Download - Value Based Selling™ business model - Intro
Company
LOGO $elling-on-Value™
A Powerful Business Model
2
Executive Presentation
Executive Presentation
Preliminary BusinessCase Review
Preliminary BusinessCase Review
Business CaseDevelopment
Business CaseDevelopment
Validation Validation
Value Discovery - Collaborative Value Assessment
Executive Alignment
Executive Alignment
Value DiscoveryWorkshop
Value DiscoveryWorkshop
Transformation Roadmap
Transformation Roadmap
DeliverablesExecutive alignment:• Confirm Scope for solution & business unit•Collaborate on approach vision and objectives. • Identify focus areas where RP can help unlock business value•Collaborate on Interview Schedule•Develop benefits hypotheses
•Develop Interview Guide•Develop Engagement Plan•Conduct Project Kick-Off workshop •Conduct interviews to:
•Discover company strategies and business pain. •identify value opportunities and risk/constraints•Collect Quantitative Data
•Identify & prioritize Key Benefit Areas & KPIs•Develop high level Project Cost Estimates•Develop Solution Roadmap options/ Deployment Plan•Develop Benefit Models
•Forecast benefits based on RP customer experiences and best practices
•Validate quantitative and operational findings with Customer Project Manager & Controller
•Conduct Business case workshops
•Develop Proposal for RP License & Services
•Review business case with executive sponsor
•Company strategies, business pain & solution
•Review benefit and cost projections.
•Revise Presentation based on intermediate Feedback
•Present business case to Executive Steering Committee.
•Revise Presentation based on final Feedback
•Define next steps.
Deliverables
***Business case includes value proposition and differentiation – why choose RP?
3
Interview Guide – 5 types of Questionnaires
•Strategic• F
inan
cial
•Information Technology
•Operations
•Key Performance
Indicators
4
10 Universal Business Case Value Levers – Business Applications
• SOX• USDA• FASB
• Financial Reporting Accuracy
• Penalties• Disruption to
Business• Errors
• Market Share• Speed to
Market• Better
Decisions• Employee
satisfaction
Intangibles
Strategic & Competitive Advantage
RiskMitigation
Regulatory Compliance
CreateShareholder
& Customer
Value
Increase Net
OperatingProfits
ImproveCapital
Utilization
DecreaseOperatingExpenses
IncreaseGrossProfit
ReduceCost ofCapital
ImproveCapital
Deployment
IncreaseRevenues
DecreaseCOGS
ReduceSellingCosts
ReduceDistribution
Costs
ReduceAdminCosts
ReduceR&D
Costs
ReduceWorkingCapital
ReduceFixedCosts
Increase Fill Rate & On Time Delivery Increase Volume & Price Optimization Improve product mix (align service & cost to serve)
Reduce Material Spend Improve asset productivity and efficiency Decrease Direct Labor Cost
Increase Customer Service/Sales Productivity
Reduce Warehousing Labor Reduce Transportation Cost SCM Network Optimization
Reduce time to market/commercialization process Reduce R&D Labor
Reduce inventory Optimize AR (DSO) and AP
Improve asset & Equipment utilization and rationalization
Improve investment planning and deployment
Reduce Purchasing Labor Costs Reduce IT Labor costs Reduce IT Fees (Maint. &Support, Data Center etc.) Improve human resources effectiveness
Property Plant &
Equipment
Tangibles
Inventory& DSO
Fees:IT/Call Center
Transpor-tation
ProductivitySpendRevenueGrowth
5
What does Kaizen Mean?
• Japanese term – “Kai” means “Change”– “Zen” means “for the better”
• Kaizen: Continuous Improvement
• Concept– Small incremental improvements– Improvements add up over time– What’s get measured gets done
• KPI linked to Action!!!
Kaizen does not necessarily mean an event or “Blitz”
6
RP Value PropositionBuild a Competitive Advantage, turning RP ’s customers
into a World Class Company
FOUR REASONS WHY RP IS THE
CHOICE OF REFERENCE
1. Financial Benefits
4. Cost Benefits
2. Strategic Benefits
3. Risk Mitigation Benefits
• 2.5 years cumulative benefit of $195MM
• Quick payback = 1.9 years
• $83MM inventory reduction
• $68MM yearly benefit (starting 2003)
• Internal rate of return of 110%
• Leverage existing RP investment (core functionality and internal skills)
• 51% reduction in legacy systems and 59% reduction of interfaces
• Enable industry specific and scalable solution(support <__> growth goals at low cost)
• Future needs can be met (FLM, Merger & Acquisitions processes)
• Standardization of business processes and data integrity. Speeds up synergies throughout the enterprise
• Better decision making based on real-time, accurate information
• Solution scalablity
• RP meets global requirements
• Proven solution/dependable partner
• RP dedication to High Tech industry
• RP /<__> Strategic partnership
• RP management and commitment
• Facilitates mergers and acquisitions
• <__> existing RP footprint