485497 sales transformation overview v5

8/11/2019 485497 Sales Transformation Overview v5

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Copyright 2009 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Sales Transformation OverviewMarch 2010


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2Copyright 2009 Accenture All Rights Reserved.

Agenda

Performance Challenges

The Good News

Our Solution:How Accenture helps to transform Sales

Why Accenture

Our Credentials:Where we have done this before


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* Source: 2009 CSO Insights report

Increasing revenue and sales effectiveness are top-of-mind issues for senior salesexecutives.


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Trends in Globalisation 1970-2000*

0

10

20

30

40

50

60

70

80

90

1970-75 1976-80 1981-85 1986-90 1991-95 1996-2000

Numberofcountries

High Globalisation

High Globalization is driven by social,

political and economic integration.

The USA is the most highly globalizedcountry in the world.

Partner Preferences by Country

Globalization compels executives tofocus also on expanding the channelmix.

Vendor Partners

SW Vendor (Direct) vs. Partners

61%s

28%

8%

9%

5%

4%

6%

39%

0%

20%

40%

60%

Sales Agent

HW Provider

VAR/SI/ISV

Direct Reseller

SI/ Consultant

ISV

39%

24%17%

5%

11%

12%

6%

9%

3%

3%21%

5%

5%

11% 1%

2%

5%

2% 7%

5%

7%

5%8%

32%

0%

20%

40%

60%


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The opportunity and economics associated with penetrating the small and mediumbusiness segments also present new selling challenges.

151

117

71

339

2006

168

126

81

375

2008

Enterprise

(>1000employees)

Medium(100-999)

Small (0-99)

+5%+6%

2008

98

119

78

2006

111

132

86

329295

US IT Spending(USD B)

Western EuropeIT Spending (USD B)

SMB43%

Enterprise

49%

Consumer

8%

SMB49%

Enterprise

44%

Consumer

7%

TransactionCom

plexity

Low

Cost of SalesHigh

20-28%

12-18%

2-8%


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While increasing product/solution complexity and the need for value-oriented sellingplace further demands on skills and effort prioritization.

23% of organizations said the

number of products / services theyoffered more than doubled in the lastfive years.


demands on building new skills in salesare increasing significantly.


complexity of their product and solutionbundles is increasing.

ProductBusinessMargins

% GrossMargin

Time

10%

20%

30%

40%

50%

60%

Service Focused

Service

BusinessMargins

Product Focused Solution Focused

TotalMargin

Servicemarginsbecome non-dilutive tooverallearnings


7/257Copyright 2009 Accenture All Rights Reserved.


The number of sales reps meeting quota declined to a mere 58.8%. Percentageof overall revenue plan attainment is also dropping in step with the reduction insales people making or exceeding their quota.

Under Quota

41.2%

Meeting orExceeding Quota

58.8%

Percentage of Reps Making Quota

50

60

70

80

90

2008 Plan

Attainment

2007 Plan

Attainment

Percentage of 2008 Revenue Target Achieved

85.9%88.2%




Time required to close deals continue to increase year to year.

Sell cycles taking 7+ months toclose has increased from 19.8% in2003 to 27.3% in 2009

..but selling cycle is lower forcompanies with more structuredsales processes.


Sales Process asrelated to Sell

Cycle Length

Level 1Random

Process

Level 2Informal

Process

Level 3Formal

Process

< 3 Months 36% 41% 42%

4-6 Months 28% 31% 32%

> 7 Months 34% 27% 24%

4-6 Months

31.2%1-3 Months

29.7%

1 Year6.3%

10-12Months

6.7%

7-9 Months

14.3%

27.3%

Average Sales Cycle Length




Having a robust/customized sales approach and methodology is critical foroptimizing ROI but this is not easily attainable.


40% of CSO think they still

need to improve sales process to

align with customers buyingprocess

46% of CSO are unable to

adapt sales process to marketchanges

89% of CSO has seen thepositive impact of adopting salesmethodology

but

0

10

20

30

40

50

NeedsImprovement

ExceedsExpectation

MeetsExpectations

Dont Know

or N/A

Understand Customers Buying Process

46.5%

40.6%

11.9%

1.1%




Changes in recent years are creating significant challenges to drive strategicsales growth.

Capture Emerging

and New Markets

Expand growth(margin & revenue)of existing largecustomer

Sell more complex

services &solutions, notproducts

Need for hybridroutes-to-market

Sales Strategy and Channel Management

Limited capacity to scale at speed to penetrate new

markets and segments Lack the economics appropriate for new markets and

segments

Sales Talent

Lack the skills and competencies to drive complexproduct and services sales

Ability to align sales and channel resource investmentsto maximize ROI is becoming challenging in a multi-channel environment

Sales Operations

Sales approach and processes are inappropriate fornew complex product and multi-channel environment

Lack of information to effectively manage executionand operations management is causing significantineffectiveness in driving growth

Limited ability todrive growth from

current market andcustomers

Decreasing profitmargins

Inability to scale

channels to drivenew growth areas

Increase focus onexpense to revenue

Strategic Focus CSO Challenges Market Dynamics



Agenda


The Good News


Why Accenture




The Good News

There is always big money in transforming sales in an organisation.

We are focused on this:

Increasing Revenue: Increase Market Share Improve Customer Loyalty/Satisfaction Improve Margins Increase Channel Sales Effectiveness

Improving Productivity: Increase Sales Effectiveness Reduce Sell Cycle Time Improve Margins Improve Communications Reduce Administrative Burden Improve Team Selling

We dont do this well: Sales Process Sales Productivity Account Planning Strategic Acct Program Customer Analytics

Sales Tools Cross FunctionalCollaboration

Talent Management

Our top 100 clients represent a significant marketopportunity to address these concerns:

B2B $1,364,110

B2C $1,139,196

B2B2C $949,227

Total $3,452,532

B2B $87,684

B2C $79,508

B2B2C $58,747

Total $225,939

Revenue ($M) SG&A ($M) Sales Expense ($M)

Cisco Systems

Doubled number of large deals in one quarter.

BT

Achieved a 400% increase in learningproductivity.

Realized a 30% increase in number ofcustomers who purchased a product orservice as a result of a conversation with atrained advisor.

Total value of all rental contracts increased by220% after completion of performance

simulation course.AMGEN

Went from 4th to 1st in customer quality ofsales and servicealso doubled number ofcustomer interactions from the previous year.

Sales Transformation has provenresults High Performance Delivered!

B2B $174,774

B2C $133,239

B2B2C $139,944

Total $447,957



Agenda


The Good News


Why Accenture

Our Credentials: Where we have done this before



Our SolutionSales Transformation

Accentures Sales Transformation help sales executives improve sales performance byrealigning strategic resources, harnessing sales talent and optimizing operatingcapabilities.

SalesOperationsOptimization

Sales Talent

Management

Sales Strategy &ChannelManagement

Differentiate, address competitive threats and maximize profitability

Deliver World Class Sales Operations and Evaluate AlternativeSourcing Strategies

Accelerate desired Sales Competencies, Behaviors and Motivation

Sales Transformation



Our SolutionSales Transformation Offerings

Sales StrategyA comprehensive approach to differentiate, address competitive threats and maximize profitability. Theoffering leverages qualitative and quantitative assessment of value and impact of capabilities on businessobjectives to serve as a foundation for investment decisions and implementation staging decisions.

Leverage science to sellingto identify pockets ofgrowth opportunities through customer and channelsegmentation analytics(i.e. segments, industries,geographies and product/solution mix)

Align theroutes-to-marketto opportunity segmentsto optimize expense to revenue

Building the organization strategyand operating model

to effectively target the growth opportunities Prioritize the high value process, technologyand

peoplecapabilities required to achieve the businessobjective.

Sales Benchmarking Cost-to-Serve analysis

New Markets penetration

Customer Segmentation

SMB Business Model

Sales capabilitiesalignment roadmap

Key Objectives Example Programs


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Sales Multichannel ManagementA systematic approach to strategize, design and implement customer-focused initiatives across multiplechannels, through integrated data, coordinated processes and automation.

Optimize growth rateswhen penetrating new markets,geographies or customer segments, including options forrapid deploymentthrough outsourced services especiallyin emerging markets like China and India

Leverage scientific approachesto maximize resourcesand effectivenessacross all channels to optimize ROI

Balance cost-to-sellwith the average deal sizeand with

Customer Lifetime Value

Establish E2E capability, operating model assessmentand prioritization, technology enabled process andsolution architecture to enable Route-To-Market at speed

Integrated CustomerExperience andMultichannel Strategydevelopment

From Volume to Value

based programs

Optimization plan fordirect and indirectchannels

End-to-end Multichannelcapability roadmap todrive customer loyalty,growth and align costs



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High Performance Sales WorkforceDrives business results by developing a high performance sales organization which migrate top performersattributes to the core interactions between sales reps and customer. The offering provides comprehensivestudy on top sales performers time/behavior, competencies and personality, as well as provideeffective training and new hire profiling

High Performance SalesForce Analytics and Roadmap

Sales Academy

Targeted Sales ForceRecruitment

Performance Management

Strategic and segment-basedsales force organizationalignment

Shift performance curve and transfer high performanceabilities to the core through:

Learning Solutionsdevelop the right skills to support targetbehaviors

Knowledge Management Solutionsapply the right data,information and knowledge to optimize productivity

Performance Management Solutionsdrive target behaviors by

applying the right metrics and performance feedback Motivation Solutionsmotivate target behaviors through

incentive, commission, compensation and non-monetary rewardsystems

Organization DesignSolutionsget the right work assigned tothe right people through territory alignments, sales supportcenters of excellence and otherinnovative organization designs



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Incentive Compensation Design and EnablementHolisticincentive compensation management, leveraging next-generation technology solutionstorapidly improve sales performanceand accelerate time to market.

Sales Incentive Diagnostic

Incentive Compensationstrategy as motivation fortargeted behavior

ICM process alignment

including incentive plandesign, administration,processing and reporting

ICM tools and technologiesassessment/adoption toaccelerate desired benefits

Drivedesired sales behavior to reach corporate objectives

Rapid responseto changing market conditions and new product

offerings

Proactive supportfor complex, multichannel distribution models

Higher accuracyin commission calculation and minimal disputes/

overpayments



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Sales Process DesignA differentiatedand effective lead to compensation process architecture to achieve high performanceselling in a complex sales environment.

Sales Diagnostic/Benchmark

Sales Process analysis,design and implementation(leveraging Accenture

ABPR asset)

From product centered to

relationship centeredselling

Increasesales force productivity(e.g. close more sales,increase coverage)

Improve performance of sales function (e.g. forecasting, leadmanagement) by incorporating leading practices

Reduce the cost of salesby identifying and prioritizing theareas for cost reduction

Implement a new sales channeland expand into a newgeography

Renew sales strategyand operating model



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Sales Operations OptimizationUnlocks the full potential of a sales force by focusing on maximizing customer facing timeandintelligent reduction of supporting operating cost.

Sales Operationsorganization Baseline

Operating model for newmarket/ geography

Sales Operations BPODiagnostics

BPO Operating Model

Enable top-line and bottom-line improvement by: Mitigating the costly operational mistakesassociated with

deploying improved sales efforts

Optimizing sales operationsthrough process, system re-engineering and centralization

Driving lower acquisition oroperational costsby outsourcing



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Sales EnablementProvides solution architectureand implementation servicesfor leading sales solutions.

Software assessmentand selection

Sales Automation

Emerging technology/trend (e.g. handhelddevices, socialnetworking) and impacts

Collaboration tools

SaaS Solutions

Accenture SalesPerformance Workbench

Solution Architecture servicesto support high performancesales execution

Implementation servicesfor leading on-premiseand SaaSsales solutions

UniqueCommercial Sales Solutions to drive increased levelsof sales productivityand growth

Ability to deploy and effective CRM solution with higher useradoption



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Agenda


The Good News

Our Solution: How Accenture helps to transform Sales

Why Accenture

Our Credentials: Where we have done this before


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Why Accenture

Accenture ranked no.1 in the Global Outsourcing 100.

Rated as a leader in the 2008 CRM Magazine Awards

CRM Magazine named Accenture the CRM Consulting market leader,for four consecutive years, in recognition of superior performance:

Accentures big draw is the breadth and depth of its expertise- CRM Magazine, 2004

[Accenture] continues to lead with its strong strategy capabilities and considerablesystems integration resources. In addition, the company's industry and geographicreach continues to be a strong suit they do everything and do it very well.

CRM Magazine, 2005

CRMmagazine noted Accentures strong ability to execute, financial growth, andbreadth of services offered and cited praise from industry analysts about its global

scale, reach and industry-specific expertise. - CRM Magazine, 2006

[Accenture] driven by global scale and reach, and industry-specific expertise is almostunrivaled in the industry. The companys services offered and ability to execute areregarded as highest among the leaders - CRM Magazine, 2007
http://www.outsourcingprofessional.org/content/23/152/1197/http://www.destinationcrm.com/Articles/Editorial/Magazine-Features/The-2008-CRM-Market-Awards-http://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=47067http://www.destinationcrm.com/articles/default.asp?ArticleID=5466http://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=47829http://www.destinationcrm.com/Articles/CRM-News/Daily-News/CRM-Magazine-Announces-the-Winners-of-the-2007-CRM-Market-Awards-41887.aspxhttp://www.destinationcrm.com/Issue/837-September-2007.htmhttp://www.destinationcrm.com/Issue/826-October-2006.htmhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/CRM-Magazine-Announces-the-Winners-of-the-2007-CRM-Market-Awards-41887.aspxhttp://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=47829http://www.destinationcrm.com/articles/default.asp?ArticleID=5466http://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=47067http://www.destinationcrm.com/Articles/Editorial/Magazine-Features/The-2008-CRM-Market-Awards-http://www.outsourcingprofessional.org/content/23/152/1197/


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Agenda


The Good News

Our Solution: How Accenture helps to transform Sales

Why Accenture



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25Copyright 2009 Accenture All Rights Reserved

Our Credentials

Insurance

Banking &Capital Markets

Telecom-

munications

Media

High Tech

Products /Retail

Life Sciences
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