avaya case analysis

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Avaya Prepared and presented by: Abhimanyu Sharma (1) Chirag Shah (9) Puravansh Sharma (24) Vivek Gupta (32)

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Analysis of Avaya Case ( Harvard Business School)

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Page 1: Avaya Case Analysis

AvayaPrepared and presented by:

Abhimanyu Sharma (1)Chirag Shah (9)Puravansh Sharma (24)Vivek Gupta (32)

Page 2: Avaya Case Analysis
Page 3: Avaya Case Analysis

Communication Solution and services

Rapid shift to Internet based technologies(IP telephony , video conferencing etc)

Moving from Product Focus to Solution provider(Unified Communication , CEBP)

Presence of both global and regional players. Regional players had stronghold in some local markets.

Absence of one stop solution provider globally- Most players specialized a particular domain.

Cisco – Routers , Avaya – IP Tele etc , Nortel – Enterprise Soln.

Industry Company 2 Business Units:

GCS AGS

Provided 4 GCS IP Telephony Unified Communication Contact Centers CEBP

Leaders in 3 of the 4 GCS.

AGS contracts generally flowed from clients using Avaya Products.

Page 4: Avaya Case Analysis

Ambiguous relationship between Sales and Marketing Departments resulting in lost sales with each department blaming the other one.

Problem Identified

Objective Identify the reason of friction between sales and marketing

departments and suggest steps to align the objectives of the two departments.

Page 5: Avaya Case Analysis

Marketing & SalesNo Man’s Land

Page 6: Avaya Case Analysis

Demand Generation

Silos – What they say:◦ Sales – Quality Leads are less ◦ Marketing – Sales not able to convert.

Definition of “quality leads” is ambiguous. (varying Time Periods). Each department celebrates at convenience.

Incentives are differently aligned. ◦ Marketing – Brand Building , Lead generation ( Least bothered about

quality)◦ Sales – Sales will try to maintain high conversion ratio thereby

deliberately rejecting leads.◦ Leads Conversion Ratio = ( Sales Generated from Leads / Total

Leads )

“Silence” between high volume marketing campaign. Sales might not be able to handle.

Page 7: Avaya Case Analysis

No Extra Incentive for New customer acquisition. Around 75% lead by sales team and 75% business from old customer ( coincidence!!)

Sales Team might actually be not giving due attention to leads from Marketing and might choose to pursue on their own.

Spillover of Work which was to be done by marketing to Sales.

Page 8: Avaya Case Analysis

Metrics

Marketing

Global OperationsNo. of solicits and response for various

campaigns

Regional Marketing Brand Awareness and Consideration. Revenues and No. of

leads generated.

Global Sales Enablement- Sales Collaterals ,Intelligence and Usage of

EBCs

Page 9: Avaya Case Analysis

Impressions

Solicits

Responders

Leads Closed Sales

Pre-Contract

Proposal

Leads

Qualified Leads

Funnels

Marketing Sales

Page 10: Avaya Case Analysis

Conflict of InterestMarketing Sales

Input of Funnel Impressions Leads

Output of Funnel Leads Closed Sales

Performance No. of Lead Generated

Conversion of Leads into Closed Sales and

meeting revenue targets

Customer Focus Mostly on acquiring new Customers or

identifying new needs.

Mostly on Existing Customers

Definition of Lead Potential customer of offered

products/services. May or may not buy

Actively looking for products/solutions and most likely to buy in near future

Page 11: Avaya Case Analysis

Implications of separate Funnels

• In order to reach the number , poor quality leads provided by marketing.

• In midst of “leads” onslaught , genuine leads could be overlooked by Sales.

• Blame Games. Both departments accusing each other.

• Partial ownership. Marketing not concerned with sales closure and sales not concerned with improving lead quality from marketing.

Page 12: Avaya Case Analysis

Objectives: Marketing Vs. Sales

Marketing Sales Create touch points with

customers

Showcase Avaya Products

Create top of mind recall

Generate Leads based on Need Analysis of potential customers

Manage Marketing Channels like: EBCs, Events etc.

Convert leads provided by Marketing

Generate new leads from new or existing customers

Identification of specific client requirements & customizations

Renewal of existing contracts

Page 13: Avaya Case Analysis

Joint planning: Reach agreed upon targets for Leads and Revenue

Plan in advance and keep the pipeline filled

Quarterly Monitoring of progress

Marketing Managers to participate in sales calls

Implementation Plan

Page 14: Avaya Case Analysis

Campaigns to be run throughout the year

Ownership of accounts(necessary for first time accounts)

Upward and Downward integration of metrics.◦ Conversion of Qualified Leads

Page 15: Avaya Case Analysis

Dividing Marketing – Upstream and Downstream

◦ Downstream will engage with sales team and take ownership till closure of the deal.

◦ Upstream – Engage in consumer sensing and product development.

Upstream SalesDownstream

Page 16: Avaya Case Analysis

Sales Manager vs Marketing Manager

(Conversion Ratio vs No of Leads Accepted) Sales Manager – Leads were bad. I will push my team to

focus on their own efforts to achieve the quota. Marketing Manager – Sales team did not have the capability

to follow up the leads I provide. Will reach out to higher authorities. Both departments will blame each other.

Possibility of Conflict

Increased responsibility of Marketing. Sales team might not welcome the interference as they felt

that they “owned” several processes in which Marketing dept could not add any value.

Page 17: Avaya Case Analysis

Observations:

Only 20% of quota of sales is from leads generated by Marketing. Rest 80% is by sales.

Therefore, Sales might not be giving due attention to leads from Marketing and choose to pursue leads on their own.

Developing New Customers is tougher for Sales Team. No extra incentive for the same. Translates to lack of interest.

Marketing dept does not have control after Marketing to Sales lead transfer process.

Possibility of Gaming the system by sales team. (Skewed Compensation System)

Responsibility of smooth transition process– downstream marketing person.

Page 18: Avaya Case Analysis

Sales Marketing Integration in Avaya

Page 19: Avaya Case Analysis

Mechanisms

Structure Decentralization(Common Head) , CFTs , Integrator Employees ( Downstream guys )

Process / System

Communication, Job Rotation Integrated Goals and Incentive systems.

Culture People ( Functional Identity)

Moderators

Environment Uncertainty

Customers Bargaining Power/Concentration

Competitors Intense Competition

Industry NPDs