Selling Software in the Europe of 2012             “Hard Times”            Current Trends and their Implications:       Ch...
Once upon a (hard) time, just after a war…                            Earl Silas Tupper (1907-1983)                       ...
…the first Tupperware lady threw a party                                  Brownie Wise                                  • ...
Two perspectives on another hard time                   Political          New Names                  Economic            ...
Hard times: the European political scene in 2012We can expect a period of increasing authoritarian rule                   ...
Source (2-4): Beyond Austerity: A path to economic growth and renewal in Europe (McKinsey Global Institute) Hard times: fo...
Hard times: Europe in debtCountry sizes are proportional to each country’s external debt                                  ...
Hard times: the European economic scene in 2012The after-effects of the debt crisis will be dominant for a long while     ...
Social trends in hard times: role of social media  Social media are already THE key vehicle to build a buyer’s trust      ...
10
Technical trends in hard times:cloud offerings exploding...                                  Why cloud?                   ...
…and cloud pricing coming down                                             This is a seriously aggressive move driven     ...
Two perspectives on another hard time                   Political          New Names                  Economic            ...
Growing Net New Names in 2012How to win trust?No equivalent system          Supplier X’s system• Why would I buy one?     ...
MRI scanner. Credit: Southwestern Medical Center  Customer Retention in 2012  The supplier of medical Big Iron’s dilemma  ...
Up- & cross-sells in 2012 Drivers:              S C A LE                                                                  ...
Upsells are crucial to the cloud model  Profit created here                                                          Repla...
One thought before we close the box…                                       18
Where is Big Blue? Where will you be in 2013?              Rutherford Laboratorys IBM 3081, December 1982                 ...
Thank you            20
Upcoming SlideShare
Loading in …5
×

Selling software in the europe of 2012

370 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
370
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Some areas will not buy because they have no money, others simply because they can’t organize it (too much on their plate, stress level)
  • But they don’t tell you about the lock-in: data in free, data out paid
  • This is very simplified and doesn’t do justice to strategic sellingEvery actor on the buying side needs to get a targeted version
  • IBM is now a service company, and one of the most successful in the world
  • Selling software in the europe of 2012

    1. 1. Selling Software in the Europe of 2012 “Hard Times” Current Trends and their Implications: Changes in why and how enterprises buy in 2012 (A few thoughts for Independent Software Vendors) February 2012 Nick Fryars
    2. 2. Once upon a (hard) time, just after a war… Earl Silas Tupper (1907-1983) 2
    3. 3. …the first Tupperware lady threw a party Brownie Wise • Launched a way to sell a product that nobody understood • Leveraged peer pressure to sell astonishing quantities ($152,149.13 in 1949: $1.4M in 2011 dollars) “It is a proven fact that you will sell more to a group of 15 women as a group than you will sell to them individually” • Developed a self-sustaining “viral” business model The dealer (sales, new party bookings)“Three people must gain” The hostess (subdealer, social leader) The invitees (enjoy the party) 3
    4. 4. Two perspectives on another hard time Political New Names Economic Retention2012 Business Demand Environment Generation Factors Social Upsell Technical Cross-sell What does the one mean for the other? From whom can we learn? 4
    5. 5. Hard times: the European political scene in 2012We can expect a period of increasing authoritarian rule - Degree of democracy + Cheap Vote-buying credit + by politicians + National Debt + Consensus on need for authoritarian rule 5
    6. 6. Source (2-4): Beyond Austerity: A path to economic growth and renewal in Europe (McKinsey Global Institute) Hard times: focus areas for authoritarian rulers Ways to stimulate growth and balance budgets in a world where the West no longer has economic dominance Trend Implication for the enterprise SW market Financial re-regulation Tighter credit and risk management Labour market reform: Complex change in HR: ongoing participation, flexing, downsizing, talent management, higher retirement age matching, contingent labour, … Participation Deregulation of regulated Consolidation  demand for 55-64 year olds: services: e.g. healthcare, scalable systems (2013-2014)Italy 37%, Sweden 74% pharmacy, legal services Stimuli for specific New buyers: mostly small, butYouth unemployment: “growth” sectors: clean some will scale fastSpain 51.5% , Italy 28% tech, biotech, nanotech 6
    7. 7. Hard times: Europe in debtCountry sizes are proportional to each country’s external debt 7
    8. 8. Hard times: the European economic scene in 2012The after-effects of the debt crisis will be dominant for a long while Phenomena: • States deleveraging • Consumers deleveraging • Zombie economy: many enterprises with poor liquidity • Distressed assets  M&A • Pension funds looking for balanced returnsEnterprise ImplicationReactionConserve liquidity Headcount reductions  higherby cutting cost stress levels within buying units Some areas will NOT buyFocus on core Highly focused investment:value creation a few areas get all CapEx, others none Favourable forDe-risking Improvements in small steps rather cloud offerings than large ones; exit options PICK YOUR BATTLES! 8
    9. 9. Social trends in hard times: role of social media Social media are already THE key vehicle to build a buyer’s trust BLOGS: 34% of You know the seller and trust them REFERRALS/ bloggers post RECOMMENDATIONS opinions about products & brands Someone you trust Why would you trust Brand & advertising knows the seller and somebody? €€€ recommends them “Proof” by the seller: Your trust is built by references, external mechanisms testimonials Naomi Bloom Third party “certification” incl.Any big player needs all of these, but bear in mind: Thought Leaders• 90% of consumers trust peer recommendations• Only 14% trust advertisements (Nielsen/Socialnomics, 2012)• All business people are consumers too Josh Bersin 9
    10. 10. 10
    11. 11. Technical trends in hard times:cloud offerings exploding... Why cloud? • Little/no CapEx, low initial outlay • Easy to trial • OpEx scales with use • Rapid implementation • Easy exit Red = key arguments in today’s economic climate: • Minimise use of liquidity • Link spend to business volume 11
    12. 12. …and cloud pricing coming down This is a seriously aggressive move driven by Amazon’s place on the experience curve: “don’t even think about getting into our space” Source: blog Werner Vogels, CTO Amazon 12
    13. 13. Two perspectives on another hard time Political New Names Economic Retention2012 Business Demand Environment Generation Factors Social Upsell Technical Cross-sell What does the one mean for the other? From whom can we learn? 13
    14. 14. Growing Net New Names in 2012How to win trust?No equivalent system Supplier X’s system• Why would I buy one? • Why should I switch?• How would it drive value? • Benefits versus cost & pain• What trusted person can • “Technical” evaluation: tell the story? Referrer? Trusted Third Party – Thought leader? Gartner, Forrester, Ovum etc. 14
    15. 15. MRI scanner. Credit: Southwestern Medical Center Customer Retention in 2012 The supplier of medical Big Iron’s dilemma Be seen as a partner, not just a supplier, and certainly not the bad guy… The answer: provide valuable (paid) services at a competitive price level Training Clinical Handling Productivity & extra staff innovations staff churn Utilization Examples (training)Orientation & Initial SystemDecision-making Handover Training Typically 10 years Purchase Planning & Commissioning Decommissioning Operation & Disposal Procurement & Startup Repurchase Commissioning Operation How to have a good relationship at the & Startup moment of repurchase without spending a fortune on Account Management? 15
    16. 16. Up- & cross-sells in 2012 Drivers: S C A LE CONTROLAre we ensuring the success stories arecaptured and told? Extended Warranty…. Is it big enough…? WiFi 16GB €479 +3G €599 32GB €699 64GB €799 (The customer just spent 67% more than she planned) 16
    17. 17. Upsells are crucial to the cloud model Profit created here Replacement: customer will normally seek lower cost level Rollout: organizational scopeSpend rate in € increases significantly Broadening: more functionality/content within same organizational scope Procurement Business Event: e.g. project acquisition, new location 0 6 12 18 24 36 42 48 54 60 66 Time in months Risk of Initial Purchase: Low outlay, significant contract loss functionality and content, limited organizational scope Sell to function head, not CIO ‘Foot in the door’ 17
    18. 18. One thought before we close the box… 18
    19. 19. Where is Big Blue? Where will you be in 2013? Rutherford Laboratorys IBM 3081, December 1982 19
    20. 20. Thank you 20

    ×