2

Digital Transformation - Obstacles and Challenges*

*Source: Saugatuck Technology, “Digital Business” Survey(Nov. 2014, N=102 “C-level” IT / Bus. / Finance Leaders)

Your job is this

Business Transformation

Operational Efficiency

CustomerCollaborationCreativityCo-creationChangeCulture Delivery

© SalesChannel Europe, 2014

“Fire your sales force”

The old Golden Rule in Sales was:

Find out what your customers

want, and give it to them.

Give your customers the ability to

do what they can’t currently do

but would want to if they only

knew it was possible.

The new Golden Rule in Sales is:

Capture their imaginations

“Reasons lead to conclusions.Emotions lead to actions.”

- Saatchi & Saatchi

10

DecisionDrivers

Horizon 10 - 6 months

Horizon 26 - 12 months

Horizon 312 - 36 months

Thinking at 3 Time Horizons

Get it right

Get it wrong

- Geoffrey A. Moore

“Well, first off, realize you are in afight for your life. The new businessmodel is not a competitive threat, itis an existential threat.”

The status quo is not

a growth strategy

Disruptive Opportunity Matrix

ExtendWhiteSpace

Defend ExtendCurrent

New

Current New

Source: Create Marketplace Disruption by Adam Hartung, Pearson Education, Inc. 2009

Products

Customers

Strategic choices

DelusionalThinking

#1: Irrational complacency

#2: Catch the train

OLD THINKING

NEW TECHNOLOGY

FAIL

X

=

Think outside the box

Think outside the box

www.flickr.com/photos/12023825@N04/2898021822

Growth strategy

Overcoming change

Destination Thinking

You can’t teach an old dog new tricks

Rethinking the funnel

Rethinking the funnel

30

Selling above the funnel

Q1 Q2 Q3 Q4 Q1 • Prospection

• Qualifying

• Needs

• Proposal

• Negotiation

• Close

DemandCreation

DemandCapture

• Market identification

• Requirements analysis

• Demand creating

• Lead Generation and

Management

• Engagement

Growth Mindset1

Create a Compelling Value Proposition2

Differentiate or Die3

Marketing Today = Sales Tomorrow4

The Customer Adoption Cycle6

5 Digital Marketing: Demand Generation

Anticipate change

Business Agility

Adapting to change

Predictive Mindset

Adaptive Mindset

Fixed Mindset Growth Mindset

Intelligence is static Intelligence can be developed

Leads to a desire to look smart and therefore a tendency to:

Leads to a desire to learn and therefore a tendency to:

avoid challenges embrace challenges

give up easily due to obstacles persist despite obstacles

see effort as fruitless see effort as path to mastery

ignore useful feedback learn from criticism

be threatened by others’ success be inspired by others' success

Mindset Shift

*source: Carol S. Dweck, Ph.D

Growth Mindset

Resilient Thinking

Growth Mindset1

Create a Compelling Value Proposition2

Differentiate or Die3

Marketing Today = Sales Tomorrow4

The Customer Adoption Cycle6

5 Digital Marketing: Demand Generation

Value Proposition

What are the key business challenges

facing your target customers?

Focus on the problem

Target Decision Maker

Growth Mindset1

Create a Compelling Value Proposition2

Differentiate or Die3

Marketing Today = Sales Tomorrow4

The Customer Adoption Cycle6

5 Digital Marketing: Demand Generation

http://tabernaclefortoday.files.wordpress.com/2012/03/cart_before_the_horse.jpg

Cart before the horse

Build a better mouse trap

www.flickr.com/photos/clementlivolsi/4596430458

“If I had asked people whatthey wanted, they wouldhave said faster horses.”

- Henry Ford

1863 - 1947

3 levels of clarity

Basic Product/Service:• Technology• Price performance• Product quality

E2E Customer Experience:• People• Perceived value• High touch• Exceed customer expectations• Delight and astound customers

12 Support Services

3E2E

Customer Experience

Differentiation: 3 Levels of Perceived Value

BasicProduct/Service

Support Services:• Levels of support• Quality of service• Systems• Processes

Your Cloud Services

Price vs Value

Products ServicesExperienceCustomer

Growth Mindset1

Create a Compelling Value Proposition2

Differentiate or Die3

Marketing Today = Sales Tomorrow4

The Customer Adoption Cycle6

5 Digital Marketing: Demand Generation

The problem is that customers don’t buy

the way we sell

The Age of the Customer

Make people

want things20th century

Make things

people want21st century

Product

Place

Price

Promotion

4P's

Solution

Access

Value

Education

SAVE

Educate

Inspire

Create a sense of urgency

Growth Mindset1

Create a Compelling Value Proposition2

Differentiate or Die3

Marketing Today = Sales Tomorrow4

The Customer Adoption Cycle6

5 Digital Marketing: Demand Generation

Digital reality

Interruption Marketing: Targeting Audiences with messages through channels to drive transactions

The OLD World

Engagement Marketing: Engaging communitieswith shared purposethrough experiences to sustain relationships

The NEW World

Interruption Marketing

Engagement Marketing

Early Adopter Market Mainstream Market

DANGER - CHASM!

Accelerating Customer Adoption of Cloud Services

TIME

Create capacityto service demand

Technology Vendors Channel Partners

Build the buzz!!!!

Build sales channels

• Distributors• Retailers• Resellers• VARs• Service Providers• System Integrators• Consulting Partners

TechnologyInnovators

2%

Visionaries

14%

Pragmatists

34%

Conservatives

34%

Sceptics

16%

Create a tipping point

Influencer/Adopter Programs

Demand Generation

Influence Generation: Capture the hearts and minds of Tech savvy early adopters, opinion

leaders and influencers

Channel readiness & activation

GTM Strategy & Business Plan

PER

CEN

TAG

E O

F P

OP

ULA

TIO

N

AB

source: www.corporatevisions.com

Marketing Today = Sales Tomorrow

source: www.corporatevisions.com

1 32

Marketing Today = Sales Tomorrow

• Challenge them• Destabilise them• Challenge the status quo• Get them out of comfort zone• Take them to the negative

future• Sell your insights

• Provide evidence• Cost justify• Lead them through the

process• Take them to the beach• Sell your insights• Sell your experience

• Take them to the negative future

• Create a sense of urgency• Monetise the cost of delay• Take them to the beach• Guide them to take action• Take the order

Demand Generation 2.0

Sales Transformation

OLD NEWThe IT Buyer The Business Buyer

Selling into CapEx Budgets Selling into OpEx BudgetsTechnical Expertise Business Expertise

Geographic Sales Territories Vertical Industry TerritoriesSelling Features Selling Results

Fixed-Price Contracts Outcome-Based ContractsDemonstrating Features Business Process Discussions

Your Complexity and Underlying Architecture

Your Consumption Model and Service Capability

Maintenance Contracts "Apps Mindset"

Face2Face Sales Skills Social Media Knowledge

Source: Consumption Economics: The New Rules of Tech by J. B. Wood, Todd Hewlin and Thomas Lah, 2011

69

Selling Business Outcomes

• Increased revenues or profitability• Faster time to market• Decreased costs• Improved operational efficiency• Revitalizing the organization• Enhancing customer loyalty• Increased market share• Decreased employee turnover• Improved customer retention levels• Increased competitive differentiation• Faster response time• Decreased operational expenses

• Increased sales per customer• Improved asset utilization• Faster collections• Reduced cost of goods sold• Minimized risk• Additional revenue streams• Improved time-to-profitability• Increased billable hours• Reduced cycle time• Increased inventory turns• Faster sales cycles• Reduced direct labor costs

Growth Mindset1

Create a Compelling Value Proposition2

Differentiate or Die3

Marketing Today = Sales Tomorrow4

The Customer Adoption Cycle6

5 Digital Marketing: Demand Generation

Drivers of Adoption

“Customers are completing

57% of a buying cycle before

ever coming into contact with

a sales rep.”

- A CEB study of more than 1,400 customers

The Buying Decision Process

Adoption

Cycle Sales

Model

Transactional

Sales Model

Search

Find

Qualify

Try

Buy

Activate

Manage

Up-sell

Support

Refer

The Customer Adoption Cycle

1. Growth Mindset2. Compelling Value Proposition3. Differentiate or Die4. Marketing Today = Sales Tomorrow5. Digital Marketing: Demand Generation6. The Customer Adoption Cycle

Quick Review:

4Ps => S A V E

Differentiation: 3 Levels of Perceived Value

Align all Sales & Marketing actions

What is the business problem?

Competing to remain relevant to tomorrow’s customers

Integrated campaigns

Predictive -> Adaptive Mindset

77

• The client has changed• The buying process has changed• The Sales Cycle -> The Customer’s Journey• Market segmentation -> Buyer personas

Moving to the Cloud means Business Transformation

• Marketing -> Digital-> Social Media-> Social Influence -> Social Selling

• Demand Generation• User Value Proposition and Persona Messaging• Marketing Manger -> Community Manager• Internal Alignment• Execution• Sales Channel alignment• Multi-channel touchpoint experience • E2E Customer Experience

Rethink the Customer

Rethink Sales & Marketing

Rethink your Organisation

Business Transformation

Channel TransformationThe Cloud = Massive Change

Get it right

www.flickr.com/photos/horacio/3781750

David R Ednie

President & CEO

SalesChannel Europe

Ph: +33 676 60 09 25 (FRA)

Email: david@saleschannel-europe.com

Website: www.saleschannel-europe.com