How to know if there is an opportunity

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How to know if there is an opportunity

  1. 1. How to know if there is an Opportunity ? From: IBM Signature Selling Method Reference Guide Page 27 - 30
  2. 2. 4 Area’s of Questions1. Is there an Opportunity ?2. Can we Compete ?3. Can we Win ?4. Is it Worth Winning ?
  3. 3. 1. Is there an Opportunity1. Customer’s Business Initiatives2. Customer’s Business/Market Profile3. Customer’s Financial Condition4. Access to Funds5. Compelling Reason to Act
  4. 4. 1. Is there an Opportunity1. Customer’s Business InitiativesCritical Questions that adress the viability of the opportunity• What are the customer’s Business Initiatives as they relate to this project ?• What are the Customer’s key issues and objectives for this project ?• Who initiated this project? Who will be working on the project ?• How does this project link to the customer’s Business Initiatives ?
  5. 5. 1. Is there an Opportunity2. Customer’s Business/Market ProfileCritical Questions that adress the viability of the opportunity• What are the customer’s products and services?• What are its key markets?• Who are its key customers and competitors?• What is driving the customer’s business internally and externally?
  6. 6. 1. Is there an Opportunity3. Customer’s Financial ConditionCritical Questions that adress the viability of the opportunity• What are the customer’s revenue and profit trends?• How do its financials compare to similar companies?• What is the financial outlook?• What are the customer’s key performance metrics?
  7. 7. 1. Is there an Opportunity4. Access to FundsCritical Questions that adress the viability of the opportunity• What is the budget for this project?• What is the customer’s budgetting process?• What is the priority of this project compared to others?• What are the customer’s alternative uses of capital?
  8. 8. 1. Is there an Opportunity5. Compelling Reason to ActCritical Questions that adress the viability of the opportunity• Why does the customer have to act?• What is the deadline for the customer to make a descision?• What is the payback for the customer if the project is completed on time?• What will be the measurable impact on the customer’s business?
  9. 9. 2. Can we Compete?6. Formal decision making proces7. Solution Fit/Business Initiatives8. Solution Fit/IT Preferences9. Resource/Capability Requirements10. Unique Business Value11. Current Customer Realtionship
  10. 10. 2. Can we Compete?6. Formal decision making procesCritical Questions that adress the viability of the opportunity• What are the customer’s decision criteria?• What is the formal decision process?• Which decision criteria are most important? Why?• Who formulated the decision criteria?
  11. 11. 2. Can we Compete?7. Solution Fit/Business InitiativesCritical Questions that adress the viability of the opportunity• How well does our Solution adress the Customer’s Business Initiatives?• What does the Customer think?• What modifications or enhancements will be required?• What external resources do we need to meet the Customer’s Requirments?
  12. 12. 2. Can we Compete?8. Solution Fit/IT PreferencesCritical Questions that adress the viability of the opportunity• How well does our Technology Solution interface with the Customer’s current IT Preferences?• Have we developed a Total Solution that includes the Integrated Solution Concept?• Does our IT Solution solve the Customer’s problem? What does the Customer think ?• Do we need any external resources to meet the Customer’s Requirements?
  13. 13. 2. Can we Compete?9. Resource/Capability RequirementsCritical Questions that adress the viability of the opportunity• How much time will the Sales Team need to invest on this opportunity?• What additional internal or external resources and capabilities will you need to win this opportunity?• What is the projected Cost of Sales?• What is the opportunity Cost?
  14. 14. 2. Can we Compete?10. Unique Business ValueCritical Questions that adress the viability of the opportunity• What is the specific or measurable business result that we will deliver?• How does the customer define value? How will they measure it?• How have we quantified this value in the Customer’s terms?• How does this value differentiate us from our competitors?
  15. 15. 2. Can we Compete?11. Current Customer RealtionshipCritical Questions that adress the viability of the opportunity• What is the status of your relationship with the Customer?• What is the status of each competitor’s relationship with the Customer?• Whose relationship provides cometitive advantage for this opportunity?• How do you and each of your competitors comapre to the customer’s view of the ideal relationship?
  16. 16. 3. Can we Win?12. Access to Power13. Customer’s Buying Vision14. Informal descision-making proces15. Political Alignment16. Cultural Compatibility17. Evaluation Plan
  17. 17. 3. Can we Win?12. Access to PowerCritical Questions that adress the viability of the opportunity• Who in the Customer’s organisation wants us to win?• What have they done to identicate their support?• Are they willing and able to act on your behalf?• Is that person in Power? Could that person be defined as a Power Sponsor?• Have we created a Sponsor Letter and reviewed it with that person?
  18. 18. 3. Can we Win?13. Customer’s Buying VisionCritical Questions that adress the viability of the opportunity• Does the Customer have a Buying Vision for this opportunity?• Do we thoroughly understand the customer’s Buying Vision?• Did we help craft that buying vision?• Are we aligned with the customer’s Buyning Vision for this opportunity?
  19. 19. 3. Can we Win?14. Informal descision-making procesCritical Questions that adress the viability of the opportunity• How will the decision really be made?• What intangible, subjective factors could affect this decision?• What are the unstated issues?• Whose private opinions do we know? Which ones count?
  20. 20. 3. Can we Win?15. Political AlignmentCritical Questions that adress the viability of the opportunity• Who are the most powerful people involved in this decision?• Do they want us to win? Why?• Are the able to influence or change the decision criteria?• Can the create a sense of urgency? How have they demonstrated this in the past?
  21. 21. 3. Can we Win?16. Cultural CompatibilityCritical Questions that adress the viability of the opportunity• What is the Customer’s culture?• How does this comapre with our company?• What is the Customer’s philosophy towards vendors and suppliers?• Can we adjust or adapt? Do we want to?
  22. 22. 3. Can we Win?17. Evaluation PlanCritical Questions that adress the viability of the opportunity• Have we created an Evaluation Plan for this opportunity?• Have we reviewed the Evaluation Plan with our Power Sponsor?• Do we have the Power Sponsor?s Agreement with the overall Plan?• Have we included some mutual checkpoints within the Plan?
  23. 23. 4. Is it Worth Winning?18. Short-term revenue19. Future revenue20. Profitability21. Degree of Risk22. Strategic Value
  24. 24. 4. Is it Worth Winning?18. Short-term revenueCritical Questions that adress the viability of the opportunity• What is the order amount?• Does this exceed our threshold? >$___________• When will it close?• Is it within our time frame? <_______ days
  25. 25. 4. Is it Worth Winning?19. Future revenueCritical Questions that adress the viability of the opportunity• What is the potential for further business within the next year? Within the next 3 years?• Does this exceeds our thresholds?• How is this project or application linked to future revenue? Have we considered all the e-business potential associated with this customer?• How will you ensure customer promises become commitments?
  26. 26. 4. Is it Worth Winning?20. ProfitabilityCritical Questions that adress the viability of the opportunity• What is the projected profit on this sales opportunity?• Does it exceed our profit threshold?• What impact will discounts have on profitability?• How can we improve the profitability on this opportunity?
  27. 27. 4. Is it Worth Winning?21. Degree of RiskCritical Questions that adress the viability of the opportunity• How could we cause our Solution to fail?• What are the critical dependencies in delivering value to the customer?• How could the customer cause our Solution to fail?• What is the impact on our business if the Solution fails?
  28. 28. 4. Is it Worth Winning?22. Strategic ValueCritical Questions that adress the viability of the opportunity• What is the value of this Opportunity to us beyond the revenue?• How does this Opportunity fit in our Business Plan?• How can we leverage this Opportunity into revenue from other companies or markets?• How will this Opportunity help us improve our product or service?
  29. 29. Start Y Y YIs there a compelling reason to Can you compete ? Do you have a 3:1 Frontalact (#5) or can you create one ? (#6...#11) advantage ? •Solution •Reputation N Y Can you change or Flanking expand the buying •A -> B criteria ? N N •A -> A+1 N Y Can you find a profitable Fragment subset of the opportunity •Niche that you can win? •Coexistence N Y Do you have a position in Defend the account you must •Insulate protect ? •Isolate N Y Is there future revenue Develop (#19) or strategic value •Invest (#22) •Delay N Disengage

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