What is Business Value Consulting ? Vendor Advisory
Services
Enterprise sales is about helping customers
achieve business outcomes. Vendors talk
about features and price but customers
demand data-driven value propositions.
Also, the procurement department wants a
business case for compliance reporting !
5 Business Outcomes
Grow
Revenue
Decrease
Costs
Manage
Risk
Optimize
HR
Increase
Productivity
Transforming enterprise sales to focus on BUSINESS OUTCOMES
Business Value Consulting = Actionable Insights
 What business outcomes do I target ?
 Where are the customers big pain points ?
 How is the financial ROI quantified ?
 When will the business outcome be achieved ?
 Who is the executive buyer and what is their motivation ?
Business
Outcome
Current
Assessment
Value
Vectors
Value
Realization
Competitor
Analysis
Specialized
Deliverables
Capital American LLC
David Christophersen, Managing Director || david@capitalamerican.net || 646.325.6595
Did You Know ?
Sarbanes-Oxley (SOX) rules require publicly
traded companies to report long term lease
obligations including SaaS and IT outsourcing
contracts. SOX Rules 401(a), 404 and 409 offer
new opportunities to help customers overcome
procurement obstacles.
Why Deals Go Dark
The #1 reason deals go dark is buyer and seller
fail to align to business outcomes.
(Sales and Marketing Magazine, Sep ’14)
Buyer Demographics
Buying decisions of Millennials and Baby
Boomers are influenced by data driven analysis.
Influenced by ROI Analysis & Assessments
Millennials: 47%
Boomers: 23%
(Sales and Marketing Magazine, Oct ‘15)
Value Conversations
The top 3 ways executive buyers define what is
valuable to them:
68% - The salesperson clearly shows they
understand my business issues and can articulate
how to solve them.
55% - The meeting helps me think about how to
solve a business problem.
50% - The salesperson shares insights with me
that I did not consider before.
(Forrester : “What Do Executives Find Valuable?)
Planning
• Engagement
Preparation
Discovery
• Stakeholder
Interviews
Analysis
• Business
Case
Delivery
• Executive
Presentation
Audit
• Value
Realization
Business Value Consulting Process
Capital American helps buyers and
sellers achieve success using a
specialized process to accelerate
business outcomes.
Context Pain Points
• Identify and document the big obstacles
Value Vectors
• Quantify value drivers and KPI measures
Value Triggers and Optimizers
• Determine buying thresholds
Business Outcome Alignment
• Revenue, Costs, Risk, HR, Productivity
Value Vector Framework
Results:
▷ Sell Business Outcomes
▷ Accelerate Sales Cycles
▷ Maximize Revenue
▷ Measure Value Realized
▷ Increase Renewal Rates
Mapping Outcomes to Value Vectors Vendor Advisory Services
5 Business Outcomes
Grow
Revenue
Decrease
Costs
Manage
Risk
Optimize
HR
Increase
Productivity
Outcome = Decrease Costs
Determine the key outcome(s) the
product can deliver
P x Q = $
Select the product function that
drives value
Value Driver > Product Function
Quantify the customer “as is” costs
by the product function
Optimizer %
Apply an optimizer against the “as
is” cost
What is Business Value Realization ? Procurement Advisory
Services
The annual survey by Xchanging* found cost savings
realization to be top priority among 830 procurement
executives.
49% believe measuring realized savings is their biggest
opportunity but also a major headache. Resources are
stretched thin and few analysts have experience with the art
and science of value realization.
Validating long-term savings on projects is complicated under
ideal conditions, it’s even harder when documentation is
sparse and key stakeholders have moved on.
Todays biggest opportunity for enterprise procurement is SAVINGS REALIZATION…
Business Value Realization Can Help
 Research and document original ROI justifications
 Analyze the realized savings visible at P&L level
 Create retroactive business case for internal business units
 Provide industry expertise on strategic sourcing issues
 Consulting on-demand to augment internal resources
Savings Realized
49%
Revenue Impact
20%
Savings
Indentified
17%
Cost Avoidance
14%
Top Procurement KPIs
*Xchanging 2015 Global Procurement Study

What is Business Value Consulting ?

  • 1.
    What is BusinessValue Consulting ? Vendor Advisory Services Enterprise sales is about helping customers achieve business outcomes. Vendors talk about features and price but customers demand data-driven value propositions. Also, the procurement department wants a business case for compliance reporting ! 5 Business Outcomes Grow Revenue Decrease Costs Manage Risk Optimize HR Increase Productivity Transforming enterprise sales to focus on BUSINESS OUTCOMES Business Value Consulting = Actionable Insights  What business outcomes do I target ?  Where are the customers big pain points ?  How is the financial ROI quantified ?  When will the business outcome be achieved ?  Who is the executive buyer and what is their motivation ? Business Outcome Current Assessment Value Vectors Value Realization Competitor Analysis Specialized Deliverables
  • 2.
    Capital American LLC DavidChristophersen, Managing Director || david@capitalamerican.net || 646.325.6595 Did You Know ? Sarbanes-Oxley (SOX) rules require publicly traded companies to report long term lease obligations including SaaS and IT outsourcing contracts. SOX Rules 401(a), 404 and 409 offer new opportunities to help customers overcome procurement obstacles. Why Deals Go Dark The #1 reason deals go dark is buyer and seller fail to align to business outcomes. (Sales and Marketing Magazine, Sep ’14) Buyer Demographics Buying decisions of Millennials and Baby Boomers are influenced by data driven analysis. Influenced by ROI Analysis & Assessments Millennials: 47% Boomers: 23% (Sales and Marketing Magazine, Oct ‘15) Value Conversations The top 3 ways executive buyers define what is valuable to them: 68% - The salesperson clearly shows they understand my business issues and can articulate how to solve them. 55% - The meeting helps me think about how to solve a business problem. 50% - The salesperson shares insights with me that I did not consider before. (Forrester : “What Do Executives Find Valuable?) Planning • Engagement Preparation Discovery • Stakeholder Interviews Analysis • Business Case Delivery • Executive Presentation Audit • Value Realization Business Value Consulting Process Capital American helps buyers and sellers achieve success using a specialized process to accelerate business outcomes. Context Pain Points • Identify and document the big obstacles Value Vectors • Quantify value drivers and KPI measures Value Triggers and Optimizers • Determine buying thresholds Business Outcome Alignment • Revenue, Costs, Risk, HR, Productivity Value Vector Framework Results: ▷ Sell Business Outcomes ▷ Accelerate Sales Cycles ▷ Maximize Revenue ▷ Measure Value Realized ▷ Increase Renewal Rates
  • 3.
    Mapping Outcomes toValue Vectors Vendor Advisory Services 5 Business Outcomes Grow Revenue Decrease Costs Manage Risk Optimize HR Increase Productivity Outcome = Decrease Costs Determine the key outcome(s) the product can deliver P x Q = $ Select the product function that drives value Value Driver > Product Function Quantify the customer “as is” costs by the product function Optimizer % Apply an optimizer against the “as is” cost
  • 4.
    What is BusinessValue Realization ? Procurement Advisory Services The annual survey by Xchanging* found cost savings realization to be top priority among 830 procurement executives. 49% believe measuring realized savings is their biggest opportunity but also a major headache. Resources are stretched thin and few analysts have experience with the art and science of value realization. Validating long-term savings on projects is complicated under ideal conditions, it’s even harder when documentation is sparse and key stakeholders have moved on. Todays biggest opportunity for enterprise procurement is SAVINGS REALIZATION… Business Value Realization Can Help  Research and document original ROI justifications  Analyze the realized savings visible at P&L level  Create retroactive business case for internal business units  Provide industry expertise on strategic sourcing issues  Consulting on-demand to augment internal resources Savings Realized 49% Revenue Impact 20% Savings Indentified 17% Cost Avoidance 14% Top Procurement KPIs *Xchanging 2015 Global Procurement Study