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#BVSummit
Why Business Value is So Important
1
Tom Pisello
CEO / Founder
tom@alinean.com
@tpisello
@AlineanROI
http://www.alinean.com
Copyright © 2001-2017 Alinean, Inc
Randy Perry
Vice President,
Business Value Consulting
@IDC
http://www.idc.com
#BVSummit 2
Who Controls the Purchase Decision?
58%
Business
42%
IT
#BVSummit 3
Stakeholders Involved in Decision Making?
43%
over past two years
8 to10stakeholders involved in typical
technology purchase decision
LOB Leaders
Security
Procurement
Finance
ExecutivesIT
Dev Ops
User Groups
#BVSummit 4
What Business Value Matters Most?
13%
24%
28%
35%
Value Map™
#BVSummit
There is a new set of buying criteria
5
IT priorities
 Scalability
 Reliability
 Flexibility
 Performance
 Customer experience
Business priorities
 Revenue growth
 Customer experience
 Profitability
 Agility
 Innovation
IT Challenges
 Infrastructure limitations
 IT skillset limitations
 Capacity
 Efficiency and Control
Buying Criteria
 Improve business outcomes
 Improve business
performance
 Financial justification
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
#BVSummit 6
Companies digitally
linking their distributed
enterprises have
increased their profit
margins by 30-50%
Organizations with
digital ready networks
are seeing 2 to 3 times
the revenue growth of
organizations without.
Companies with the majority of their
business applications running in
public and private cloud have
reduced their operating costs by
5 to15% compared to companies
with most of their apps running on
traditional infrastructure
Companies with 65%+ of
their business applications
available to all mobile users
were able to reduce time to
market for new products
by 58%
Companies
implementing data
analytics solutions
were able to predict
events or outcomes
with16% more
accuracy
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Transformative technologies lead to better business
outcomes….
#BVSummit 7
Business Outcomes KPI Gains Annual Benefits per Cloud Application
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Better business outcomes drive business performance
#BVSummit 8
Importance
Performance
Revenue
growth
$3,354 Revenue from
new products
$2,075
Employee
productivity $3,549
Customer
Retention
$1,191
Reduced
Operational
Costs
$1,103
Quicken the
adoption of new
applications $1,573
Time to market for new
services/products
$2,270
New customer
Acquisition
$569
Business Outcomes by Performance and Importance ($ per Employee)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Business buyers value linkages between your
products/services & business outcomes
#BVSummit 9
Company
Products / Services
Features
Price
74%
Remain too focused on
features & price vs.
business value
55%
Don’t do a good job
articulating unique
business value of proposed
solutions
65%
Are not investing enough in business value marketing /
selling or are worse, cutting back on their efforts &
investments
How do Buyers Perceive your Marketing & Selling?
#BVSummit 10
Why you can’t leave Financial Justification to Chance?
95%
Require financial justification on
significant technology purchases
2/3rds
Don’t have the knowledge, research
metrics or tools needed to deliver
requisite financial justification
81%
Expect vendors to quantify value / deliver
financial justification for proposed solutions
<15%
Trust the financial justification unless it
includes 3rd party models, tools &
research
#BVSummit 11
BenefitsValue
The Difference Between Benefits & Business Value
Inside OutOutside In
#BVSummit 12
New Brain,
Logic
Logos
Reptilian Brain,
Emotions
Pathos
Middle Brain,
Credibility
Ethos
Why Change? Why Now? Why You?
Ideas Exploration Evaluation Selection
3rd Party
Certification
The Buyer’s Journey & Business Value Articulation
#BVSummit
Why Change? Why Now? Why You?
Ideas Exploration Evaluation Selection Renewal
Why Renew?
Value Surveys & Research
Value Messaging Workshops & Value Matrices
Value Training and Certification
MarketingSales&Consulting
Foundational
Value Articulation Tools ROI / TCO Business Case Tools
Dynamic White Papers
Assessment & Financial / Metric
Benchmarking Tools
Business Value Sales & Marketing Tools
$8.10 for every
$1 invested
#BVSummit
Why Business Value is So Important
14
Tom Pisello
CEO / Founder
tom@alinean.com
@tpisello
@AlineanROI
http://www.alinean.com
Copyright © 2001-2016 Alinean, Inc
Randy Perry
Vice President,
Business Value Consulting
@IDC
http://www.idc.com

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Business Value Summit Keynote - IDC + Alinean - Why Financial Justification / ROI is so Important to Marketing & Selling Success

  • 1. #BVSummit Why Business Value is So Important 1 Tom Pisello CEO / Founder tom@alinean.com @tpisello @AlineanROI http://www.alinean.com Copyright © 2001-2017 Alinean, Inc Randy Perry Vice President, Business Value Consulting @IDC http://www.idc.com
  • 2. #BVSummit 2 Who Controls the Purchase Decision? 58% Business 42% IT
  • 3. #BVSummit 3 Stakeholders Involved in Decision Making? 43% over past two years 8 to10stakeholders involved in typical technology purchase decision LOB Leaders Security Procurement Finance ExecutivesIT Dev Ops User Groups
  • 4. #BVSummit 4 What Business Value Matters Most? 13% 24% 28% 35% Value Map™
  • 5. #BVSummit There is a new set of buying criteria 5 IT priorities  Scalability  Reliability  Flexibility  Performance  Customer experience Business priorities  Revenue growth  Customer experience  Profitability  Agility  Innovation IT Challenges  Infrastructure limitations  IT skillset limitations  Capacity  Efficiency and Control Buying Criteria  Improve business outcomes  Improve business performance  Financial justification © IDC Visit us at IDC.com and follow us on Twitter: @IDC
  • 6. #BVSummit 6 Companies digitally linking their distributed enterprises have increased their profit margins by 30-50% Organizations with digital ready networks are seeing 2 to 3 times the revenue growth of organizations without. Companies with the majority of their business applications running in public and private cloud have reduced their operating costs by 5 to15% compared to companies with most of their apps running on traditional infrastructure Companies with 65%+ of their business applications available to all mobile users were able to reduce time to market for new products by 58% Companies implementing data analytics solutions were able to predict events or outcomes with16% more accuracy © IDC Visit us at IDC.com and follow us on Twitter: @IDC Transformative technologies lead to better business outcomes….
  • 7. #BVSummit 7 Business Outcomes KPI Gains Annual Benefits per Cloud Application © IDC Visit us at IDC.com and follow us on Twitter: @IDC Better business outcomes drive business performance
  • 8. #BVSummit 8 Importance Performance Revenue growth $3,354 Revenue from new products $2,075 Employee productivity $3,549 Customer Retention $1,191 Reduced Operational Costs $1,103 Quicken the adoption of new applications $1,573 Time to market for new services/products $2,270 New customer Acquisition $569 Business Outcomes by Performance and Importance ($ per Employee) © IDC Visit us at IDC.com and follow us on Twitter: @IDC Business buyers value linkages between your products/services & business outcomes
  • 9. #BVSummit 9 Company Products / Services Features Price 74% Remain too focused on features & price vs. business value 55% Don’t do a good job articulating unique business value of proposed solutions 65% Are not investing enough in business value marketing / selling or are worse, cutting back on their efforts & investments How do Buyers Perceive your Marketing & Selling?
  • 10. #BVSummit 10 Why you can’t leave Financial Justification to Chance? 95% Require financial justification on significant technology purchases 2/3rds Don’t have the knowledge, research metrics or tools needed to deliver requisite financial justification 81% Expect vendors to quantify value / deliver financial justification for proposed solutions <15% Trust the financial justification unless it includes 3rd party models, tools & research
  • 11. #BVSummit 11 BenefitsValue The Difference Between Benefits & Business Value Inside OutOutside In
  • 12. #BVSummit 12 New Brain, Logic Logos Reptilian Brain, Emotions Pathos Middle Brain, Credibility Ethos Why Change? Why Now? Why You? Ideas Exploration Evaluation Selection 3rd Party Certification The Buyer’s Journey & Business Value Articulation
  • 13. #BVSummit Why Change? Why Now? Why You? Ideas Exploration Evaluation Selection Renewal Why Renew? Value Surveys & Research Value Messaging Workshops & Value Matrices Value Training and Certification MarketingSales&Consulting Foundational Value Articulation Tools ROI / TCO Business Case Tools Dynamic White Papers Assessment & Financial / Metric Benchmarking Tools Business Value Sales & Marketing Tools $8.10 for every $1 invested
  • 14. #BVSummit Why Business Value is So Important 14 Tom Pisello CEO / Founder tom@alinean.com @tpisello @AlineanROI http://www.alinean.com Copyright © 2001-2016 Alinean, Inc Randy Perry Vice President, Business Value Consulting @IDC http://www.idc.com

Editor's Notes

  1. Making selling & marketing more difficult, IDC indicates that the number of stakeholders involved in each decision has steadily increased, 43% over the past 2 years. What used to take a couple of stakeholders, now includes 8-10 decision makers for enterprise purchase decisions. What used to be driven by technical is now driven by the business and finance. As a result, one-size-value doesn’t work with so many different groups and perspectives involved. Each of these stakeholders has their own “point of value” – what issues they are challenged with and the value they uniquely perceive from your solutions. Usually only get to 2-3, yet so many more are involved in every decision.
  2. IDC’s Business Value Consulting Group, with a whopping 95% of decision makers requiring proof of business value outcomes prior to considering and approving a purchase. Budgets are tight and buyers are risk averse, demanding diligence and assurances that proposed investments deliver a tangible bottom-line impact, positive returns and a quick payback. As project size grows, it should be no surprise that the demand for financial justification increases, in proportion to the risk. Over 85% of projects over $50,000 now require a formal business case. Although financial justification / ROI is required, most buyers struggle with the numbers. According to IDC, 2/3rds of buyers indicate they don’t have the knowledge, research metrics or tools needed to do ROI / business value calculations. Relying on the prospect to on their own develop the business case can lead to significant delays in the decision cycle, and results in more deals ending in “no decision”. Without the knowledge and metrics on their own, the task of articulating value and financial justification falls to you, the vendor. In fact, 81% of buyers expect vendors to quantify business value of proposed solutions, but require 3rd party proof in order to trust results (IDC). Independent research, models, success stories and tools are required.