Module 1: Introduction “Selling Complex Services: BPO & ITO” Selling Complex Services BPO & ITO Introduction Market Trends and Business Demands Business demands now require clients and partners to continually align the IT Infrastructure with the current and future needs of their business. Today’s business demands often burdens businesses with: More Effective Delivery of Services Improved Overall Business Performance Cost Predictability and Efficiencies Improved Customer Loyalty Increased Market Share Improved Shareholder Value This all-encompassing requirement demands that businesses effectively manage these processes and the costs associated with them. All of these demands are forcing businesses to rethink their plans as to whether or not to redirect IT staffs to the tactical and management tasks (adding requirements in the area of the skills development and training) or keep IT personnel focused on developing the requirements of the ever changing business. An increasing alternative is the choice of outsourcing those tasks associated with implementation and on-going management to a leading provider. Barriers Outsourcing Reasons Strategic •Improve company focus Financial •Reduce & Control operating costs •Make Capital Funds Available •Cash Infusion Resource •Gain access to world class capabilities •Free up internal resources •Resources not available internally Performance •Accelerate re-engineering benefits •Function difficult to manage Risk •Share risks DW101100-000 (7/02) Unisys University Sales School 1–1 Business Outcomes Value OPTIMIZATION Exploit knowledge and human capital to maximize market share Enterprise Environment CREATION Connect knowledge and relationships in virtual markets to maximize return on equity Delivery Shared Environment MANAGEMENT ACCESS Deploy and apply resources and processes to maximize return on assets Procure functionality to maximize operating income IT Efficiency Senior Executive Involvement Senior executives are involved early in the business cycle as market trends emerge and they realize that their current state is less effective at handling the changes that surround them. As Target Account Selling (TAS) discussed, the people in the “Inner Circle” identifies the change and what the desired outcome will be and directs the activity to make the change happen to those in the “Political Structure”. The traditional Sales Cycle engages the change at a later stage than the Business Cycle. In “Selling Complex Services” we will discuss the trends to monitor and the questions that should be used to engage senior client executives at an early stage. Business Cycle Executive Involvement Sales Cycle Vendor Jail RFP Time Introduction Selling Complex Services BPO & ITO Key BPO Influencers Blended e-Learning Approach to “Selling Complex Services” The full blended approach to successfully learning and deploying complex services takes more than a traditional classroom instruction. The baseline in which one must have is greater than what can be covered in a traditional classroom setting. It is also critical to have follow-up, mentoring and coaching to properly apply the concepts, methodology and approaches gained. 1–2 Unisys University Sales School DW101100-000 (7/02) Selling Complex Services BPO & ITO Introduction GO Sales Solution WEB Based, Self-Directed Outsourcing Presentations Instructor Led Classroom Selling Complex Services Selling Complex Services WEB Based, SelfDirected GO Executive Led Coaching / Mentoring / Post work PASS WEB Cast Archives (Placeware ) Online Assessment & Tests DW101100-000 (7/02) Instructor Led Training with Computer Simulation Unisys University Sales School GO & Global Sales WEB Site Links, Manuals & Guides & Simulation Archived portfolio WEB Casts Panel of GO Sr. Mgmt reviewing opportunity success 1–3 Introduction Selling Complex Services BPO & ITO Life Cycle of Business Change Before recommending a solution within the “Sales Cycle” it is important to first step back and analyze what brings a client to the point of changing what they are currently doing. Determining what the market trends or business drivers are that will lead a client to change is the beginning of the “Life Cycle of Business Change”. Many times the client is engaged and aware of the conditions and other times we can create the “Compelling Event” which then creates value for the client’s organization and business position. External Drivers: Financial: Profit, Budgets, Analyst Image: Wall Street, Customers, Competitive Strategic: Trends, Directions, Future Pressures: Market Industry, Technology, Servicing, Media goals objectives Conceptualize desired performance level Assessment Requirements gap current: People Processes Infrastructure Resources solution phase: Design LOI Due Diligence current performance level SOW Contract evaluate & adjust Implement implement and &Manage change Regardless of the business they’re in, organizations face business drivers that will lead to setting new performance goals -- and that will lead to change. Any organization’s capability to effect successful change is housed in four categories: their people, processes, infrastructure and resources. When the performance of these four elements is stagnant, an organization is only capable at performing at their current level. To be able to meet the new performance metrics they must make a change to one or more of those areas. 1–4 Unisys University Sales School DW101100-000 (7/02) Selling Complex Services BPO & ITO Introduction Many organizations fail to analyze the gap between this current state and desired state and jump into designing a solution. By addressing the gap and identifying what is required to close that gap, they can reduce the risk of the change not meeting the desired outcome. Unisys is uniquely positioned to guide the client not only in identifying the gap but resetting the desired goal at a level that they did not know was achievable. What Are Your Top 5 Benefits? Increase client’s loyalty to buy more from Unisys. Create greater value for your clients. Increase client’s perceptions of you as a “Trusted Advisor”. Increase knowledge of client’s business and the issues driving their decisions. 5. Increase your “Cross Selling” capability and thereby increase your total sales ($$$). 1. 2. 3. 4. The Role of Trusted Advisor “Building a framework for a trust-based relationship is the most powerful way of ensuring the long-term success of a strategically important outsourcing deal.” “Trust and Control: The Key to Optimal Outsourcing Relationships” Gartner, April, 2003 Roger Cox, Ian Marriott Strategic Analysis Report DW101100-000 (7/02) Unisys University Sales School 1–5 Introduction Selling Complex Services BPO & ITO Trust: Three Key Learnings: Most major deal failures are due to a breakdown in the overall relationship between a business and its outsourcing provider. Successful outsourcing relies on a range of contacts and interfaces between the service recipient and service provider that go beyond the day-to-day delivery of services specified in contract schedules. outsourcing deals are less likely to be based on buying specified services, and more likely based on buying a relationship Introductions 1–6 Name Market / Accounts Services Sales Experience Expectations Unisys University Sales School DW101100-000 (7/02)