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Stephen Allott Business of Software Conference Europe 2015 Scaling Software Companies

How to scale a global software business.
Talk by Stephen Allot, Crown Representative for SMEs at Business of Software Conference Europe 2015.

Product
Plan
People
Processes
Problem Solving

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Stephen Allott Business of Software Conference Europe 2015 Scaling Software Companies

  1. 1. Building a $7 billion software company – How to Scale Up BUSINESS OF SOFTWARE EUROPE Stephen Allott Chairman, Pebble Code Crown Representative for Small and Medium Enterprises, Cabinet Office
  2. 2. Forecast Trinity College, Cambridge Xerox Sun Microsystems (1st lawyer hired outside the US) McKinsey strategy Tech and corporate finance Micromuse President, CFO and main board director. NASDAQ MUSE Cambridge Computer Lab Trinamo UK Crown Rep SME 10 chairman roles
  3. 3. MICROMUSE TURNOVER 1 142 83 39 19 63 1995 1996 1997 1998 1999 2000 2001 (£M)
  4. 4. “Market cap of $5.1 billion”
  5. 5. G-CLOUD DIGITAL MARKETPLACE SALES £m
  6. 6. Forecast So ….what is the number one thing that you need to Scale Up?
  7. 7. OEM STRATEGY 1. Dell big: what’s the growth plan and rep deployment? 2. Huawei growth plan and location of manager? 3. Decide on plans for Lenovo, Intel and Cray AMBITION
  8. 8. Forecast What else do you need ….?
  9. 9. Forecast Product Plan People Processes Problem Solving
  10. 10. Forecast Product Planbuild financial model, decide strategic issues, identify optimal growth rate, how do you create a model? People Processes Problem Solving
  11. 11. ANALYSE DATA BUILD MODEL REFINE ASSUMPTIONS PHASE ACTIVITIES - Agree financial terminology - Establish and explain structure - Set basic linkages - Review model and debug - Discuss parameters with Senior Management - Set initial assumptions - Review initial results with senior management - Debug/problem solve specific issues - Tighten and agree assumption ranges - Benchmark against comparative companies - Sales productivity by experience band • Orders by rep • Rep start and finish dates • Senior management sales effort - Field technical productivity - Typical sales cycles - Historic financials - Historic costs per head - Typical order profiles - Understand growth strategy 17Jan Board Meeting ► 13 Jan ► 18 Dec ► 31 Dec ► FINALISE PLAN SIGN OFF - Further refine assumptions - Review results with senior management - Syndicate output to individual board members - Secure sign-off for output ► 31 Jan ► Board Meeting - Discussion on timing of future fund raising
  12. 12. Forecast Product Plan People Sales, Finance, Product Mgmt, Dev Processes Problem Solving
  13. 13. S:Trinamo InternalTRPTrinamo TRP Brochure 300407
  14. 14. Hiring great people using the “TRP” (Trinamo Recruitment Process)
  15. 15. TRINAMO RECRUITMENT PROCESS OVERVIEW • Defining candidate specifications • Creating advertisements, briefs for agencies, head-hunters or other CV sources • Reviewing CVs and finalising a candidate shortlist • Candidate interview process • Compensation plan design
  16. 16. ANALYSING THE SCORES 8.06.38.08.37.0Average 7.086786EF 8.087898CD 7.686987AB Average Company Fit Functional CompetencyLeadershi p Problem SolvingInterviewe r Averages : a definite hire Leadership : the greatest strength Teamwork : good at this Company Fit : will be an asset Problem solving : just good enough Functional competence : will need to learn their role Teamwork
  17. 17. SALES SEMINAR DISCUSSION TOPICS REQUESTED • Setting and reviewing the most effective sales strategy • Setting and reviewing the most effective marketing strategy • Hiring and motivating effective sales people • Partnering with bigger companies - worth it or not? • Gauging why people are or might be interested in your offering • Growing deal sizes by a factor of 10 • Winning mission critical product sales as a small company • Managing big sales cycles • Understanding the sales process and customer decision making • Post sales support • Direct or channel • Customer budgets,sales forecasting, bad debt management
  18. 18. SALES APPROACH DEPENDS ON LIFESTAGE Lifestage Search Focus Scale Customer Count 0-10 10-100 100 plus Reason for winning deals No one else will touch it Customer is so desperate they’ll try you Better, cheaper, faster Customer Need Unique Emerging Patterns Customer acknowledged Lead Generation Random From top 3 Areas From top area!
  19. 19. SALES NATURALS • Holds situational conversations • Asks relevant and intelligent questions • Is solution focused • Targets business people • Relates product usage • Manages their manager • Empowers buyer to achieve their goals • Patient TRADITIONAL REP • Makes presentations • Offers opinions • Is relationship focused • Targets users • Pitches product • Needs to be managed • Attempts to sell to buyers • Impatient
  20. 20. Forecast Product Plan People Processestargets, comp, flash Problem Solving
  21. 21. Why are UK software companies underperforming? Here’s part of the answer
  22. 22. SHORT TERM MANDATORY REQUIREMENTS
  23. 23. SHORT TERM MANDATORY REQUIREMENTS
  24. 24. SHORT TERM MANDATORY REQUIREMENTS
  25. 25. Forecast Product Plan People Processes Problem Solving
  26. 26. THIS BIG MARKET NEEDS SOFTWARE
  27. 27. WHAT ARE THE ATTRACTIVE VERTICALS FOR THE COMPANY? MARKET SIZE, $B COMPANY SUCCESS INDEX (current revenues/market size) 1.0 0.5 1.0 2.0 3.00.0 Aerospace CAE / Mfg Weather Federal Defence Invest Harvest Weather? Wild card FInance Bio Sci
  28. 28. SHORT TERM MANDATORY REQUIREMENTS 1. Lead generation in target verticals 2. Sales and SE training 3. New hire on-boarding 4. Full collateral (corporate powerpoint, white papers, vertical presentations) 5. Upgrade web site 6. Key OEM account plans 7. Quarterly sales kickoff 8. Install best practice hiring process
  29. 29. GEO STRATEGY – FIGURE IT OUT……
  30. 30. GROWTH PLAN EX INTERNET SALES
  31. 31. MICROMUSE TURNOVER – BRIGHT WILL BE BIGGER 1 142 83 39 19 63 1995 1996 1997 1998 1999 2000 2001 (£M)
  32. 32. Building a $7 billion software company – How to Scale Up BUSINESS OF SOFTWARE EUROPE Stephen Allott Chairman, Pebble Code Crown Representative for Small and Medium Enterprises, Cabinet Office

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