South east asia electricity case study.


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Case study about a brilliant sales person from what I call Elite class. He turned a H/W purchase into a customized solution and had his customer issue a single source purchase. The only way he could do that is by using Elite sales techniques .

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South east asia electricity case study.

  1. 1. BACKGROUNDSouth Asian Electricity Company (SAEC) faced a surge in consumption that exceeded itsproduction capacity and could not be fulfilled unless the generation plant is upgraded, which is acostly proposition. The cost of the upgrade is in the billions of dollars which is not justifiedespecially that the over capacity period is 100 hundred hours per year that occur on summerseason during peak hour use 8 AM – 4 PM.SAEC conducted a “load peak time” and found out the peak is during the summer and the bestcommercially viable option is “load shifting” during the peak hours, in which they will utilizedigital meters technology with multiple registers so they can devise a new dynamic tariff schemeDTS until their 3 years Smart Grid project is rolled out.The new tariff system does not affect the 24X7 commercial consumers like airports and hospitalsas the consumption peaks and valleys will balance out between the three tariffs (peak, normal,and off-peak), so there will be practically no financial burden on this class of consumers.Other large consumers such as shopping malls, exhibitions, amusement parks, etc. will have toeither distribute their consumption or pay extra premium for their high lighting and air-conditioning consumption SAEC procurement regulations do not allow strategic purchase from one vendor, so digitalmeters were purchased from 3 different manufacturers all following the same standards, thesemeters were installed in factories and big malls to be ready before next summer i.e after 6months. The challenge is to build the reading infrastructure (hand-held readers’ HW and SW,reading staff, programs to post the readings in the four mainframe systems across the country).The digital meter committee called the three meter manufacturers for a solution, each metervendor provided software with a hand held device and Infra-Red Probe which connects to themeter and reads it. The meters then are mounted on a cradle and transmit the readings to anexcel sheet in the regional office.The problem with this solution is that the meters in the field are randomly distributed; so in thesame street block three meters from three different manufacturers can be found.This would require the meter reading clerk to carry three different hand-held devices and usethem to read different meters. This solution was not acceptable and SAEC was now looking for aninnovative solution.Our elite sales person (will refer to his name as AM) is working for an IT company who had won acontract with SAEC to provide meter readers and meter reading system. He was always probingfor a new buying centre NBC within the same customer, so he came across the opportunity.
  2. 2. With careful probing and proper salesmanship he identified the following observations: 1. There is a compelling reason to act (by the summer the system must be up and running, CEO mandate). 2. Failure to act will be costly: a. Head of digital meters department will be professionally affected. b. Surplus revenue will be lost. c. Consumers will continue their behaviour leading to blackouts in some areas. 3. Hand-held manufacturers’ solution is only for their own brands. 4. Reading clerks’ technical level is low; any solution should be extremely simple. 5. The three hand-held devices use Windows mobile. 6. AM asked the customer “If we can avail a hand-held reader for you that can read three different meter types, would you commit to our solution?” the answer was a big fat YES! 7. AM asked for access to the meter lab facilities and a counterpart technician to work in tandem with AM team.THE SOLUTIONAM mobilized a first class programmer from his company and together they developed threewindows mobile programs that can read data from the three different meters. He showed thecustomer that one hand-held can read three different meters. This step was meant to shut offcompetition completely, which is what happened. AM has proved an added value that no othervendor has demonstrated.Next step was to automate the process (three programs were resident and have to be startedand switched by the reading clerks), so AM and his team worked on one program that can talk tothree different meters using a serial interface cable that the team has designed. The hand-heldmanufacturer was cooperative and helpful all the time; however the manufacturing of the infra-red probe and cable were done by our elite sales person.Because of the time constraint, SAEC went with a single source purchase (which is extremelydifficult in large companies). They could justify the single source because of the unique valueproposition demonstrated by AM and his team.What started as a HW public RFP to provide few hundred hand-held meter readers, turned into asingle source purchase of a customized solution and follow on business.One last thing, AM expanded the scope of his deal by asking his customer “how will you integratethis solution with your current environment?” there was no clear vision on the way to handle thedata until it reaches the billing system in four different regional offices.
  3. 3. Our elite sale person known as AM and his team developed two more value add solutions: 1. An application that runs on a server to collect the readings from each region and forward them to the four mainframes in four regions. 2. A route management SW that assigns routes for the digital meters reading clerks.This is an example of what a sales person can do when he/she uses probing in the right way andtry to find a differentiating value in what they offer so they can sell benefits , not features, Happy selling everyone.