Can't Beat 'em, then join 'em !

The news
Quite some time back, Oracle had acquired Sun. Now, in an attempt to catch up, Oracle's arch-rival, SAP, has acquired Sybase in a $5 billion deal. This was widely expected, since SAP was under pressure because of Oracle's stunning 'stack' strategy.
Sun had a hugely diversified product offering - the language used for many applications (Java) was theirs, the servers that a lot of companies used were theirs, the servers used an Operating system that was Sun's (Solaris) and the database that stored all the info could also have been from Sun.
The background
In early 2010, Sun was acquired by Oracle. Oracle had two hugely successful products - a suite of applications used by end-users in corporate offices, and the database that stored this info. After this merger, Oracle was in a position to offer a complete end-to-end solution to corporations, blocking out it's competitors, IBM and SAP, by offering better prices and the peace of mind that comes with dealing with only one vendor. In tech-speak, this concept is called a 'stack', with the software stacked upon an operating system, stacked upon a database, in turn stacked upon a server.
The competition
Oracle is currently the only one with a complete stack.IBM has everything except the strong ERP applications.SAP had only the application software. Now they've moved to acquire Sybase, a database.
Why the merger?
Now, it's only about half a year since Oracle acquired Sun and completed it's 'stack'. Definitely not enough time for the strategy to show any concrete results, either good or bad.
But SAP couldn't afford to wait and see if the strategy worked or not. They were placed in a sink-or-swim situation. They decided to swim. Will it work? The jury is still out on this one !!

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When I grow up .......

"A time comes when you stop waiting for the man you want to become, and start being the man you want to be".

~ The Boss, Bruce Springsteen

This is it...

The time is now!

Carpe Diem!!

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Show me the money !

At the IE IMBA program, there are some off-beat things that we do. None, so far, has been more off-beat than "Information Systems". So far, we've been discussing how Social media is changing lifestyles, and how companies are being affected (hey, it's a B-school !).

Sooner or later, every to-be-MBA goes "Show me the money !!". Take Twitter, for instance.

* Does it make any money?
* If yes, then how could it possibly do so?
* If not, then what's the point?

But if you're still at Twitter, then you've got some catching up to do. Meet Foursquare.

Foursquare reached the million user mark in half the time it took Twitter to do so.

Whats it about?

People can 'check in' to Foursquare from a specific location, say a restaurant. The more you do it, the more points you get. Visit a place (and check in from there) more than anybody else, and you become the 'mayor' of that place.

"What's in it for me, eh ?"

Maybe, the points don't mean a thing to you. They wouldn't, to me. But what if the bartender at the local Irish pub knew that I'm the 'mayor', and gave me a free beer each time (s)he saw me. That would definitely mean something ! Cheapskates, aren't we all !!




But why should the bartender do this for me?
* Well, customer loyalty, for starters. It's an easy way of identifying the regulars. And then keeping 'em regular!
* It's an easy-to-get word of mouth publicity for yourself
* the pub gets market-analytics info (age, sex, occupation etc. of the clientele, their timings at the pub/restaurant etc.). That helps the pub focus on the most profitable clients.
* the pub gets data on how effective it's marketing fundas have been

Fine, so the regular users are happy (a bit sozzled, too, with all the free beer !).
The bartender at the pub is happy. Just a few discounts(unavoidable anyway, but more targeted now), and more business in return.

But is that all ? Something's missing here !

Foursquare is still not making money !!
That's not what the to-be-MBA wants !
Show me the money !!

Raking it in with highly localised advertising
This is where the user helps Foursquare. It's not legal for advertisers to obtain your whereabouts based on your phone transmissions. So, Foursquare gets you to advertise your presence. This information is made available to advertisers.

You go to a gym, register your presence there, and lo, you get an SMS "Tired after a workout? There's a cold iced-tea and salad waiting just 2 minutes from you, at so-and-so location."

Creepy? For sure !

Invasion of your privacy? No. You let them know where you are.
Effective Local Marketing? Absolutely !

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