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Alberta Public Sector Case Study Applied Sales Csf


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Alberta Public Sector Case Study Applied Sales Csf

  1. 1.   CASE STUDY: APPLIED SALES Creating Demand Finding and then targeting a windfall revenue opportunity are keys to creating demand. Funds and people are also essential to be able to pursue and win a deal. An objective Sales assessment helps executives to justify their commitment of corporate resources. TM Fortunately, there exists a Creating Demand Analysis formula, described by Holden Power Base Selling that helps a Seller to target: a) the right opportunity and, b) to broadly gauge the degree and duration of strategic Sales commitment. Business  Degree of  Political  Business  Impact  Suppliers ROI  Suppliers  Connectivity Significance Potential (for  Potential Business Unit  Client) Investment What does this business equation mean? Simply, that the Seller’s ability to win the Client business is measured by the quality and the quantity of - • Influence the Seller has upon the Client’s buying decision, plus the • Importance of the Seller’s offer to the Client, plus the • Client’s perceived high value of the Seller’s service or solution, plus the • Seller’s outlook on Client relationship and repeat revenue, equals the • Seller’s degree of willingness for a broad and sustained sales campaign to win a strategic business opportunity e.g. Cost of Sales Effort© 2009, Critical Success Factory. 1
  2. 2.   CASE STUDY: APPLIED SALES Alberta’ Digital Divide In 1998, the Alberta Science and Research Authority (ASRA) shared how Alberta could lead the world and become more productive and competitive in the global economy. ASRA remarked how the Government of Alberta could redefine its own role in the digital age by delivering better services to all Albertans – both rural and urban. The ASRA report called for a ubiquitous enabling infrastructure from which Albertans could have an outstanding quality of life via life-long learning, e-commerce, and distance healthcare. The information communications technology (ICT) strategy listed government goals for broadband connectivity (below): • 90% of Albertans within 3 years  • 100% of schools with high‐speed access  • 95% of businesses  • 80% of residences  The ASRA report went unnoticed and unanswered for more than a year. Answering the Call TELUS was the incumbent partner of the Government of Alberta (GoA), and provided that enterprise with legacy telecom services. Static GoA revenues led TELUS to re-think its relationship with the Province. Eager to garner a larger overall share of the government’s annual technology spend, an inspired few in the strategic Sales group came upon the ASRA report. Sales submitted its own white paper outlining an innovative way to enable the ASRA vision.* This watershed document sparked an enthusiastic debate within Government Caucus and among key bureaucrats. GoA quickly invited TELUS Sales to examine together the political, socio-economic, ownership and financial aspects of the venture, along with the technology architectures. *The TELUS Sales co-strategist and author of that first unsolicited ICT white paper and of subsequent others to GoA, is a founder of The Critical Success Factory, and is also its Practice Principal for Applied Sales.© 2009, Critical Success Factory. 2
  3. 3.   w s CASE STUDY: APPLIED SALES U D Broadba and Bonanz za TELUS offe ered to sole so ource the ventu with the GoA GoA would instead formall procure the best- ure A. ly in-class consortium propoosal from amon the ICT indu ng ustry’s top players. North Ame erican telecoms and cablecos were in the hu The winner would be awa s unt. r arded the right to design, bui co-own and operate a 13, ild, d ,000 kilometre fibre-optic netwwork connecting over 4,200 governmen and municipa buildings, lib nt al braries, hospitals, and schools in all 429 Alb s, berta communit ties. The partneership with GoA would last for decades; the dollar investme for the cons A r ent struction alone would be in the hundreds of mill lions. As furthe incentive, a m er multi-million do ollar annual revenue stream fo the or successful bidder would be guaranteed, since the GoA would be the network’s anc b A chor tenant. Theere would even be secondary market revenues from new network applications. n y Politicians would rally Alb bertans with pro omises of a new knowledge-b w based economy With the adv y. vent of same-price high-speed connections to the Internet, w e, c whether one live in an urban or a rural settin ed ng would no loonger matter. Commercially, t broadband network was d C the designed to be provider-neutr too. ral, All service providers receeived equal acc cess to Albertan wanting cho ns oice for their co ommunications needs.© 2009, Critical Success Factory. 0 s 3
  4. 4.   CASE STUDY: APPLIED SALES Converting Demand Having created such exceptional GoA demand, TELUS could hardly withdraw from the year-long procurement that followed. The incumbent owner of Alberta’s public switched telephone network, and a former GoA Crown Corporation, TELUS had political savvy, influential business ties and strong technology bona fides. TELUS could easily fund a sustained all-out Sales effort. To most, it was TELUS’ deal to lose. There was another risk. A successful ‘dark horse’ bid seeking that TELUS contracts with the GoA, be assigned to the winner. This extra compensation would help the winner to recoup their share of the network build capital. Due diligence and a ‘Plan B’ contingency was completed. TELUS Sales, along with the Board and senior executives, vigorously pursued the opportunity for fifteen months. A 20-member strategic Sales team eventually submitted over 2,000 proposal pages to the GoA. Of the nine original bidders, TELUS became one of the two consortium finalists. The cost of the entire TELUS Sales effort is thought to have been nearly $4 Million.© 2009, Critical Success Factory. 4