IT SOFTWARE:IBM
SALES MANAGEMENT
GROUP 6
Bhushan Chopade B010
Mohit Gaur B016
Abhishek Goyal B017
Nikhil Gupta B022
Ravinder Kumar B034
INDUSTRY OVERVIEW
US $325 billion (2011)
License, subscription,
maintenance and other
revenues
Us $243 billion
(2011)
Global 100 software
revenue
Company
2011 Software
Revenue in mn
Software revenue
as % of total
Microsoft $57,668.40 80%
IBM $28,187.75 26%
Oracle $26,175.89 55%
TheTop 3 in Software
Software revenue for Emerging Markets (By
country in US$M)
• Key source of innovation today for all aspects of business and society
• Low-cost mobile apps, sophisticated enterprise programs , data analytics
• Software adds value, enhances productivity
2
EVOLUTION
1990
Telesales & Web Sales
1980
Resellers and Independent
SoftwareVendors (ISVs)
1970
3rd Party distribution channels
Agents for client introduction
2001 and After
 Change inTechnology-Related Market
 No interest in technology for technology’s sake
 Clients asked for benefits
New Objectives for MARKETING
 Company drivers will be clients and markets notTechnology
 Adjudge Marketing on business success and not only on advertising and communications
 Marketing should lead the transition to a more organized, client-focused and segmented channel system.
What was needed?
 Programs that were about educating the sales force
 Deployment of channel resources
 Business Solution Selling
3
IBM SALES BANDWIDTH OVERVIEWSIZE
• Multinational
corporations
• Large business
• Medium-sized
business
• Small business
• Home and home
office
GEOGRAPHY
• Africa
• Asia
• Australia
• Europe
• North America
• South America
• 90+ countries
• 30+ languages
INDUSTRY
• Aerospace and defense
• Automotive
• Banking
• Chemicals and petroleum
• Consumer products
• Education
• Electronics
• Energy and utilities
• Financial markets
• Government
• Health care
• Insurance
• Life sciences
• Media and entertainment
• Retail
• Telecommunications
• Travel and transportation
• Wholesale distribution
4
IBM OFFERINGS
PRODUCTS
• Software
• Systems and
Servers
• Storage
SERVICES
• Business
Services
• IT Services
• Outsourcing
Services
• Training
• Financing
SOLUTIONS
• Across various
topics
• Big Data
• Cloud
• Analytics
• Data
Management,
Mobility etc.
SUPPORT
• Technical
Support
• Developer
Support
• Customer
Support
• Former IBM
products
support
5
Route To Market
Integrated
Accounts
Aligned
Accounts
and Large SMB
Accounts
Medium
Business
Accounts
Commoditized & Simple
Transactions
Technology Platform &
Related Services
Decisions
Integrated Solution &
Consulting Engagements
OI Routes:Closing done by other RoutesEnd-to-End Routes: Include selling activity
V
A
L
U
E
6
Signature Selling Method
Evaluate
Business
Environment
Develop
Business
Strategy and
Initiatives
Recognize
Needs
Evaluate
Options
Select
Solution
Option
Resolve
Concerns
and Decide
Implement
Solution and
Evaluate
Success
Understand
Customer's
Business IT
Environment
Develop
Plans Linked
to Customer
Business
Initiatives
Establish the
Buying
Vision with
the
Customer
Articulate
IBM
Capabilities
and Qualify
Opportunity
Develop
Solution with
Customer
Close Sale
Monitor
Implementation
& Ensure
Expectations
are Met
Identified Validated Qualified Proposed Won
Customer Buying Steps
SSM Steps
7
Sales structure – Market and Product
Specialisation
Country
Head
North
Regional
Manager
Communication Distribution Public Industrial
Cloud Big Data ERP
Oracle
Service Line
SAP Service
Line
Application
Innovation
Services
Associate
Partner
Associate
Partner
Associate
Partner
Application
Management
Services
Strategy &
Analysis
Mobile Security CRM
Financial
General
Business
South
Regional
Manager
East
Regional
Manager
West
Regional
Manager
Associate
Partner
Management
Consultant
Management
Consultant
Senior
Consultant
Senior
Consultant
Consultant/
Salesperson
Consultant/
Salesperson
Consultant/
Salesperson
Senior
Consultant
Management
Consultant
8
Types of Salesforce & Sales Support
100% Sales – Carries out activities like negotiation and
relationship management
80%Technical, 20% Sales - Pre- sales persons or consultants
100%Technical – Domain consultants, provide business
solutions and consultative selling
9
Today IBM’s 35,000+ sellers spend over 20% of their time on pre-sales support
Implementation of a modern SFA (Sales Force Automation) sales support system
based on an IBMWebsphere platform
SFA is an advanced reporting system, which provides the ability to control sales levels
and staff effectiveness.
Facilitating Sales Process
IBM continuously educate its sales reps about various industry segments
Hashtags specific to the verticals of the salesperson
IBM encourages sales reps to join local chapters of the professional organizations that
can help them stay up to date on industry trends
IBM engages potential clients online by sponsoringWeb-based seminars and
publishing a regular e-newsletter about client’s industry.
10
Promotions
Industry specific Conferences
Redbooks : Sample code,Installation and implementation experiences,
and step-by-step "how-to" guides. 500,000 downloads per month
Redpapers : Shorter technical documents that are onlyWeb-published
Collaboration with Apple for developing iOS apps and selling its
products
Showcase key business metric improvements by highlighting benefits
to the existing clients
11
Recruitment & Selection, Evaluation &
Training
Recruitment & Selection
• Visits Premier B-
Schools
• 4 Domains – Sales,
Consulting,Technical,
Delivery
• 3-5 years of software
sales or pre-sales
experience
• Hired 40 people as
consultants last year
Evaluation & Rewards
• Delivery : Support
project teams on
meeting metrics of
within budget and time
• Standardized reports
and analysis
• Awards – Service
Excellence Award
• Team based awards
• Redeemable points
Training
• Top Gun salesTraining
• Top GunVirtual
Learning
• STG CASE
• Client Engagement
Program
• 40 hours of online
training mandatory in a
quarter
12
Key Accounts & Buying Centre
Key Account Principal Services
Airtel AMS support extension and CRM
transformation
Idea Invoice processing
Adani Group Website hosting, Unicode conversion
migration
ICICI Bank Peoplesoft HR
13
User Buying (
Requirement Basis)
• Purchase
• Finance
• HR
Economic
• Project Manager
• Project Sponsor
Technical
• AVP, IT
• DM, IT
• Database
Administrator
Advocacy
• Project Manager
REFERENCES
▪ Dr. Divakar Kamath | Associate Director | IBM India Private Limited
▪ Karan Jain | Senior Consultant | IBM India Private Limited
▪ Tushar Nayanam | IBM Intern | SBM, NMIMS
▪ PwC Global 100 Software Leaders : www.pwc.com/globalsoftware100
▪ http://www.som.cranfield.ac.uk/som/dinamic-
content/media/Yvonne/IBM%20Route%20to%20Market%20Strategy.pdf
▪ http://www.cbsnews.com/news/ibms-secret-for-making-the-sale/
▪ http://ibmreferralprogram.blogspot.in/2012/02/ibm-employee-referral-sales-
management.html
14
15

Sales Management - IBM

  • 1.
    IT SOFTWARE:IBM SALES MANAGEMENT GROUP6 Bhushan Chopade B010 Mohit Gaur B016 Abhishek Goyal B017 Nikhil Gupta B022 Ravinder Kumar B034
  • 2.
    INDUSTRY OVERVIEW US $325billion (2011) License, subscription, maintenance and other revenues Us $243 billion (2011) Global 100 software revenue Company 2011 Software Revenue in mn Software revenue as % of total Microsoft $57,668.40 80% IBM $28,187.75 26% Oracle $26,175.89 55% TheTop 3 in Software Software revenue for Emerging Markets (By country in US$M) • Key source of innovation today for all aspects of business and society • Low-cost mobile apps, sophisticated enterprise programs , data analytics • Software adds value, enhances productivity 2
  • 3.
    EVOLUTION 1990 Telesales & WebSales 1980 Resellers and Independent SoftwareVendors (ISVs) 1970 3rd Party distribution channels Agents for client introduction 2001 and After  Change inTechnology-Related Market  No interest in technology for technology’s sake  Clients asked for benefits New Objectives for MARKETING  Company drivers will be clients and markets notTechnology  Adjudge Marketing on business success and not only on advertising and communications  Marketing should lead the transition to a more organized, client-focused and segmented channel system. What was needed?  Programs that were about educating the sales force  Deployment of channel resources  Business Solution Selling 3
  • 4.
    IBM SALES BANDWIDTHOVERVIEWSIZE • Multinational corporations • Large business • Medium-sized business • Small business • Home and home office GEOGRAPHY • Africa • Asia • Australia • Europe • North America • South America • 90+ countries • 30+ languages INDUSTRY • Aerospace and defense • Automotive • Banking • Chemicals and petroleum • Consumer products • Education • Electronics • Energy and utilities • Financial markets • Government • Health care • Insurance • Life sciences • Media and entertainment • Retail • Telecommunications • Travel and transportation • Wholesale distribution 4
  • 5.
    IBM OFFERINGS PRODUCTS • Software •Systems and Servers • Storage SERVICES • Business Services • IT Services • Outsourcing Services • Training • Financing SOLUTIONS • Across various topics • Big Data • Cloud • Analytics • Data Management, Mobility etc. SUPPORT • Technical Support • Developer Support • Customer Support • Former IBM products support 5
  • 6.
    Route To Market Integrated Accounts Aligned Accounts andLarge SMB Accounts Medium Business Accounts Commoditized & Simple Transactions Technology Platform & Related Services Decisions Integrated Solution & Consulting Engagements OI Routes:Closing done by other RoutesEnd-to-End Routes: Include selling activity V A L U E 6
  • 7.
    Signature Selling Method Evaluate Business Environment Develop Business Strategyand Initiatives Recognize Needs Evaluate Options Select Solution Option Resolve Concerns and Decide Implement Solution and Evaluate Success Understand Customer's Business IT Environment Develop Plans Linked to Customer Business Initiatives Establish the Buying Vision with the Customer Articulate IBM Capabilities and Qualify Opportunity Develop Solution with Customer Close Sale Monitor Implementation & Ensure Expectations are Met Identified Validated Qualified Proposed Won Customer Buying Steps SSM Steps 7
  • 8.
    Sales structure –Market and Product Specialisation Country Head North Regional Manager Communication Distribution Public Industrial Cloud Big Data ERP Oracle Service Line SAP Service Line Application Innovation Services Associate Partner Associate Partner Associate Partner Application Management Services Strategy & Analysis Mobile Security CRM Financial General Business South Regional Manager East Regional Manager West Regional Manager Associate Partner Management Consultant Management Consultant Senior Consultant Senior Consultant Consultant/ Salesperson Consultant/ Salesperson Consultant/ Salesperson Senior Consultant Management Consultant 8
  • 9.
    Types of Salesforce& Sales Support 100% Sales – Carries out activities like negotiation and relationship management 80%Technical, 20% Sales - Pre- sales persons or consultants 100%Technical – Domain consultants, provide business solutions and consultative selling 9 Today IBM’s 35,000+ sellers spend over 20% of their time on pre-sales support Implementation of a modern SFA (Sales Force Automation) sales support system based on an IBMWebsphere platform SFA is an advanced reporting system, which provides the ability to control sales levels and staff effectiveness.
  • 10.
    Facilitating Sales Process IBMcontinuously educate its sales reps about various industry segments Hashtags specific to the verticals of the salesperson IBM encourages sales reps to join local chapters of the professional organizations that can help them stay up to date on industry trends IBM engages potential clients online by sponsoringWeb-based seminars and publishing a regular e-newsletter about client’s industry. 10
  • 11.
    Promotions Industry specific Conferences Redbooks: Sample code,Installation and implementation experiences, and step-by-step "how-to" guides. 500,000 downloads per month Redpapers : Shorter technical documents that are onlyWeb-published Collaboration with Apple for developing iOS apps and selling its products Showcase key business metric improvements by highlighting benefits to the existing clients 11
  • 12.
    Recruitment & Selection,Evaluation & Training Recruitment & Selection • Visits Premier B- Schools • 4 Domains – Sales, Consulting,Technical, Delivery • 3-5 years of software sales or pre-sales experience • Hired 40 people as consultants last year Evaluation & Rewards • Delivery : Support project teams on meeting metrics of within budget and time • Standardized reports and analysis • Awards – Service Excellence Award • Team based awards • Redeemable points Training • Top Gun salesTraining • Top GunVirtual Learning • STG CASE • Client Engagement Program • 40 hours of online training mandatory in a quarter 12
  • 13.
    Key Accounts &Buying Centre Key Account Principal Services Airtel AMS support extension and CRM transformation Idea Invoice processing Adani Group Website hosting, Unicode conversion migration ICICI Bank Peoplesoft HR 13 User Buying ( Requirement Basis) • Purchase • Finance • HR Economic • Project Manager • Project Sponsor Technical • AVP, IT • DM, IT • Database Administrator Advocacy • Project Manager
  • 14.
    REFERENCES ▪ Dr. DivakarKamath | Associate Director | IBM India Private Limited ▪ Karan Jain | Senior Consultant | IBM India Private Limited ▪ Tushar Nayanam | IBM Intern | SBM, NMIMS ▪ PwC Global 100 Software Leaders : www.pwc.com/globalsoftware100 ▪ http://www.som.cranfield.ac.uk/som/dinamic- content/media/Yvonne/IBM%20Route%20to%20Market%20Strategy.pdf ▪ http://www.cbsnews.com/news/ibms-secret-for-making-the-sale/ ▪ http://ibmreferralprogram.blogspot.in/2012/02/ibm-employee-referral-sales- management.html 14
  • 15.

Editor's Notes

  • #2  International Business Machines Corporation (IBM)
  • #7 OI – Opportunity identification Route 1, which addresses the most complex engagements, is led by Global Services (IGS) Rote 2 , ISV - Independent Software Vendors Route 6 – 3rd party only when assistance is required are IBM resources called in. TeleWeb – Version Upgrades, FTF (face to face) – Field sales force for large technology products, Server platform sale for new workload, Linux Virtual Services SIs – {special "business partner" programs} System Integrators, Independent Service vendors (ISVs specialize in a particular application area, such as engineering, and develop software primarily for high-end UNIX-based workstation platforms.)
  • #8 IBM business units, third parties –spoke the same language, so that, for example, a “qualified lead” meant the same thing to everybody. formalized language in a single global sales management system, enabling IBM to track the pipeline of opportunities across the business as a whole. It is reviewed each week against historical tracks in place since 2002, and enables the company to compare what is in the pipeline with what was expected. Such grids enable IBM to identify ‘blockages’ in the pipeline – for example, a problem where leads are not progressing from validated to qualified in a particular channel – and to take remedial action, perhaps allocating greater resources.
  • #9 Thousands of business partners - Distributors, value added resellers and software vendors http://books.google.co.in/books?id=_E3e3iZA3o8C&pg=PA95&lpg=PA95&dq=ibm+sales+force+structure&source=bl&ots=gMwIZTZJaL&sig=ompMApOf8AOiVdnUWEZs0Fd6WXg&hl=en&sa=X&ei=hL3LU-7AIdeJuATOlIKICw&ved=0CBsQ6AEwAA#v=onepage&q=ibm&f=false
  • #10 sales approach - presales person(tech guy) with sales person (accompany each other)
  • #11 AIS – in house, Cognos
  • #13 IBM Top Gun Sales Training is designed to increase sales, solutions, competitive and technical skills for I/T Industry professionals. The program uses a popular "Top Gun" format involving unique class themes, stimulating lectures, stand-up exercises, hands-on labs, quizzes, and product demonstrations. The Client Engagement Program is a concentrated and integrated experiential program designed to develop STG sellers’ client engagement skills, leading to higher close rates, increased revenue, and enhanced client satisfaction. Aligned with the Client Value Method (CVM), each lecture topic in the Client Engagement Program is designed to build the skills required for successful client interaction by examining key tasks, best practices, client touchpoints, and client examples.  Students will undergo a series of interactive exercises that will require them to apply the skills and best practices to a client engagement scenario in a case study format. STG Cloud and Analytics Sales Education (CASE) IBM is transforming to take advantage of three historic shifts in our industry: Cloud, Big Data and Analytics, and new models of engagement, which rely on Mobile and Social, underpinned by Security. Closing this gap requires intensive training that strengthens Cloud and Analytics client engagement skills through intensive learning and ongoing mentored practice, using client cases and real opportunities.  We call this program STG CASE (Cloud & Analytics Sales Education)