Post on 15-Jun-2020
transcript
Cloud Leadership Symposium
Dynamics Industry Summit
March, 2016
Mark Stuyt
About Mark:
Founder – Chief Engagement Officer
25 year sales professional (CA, Pivotal CRM, PeopleSoft,
SAP)
Advisor to Microsoft & Tier 1 & 2 Microsoft AX/NAV/CRM
Partners: Europe, North America, Asia
Creator: Microsoft Accelerated Selling Methodology
Creator: Microsoft Industry Acceleration Content
Mark’s contact info:
(604) 617-8522
Website
4 Leadership & 8 Industry Sales & marketing workshops delivered to over
450 partner personnel
55 Industry Acceleration Workshops delivered in 1:1 sessions with partners
75 Partners in Program today: FR, UK, GER, WE (SWE, FIN, AUS, CH, SP, BL,
NL, NO, DK, IT), MEA
20/50/80
The Cloud Buyer Profile
Reimagining Customer Acquisition
Marketing as a Strategic Imperative
Tribal/Industry Engagement
Selling in the Cloud
Cloud Services Impacts
Valuation Drivers & Business Model Impacts
What Will You Learn?
The Cloud Buyer
High implementation costs
Lack of interoperability
Extraordinary complexity
Frustrated business leaders
High cost of ownership
High switching costs
Poor end-user adoption
Hard-to-measure business results
Buyer 2.0Self Educating
Wants to be in Control
External Validation
Accelerated Time-to-
Value
Fear Consciousness
Industry Orientation
Will find you before you
find them!
Our average attention span
has dropped to 8 seconds,
one second less than a
goldfish.
HISTORICAL PROOFRESEARCH
What’s IN:
The Business Buyer
Selling into OpEx Budgets
Business Content
Vertical Focus
Selling Results/Outcomes
Fixed Price Contracts
Business Processes
Social Media Expertise
Prescriptive Consulting
What’s OUT:
The IT Buyer
Selling into CapEx budgets
Technical Expertise
Geographic Coverage
Selling Features
Time & Materials
Features & Functionality
Social Graces
Solution Selling
Economic• Demand has shifted to favor vertically-specific solutions
• IP becoming both a strategic differentiator and economic necessity
Marketing:• Moving from tactical necessity to strategic growth engine
• Prospects will find you before you find them: higher volume of lower value “leads”
Sales:• Sales engagement cycles contracting
• Solution Selling far less effective
• Increasingly difficult to differentiate on product
Services:• Traditional “services” business model under pressure
Redefining Customer Acquisition
HISTORICAL PROOFRESEARCH
Current Marketing Void
Primacy &
Recency
Premature
Cognitive
Commitment
Confirmation
Bias
Consistency
Principle
Profile Anchor Collaborate Confirm Commit
Emotional
Discovery
BDM
Whiteboard
BIA
Workshop
Solution
Demo
Proposal
Presentation
STP
Strategic
Tipping
Point STP
Bias
Creation
Few partners currently nurture their prospects.
In the past marketing created a lead (10%) handed it to sales for closure.
Outbound marketing (telemarketing, e-mail, events) no longer works
Triage has become strategic
to.
Get Found Convert PromoteNurture
Industry Focus
Thought Leadership
SEO, SEM, Social
Digital Engagement
Calls-to-Action
High Value Offers
Build Relevance
Remain in Conscience
CRM/Automation
Frictionless Sales
Hand-Off
Triage
Sales Engagement
Nurture Marketing
Lead
WHAT
The right content will engage the right personas
.
HOWWHY
Prospects will find you long before you find them
Two primary prospect types
Higher volume of lower value “leads”
Requirement for unbiased/3rd party content
Emotion based INDUSTRY messaging
Nurture has become a necessity
Executing The Industry Shift
350,000,000
40,000
10,000
151
A phenomenon characterized by the unconscious redirection of feelings from one person to another
Drives an unconscious affinity for people who are similar to you
A tribe, is a social group of humans connected by a shared
system of values and organized for mutual care, defense,
and survival beyond that which could be attained by a lone
individual or family.
Features
Requirement
IT
Team Workspaces
Compliance Reporting
Dashboards –
KPIs/Reporting
Jobsite Mobility
Mobile Time Capture
Web Services
BMI Integration
Records Management
Cloud
EDI
Subscription Licensing
Text
HOW
Function
Business Process
Management
Fin. Consolidation
Project Collaboration
Resource Planning
Project Management
Field Service
Budgeting & Forecasting
Time & Expense, Billing
Project Accounting
Scheduling
Billing
Estimating
Inventory Control
Talent Mgmt
Project Profitability
Subcontractor Mgmt
Equipment Mgmt.
Client/Opportunity Mgmt
Marketing Campaign
Mgmt
RFI/Bid/Proposal Mgmt.
Forecasting
HR/Payroll
Billing
Text/Video
WHY
(Trigger Event)
Metric
Business Challenge
Leadership
GrowthMerger or acquisition
Large or complex new project
Increase margins/profitability
FearLost a key customer
Lost a strategic bid
Signed a bad/high risk contract
Project overrun or missed milestone
Project write-off
Utilization <70%
Increase margins/profitability
RiskSystem Failure/obsolescence
Compliance penalty
Litigation
ControlPoor decision (due to bad data)
Change in leadership
Dialogue/Video
WHATMarket Forces &
Industry Drivers
Economic:All major private sectors
showing growth
Federally funded construction
down sharply
Recession flooded market with
independent contractors
Regulatory:Rapidly changing
building/zoning codes
Global “green/sustainable”
standardization
Impending demand based on
pending legislation
Competitive:M&A - larger, specialized
competitors
Aggressive discounting
New solution/service offerings
Predatory hiring practices
Customer:Risk resistant buyers (fixed fee
projects/penalties)
Price driven award criteria
Changing solution
requirements (green)
Increasing expectations
Impacts
Economic:Growing backlog
Larger projects
Resource scarcity
Increasing employee attrition
Increasing labor costs
Regulatory:Requirement for specialization
and training in new “green”
standards/building practices
Increase in compliance and
litigation risk
Capacity planning
Competitive:Increasing lost bids
Declining margins (BMR)
Increasing sales cost
Declining project profitability
Limited differentiation
Customer:Declining customer loyalty
Increased project risk
Declining project profitability
Increasing litigation, legal costs
& settlements
Increase in “rework”
Declining utilization
IP/Product
Development
Prioritization
Marketing
Messaging &
Assets
Sales
Engagement &
Assets
Behavioral Economics Summary
Buying Decisions Are Made Early
Emotions Drive Decisions
Tribal Member = Safety
Safety (Fear) > Greed
Why > (How + What)
Industry (Tribal) Selling
Logical
(Historical)
Differentiation
Product Advantage
Pricing Advantage
Geographical Advantage
People Advantage
Emotional
(Modern)
Differentiation
Industry/Vertical Content
Teaching Moment
Change Selection Criteria/Process
Executive Bias
Tribal Membership
Lower Risk Profile/Safety Perception
Profile Anchor Collaborate Confirm Commit
Emotional
Discovery
BDM
Whiteboard
BIA
Workshop
Solution
Demo
Proposal
Presentation
STP
Strategic
Tipping
Point STP
Progressive Disclosure
Visual Superiority Effect
Interactive
• Drives engagement - PowerPoints?
• Extends interaction time
• Differentiates
• Appeals to the buying brain
Customers are immune to solution selling techniques (pay people to keep us out)
Technology has out-paced the capabilities of the majority of today’s sales professional
Sales professionals need content and consulting skills - only 20-25% will transition
Industry (Tribal) Service
Services
$
$
$
$
$
$
Consult Design Implement Integrate Maintain Manage Adopt
Project
Services
Support
Services
Traditional Services Portfolio
Services
$
$
$
$
$
$
Consult Design Implement Integrate Maintain Manage Adopt
Project
Services
Disruptive
Services
Optimization
Services
Industry Services Portfolio
• Business Impact Assessment
• Leadership Workshop
• Business Process Review
• Technical Readiness Assessment
• Vision and Scope Definition
• Proof of Concept
• Business Case Expansion/Validation
• Business/Project Risk Assessment
• Cloud Readiness Assessment
Disruptive Services - Examples
Business Model Impacts
Total revenue levels?
Total revenue growth?
Recurring revenue levels?
Recurring revenue growth?
Profitability (EBITDA)?
Gross margins?
Recurring margin?
Others?
Recurring revenue growth?
Gross margins?
• Solution Analysis, Scope, &
Design
• Configuration
• Customization
• Installation
• Training
• Reactive Help Desk
Support
• Pro-active Solution
Maintenance
• Troubleshooting
• Mobile Device Connectivity
& Management
• Industry-specific
Functionality
• Function-specific
Workflows (e.g. HR,
Procurement)
• SharePoint-Based
Workflows
• Office Connectivity &
Other Plug-Ins & Add-ons
• External Portals for End
Customer Information
• Pre-Configured
Dashboards
• Dynamics Software
Differentiated
Competitive
Position
Undifferentiated
Market Pricing Premium
Relevant to
Needs of
Customer
Irrelevant to
The Experience Economy – Pine & Gilmore (2011)
Commodities
Extract
Goods
Manufacture
Services
Deliver
Experiences
Stage
Progression of Economic Value
$1.35
$14.99
$50
$150
$600
Differentiated
Competitive
Position
Undifferentiated
Market Pricing Premium
Relevant to
Needs of
Customer
Irrelevant to
The Experience Economy – Pine & Gilmore (2011)
Applications
Configure
Solutions
Implement
Business Services
Outsource
Transformation
Advise
Progression of Economic Value
Telephony
ERP (GP, NAV, AX)
CRM, Marketing Automation,
Social Media Leverage
Document Management &
Workflows (SharePoint)
Office 365, Intune,
Managed Services
BI, Dashboards, Data Services
Mobile Access
Business Process Consulting
Customer
CuratorAX
Industry
Partner
ISV
IP Extension
Potential ValuationTraditional Revenue
Business
Recurring Revenue
(Cloud) Business
Revenue Multiple 0.2-1.5x 2-6x
EBITDA Multiple 2-2.5x 5-14x
IDC Partner Valuation Study 2014
Is based on recurring revenue
Drives higher valuations, because of that recurring revenue (2-4x more)
Contains some form of Partner-generated IP
Requires successfully navigating the “cash flow trough”
Differentiation is anchored in “industry solution sets”
Moving Into Action….
What ‘landed’ today?