Net App Presentation Innovate Carolina 2012

BLINDED BY THE LIGHT: INNOVATING INSIDEGROWTH COMPANIESGREG HOPPER

April 20th, 2012

NetApp Values

Great Culture

#6 #3 #1

What NetApp Does

History of Innovation

NetApp At A Glance

High Performers “Jump the S-Curve”

“Big Enough Market Insight”

BEMI

NetApp’s Original BEMI

You could attach specialized data storage devices – filers – to a network

NAS = Network Attached Storage

Internal operating system is called Data ONTAP® and is optimized for storage requirements

Today

Data ONTAP® 8• Continuously improved and enhanced• Excellent technology• Cluster-mode just released

But…• Technology evolves• Product life cycles accelerate

In other words…

…we need to invest more in new, breakthrough innovations.

Financial $uccess

is a trailing indicator

of innovation success.

Three Phases of Value MigrationM

arke

t Val

ue/R

even

ue

Value Inflow Stability Value Outflow

• Limited competition• High growth• High profitability

• Competitive stability• Stable market share• Stable margins

• Competitive intensity• Declining sales• Low profits

Talent, resources, and customers leave at an accelerating rate

2

1

Example: PhotographyM

arke

t Val

ue/R

even

ue

Value Inflow Stability Value Outflow

2

1

Characteristics of the Transition

Volume is high.Revenue is growing. Customers are happy.

Strong repeat business.

Focus on superior execution – this is the “comfort zone”.

But…your time here is limited, and the stability phase is getting shorter.

Horizon 10 to 12 months



Current Businesses

Generate today’s cash flow

High Growth Businesses

Today’s revenue growth + tomorrow’s cash flow

Growth Options

Options on future high-growth businesses

Expected Window of Returns

Acc

umul

ated

Tot

al R

etur

ns

TCG Horizon ModelHIGH

GROWTHLOW

GROWTH

MATERIAL TOCURRENT EARNINGS

NOT MATERIAL TOCURRENT EARNINGS

Another viewHIGH

GROWTHLOW

GROWTH



TCG Horizon ModelHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

TCG: Innovation OpportunityHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

TCG Advisors noted a “Horizon 2 vacuum” in most companies.

Two Transitions to ManageHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

Two distinctly different transitions; managing them is key

Totally Different TransitionsHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

α

β

Two Different Questions: FirstHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

Is there a business?

Two Different Questions: SecondHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

Is there a business?

Is there a BIG business?

Two Different Skill SetsHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

Entrepreneurial

Operations

NetApp’s FocusHIGH

GROWTHLOW

GROWTH



Horizon 1

Hor

izon

2

Horizon 3

Create Customer ValueThrough Partnerships

Partnership Thinking:

Completing the Whole Product

“The Whole Product”

The minimum set of products and services

necessary to ensure that

the target customer will achieve his or her

compelling reason to buy.

04/14/2023 35Week 11

Premise

Success is achieved by:– Engaging the right resources,– At the right cost, time, and place, according to the– Buying behavior of the customer.

04/14/2023 Week 11 37

What do you mean by “resources”?

Original Equipment Manufacturer (OEM)Distributors

– Volume vs. Value AddedResellerIntegratorsSolution ProviderRetailersSales AgentsDirect SalesInfluencers

04/14/2023 Week 11 38

Types of Partnerships

Acquire

Joint Venture/Equity Stake

R&D/Technology Transfer

OEM/Licensing/Private Label

Joint

Marketing/Distribution

04/14/2023 39

Simple Sales Cycle Model

Demand Generation

Pre-Sales

Close the

DealDeploy Support

Demand Generation

04/14/2023 41

Demand Generation

Pre-Sales

Close the

DealDeploy Support

Providing information to prospective customers or end-users• Advertising• Press• Direct mail• Promotions• Loyalty programs

Pre-Sales

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Demand Generation

Pre-Sales

Close the

DealDeploy Support

Provide information on:• Pricing• Availability• Terms and conditions• Configuration options• Specifications• Competitive information

Key element: Understand prospect’s wants and needs (pain points)

Close the Deal

04/14/2023 43

Demand Generation

Pre-Sales

Close the

DealDeploy Support

Get the order!

Activities include:• Final negotiations• Sign the contract• Complete financial arrangements

• Immediate payment• Terms (i.e. Net 30)

Deploy

04/14/2023 44

Demand Generation

Pre-Sales

Close the

DealDeploy Support

Receive and fulfill the customer’s order

Activities include:• Order processing and confirmation• Shipment and installation• Customization, integration, and training

Support

04/14/2023 45

Demand Generation

Pre-Sales

Close the

DealDeploy Support

Ensure the proper operation of the offering and the customer’s ongoing level of satisfactory performance

Look for opportunities to make the customer more successful

NetApp

One Vision for Unified Infrastructure

Cisco VMware

Jointly Validated Solutions

New Cooperative Services and Support

Mutual, Open Partner Ecosystem

Imagine Virtually Anything: FlexPod

Summary

Successful growth organizations need to allocate resources across current, emerging, and new areas of customer value

Three Horizons Model offers a resource allocation model and roadmap.

NetApp has chosen a partnership-based model to turn Horizon 2 opportunities into Horizon 1 businesses to deliver new customer value quickly and efficiently.

Net App Presentation Innovate Carolina 2012

Business

Transcript of Net App Presentation Innovate Carolina 2012