Alien Invasions are attempts at dominating a category outside the enterprise’s perceived core competence. Tech companies aren’t the only Alien Invaders. Any enterprise with the resources, money, mindset/know-how, and will can launch an Alien Invasion.
Here EkaLore considers Ford’s new venture VIIZR, a foray into the world of small/medium business service management ranging from car repair, plumbers, roofing contractors, to HVAC service providers.
By the Ekalore Framework Ford/Salesforce VIIZR is an Alien Invader from outside the software seller category. The Alien Invader will possess or find a way to obtain resources, an ability to market, people, and apply tech. Ford certainly has the resources, people, and a powerful marketing capability/brand. VIIZR relies on SalesForce for a tech platform. Salesforce stands to gain software service customers who don’t seek a sales automation platform.
Alien Invader’s seek to exploit marketplaces in ways not available to the existing market players. Successful Alien Invasion tactics are to change the perceived business models to attack the profits, gross revenue, or share of critical customers. An Alien Invader can also seek expand revenue, margin, or value in customer relationships, and to forge new paths to making margin (like online brokers getting paid for order flow).
Ford may try to convince financial markets of new profits from VIIZR customer and supply chain relationships. These ‘business model’ changes are obvious (subscription revenues for an automobile company), and subtle.
GMAC sought a banking charter to expand customer relationships exploiting ‘prior customer relationship data’ before transitioning. As far back as 2006 GM was looking at OnStar to be a subscription revenue source. GM has OnStar subscriptions now and identifies software and services markets as a $1.3T addressable market.
Ford may be considering consolidated supply chain gains from VIIZR customers by consolidating supply and servicing relationships (think WalMart SamsClub or Home Depot commercial sales writ large for contractors).
Will Ford learn enough from the habits and transactions of ‘contractors’ to better protect the market for pickup-style vehicles during a transition to Electric Vehicles? Tracking the location data and timing for reimbursing workers on a contractor’s scheduling plan could be a ‘feature’ of VIIZR also gathering massive amounts of useful data to Ford and Salesforce for analysis.
Whether Ford/VIIZR can make an investor case for a material contribution to revenue and margin in subscriptions and supply chain gains will depend on achieving Alien Invader gains.
Ford is offering this software at $39/month per seat ($49/month-to-month). If they realize other value to subsidize VIIZR by increasing sales then VIIZR prices could reflect the value gain. Competitive software service offerings might not have the critical data mass or ability to monetize like Ford. It’s early days, so it’s hard to know if this will be a popular offering. It’s clear now an Alien Invasion is coming.
If you’re under threat from an Alien Invader in your marketplace or you’d like to launch an Alien Invasion of your own, we’ve got a few ideas on how deal with both situations. Drop us a note at www.ekalore.com/contact.
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