sputnik-3 the economics of selling
TRANSCRIPT
© SPUTNIK-3 Customer Centric Systems Confidential
The Economics of SellingComplex Solutions
© SPUTNIK-3 Customer Centric Systems Confidential
The Economics of Selling Complex Solutions
Presented by Paul MulderSputnik-3: [email protected]
© SPUTNIK-3 Customer Centric Systems Confidential
Agenda
o What is required to sell successfully?
o The process
o Unpacking the customer business
o Target initiatives
o Crafting your solution
o Working out the Cost vs. Benefits
o Identifying the risks
o What’s in it for the customer
o Deliver the business case
© SPUTNIK-3 Customer Centric Systems Confidential
© SPUTNIK-3 Customer Centric Systems Confidential
Selling the Business Case“A business case captures the reasoning for
initiating a project or task. It is often presented in a well-structured written document, but may also
sometimes come in the form of a short verbal argument or presentation. The logic of the
business case is that, whenever resources such as money or effort are consumed, they should be
in support of a specific business need.”
© SPUTNIK-3 Customer Centric Systems Confidential
© SPUTNIK-3 Customer Centric Systems Confidential
Business Insight and
Stakelholders
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Model the Cause & Effect• Understand the root cause• How do we achieve the desired benefits?• What activities must change?
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Map the Benefits• Quantify each benefit e.g.
• Business benefits (top-line)• Operational benefits (bottom-line)
• Both tangible and intangible• Both unquantifiable and quantifiable• Monetarise the benefits• Map your Unique Business Value statements to
benefits
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Cost Estimates• Operating costs• Future cost implications
• Changes in technology• New best practice• Hidden costs
• Cash flow projection• Cost of not competing• Assign value to unrealised benefits
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Assess the Risks• Categorise
• Business, functional, cost & financial measures
• Weight risk factors• Magnitude of loss in currency• Overall threat = Weight x Magnitude
Risk DefinitionA probability or threat of damage, injury, liability, loss, or
any other negative occurrence that is caused by external or
internal vulnerabilities, and that may be avoided through
preemptive action.
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Calculate Shareholder Value• Time value of money (NPV)• Internal Rate of Return• Return on Investment• Payback Period• Economic value add• Earnings per share
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Resources
Web: www.sputnik-3.co.za
Email: [email protected]
TEL: +27 12 661 2142
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