3. SMEs in India
ā¢ 3.5 million SMEs
ā¢ Constitute 60% of the GDP
ā¢ IT spend constitutes only 35%
ā¢ 40% engaged in manufacturing; constitutes 35% of
exports
ā¢ 55% SMEs internet enabled
ā¢ 60% of the 55% above has broadband connectivity
the
aktion
group
3
4. How to catch the Customerās attention
Align your offerings to customersā priorities
the
aktion
group
4
Source: Economic intelligence Unit
5. Software & IT are Customer Priorities
Comparatively significant
headroom in IT spend
the
aktion
group
5
Source: Economic intelligence Unit
6. Customersā IT goals
Do you have service offerings for
your customersā key requirements
the
aktion
group
6
Source: Economic intelligence Unit
7. How to position yourselves
How does the customer measure
success
What offers the greatest
positive impact
the
aktion
group
7
Source: Economic intelligence Unit
8. Fast growing companies are a better bet*
*as against large companies
the
aktion
group
8
Source: Economic intelligence Unit
9. Where are your markets
the
aktion
group
9
Source: Springboard Research
10. 2009 ā some trendsā¦
ā¢ Arrival of 3G unlocks enormous opportunities
for IT vendors ā VAS, e-governance, e-education,
tele-medicine, streaming video, IPTV, VOD, web
2.0...
ā¢ Cost concerns will drive a key focus on IT
Infrastructure Consolidation ā data centre
rationalization, staff productivity, disaster
recoveryā¦
ā¢ Economic pressures to drive SMBs towards
outsourcing and SaaS ā constrained capexā¦
ā¢ Start-ups and smaller firms become more
important accounts for IT vendors ā innovation-
driven
ā¢ Virtualization will gain traction in medium and
large sized enterprises - reducing costs,
improving application performance, increasing
energy efficiency, manageability of IT systemsā¦
the
aktion
group
10
Source: Springboard Research
11. 2009 ā some trendsā¦
ā¢ IT outsourcing will be seen as a catalyst to HR
retention and cost reductions ā extend brand
recognition, channel presence and client
acquisitionā¦
ā¢ Media and Entertainment (M&E) industry to
transform further with new technologiesā
communication devices, content management /
storage / distribution solutions and content
customization applicationsā¦
ā¢ Online advertising market to gain momentum
with the emergence of niche social networking
sites and regional portalsā monetize content
and broaden online advertising opportunities by
tapping new channels of digital delivery and
contentā¦
ā¢ The public sector will buoy IT spendingā IT
vendors will align their business goals with
national priorities
ā¢ Green IT Will be Fueled by Cost Efficiency
Benefits- reducing costs, itol to reduce an
enterprisesā environmental footprint ā¦
the
aktion
group
11
Source: Springboard Research
13. SME by Nature
Small Inexperienced cheap
Few references
Under New
funded Brand recall
Financial stability
flat
Agile
Limited resources Flexible Economies of scale
Credibility Operating
Leveraged
procedures
Domain expertise
Innovation
the
aktion
group
13
14. SME Nurtured
Financially Passionate
SmallInexperienced cheap
prudent Under
Few references New cost conscious
funded Brand recall
Customer centricity
Relationship
Financial stability focus
Stakes resources Agile
flat
Limited
Efficient Flexible Economies of scale
Credibility Operating
Leveraged Rapid customization
procedures
Domain expertise Learning
Innovation organization
the
aktion
group
14
15. Henceā¦.
Do not
Benchmark*
* yourselves with large firms
the
aktion
group
15
17. Solution Selling Principles (āPPVVCā)
āWhat high priority pain / opportunity has
Pain the prospect admitted to you and what is it
costing them today?ā
āWho do you believe is the Power Sponsor
Power and why?ā āCan we gain access and
influence?ā
Solution
Sales āWhat vision did you create for the Prospect?ā
Vision āIs vision differentiated toward us?ā
āHas the Prospect identified enough value
Value to compel them to move ahead now?ā
āWho is controlling the buying process?ā āHas
Control the Prospect agreed to your draft joint
Evaluation Plan?ā
the
aktion
group
17
19. Deal Portfolio Analysis
Win probability 100%
2 1
0% Probability of 100% Probability
realizing full deal of realizing full
value deal value
3 4
Win probability 0% the
aktion
group
19
20. What constitutes āValueā of Deal?
ā¢ Strategic Value ā industry beachhead, revolutionary
technology, icon customer
ā¢ Financial Value ā fund-flow, revenue & margins, life-time
value
ā¢ HR Value ā utilization, morale, skill enhancement
ā¢ De-risk Value ā geographical de-risking, industry de-
risking, size de-risking
ā¢ Alliance Value ā right partnerships with vendors, service
providers, influencers, customers
the
aktion
group
20
21. Deal Portfolio Analysis ā Sales Strategy
Win probability 100% ļ± Optimal
opportunities
ļ± First right to
resources
2 1
ļ± If all resources
consumed to support
0% Probability of 100% Probability these opportunities,
realizing full deal of realizing full then no further
value deal value
opportunities to be
pursued
3 4
ļ± Focus on ātightā
execution
Eg. Firm contracts with
large multi-services
Win probability 0%
components
the
aktion
group
21
22. Deal Portfolio Analysis ā Sales Strategy
ļ± Low probability of
realizing total deal
value Win probability 100%
ļ± Overcome
tendency to allocate
resources purely on
considerations of 2 1
winning deals
ļ± Ideally, should be 0% Probability 100% Probability
3rd in priority, after of realizing full of realizing full
deal value deal value
quadrants 1 and 4
Eg. Contracts with
small Phase-1 PO, with 3 4
subsequent projects
not confirmed
Win probability 0%
the
aktion
group
22
23. Deal Portfolio Analysis ā Sales Strategy
Win probability 100%
ļ± Hard to win
ļ± Unlikely to deliver
value 2 1
ļ± Drain on limited
resources ā take these 0% Probability 100% Probability
of realizing full of realizing full
off the deal pipeline deal value deal value
ļ± Ensure
salespersons do not 4
3
chase these
opportunities
Eg. Evaluation of
solutions, with
imprecise requirements Win probability 0%
the
aktion
group
23
24. Deal Portfolio Analysis ā Sales Strategy
Win probability 100%
ļ± Low probability of
winning ā focus greater
2 1 management attention
ļ± Likely to be very
0% Probability of 100% Probability complex, multi-agency,
realizing full deal of realizing full
value deal value
multi-service, long-lead
opportunities
3 ļ± Prioritize resource
4 allocation after fulfilling
quadrant 1
Eg. Complex RFPs with
solutions & infrastructure
Win probability 0% management
requirements
the
aktion
group
24
25. Strategic Selling
Existing
opportunities
1 2 3 4 5
Pains & Business Objectives & Political Technical
Issues Outcomes Goals Agenda Advantage
Objectives & Political Pains & Business Technical
Goals Agenda Issues Outcomes Advantage
1 2 3 4 5
Create
opportunities
the
aktion
group
25
26. Selecting a Strategy
Start
Y Y
Customer problem or You have a viable Incumbent or superior
Project? FRONTAL
solution? position?
Y N
Y
Y
Customer must Can you segment the
N DIVIDE
decide? opportunity?
Y
N
N Y
Can you become a Can you change the
FLANK
catalyst? rules?
N
Can you delay?
Y
N PREPARE
N Y
Future potential?
N
N Y
Are you an DEFEND
Disengage incumbent?
the
aktion
group
26
27. Influence Groupāwho really matters
JAN TIMMENS JOE FERNANDES ANITA RAY
(Consultant) (COO) (Partner)
K F/ S
H 0 N H 0 L FI T H + H
P S M
ROBIN PATEL AMAR VYAS EUGENE WARRIOR
(VP - MFG) (CIO) (CFO)
M B G
F H - M T H N U H + N
L F H
VINAY SINHA SANJAY KUTTY RITA GOMES JAY FOX
(MGR - PLANNING) (MGR - INVENTORY) (VP - IS) (DIRECTOR ā TECH)
U/ S S B J
L + H U M - L T M + L F L 0 M
C M M F H
JAMES LITTLE ROY SINGH
(DBA) (MANAGER)
S J
C L + H T M - M
S H
the
aktion
group
27
28. Relationships are the best differentiators
What makes your
relationship with the
customer unique
the
aktion
group
28
29. Razor sharp focus
Have a ādonāt
doā list ā Say
āNOā 29
the
aktion
group