Financial justification remains a requirement, this according to research by 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.
Although required to gain approval, buyers struggle with the business value / ROI / TCO metrics and models to provide financial justification to ever more frugal executives and buying committees, delaying or in many cases stalling the decision entirely.
If you are a solution provider, the research clearly indicates you can’t leave financial justification to your buyer, or worse, to an unarmed sales rep.
In this webinar, Randy Perry VP of Business Value Consulting for IDC and Tom Pisello, CEO / Founder of Alinean discuss the increasing need for financial justification by IT buyers and what you need to do now as a solution provider to meet and exceed this requirement.
If you are in product marketing, content development, value engineering or sales enablement, this is a must attend event, to get tangible advice on how to drive more deals, win rates and sales cycle acceleration.
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.
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.
IDC webcast - Financial Justification a Requirement - the Need for Business Value / ROI for B2B / IT Sales Enablement & Content Marketing
Who Controls Technology Purchase Decisions?
How Many Stakeholders Are Involved in Decision Making?
over past two years
8 to10stakeholders involved in typical
technology purchase decision
What Business Value Matters Most?
Reduce Business Risks
Improve Productivity /
Why you can’t leave Financial Justification to Chance?
Require financial justification on
significant technology purchases 2/3rds
Don’t have the knowledge, research
metrics or tools needed to deliver requisite
Expect vendors to quantify value / deliver
financial justification for proposed solutions <15%
Trust the financial justification unless it includes
3rd party models, tools & research
How Good is Your Value Program?
Remain too focused on features & price vs.
Don’t do a good job articulating their
unique business value
Are not investing enough in business value
marketing / selling or are worse, cutting back on
their efforts & investments
Why Change? Why Now? Why You?
Ideas Exploration Evaluation Selection Renewal
Value Selling Tools
ROI & TCO Calculators
Value Surveys & Research
Value Messaging Workshop & Value Matrix
Value White Papers
Dynamic White Papers
Business Case & Realized Value Tools
Your Business Value Roadmap
Example: Dynamic White Paper
Example: Value Storytelling & Business Value Estimation