Brian Haacke - Sales Adjacency Model
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The document discusses a model for strategic and possible sales by understanding customers' situations and motivations for buying. It emphasizes that innovation comes from combining existing ideas in new ways, and is strategic when aligned with an existing or new strategy. The model focuses on stories to influence customers' perceptions of reality and concerns in order to open new sales opportunities.
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Brian Haacke - Sales Adjacency Model
- 1. PART 1 Making every sales discussion strategic & possible ~~ Enterprise Software Orientation ~~
- 2. To introduce the model designed to help enterprise software sales people understand the current situation of a customer and what compels customers to buy So they can generate… NEW sales opportunities that are both POSSIBLE and STRATEGIC.
- 4. Creating NEW sales opportunities is an type of innovation. Innovation is only POSSIBLE when ideas can be observed by a PERSON and combined to form new ideas. Innovation is only STRATEGIC when it is part of an existing strategy or makes a new strategy possible. Strategies are a sequence of actions performed in order produce the desired outcome of the PERSON who designed the strategy.
- 5. Stuart KAUFFMAN Complexity Theory Steven JOHNSON Innovation Theory that living organisms (Autonomous Agents) move away from chaos (maximum entropy) and toward greater organization and complexity (Adjacent Possible) which captures both the limits and potential for change. Innovation as the art of the "adjacent possible”. New ideas are derived from the supply of existing ideas and by the speed with which those ideas can combine to form new ones. in·no·vate /ˈinəˌvāt/ verb: make changes in something established, especially by introducing new methods, ideas, or products. introduce (something new, especially a product).
- 6. 1. WE DO NOT SHARE AN OBJECTIVE REALITY 2. WE ALL NEED HELP TO SURVIVE 3. WE ACT BASED ON OUR CONCERNS
- 8. • Humans are closed systems perturbed by the environment and other closed systems. • Language arises as a consensual domain in the co-ontogenic structural drift of living systems involved in recurrent interactions. • Coupling in language changes the space of possibility for coordinated action. • Communication depends on not what is ‘transmitted’, but on what happens to the person receiving it.
- 10. Individuals alone are the weakest configuration be it a cell, animal or human. Individuals join groups to form higher-order unities that enhance conservation of structural coupling. Markets exists for individuals to get help from other individuals through exchange of “money” Money isn’t currency. Money is the capacity to transact for help.
- 12. • Business Owners are individuals responsible for the offers, strategy, capital structures, production, sales and profitability of a business. • Executives such as CEO, CFO, CIO are hired by Business Owners to increase the enterprise value of the business. • Managers make requests and assessments of employees that help business owners and/or executives fulfill their commitments. • Sales people produce transactions with a business’s customers. I reduce costs by negotiating down the purchase price of goods and services. I want people to like me. I am mandated to improve profitability by 30% this year. I need to make my number this quarter. I am trying to raise
- 13. QUESTIONS, ANSWERS CUSTOMER’S PERCEPTION OF REALITY OPENS OR CLOSES OPPORTUNITIES. So how do you change reality? STORIES! WHAT YOU SAY IS NOT WHAT YOUR CUSTOMER HEARS. So how do you influence their interpretations? STORIES! CONCERNS OF CUSTOMERS ARE NOT ALWAYS EXISTING FOR THEM OR OBVIOUS. So how do you help them realize what to care about? STORIES!
- 15. Brian R. Haacke www.brianhaacke.com Founder, Perimeter Innovation, www.perimeterinnovation.com Board Member & Commercialization Committee Chair, MR Innovations Inc. www.mrinnovations.com Executive Vice President, MRI Institute for Biomedical Research www.mriinstitute.ca High-Tech Industry Sales Director, Dassault Systemes www.3ds.com
Editor's Notes
- I am going to deliver this in three parts. First part is about people behind the definition of possible and strategic Next part will be the stories that Define THE current situation and compels customers to buy And Finally we will talk about the sale adjacency model and how to use it.
- So lets dig into the choce of words in our purupose, NEW sales opportunities that are both POSSIBLE and STRATEGIC [read slide]
- The sales adjacency model, which is designed to produce NEW sales opportunities (or innovations) that are both POSSIBLE and STRATEGIC, is highly influenced by complexity theory. Much of the research on complexity theory originates from the Sante Fe Institute in New Mexico where Stuart Kauffman, is a member. Kauffman is a leading figure in biology who wrote about the relevance of adaptation in addition to Darwinian selection in the evolution of species (1). He is one of complexity theory's leading proponents and author of At Home in the Universe: The Search for the Laws of Self-Organization and Complexity(2). REF: http://web.mit.edu/esd.83/www/notebook/ComplexityKD.PDF REF: https://www.amazon.ca/At-Home-Universe-Self-Organization-Complexity/dp/0195111303 REF: http://www.referenceforbusiness.com/management/Bun-Comp/Complexity-Theory.html#ixzz2p5fhqdjO Steven Johnson popularized application of complexity theory through his book “where good ideas come from: The Natural History of Innovation”, TED talks of his own examination of the intersection of science, technology and personal experience and other various undertakings. REF: https://www.ted.com/talks/steven_johnson_where_good_ideas_come_from REF: https://www.ted.com/speakers/steven_johnson REF: https://www.amazon.ca/dp/B003ZK58TA/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
- So before we innovate for humans, lets talk a bit about humans and what makes them tick. Firstly we do not share the same reality. That is to say what I believe is real for me is not what is real for you unless we happen to have the same interpretation, but we will touch more on that and other 2 topics in the slides to follow. Secondly we all need help to survive. Complex topic since we are also wired to survive as individuals. Thirdly we all act based on our concerns which are in fact driven by the first 2 points. Lets dig a bit deeper into each of these:
- So what is the science or theory behind us not sharing an objective reality?
- Humans nervous systems are capable of producing language which is the descriptions of descriptions that people make to coordinate action. When humans interact recurrently in language they produce a phenomena called co-ontogenic structural coupling. Peoples perceived realities is a combination of social, historical and self generated narratives they have coupled to which defines the space of possibility they can perceive at any given moment in time. So communication between two people is not what is “transmitted” but only what is “interpreted by the listener” REF: http://www.univie.ac.at/constructivism/archive/fulltexts/609.html REF: https://www.amazon.ca/Tree-Knowledge-Biological-Roots-Understanding/dp/0877736421
- Individuals alone are the weakest structure and we are pre-wired to survive so people team up (or couple) with others all the time. Two heads are better than one, right? If we look deeper into this from a biological perspective, referencing the work of Humberto Maturana, a famous Chilean biologist, we exists simply as a collection of cells, not only do we couple to language and invent our own realities, we are also always working to form a composite unity or system. We do this automatically and is known as the law of conservation of adaptation or conservation of structural coupling. Reference: https://en.wikipedia.org/wiki/Humberto_Maturana Reference: http://www.dubberly.com/articles/systemic-and-meta-systemic-laws.html From a logical and metaphysical perspective we can turn to Mario Bunge, the Frothingham Professor of Logic and Metaphysics at McGill University who questions if individualism is even really possible. He speaks of Systemism as the only viable alterative to Individualism . REF: http://www.ceses.cuni.cz/CESES-137-version1-1A_BUNGE_Individualism.pdf But this isn’t so complicated really – humans and “pack” animals have been acting this way since the beginning of time. If you go back before money even existed humans would trade whatever they had in exchange for something they needed (in other words transact for “help”). If I had goats milk, but needed to eat a pork chop, and the pig farmer needed to drink milk, we could do an exchange for help. Today that is what we call a Market. So people are altruistically selfish and selfishly altruistic, where we act to joint and benefit a group for our own benefit and self preservation. Altruistic : those action that can be described as beneficial to the group. Selfish : those actions that can be described as beneficial to the individual self.
- Why is this important? People really only care about what they say they care about. How can you position you offer to affect something they care about? You are ALWAYS speaking with individuals! Fundamental human concerns in business concerns and career concerns.