4.2 Power Play - Thought Leadership............................................................128
7.4.3 Pinch Hitting - Innovation........................................................................129
7.4.4 The Doosra - QUIZ...................................................................................131
7.5 The CPL Official Web Page............................................................................. 131
7.6 Winners......................................................................................................... 134
8.0 BIBLIOGRAPHY.................................................................................................. 135

4 | Intranet Portal, Solution Services and CPL

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.

5 | Intranet Portal, Solution Services and CPL

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 the”SAP Global Delivery, SAP India
Pvt. Ltd”.

Arpit Bansal

6 | Intranet Portal, Solution Services and CPL

1. About SAP

7 | Intranet Portal, Solution Services and CPL

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-Württemberg, 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-Württemberg (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").

8 | Intranet Portal, Solution Services and CPL

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 Markets
SAP 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

9 | Intranet Portal, Solution Services and CPL

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 ESOA 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 companies
According 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."

10 | Intranet Portal, Solution Services and CPL

2.1 Products
SAP'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
suppliers

Other major product offerings include: the Net Weaver platform, Governance, Risk and
Compliance (GRC) solutions, Duet (joint offering with Microsoft), Performance

11 | Intranet Portal, Solution Services and CPL

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.

12 | Intranet Portal, Solution Services and CPL

2.2 Partnerships
SAP 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 partners
This 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.

13 | Intranet Portal, Solution Services and CPL

2.3 Organization
Functional 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





Invensys
Wonderware
KSS Fuels

14 | Intranet Portal, Solution Services and CPL




Questra
Quorom









Development
Epic Data
ESRI
FRS Global
Greenlight
HCL
Implico
InQuira










Meridium
NRX Global
Open Text
Oracle
ORSoft
OSIsoft MDUS
Oversight Systems
Prologa





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

15 | Intranet Portal, Solution Services and CPL

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 services
The 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.

16 | Intranet Portal, Solution Services and CPL

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 Industrialization
SAP 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

17 | Intranet Portal, Solution Services and CPL

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.

18 | Intranet Portal, Solution Services and CPL

3.3 Working Arm-In-Arm With A Partner
Ecosystem
The 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 firsthand 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.

19 | Intranet Portal, Solution Services and CPL

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.
20 | Intranet Portal, Solution Services and CPL

4.1 Approaches for Marketing
Earlier approaches
Orientatio
n

Profit
driver

Western
European
timeframe

Description

Productio

Production

until the

A firm focusing on a production orientation

n

methods

1950s

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).

Product

Quality of

until the

A firm employing a product orientation is

the product

1960s

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

21 | Intranet Portal, Solution Services and CPL

Orientatio
n

Profit
driver

Western
European
timeframe

Description

product.
Selling

Selling

1950s and

A firm using a sales orientation focuses

methods

1960s

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.

Marketing

Needs and

1970 to

The 'marketing orientation' is perhaps the

wants of

present

most common orientation used in

customers

day

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

22 | Intranet Portal, Solution Services and CPL

Orientatio
n

Profit
driver

Western
European
timeframe

Description

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 Approaches
Recent 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.

23 | Intranet Portal, Solution Services and CPL

Orientation

Profit driver

Western European
timeframe

Description

Relationship

Building and

1960s to present

Emphasis is placed

marketing /

keeping good

day

on the whole

Relationship

customer relations

relationship

management

between suppliers
and customers. The
aim is to provide the
best possible
customer service
and build customer
loyalty.

Business

Building and

1980s to present

In this context,

marketing /

keeping

day

marketing takes

Industrial

relationships

place between

marketing

between

businesses or

organizations

organizations. The
product focus lies
on industrial goods
or capital goods
rather than
consumer products
or end products.

24 | Intranet Portal, Solution Services and CPL

Orientation

Profit driver

Western European
timeframe

Description
Different forms of
marketing activities,
such as promotion,
advertising and
communication to
the customer are
used.

Social marketing

Benefit to society

1990s to present

Similar

day

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.

Branding

Brand value

1980s to present

In this context,

day

"branding" is the
main company
philosophy and

25 | Intranet Portal, Solution Services and CPL

Orientation

Profit driver

Western European
timeframe

Description
marketing is
considered an
instrument of
branding
philosophy.

4.2 Marketing Mix
The 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

26 | Intranet Portal, Solution Services and CPL

and services for the company’s 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.

27 | Intranet Portal, Solution Services and CPL

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.

28 | Intranet Portal, Solution Services and CPL



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

29 | Intranet Portal, Solution Services and CPL

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.

30 | Intranet Portal, Solution Services and CPL

4.5 Marketing Strategy
The 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 Behavior
This 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

31 | Intranet Portal, Solution Services and CPL

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 Behavior
Business 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.)

32 | Intranet Portal, Solution Services and CPL

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.

33 | Intranet Portal, Solution Services and CPL

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

34 | Intranet Portal, Solution Services and CPL

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 Strategies
35 | Intranet Portal, Solution Services and CPL

B2B Branding
B2B 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

36 | Intranet Portal, Solution Services and CPL

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.

Pricing
The 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.

Promotion
Promotion 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).

37 | Intranet Portal, Solution Services and CPL

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 Methodologies
The 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.

38 | Intranet Portal, Solution Services and CPL

Positioning Statement
An 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 Messages
The 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 Plan
Whatever 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.

39 | Intranet Portal, Solution Services and CPL

Briefing An Agency
A 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 Results
The real value in results measurement is in tying the marketing campaign back to
business results. After all, you’re 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

40 | Intranet Portal, Solution Services and CPL

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 direct—but frequently very serious—competition 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.

41 | Intranet Portal, Solution Services and CPL

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 afford—or are unwilling to spend on
—both. 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 buy
—going with lower priced brands, for example—there are limits to the savings
42 | Intranet Portal, Solution Services and CPL

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 computers—even though they are getting a bit slow—when 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

43 | Intranet Portal, Solution Services and CPL

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 services—
such as health care and college tuition—are 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.

44 | Intranet Portal, Solution Services and CPL

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 other’s 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. McDonald’s, for
example, is currently being sued by people who claim that eating the chain’s
hamburgers caused them to get fat. Firms are significantly limited in what they
can do by various laws—some laws, for example, require that disclosures be

45 | Intranet Portal, Solution Services and CPL

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’ CDs—an 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

46 | Intranet Portal, Solution Services and CPL

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 parent’s residence.

4.8 Segmentation, Targeting, and Positioning
Segmentation, 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.

47 | Intranet Portal, Solution Services and CPL

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 can’t 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 can’t offer much that another one can’t. Usually, this is the case only

48 | Intranet Portal, Solution Services and CPL

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
travelers—usually business travelers—pay 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

49 | Intranet Portal, Solution Services and CPL

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
sensitivity—willingness 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. Campbell’s soup, for instance, has found that Western U.S. consumers on
the average prefer spicier soups—thus, 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 loyal”—
i.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

50 | Intranet Portal, Solution Services and CPL

product is consumed by 20% of the consumers—presumably 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 McDonald’s has
a great reputation for fast, consistent quality, family friendly food, it would be difficult to
convince consumers that McDonald’s now offers gourmet food. Thus, McD’s would
probably be better off targeting families in search of consistent quality food in nice,
clean restaurants.

51 | Intranet Portal, Solution Services and CPL

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

52 | Intranet Portal, Solution Services and CPL

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. Nordstrom’s 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. Nordstrom’s 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
53 | Intranet Portal, Solution Services and CPL

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 one’s 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” one’s 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
customer’s 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 Snicker’s
to Kitkat, and how similar is Toblerone to Three Musketeers?) Using a computer

54 | Intranet Portal, Solution Services and CPL

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 means—
that 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 Marketing

Scope. A number of issues are involved in marketing internationally and crossculturally:

55 | Intranet Portal, Solution Services and CPL

Protectionism:

Although trade generally benefits a country as a whole, powerful

interests within countries frequently put obstacles—i.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.

56 | Intranet Portal, Solution Services and CPL



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 lessons
We 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 “man’s 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
speaker’s 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 others—for 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

57 | Intranet Portal, Solution Services and CPL

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 Introduction
Firms 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 modification—e.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 markets—e.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

58 | Intranet Portal, Solution Services and CPL

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 environments—e.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 used—e.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
59 | Intranet Portal, Solution Services and CPL

Japanese market), although products may face poor sales if such changes are not
made. Discretionary changes may also involve cultural adaptations—e.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 home—e.g., hand-powered washing machines.

Country of origin effects. Traditionally, a product’s 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

60 | Intranet Portal, Solution Services and CPL

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 Germany—both being near the border to the other country
—deliberately 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 with—if not being outright manufactured in—a 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 to—let alone making the product in—France.
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.

61 | Intranet Portal, Solution Services and CPL

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 Japan—food
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,

62 | Intranet Portal, Solution Services and CPL

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 countries—income 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.

63 | Intranet Portal, Solution Services and CPL

PROJECT 1

SAP GLOBAL DELIVERY
INTRANET PORTAL

64 | Intranet Portal, Solution Services and CPL

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.

65 | Intranet Portal, Solution Services and CPL

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



Authorization

SAP 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.

66 | Intranet Portal, Solution Services and CPL

Authentication
SAP 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 Work
1. User opens SAP
2. User logs on to SAP

67 | Intranet Portal, Solution Services and CPL

3. SAP enterprise portal server issues (against user persistence specified in the
portal user management engine (UME)) an SAP Logon Ticket to the user
4. SAP Logon Ticket is stored in the user's browser as a non-persistent HTTP
cookie
5. User gains access to multiple SAP applications and services

Composition


User ID



Validity date(s)



Issuing system



Digital signature



Authentication method

Notable Properties
Below 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

68 | Intranet Portal, Solution Services and CPL



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-On
SAP 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.

69 | Intranet Portal, Solution Services and CPL

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

70 | Intranet Portal, Solution Services and CPL

Dynamic Link Library
SAP 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 Applications
Microsoft 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.

71 | Intranet Portal, Solution Services and CPL

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

Integration into SAP Systems
ABAP
Logon 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.

72 | Intranet Portal, Solution Services and CPL

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

73 | Intranet Portal, Solution Services and CPL



Utilize Secure Network Communications-based single sign-on technology from
independent software security providers

Secure Network Communications-Based Single SignOn
Account Aggregation
The 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

74 | Intranet Portal, Solution Services and CPL

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

75 | Intranet Portal, Solution Services and CPL



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 & Feel
This is how a SAP Portal looks like for the employees
within SAP:

76 | Intranet Portal, Solution Services and CPL

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?

77 | Intranet Portal, Solution Services and CPL








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

78 | Intranet Portal, Solution Services and CPL



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

79 | Intranet Portal, Solution Services and CPL



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

80 | Intranet Portal, Solution Services and CPL



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.

81 | Intranet Portal, Solution Services and CPL

SAP GLOBAL DELIVERY
INTRANET PORTAL
FINDINGS

82 | Intranet Portal, Solution Services and CPL

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.

83 | Intranet Portal, Solution Services and CPL

5.5 Survey Within the Organization
10
9
8
7
6
5
4
3
2
1
0

84 | Intranet Portal, Solution Services and CPL

Extremely Satisfied
Very Satisfied
Satisfied
Dissatisfied
Very Dissatisfied
Extremely Dissatisfied

5.6 Suggestions
Suggestions

Change in Look & Feel
Change in Provision of
Information
Addition of Social
Networking Features
Usefullness
Categorization of Pages
Recognition

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

85 | Intranet Portal, Solution Services and CPL

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

86 | Intranet Portal, Solution Services and CPL

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 individualcentered 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.

87 | Intranet Portal, Solution Services and CPL

5.8 Portal Phases
The 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 Features
SAP Touch will have the following mentioned proposed features in first phase:



Global Delivery Home page
User Profiles and User home page

88 | Intranet Portal, Solution Services and CPL







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 Touch
With the proposed look and feel SAP Touch will basically consist of 2 Home Screens:
1) SAP GD Home Page : Global Home Page
2) 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:

89 | Intranet Portal, Solution Services and CPL

90 | Intranet Portal, Solution Services and CPL

My Home Page
As per the proposed features My Home page will look like:

91 | Intranet Portal, Solution Services and CPL

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.

92 | Intranet Portal, Solution Services and CPL

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.

93 | Intranet Portal, Solution Services and CPL

GD Home -> The Buzz Area
The 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.

94 | Intranet Portal, Solution Services and CPL

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.

95 | Intranet Portal, Solution Services and CPL

Extra Features:

96 | Intranet Portal, Solution Services and CPL

97 | Intranet Portal, Solution Services and CPL

98 | Intranet Portal, Solution Services and CPL

99 | Intranet Portal, Solution Services and CPL

100 | Intranet Portal, Solution Services and CPL

101 | Intranet Portal, Solution Services and CPL

PROJECT 2

SAP Services
For

102 | Intranet Portal, Solution Services and CPL

6.0 Project 2 – Solution Services
for Caterpillar
6.1 About the Company
Caterpillar is a global leader, a genuine enabler of sustainable world progress and
opportunity. While they share a rich heritage, the Caterpillar and Cat brands are
distinctly different. In the early years of Caterpillar's history, the term Cat was
synonymous with Caterpillar. Both described dependable, industry-leading machines
and the company that built them. In the 1950s, as the product line expanded, Cat
emerged as a distinct brand in its own right. Thirty years later, the Cat logo was
introduced, becoming the main identifier for products and services and the dealers that
distributed them. Today, the Cat brand is one of many brands owned by Caterpillar, and
it represents the largest and most respected family of products and services in earthmoving industries across the world. Backed by the unmatched support of a global
network of Cat dealers, Cat products and services deliver superior quality and long term
value, helping to accelerate the success of our customers worldwide.

103 | Intranet Portal, Solution Services and CPL

6.2 History
Caterpillar Inc. (NYSE: CAT), also known as "CAT", designs, manufactures, markets
and sells machinery and engines and sells financial products and insurance to
customers via a worldwide dealer network. Caterpillar is the world's largest
manufacturer of construction and mining equipment, diesel and natural gas engines and
industrial gas turbines. With more than US$7 billion in assets, Caterpillar was ranked
number one in its industry and number 44 overall in the 2009 Fortune 500. Caterpillar
stock is a component of the Dow Jones Industrial Average.

Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company
and the C. L. Best Tractor Company, creating a new entity, the California based
Caterpillar Tractor Company. In 1986, the company re-organized itself as a Delaware
corporation under the current name; Caterpillar Inc.Caterpillar's headquarters are
located in Peoria, Illinois, United States.

104 | Intranet Portal, Solution Services and CPL

Strategy
Caterpillar's Vision 2020 strategy sets the stage for the next phase of the company’s
leadership and growth in the global industries it serves.

6.3 Caterpillar Strategy
The strategy includes a vision of the future
where:


Caterpillar is the recognized leader everywhere it does business.



Their products, services and solutions help their customers succeed.



Their distribution system is a competitive advantage.



Their supply chain is world class.



Their business model drives superior results.



Their people are talented and live Our Values in Action.



Their work today helps our customers create a more sustainable world.



Their financial performance consistently rewards our stockholders.

105 | Intranet Portal, Solution Services and CPL

6.4 Five Year Goals
Goals for the next five years are focused in
three areas


Delivering superior results: They are a great long-term investment with total
shareholder return in the top 25% of the S&P 500.



Developing the best team of people: Their employees will have a great, safe and
inclusive place to work.



Becoming the global leader everywhere we do business: Their customers will
make more money with them than with our competitors.

106 | Intranet Portal, Solution Services and CPL

107 | Intranet Portal, Solution Services and CPL

To achieve vision 2020 CAT has been trying with different solutions all across the world
with solution providers to streamline their process of:







Sales New Equipments
Sales Used Equipments
Renting & Finance
Repair & Service
Spare Parts
Engineering Services

108 | Intranet Portal, Solution Services and CPL

However, none other software vendor could prove their solution worth for streamlining
the existing process.

6.5 Major Challenges
1. Streamlining the processes of OEM (original equipment manufacturer) Business
without major changes to the existing process.
2. CAT has innumerable dealers spanned all across the world with dealership of
their different variety of products. One of the main problem for the dealers was
that everyone used to see a different dealership login page when they log in for
the order placement or for any other activity.
3. What CAT wants is that a uniform and universal dealership page for dealers all
across the world, so that everyone can see the same page when they login and it
also becomes for the CAT maintenance team to maintain the information.

109 | Intranet Portal, Solution Services and CPL

4. The other major challenge is the conversion of an existing financial data to the
new proposed vendor solution without any loss of data. Since all the above three
problem statements needs to be addressed for the large volume of the dealers
spanned across the globe, many software solution providers proposed their
solutions but could not prove it worth of handling all the problems successfully.

6.6 CAT Dealer Business Opportunity
6.6.1 Opportunity


CATERPILLAR is a solid and well served SAP Customer but goes to market



(sales, service, parts, rental …) through ~150 independent dealerships
The CAT Dealer Network needs to replace their legacy solution aiming into a
‘networked’ software selling opportunity.

SAP is not first but was called in by a US Dealer community to offer an SAP Dealer
Solution as yet none other software vendor could prove their solution.

110 | Intranet Portal, Solution Services and CPL

6.7 Opportunity Challenges
The SAP Strategy to win a profitable volume of CAT Dealers is to take the solution
ownership by building and delivering a CAT Dealer specific implementation template.

6.8 Significant Project Variations


SAP is difficult to deal with, and doesn’t have a common global








program
Lack of solution consistency between installations
Different projects with different partners
Functional challenges
SAP limited involvement
Project details not shared for mutual benefit
Redundancy

111 | Intranet Portal, Solution Services and CPL

6.9 Solution Approach
SAP to have meat in the game: Owning the Solution
 Cat-specific processes within a standard SAP template
 Project awareness and governance
 Enable a collaborative community for mutual benefit
 Align with Caterpillar solution roadmap
 Leverage SAP innovations

Global Dealer CAT Network Round the Globe

112 | Intranet Portal, Solution Services and CPL

6.10 Questions for Clients/Prospects



Replacing the ‘legacy’ solutions - how do we minimize customer data risk?
How to best contribute to and share the SAP implementation template



framework?
How to establish a common approach for developing and managing the




Caterpillar interfaces?
How to extend the SAP solutions to support desired functionality (Rental)?
How to accelerate adoption and avoid risk with change management best



practices?
How to confidently undertake the DBS replacement and identify the





evolutionary roadmap?
Is SAP very difficult to deal with?
Do we need a small dedicated team?
Should have a global program?

113 | Intranet Portal, Solution Services and CPL

6.11 SAP Cat Dealer Program
6.11.1 Findings/Objectives for 2011 – Standardize and
Simplify
Common Template through CoE








Including product demonstrations
Established a common DSG, CoE and SE team for Whayne,
Started working together since Whayne discovery
Re-initiate the Advisory Group
Agreed for a monthly call with all dealers
Established a portal for CDAG
NADITA follow-up started

Work with existing customers on a one-by-one basis





Cashman, Hewitt, Barloworld all agreed to work with us
Provided Initial Proposal to Borosan
Cashman Audit being arranged
Hewitt agreed to provide access to their SolMan

Establish Clear Partner Strategy



Multiple alignment meetings with Systech, FIT, FDC, B4 etc
Fit and FDC agreed to work on a partnership agreement for Interfaces

114 | Intranet Portal, Solution Services and CPL

6.12 SAP Strategy to Monetize the CAT
Dealer Opportunity

Key Building Blocks and Responsibilities of the SAP Strategy for CAT
Dealers
Enable the US CAT Dealer Team to Scale towards a Global CAT Dealer Business

115 | Intranet Portal, Solution Services and CPL

116 | Intranet Portal, Solution Services and CPL

6.13 What is the Ask of SAP Management?

Establish Global
Consulting Program

• Approval to engage across the globe
• Common policy for revenue and order booking
credits
• One off deals/agreements are difficult to
manage/every sales cycles requires commitment
of time

Establish a Common
Global Sales Play

• Microsoft has launched a common pricing
discounts for the global community
• Need a common SE team for the global program

Establish a Common
Business Case with
the IBU

• Lack of alignment will lead to tremendous
bleeding of revenues and weaken the business
case for the CoE
• We need a lean development and support model
with a single face to the dealer community, else
we will fail together

6.14 SAP Global CAT Dealer Center of
Excellence
Dedicated Resources to Serve the CAT Dealer Community

117 | Intranet Portal, Solution Services and CPL

6.15 SAP Cat Dealer Program
6.15.1 Application Strategy

118 | Intranet Portal, Solution Services and CPL

Equipment Dealer Analytics

Engineere
d
Solutions
Constructi
Trade-In &
Fleet
on
Financing Outsourcing
Site
Solutions
New/Used
Equipment

Service
and Spare
Part

Customer Equipment
Operated
Equipment
Interaction Interaction
Equipment
and Service
Warranty
Workshop
Field
Spare Part
Operations
and
Service
Service
Logistics
Complaint
Equipment
Configurati
Lifecycle
on
Management
Manageme
nt

Fleet
Manageme
nt

Profitabilit Replacement
Opportunitie
y
s
Manageme
nt

Risk and
Financials
Procureme
Project
Complianc
and
nt
and
Manageme
Dealer
e
Sourcing
nt
Business Accounting
Human
Quality
Corporate
Functions
Capital
Manageme
Sustainabil
Management
nt
ity

Dealer Business Network Integration

Marketing
Equipment and
Solution Appearanc
Rental
e &
Selling
Rent-toBuy

B2B
with
OEM
B2B
with
Dealer
s
B2B
with
Custo
mer
Servic
e
Partne
r
Financi
al
Partne
r

6.16 Approach



Consolidate experience and knowledge and best practices
Standardize and evolve the SAP CAT Dealer implementation




template
Ensure alignment with Caterpillar landscape and future direction
Establish a dedicated team of CAT Dealer expert consultants

119 | Intranet Portal, Solution Services and CPL

6.17 Benefits


Accelerated implementations to improve time to value and total cost



of ownership
Single source for solution and implementation strategy and best
practice knowledge

Ensure SAP CAT Dealer customers are well coordinated with Caterpillar innovation
rollouts.

6.18 SAP CAT Dealer Template
Status and Milestones

120 | Intranet Portal, Solution Services and CPL

PROJECT 3

SAP Global Delivery
Competency Premier League

7.0 Project 3 – CPL (Competency
Premier League)

121 | Intranet Portal, Solution Services and CPL

7.1 Corporate Innovation Leadership
Questionnaire
Your response is important to us - please take a few moments to complete these
questions!

1) How satisfied are you with the innovation at SAP?







Extremely Satisfied
Very Satisfied
Satisfied
Dissatisfied
Very Dissatisfied
Extremely Dissatisfied

2) How satisfied are you regarding the extempore and presentation skills
training?







Extremely Satisfied
Very Satisfied
Satisfied
Dissatisfied
Very Dissatisfied
Extremely Dissatisfied

3) Has the external trainers able to meet up the expectation level during training?






Yes
No
Partially
Have Not Attended Yet
Others

4) Has the training helped you to enhance your communication and presentation
skills?
122 | Intranet Portal, Solution Services and CPL







Yes
No
Partially
Have Not Attended Yet
Others

5) Have you ever participated in Innovation at SAP?





Yes
No
Partially
Others

6) Please suggest how would you help SAP with new Innovative ideas?

Thanks again for completing this questionnaire.

7.2 Findings
7.3 Solution for Findings – Launch Of CPL

7.3.1 What is the Competency Premier League?
The CPL is a three-day event that saw the best consulting brains from SAP Global
Delivery battle for the top spot with the best ideas, the best displays, speaking

123 | Intranet Portal, Solution Services and CPL

opportunities and thought leadership - all to show the SAP world how the best in the
business are BUILT TO DELIVER.
The best players competed with themselves to raise the bar continuously. This was a
chance to outdo consultants on the Competency Premier League (CPL) platform.
Showcase their consulting DNA and how their competency is the market maker across
various SAP solutions.

7.3.2 Go Beyond The Boundary
CPL is SAP employee show - Employees went beyond their boundaries and
demonstrated everything that SAP Global Delivery stands for in the Competency
Premier League. The event was a three day power packed event:

7.4 CPL Phases
The whole event was divided into 4 phases:
1) Power Play
2) Straight Drive
3) Pinch Hitting
4) The Doosra

124 | Intranet Portal, Solution Services and CPL

7.4.1 Power Play - Make Your Pitch
Max Points : 50 +20
The first day competition of the CPL event is a showcase for the competencies.
Key Concepts & Rules
- Each practice was allowed to make a presentation in front of a select jury & open
audience for a maximum of 10 minutes about the competency + 4 minutes for Q & A
(on 28th June, 2 to 6 pm.) Evaluation Criteria for presentation (total = 50 points)
- Clarity of the content; explaining the capabilities of the competency (10)
- Key highlights & distinguishing factors about the practice that come out of the
presentation (10)

- Strategy & vision articulated in the presentation and its relevance to organization
strategies - Any new ideas proposed in the presentation that can help the
organization grow, Ability of the competency to contribute to organization growth .
(10)
- Creativity & Innovation of presentation (10)
- Presentation skills of the presenter in terms of ability to connect with the audience
and convey the message (10)

Team Mascot 10 points Jury evaluation

125 | Intranet Portal, Solution Services and CPL

Team Name 5 points Jury evaluation
Slogans 5 points Jury evaluation

- Presentation can be made using any standard software and can use all
audio-visual audio-visual media (ppt, movie files etc)
- A maximum of 50 points can be awarded by each jury member and the average score
will be calculated to decide the winner.
- In case of a tie, the team taking lesser time will be awarded the winner
- 2 point will be deducted with every additional minute taken for the presentation
- No limit on the number of presenters making the presentation
- The rules and regulations of the CPL events are subject to change by the
CPL Core Committee without notice

7.4.2 Power Play - Thought Leadership
Max Points: 20 (Jury) + 5 (Community Votes) + 5 (participation)
Teams to present an article that will be posted on the SAP Global Delivery community
page and screened papers will be presented before a select jury.

Key Concepts & Rules
- The article can be presented in the form of a whitepaper or an opinion article
(relevant to SAP Global Delivery Business)

126 | Intranet Portal, Solution Services and CPL

- This is an individual event. Maximum 2 participants can present one whitepaper and
a maximum of 5 entries are allowed from one competency.
- Each participation from the competencies (max 5) will be awarded 1 point each for
participation

Evaluation criteria can be (maximum 20 points) - Content (10)
- Relevance to GD (5)
- Presentation Skills(5)

- For opinion articles, the author(s) must warrant that the write-up submitted is their
original work and has not been published previously.
- The Whitepapers and Articles will be posted on the SAP Global Delivery community
page. A poll will be linked to judge the article by readers.
- The article must be submitted latest by June 22nd , 2011. The article will be made live
on the community page for polling.
- The screened papers will be presented to the Jury on 29th June , 2011 (10 am to 1
pm)
- Jury's decision will be based on presentation of content and relevance to
SAP Global Delivery business.
- Result will be based on Jury decision and Reader's Poll.
- The rules and regulations of the CPL events are subject to change by the
CPL Core Committee without notice.
127 | Intranet Portal, Solution Services and CPL

7.4.3 Pinch Hitting - Innovation
Max Points: 50
Each Competency to present the topic in front of select jury and open audience.

Presentation of an idea to- Increase market presence of SAP Global Delivery (unexplored solutions/services…)
- Increase share of work (more presence in already explored areas)
- Improve productivity
- Improve quality

Idea can be a Service/Solution/Re-usable object (no codes/documents) or...
It can be one idea or multiple linked ideas
Each team gets 12 minutes, including Q & A (8 mins for speaker/s + 4 for Q&A)

Evaluation criteria can be (maximum 50 points) –
- Creativity, innovation, out of box thinking (10)
- Business gain, in terms of $ value (10)
- Clarity of the content, Presentation Skills (10)

128 | Intranet Portal, Solution Services and CPL

- Viability, immediate application (10)
- Cross-team/cross-practice collaboration (10) -> the presenting team gets evaluated.
The team with major solution stake will be the owner of the idea.

2 marks deducted for every additional minute.
No limit on the number of presenters making the presentation.
Scores by Jury will be averaged out to decide the winner.
In case of tie, team taking lesser time will win.

- The rules and regulations of the CPL events are subject to change by the
CPL Core Committee without notice.

7.4.4 The Doosra - QUIZ
Max Points: 25
- A quiz of epic proportions with questions on everything under the sun!
- Eliminations at the end of round 1 and 2 on 30th June, 2 to 6 pm.
- The rules and regulations of the CPL events are subject to change by the
CPL Core Committee without notice.

129 | Intranet Portal, Solution Services and CPL

7.5 The CPL Official Web Page

To make the event successful and to bring out the main motive of the CPL- leverage
SAP brains to cultivate out the best innovative ideas to make SAP a better place to work
and to make SAP RUN BETTER for all our customers the whole event was categorized
between 13 teams as participants:

Team Name

Captains

Power Play

HCM Dream Team - CPL CHAMPION

Jayendra Bisnik

41

CalpavRikshaM - CPL Runner Up

Sathish Radhakrishnan

42

130 | Intranet Portal, Solution Services and CPL

FS Falcons

Santosh Ramadoss

50

BA Infonators

Sandeep Gupta

42

Hurricane Hunters! (SCM/SRM)

Hari Shankar Tripathy

49

Incredible Innovators (IISD)

Subramanyam Balasubramanian

33

BCCI – Bindaas Players

Mahalingam Sornanathan

31

ERP Core

Anup Das

36

T&L Transporters

Venkata Sivkumar Sridhar Desiraju

40

t FORCE (TTS)

Amit Ranjan Bhattacharjee

42

T-72 (Retail)

Manish Bhandari

36

Transformers (OTS & STS)

Abhijit Bora

48

Energy Mavericks

Chandrasekar Purushotham

32

131 | Intranet Portal, Solution Services and CPL

7.6 Winners

132 | Intranet Portal, Solution Services and CPL

8.0 BIBLIOGRAPHY


Primary Sources

:

Questionnaire (Survey)



Secondary Sources

:

Print Media , Company’s internal documents
 Journals etc.



Websites

:

www.wikipedia.com
www.sap.com
www.google.com

133 | Intranet Portal, Solution Services and CPL