Industry Application Portfolio Industry Application Portfolio Introduction The purpose of this job aid is to match applications available on HP's new Corporate Business System to strategic and high potential application areas within your target industry. For each industry two tools are provided. The first is the Industry Application Portfolio grid which breaks the industry into four quadrants by application area. (The quadrants will be defined on the following page.) The second tool maps existing HP software solutions to these four quadrant application areas. Industry Application Portfolio The Industry Application Portfolio is made up of four quadrants. Each quadrant positions an application in terms of the quantity of resources used and the magnitude of the benefits derived within that industry. Refer to the following sample figure. Sample Industry _________________________________________________________ | | Turnaround/ | | Strategic |High Potent|al | |_____________________________|__________________________| High | | | | | | | | | | | | | | | | | | | | | | | | | | | Resource| | | Used ______________________________|__________________________| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Low | | | |________________________________________________________| | | | Factory/Operational Support/Admin | __________________ _______________________________________ High---------------Benefits Derived-------------Low Definition of Quadrants Strategic quadrant An application in this quadrant provides a company with competitive advantage. This is where the company derives the greatest benefit while utilizing a great deal of resources. The company will be unable to implement new business strategies unless these systems are in place. Turnaround/High Potential quadrant These systems are often under development or running only as pilots. At this phase the application provides little benefit and requires extensive resources. At this point, they make no great contribution to the business but are likely to do so in the future. These are the applications that when fully implemented will become a company's strategic applications. Factory quadrant These are operational systems that support the daily processes of the business. The company derives great benefit from these applications while applying only limited resources. If these systems are unavailable, the business will slow or come to a halt. Support quadrant Applications in this quadrant are valuable for efficiently handling some of the non-critical processes. These applications provide low benefits and require few resources. If they were unavailable for some period, no major problems would occur. Definition of Measures Benefits Derived (x-axis) The Benefits Derived axis measures how an application impacts the company. By benefits, we mean the financial contribution the application makes to the business. For example, Strategic and Factory applications will provide high rates of return on the initial investment and generate good levels of cash flow. By comparison, the benefits derived from Support and Turnaround/High Potential applications will be much less. Resources Used (y-axis) The Resources Used axis measures the resources required to produce, implement and maintain an application. Resources include hardware, software, people, support, etc. Strategic and Turnaround/High Potential applications will require high levels of resources while Factory and Support applications require lower levels. Value of Industry Application Portfolio The Industry Application Portfolio grid identifies how an industry views an application. Mapped to the list of software solutions available on HP's new Corporate Business System, you can now focus your sales efforts when developing your account strategy. For example, if your goal is to become a strategic partner with your customer, you need to be selling applications that fall into the Strategic and Turnaround/High Potential quadrants. If on the other hand you identify a large opportunity that falls into the Factory or Support quadrants, you may choose to pursue it in order to develop a presence in the account (or for "quota reasons"!) Be aware however that these are not critical opportunities and as the provider of the application, you will be viewed only as a niche vendors. Strategic and Turnaround/High Potential application areas are where long term partnerships are developed. How to Use the Job Aid Tool 1 1. Locate your targeted Industry Application Portfolio grid. 2. Review the industry applications in each quadrant. 3. Given your strategy with the account, select the quadrant or application you want to target. Tool 2 4. Turn to the applications listing to find your chosen application area and the associated Corporate Business System solutions available. Industry Application Portfolios