Value Selling for SME

Value Selling for SME Introduction to Value Selling for SME Welcome to this unit in the SAP Value Selling for SME curriculum: Introduction to Value ...
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Value Selling for SME

Introduction to Value Selling for SME

Welcome to this unit in the SAP Value Selling for SME curriculum: Introduction to Value Selling for SME

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Introduction to Value Selling for SME: Unit Objectives After completing this unit, you will be able to: „

Define value-based selling

„

Explain the SAP Value Selling for SME program

„

Outline a typical SME value selling engagement

© SAP 2009

After completing this unit, you will be able to: „ Define value-based selling „ Explain the SAP Value Selling for SME program „ Outline a typical SME value selling engagement.

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Why is Value Selling Required? Capital is Scarce & Economic Conditions Unfavorable!

ber d m u e al N Fund u t Ac jects ro of P

High and Demonstrable ROI

or ts f ng s e u di Req ct Fun je Pro

Low and/or Not Demonstrable ROI

More than 82% of IT decisions now require an ROI analysis (InformationWeek) © SAP 2009

„ You might be asking yourself, why should I be using value selling methodologies and tools? „ Due to difficult economic conditions, companies have reduced their capital spending. This leads to a situation where the number of requests for project funding outnumber the actual numbers of projects being funded. The projects with the highest, demonstrable return on investment are being approved and funded. „ IT projects are no longer just competing against other IT projects for funding. IT projects now compete with other business projects for funding. Research shows that 82% of IT projects now require return on investment analysis and business cases to justify the investment. „ Utilizing the value based selling methodologies and tools in the SAP Value Selling for SME program will allow you to assist your prospects with completing necessary ROI analysis and increase your win rates!

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Increasing Importance of Business and Value-Driven Decisions for IT Investments 1 Decisions about IT investments are increasingly value-driven

2 Influence of non-CIO Executive level on IT investments is rising

CIO’s: In the last 12 months the pressure to decide based on value has increased in 60% of all companies.

100 CEO, COO, CFO, CMO

Increase

12

100 29

+ 142%

37

No change

CIO 31

Reduced

- 16%

Don’t know Line Management

Source: Terry A. Kirkpatrick: Research CIO's speak on ROI

51 40

- 22%

Source: Gartner/Dataquest

With a cost-justification report and business case, a project is 60% more likely to be approved (Gartner) © SAP 2009

„ Research shows that projects with cost-justification and business cases are 60% more likely to be approved. IT executives are increasingly feeling pressure to include supporting value analysis with IT investment requests. And non-IT executives are also becoming much more involved in IT investment decisions. C-level executives are more actively involved in evaluating IT projects. „ It is clear that there is an increasing importance of business and value-driven decisions for IT investments. It must be assumed that all IT projects will require a comprehensive value proposition the clearly articulates the value of the project to senior level executives.

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Value Based Selling – Gartner Survey Survey Question: What are the biggest weaknesses or shortcomings in IT Sales and Marketing efforts today? 73.6%

Understanding our Business Needs/Requirements

57.2%

Tailoring the Discussion to our Issues

55.3%

Quantifying the Value Proposition

46.6%

Clarifying Business Impact

Source: Gartner Survey of

36.7%

Understanding our Industry

Over 600 Fortune 2000 IT

29.9%

Product/Service Knowledge

Decision Makers

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 %

Percentage of Respondents

© SAP 2009

„ IT decision makers require assistance justifying IT investments now more than ever before. But an analyst study shows that IT sales and marketing professionals are not providing the support they need. „ 55% of the IT decision makers indicated sales professionals are not effectively helping them quantify the value proposition of an IT investment. And almost 47% indicated clear business impacts are not being provided. „ This provides you with an excellent opportunity to leverage the SAP Value Selling proven methodology to become a trusted advisor with your prospects.

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What Value Based Selling Is … A Framework and Approach

A value based selling methodology helps sales teams with a repeatable basis on how to research companies, identify pain points and root causes behind those pains and challenges, map the root causes to SAP solutions enablers, quantify benefits in tangible dollar terms, and provide an implementation roadmap with resource requirements for a prospect.

This end-to-end value-based selling engagement methodology complements classic selling tactics enabling you to increase win rates and protect margins.

© SAP 2009

„ Value based selling is both a framework and an approach. „ There are numerous definitions for Value Selling, but they all return to the same objective – focus on the needs and business issues of your prospect. If you look up Value Selling (..or Solution Selling) in Wikipedia the definition is: ‹ “Solution selling is a special approach to sales. Rather than just promoting an existing product, the salesperson focuses on the customer's pain(s) and addresses the issue with his or her offerings (product and services). The resolution of the pain is what constitutes a true "solution.“

„ If you dig a little further, you will see that the solution selling professional typically applies some of the following approaches to the sales cycle: Diagnosing customer needs, Establishing value, Positioning proof, ROI and the total solution, Following up to ensure customer success. „ This is the same approach as the definition on this slide outlines – identify the pain points and underlying solution enablers, clarify the evaluation and potential implementation process, and quantify the benefits for your prospect.

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„ Using a value based selling methodology will help you work with your prospects to identify their pain points and the root cause behind these challenges. You will then align SAP solution enablers with the root causes and quantify tangible benefits of solving the challenges. And finally you will provide your prospects with a clear understanding of how they can implement the proposed solutions and what internal and external resources will be required to be successful. This is the comprehensive value proposition an executive needs to make an informed decision. „ Value based selling is an end-to-end selling methodology, but it is not an additional process. It complements and enhances your current selling tactics. Effectively executed, value based selling will increase your win rates and protect your margins.

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Value Selling for SME Program Basics

Enablement „ Build upon previous training „ Focus on value selling skill sets – not just tools „ Formal qualification program „ On-the-job training „ Provide ongoing support, training and content

„

Enterprise Health Check (EHC)

„ „

„

Value Lifecycle Manager (VLM)

„ „ „

Identify sources of potential value and best practices to adopt “Primary first step” for most value selling engagements Unlimited access for demand generation and deal execution

Collaborative environment to build SME business cases New SME centric engagement type – simplifies process BAiO, BOBJ, CRM and other templates Project based access

© SAP 2009

„ Now let’s review the SAP Value Selling for SME program. „ This e-learning module is one component of a comprehensive enablement program. The curriculum builds on previous value selling training and focuses on enhancing your value selling skills, not just the use of tools. In addition to formal training, ongoing on-the-job coaching and support will be provided. „ The foundation of the SAP Value Selling for SME program is two tools. The Enterprise Health Check, or EHC, is a benchmarking survey that was developed specifically for SME prospects. It allows a company to identify potential opportunities to realize additional value by adopting best practices in the areas of people, processes and systems. The EHC is a great first step in a value selling engagement with a prospect and is available for internal SAP and partner teams. „ Value Lifecycle Manager, or VLM, is a collaborative, online environment used to build business cases. VLM has been adapted for SME use with simplified project templates for solutions including Business All-in-On, SAP Business Objects and more. „ The SAP Value Selling for SME program provides the enablement and support required for you to effectively execute value based selling engagements using the EHC and VLM.

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Value Based Selling Curriculum Curriculum Details

© SAP 2009

„ Let’s take a deeper look at the Value Based selling curriculum details. „ The full curriculum includes prerequisites, three Virtual Classroom sessions, two self study sessions and ongoing coaching. „ Depending on your role within the value selling process, you will complete different modules within this curriculum. „ The overall objective of this curriculum is to enhance your value selling skills.

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Typical SME Value Selling Engagement

A Value Selling Engagement is not a Separate Process It Enhances Your Current Sales and Solution Discovery Processes Gain Prospect’s Commitment

Define Scope and Request VLM Project

Discovery and Data Collection

„ Leverage Enterprise

„ Request project via „ SME VLM engagement Health Check (EHC) to SAP VLM skilled resource gain business 1. Corporate executive level Assessment „ Define project and commitment to business case scope 2. Discovery engagement – target Workshops „ Solution (e.g. ERP CFO and HR) 3. Business Case „ Understand buying Assumptions „ Business model (e.g. process and decision outsource timeline 4. Business Case manufacturing) Results „ Know final decision „ Project is created and makers (board, VC, 5. Report team is invited to etc.) „ Demo the Value collaborate

Validate and Final Report „ Validate each section

with line of business owners and key stakeholders „ Create final report

1-3 Days of Work Over 2-3 Week Period © SAP 2009

„ A value selling engagement is not a separate process. It enhances your current sales and solution discovery processes. The incremental effort is typically one to three days of work over a two to three week period. This effort is shared across the various resources, SAP and partner, that are involved in pursuing the prospect. „ The first and most critical step in the process is to gain a prospect’s commitment to engage in a value based evaluation process. ‹ The Enterprise Health Check is an excellent tool to use to gain a prospect’s commitment. ‹ The analysis allows a company to begin to identify and quantify the potential value within their business. ‹ And the Enterprise Health Check analysis allows SAP and our partners to develop compelling value propositions for SAP solutions.

„ As you proceed into solution evaluation and discovery with a prospect, you can begin a project in the Value Lifecycle Manager, or VLM. A local SAP Value Selling support resource will work with you to scope a project in VLM including which solutions are being considered as well as business processes and models that are unique to your prospect. „ You then begin collecting information from your prospect and building a value proposition and business case in VLM. The analysis is then validated with your prospect so that they feel it is their analysis and take ownership of it.

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„ After your prospect validates the analysis, you can generate a final report from VLM. This report is in Microsoft PowerPoint format and should be enhanced with industry, partner solution, implementation and other content to provide a complete value proposition for your prospect to effectively evaluate the project proposal.

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Under Armour Realizing the Value The Company „ „ „

Began as performance athletic apparel company…expanded into footwear and other lines “Big Bets with Big Partners” philosophy Selected SAP as $100M+ company and have grown to $700M+ in 4 Years

Highlights „ „ „

Implemented globally in 8 months Enhanced ability to manage customer expectations with ATP checks Reduced time to close books by 33%

“We are a different company every six months. We need to work a lot smarter, not just a lot harder – that is why we decided on SAP.” Kevin Plank, President and CEO Under Armour Inc.

Value Lifecycle „ „ „

Developed initial business case to justify ERP investment Documented success with Business Transformation Studies (BTS) Using Value Lifecycle Manager (VLM) for continuous improvement and SAP footprint expansion projects

© SAP 2009

„ Leveraging a value selling approach in the SME market has proven to be very successful. An example of this is Under Armour. Under Armour is an athletic apparel company with approximately one hundred million dollars of annual revenue when they chose SAP as their business process platform. Kevin Plank, President and CEO of Under Armour, has ambitious plans for the company and has said, “We need to work a lot smarter, not just a lot harder – that is why we decided on SAP.” „ SAP and a business partner worked with Under Armour to build a business case and value based implementation roadmap. Under Armour was able implement SAP in just eight months and the solution has delivered extensive value. This value has been documented in a SAP Business Transformation Study. And the Value Lifecycle Manager tool continues to be used at Under Armour as they expand their SAP footprint. „ A little more than four years after Under Armour implemented SAP, they have grown to over seven hundred million dollars in annual revenue, entered new markets including footwear and expanded globally. And they continue to realize the value of a SAP solution.

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Introduction to Value Selling for SME: Unit Summary

You should now be able to: „

Define value-based selling

„

Explain the SAP Value Selling for SME program

„

Outline a typical SME value selling engagement

© SAP 2009

After this unit, you should be able to: „ Define value-based selling „ Explain the SAP Value Selling for SME program and „ Outline a typical SME value selling engagement.

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