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New way to sale in the telecom OEM world ; Effective Provocative selling Thierry Bouffioux  +32 473 90 00 36
Contents  <ul><li>The competition is moving on a changing market </li></ul><ul><li>New entrants </li></ul><ul><li>New Serv...
Contents  <ul><li>Innovation is the only way up </li></ul><ul><li>The pension Issue </li></ul><ul><li>The Gap Issue </li><...
Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Co...
In recent years, the competition increased and is strong with the successful expansion of the “Chinese” and the entrance o...
... whilst the telecom market is clearly stagnating. Telecom markets are on a stagnation mode Operators are now on a cost ...
The OEM will be challenged to sustain the current success.. Pressure on RFP’s were all OEM are competing <ul><li>Market pr...
..Especially now while the completion is also moving into area of consultancy services to approach the clients with an end...
Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Co...
Re-acting to these changes, we launch the use of provocative based selling Provocative selling is about helping the custom...
Provocative based selling goes beyond the conventional consultative approach Strategic impact requires a consultative sale...
Provocative based selling differs dramatically from solution based selling Provocative Solution Competes for vendor prefer...
Provocative based selling changes the sales cycle Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qualify lead Making the case Closing the deal Be...
Effective provocative selling changes the OEM-Client relationship forever, leading to more sale, more margin and better Ma...
Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Co...
In the market a lot of confusion exists on the definitions of bundling, x-play, and…  Strategies in the European market Ho...
…  convergence:  the ability to blend communications and content across the bundle in real time Convergence Roadmap <ul><l...
Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Co...
In reaction to these changes and new needs from the market, m any companies are working on business innovation, but few of...
Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Co...
Why is twitter worth almost 1 Billion dollars today?
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New Oem Sales Pitch

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Effective Provocative Selling pays!

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Transcript of "New Oem Sales Pitch"

  1. 1. New way to sale in the telecom OEM world ; Effective Provocative selling Thierry Bouffioux +32 473 90 00 36
  2. 2. Contents <ul><li>The competition is moving on a changing market </li></ul><ul><li>New entrants </li></ul><ul><li>New Services </li></ul><ul><li>New techniques </li></ul><ul><li>New way of buying Market share </li></ul><ul><li>A new sales approach is now key ; Effective provocative Selling </li></ul><ul><li>From Box selling to solution selling to consultative selling to Effective Provocative Selling </li></ul><ul><li>But Impact need Insights on the client (CXO, Strategy, Politics, Needs) </li></ul><ul><li>Driving the approach, the offer, even the Pricing </li></ul><ul><li>Convergence is the name of the game in Telco today </li></ul><ul><li>Fix-Mobile </li></ul><ul><li>Fix-Mobile-Internet </li></ul><ul><li>Fix –Mobile- Internet –TV </li></ul><ul><li>Fix –Mobile-Internet-TV-Content </li></ul><ul><li>Driving new opportunities and challenges </li></ul>
  3. 3. Contents <ul><li>Innovation is the only way up </li></ul><ul><li>The pension Issue </li></ul><ul><li>The Gap Issue </li></ul><ul><li>Avoiding being Administration state </li></ul><ul><li>Effective provocative selling requires Insight ; </li></ul><ul><li>Final note on Twitter </li></ul>
  4. 4. Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Convergence is the name of the game in Telco today Innovation is the only way up Effective provocative selling requires Insight ; Final note on Twitter
  5. 5. In recent years, the competition increased and is strong with the successful expansion of the “Chinese” and the entrance of niche players.. Vendor overview IT-players and niche players <ul><li>Recent arrival </li></ul><ul><li>In Europe since 2003 </li></ul><ul><li>Large service offer </li></ul><ul><li>Mobile network infrastructure </li></ul><ul><li>Mobile terminals </li></ul><ul><li>Internet access equipments </li></ul><ul><li>DSLAM switches </li></ul><ul><li>ADSL modems </li></ul><ul><li>Recent Arrival </li></ul><ul><li>In Europe since 2004 </li></ul><ul><li>Large service offer </li></ul><ul><li>Wireless : e.g. UMTS, CDMA2000, GSM/ GPRS/ EDGE et WiMAX </li></ul><ul><li>Network : e.g. NGN, xDSL, optical network and data communication </li></ul><ul><li>VAS: e.g. intelligent network, CDN/SAN, wireless data </li></ul><ul><li>Terminals </li></ul>Community Wireless networks Softswitch Data centre Multimedia Triple play
  6. 6. ... whilst the telecom market is clearly stagnating. Telecom markets are on a stagnation mode Operators are now on a cost reduction trend Main focus of operators in EMEA is on TCO reduction and optimization <ul><li>Main 3G and GSM investments have already been made </li></ul><ul><li>Coverage investments are now limited </li></ul><ul><li>Capacity investments are stagnating due to high penetration rates but there is still potential due to generalisation of abundance offers </li></ul><ul><li>New growth drivers exist but on a long term perspective </li></ul><ul><li>WiMAX </li></ul><ul><li>LTE </li></ul><ul><li>FTTx deployment </li></ul><ul><li>Next Generation Networks </li></ul><ul><li>Operators are entering an optimisation phase </li></ul><ul><li>The current market demands a transformation to an all-IP network to cope with the increasing amount of data </li></ul><ul><li>Too overcome major investments and reduce the costs, operators are seeking ROI on existing networks and start with optimisation of the current network </li></ul><ul><li>Network sharing is being deployed in non dense zones </li></ul>
  7. 7. The OEM will be challenged to sustain the current success.. Pressure on RFP’s were all OEM are competing <ul><li>Market prices are expected to converge </li></ul><ul><li>Competitors are restructuring to lower their cost base to remain competitive </li></ul><ul><li>The Chinese continued focus on R&D and internationalization could rise its price </li></ul><ul><li>Operators are focusing on TCO </li></ul><ul><li>In the past years, the Chinese offer has been very attractive in terms of CapEx </li></ul><ul><li>Operators are focusing more and more on TCO were the picture might be different </li></ul><ul><li>Fierce competition in vendor market </li></ul><ul><li>Huawei and ZTE have entered (relative) recently, and the older vendors are still there </li></ul><ul><li>IT-players and niche vendors are also approaching the market </li></ul><ul><li> The telecom market has been stagnating </li></ul><ul><li>The number of large network investment projects is lower then in recent years </li></ul><ul><li>Operators are focusing on cost reduction and optimization </li></ul>competition price vendors operators + + + + Focus is shifting towards the sales program, as its effectiveness has a defining impact in the current market
  8. 8. ..Especially now while the completion is also moving into area of consultancy services to approach the clients with an end-to-end offer Illustration of consultative sales approach with a modular end-to-end offer Implementation phase Sales phase with a modular offer Pre-sales research Opportunity identification & Consultative selling Hardware & Software delivery Technical implementation and development Consultancy services PMO Implementation & PMO of sold solution and modules 1 2a 2b 2c 2d 3 Consultative selling Modular offer End-to-end solution delivery Business case Positio-ning ---- 2c-1 2c-2 2c-x
  9. 9. Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Convergence is the name of the game in Telco today Innovation is the only way up Effective provocative selling requires Insight ; Final note on Twitter
  10. 10. Re-acting to these changes, we launch the use of provocative based selling Provocative selling is about helping the customer find investment funds when discretionary has been fully committed It’s about telling the client what should be keeping them up at night and converting that compelling point of view into a tight fit solution Beyond consultative selling <ul><ul><li>Provocation-based selling goes beyond the conventional consultative or solution-selling approach, whereby the vendor’s sales team seeks out current concerns in a question-and-answer dialogue with customer managers. </li></ul></ul>Major change in approach <ul><ul><li>it differs dramatically from the most common approach still in use—product-based selling, which pushes features, functionality, and benefits, usually in a generic manner </li></ul></ul><ul><ul><li>Provocation-based selling helps customers see their competitive challenges in a new light that makes addressing specific painful problems unmistakably urgent. </li></ul></ul>Changes Sales cycle <ul><ul><li>Provocative selling changes the sales cycle in a dramatic way </li></ul></ul>
  11. 11. Provocative based selling goes beyond the conventional consultative approach Strategic impact requires a consultative sales approach <ul><li>Approach customer at board/group level </li></ul><ul><li>Rich interaction, dialogue about opportunities </li></ul><ul><li>Customized proposition and sales tools </li></ul>Approach supported customizable sales tools <ul><li>Sales presentation, customizable per target player </li></ul><ul><li>Model offer for client’s specific strategy and business </li></ul><ul><li>Model investment case from client perspective </li></ul>Each player requires a different and specific approach <ul><li>Depending on business model, strategic goals, market </li></ul><ul><li>Internal organization and issues </li></ul><ul><li>People characteristics </li></ul>Skills and knowledge need to be built up <ul><li>Test sales process </li></ul><ul><li>Get anchor customer(s) </li></ul><ul><li>Reach product profitability and diversificate </li></ul>Consultative sales approach <ul><li>The key for consultative selling is understanding the customer and supporting them with a (perceived) tailor made solution. </li></ul><ul><li>Provocative selling ads an additional layer where the customer is provoked to see competitive challenges in new light that makes addressing specific painful problems </li></ul><ul><li>“ We have worked with companies in your peer group and have seen how the leading players are experiencing his painful problems </li></ul><ul><li>We think it’s possible that your company is at risk as well </li></ul><ul><li>You risk 50% of your customer base if you don’t step into convergence” </li></ul>Example
  12. 12. Provocative based selling differs dramatically from solution based selling Provocative Solution Competes for vendor preference within the budget Aligns with the prevailing point of view Addresses acknowledged pain points Target tactical problems Starts with technical proof, followed by a business case Starts as an IT offline or an business dialogue Ask questions to identify needs Respond to issues described by the customer Competes on project investment outside an existing budget Challenges the prevailing point of view Addresses unacknowledged pain points Target strategic problems Starts with a business case followed by technical possibilities Starts as an C-level dialogue Uses an insight full hypothesis to provoke response Is pro-active and leading forcing issues
  13. 13. Provocative based selling changes the sales cycle Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qualify lead Making the case Closing the deal Best people on the case These people may be able to address our needs These people are aligned with our needs These people beat their competitors Senior decision maker X Senior decision maker X These people changed my thinking These people proved they can help us solve the problem Let’s work together solving the problem Best people on the case Qualify lead Making the case Closing the deal Solution based selling Provocative based selling
  14. 14. Effective provocative selling changes the OEM-Client relationship forever, leading to more sale, more margin and better Market share Pricing Partner of Choice Helped to be successful Provocative selling is about helping the customer find investment funds when discretionary has been fully committed It’s about telling the client what should be keeping them up at night and converting that compelling point of view into a tight fit solution Margin Get to know more Invite to think with the client Quality Better prepared Anticipate next subject Reputation Drive the next sale Client Intimacy
  15. 15. Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Convergence is the name of the game in Telco today Innovation is the only way up Effective provocative selling requires Insight ; Final note on Twitter
  16. 16. In the market a lot of confusion exists on the definitions of bundling, x-play, and… Strategies in the European market Home TV Internet Fixed telephony Mobile Main focus of operators in EMEA is on TCO reduction and optimization <ul><ul><li>Service bundling is now a mainstream trend in Europe. A wide range of bundles is offered, including dual play, triple play and quad play </li></ul></ul><ul><ul><ul><li>Dual play </li></ul></ul></ul><ul><ul><ul><li>Triple play </li></ul></ul></ul><ul><ul><ul><li>Quad play </li></ul></ul></ul><ul><ul><li>Bundling is the packaging of telecom services, a instrument to help sway a purchasing decision </li></ul></ul><ul><ul><li>‘ X-play’ is often used as a shorthand for service bundling </li></ul></ul>
  17. 17. … convergence: the ability to blend communications and content across the bundle in real time Convergence Roadmap <ul><li>One seamless experience </li></ul><ul><li>One device </li></ul><ul><li>One number </li></ul><ul><li>One voicemail </li></ul><ul><li>One application set </li></ul><ul><li>One service bundle </li></ul><ul><li>One bill </li></ul><ul><li>One customer service </li></ul>Value to Customer 1. Bundling 2. Service integration 3. Device convergence Level of integration Functionality/ Convenience Cost savings Low High
  18. 18. Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Convergence is the name of the game in Telco today Innovation is the only way up Effective provocative selling requires Insight ; Final note on Twitter
  19. 19. In reaction to these changes and new needs from the market, m any companies are working on business innovation, but few of them are successful.. Why innovation Few compagnies succeed Market is changing <ul><ul><li>In spite of growth opportunities, telecom markets are generally stagnating. </li></ul></ul><ul><ul><li>Main investments are done and current focus is on cost reduction </li></ul></ul>Competition is changing <ul><ul><li>competition is increasing with new “low cost” OEM positioned all along the value chain </li></ul></ul><ul><ul><li>Complemented by IT-players and niche-players also entering the competitive sphere </li></ul></ul><ul><ul><li>All entering the market with no capex investments history forcing them to change the game to be beneficial </li></ul></ul>Customers are changing <ul><ul><li>Customers are educated and they expect a pro-active approach together with a business focus from the sales people instead of the traditional technical support focus </li></ul></ul><ul><ul><li>The WII sold 52,62 million units sold within 3 years </li></ul></ul><ul><ul><li>The I-Phone sold 21,17 million units sold within 2 years </li></ul></ul><ul><ul><li>Google & Skype are globally accepted by the consumer </li></ul></ul>
  20. 20. Contents The competition is moving on a changing market A new sales approach is now key ; Effective provocative Selling Convergence is the name of the game in Telco today Innovation is the only way up Effective provocative selling requires Insight ; Final note on Twitter
  21. 21. Why is twitter worth almost 1 Billion dollars today?

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