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Posts Tagged ‘marketing’

Google and Internet Advertising

February 19, 2009 Comments off

I often ponder what it would be like BG. Before Google. How small and confusing the world would be if we couldn’t find the answer to all our questions after a few short keystrokes. In today’s world, understanding how to find information quickly is the most important skill.

What does Google get for this?

Google pioneered a new form of search advertising that is more effective at driving conversions (customers buying something) than any other method of advertising. It is effective because when a user conducts a search, unlike watching TV or even viewing a webpage, the user has provided intent to discover a product or service.

When I’m watching Hero’s, have I shown intent to buy a new car?

When I’m reading the newspaper, have I shown intent to buy groceries?

When I search Google for appliances in Minneapolis, I have shown intent to find (and perhaps buy) appliances in a specific city.

Last week, I, along with my study group, prepared a delivered a presentation on this topic to the Management of Technology program at the University of Minnesota. Below are my slides from that presentations. Enjoy!

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US Government Spending on IT Services

February 16, 2009 Comments off

I recently conducted an extensive case study of the US Federal Government’s spending on IT services as a part of my graduate studies. It includes a summary of the market, how it is segmented, and opportunities for expansion. Here is a snippet from the report:

Market Overview
The market for IT services in the US Federal Government is over $68 billion in 2009 and continues to grow at 5% annually. IT demand from the government is segmented between two very different concerns:

  • Defense information and intelligence systems
  • Line-of-Business application deployments

These concerns, and the skills required to deliver them, segment this market as shown in the figure below. Defense suppliers specialize in the design and deployment of the advanced custom systems market segment, which is over $32 billion in revenue annually. The handful of suppliers competing for a single buyer of services creates a monopsony and significant cooperation between the suppliers.

US Government IT Market Segmentation

US Government IT Market Segmentation

The commercial IT market for Line-of-Business applications, which primarily serves the civilian agencies of the government, has a far larger customer base that includes companies around the globe. This creates intense competition on cost and efficiency in the delivery of these standard services.

I am offering up the report free for non-commercial use to anyone who finds this interesting or valuable. If you find inaccuracies in the report, or if you would like to discuss this topic further, please leave a comment!

You can download the full report here. Enjoy!

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