Version 2.0
RWP, AA
06-13-03
Selling Complex Services: BPO and ITO
LAW’s Strategic Objectives for 2003
• Outsourcing: Continue double-digit growth in
BPO
• Infrastructure: Drive growth in design/build/
manage secure distributed infrastructure
• SI/Consulting: Continue margin improvement
• Server Technology: Expand market for ES7000
• Branding: Build market awareness of Unisys
• Ongoing: Maintain tight cost controls
Selling Complex Services: BPO and ITO
Course Objectives
• Define outsourcing from the market point of view and link the Unisys
definition of Information Technology and Business Process
Outsourcing (ITO/BPO)
• Identify the business drivers that lead to an outsourcing opportunity
• Identify the Business drivers of “C” level executives that lead to
business initiatives and expanded business opportunities.
• Identify the capabilities, strengths & weaknesses of an organization’s
ability to change
• Determine the current business performance, and the gap between
the current and desired state
• Identify the ITO and BPO services Unisys provides that are required
for the client to achieve their performance goals and objectives
• Create a executive level presentation that restates the value
Unisys provided to the client’s business
Selling Complex Services: BPO and ITO
Key Learnings
• You will learn about . . .
• The outsourcing opportunity that exists for
Unisys
• The size of, and scope of a typical outsourcing
sale
• The account control outsourcing provides
Selling Complex Services: BPO and ITO
Course Activities
• Guide a sales team through three
executive meetings
• Complete a TAS opportunity plan
• Identify the complex services a client
requires to meet their business objectives
• Build an outsourcing services strategy
for the client
• Build the sales approach for
that opportunity
Selling Complex Services: BPO and ITO
SCS BPO and ITO: Schedule
 Day 1 (8:30-5:00)
 Welcome & Module 1
 Module 2: Business Drivers
 Module 3: Current Environment
 Evening Reading Assignment,
Module 5: Filling the Gap
 Day 2 (8:30-5:00)
 Module 4: Mapping Out a Sourcing Strategy
 Module 5: Filling the Gap
 Prepare Analyst Questions (30 mins)
 Q&A with Industry Analyst (30 - 45 mins)
 Module 6: Selling the Solution
 Module 7: Value Tracking and Feedback
Selling Complex Services: BPO and ITO
Materials
• Participant’s Guide
• Case Study
• Simulation
• Companion Text:
Strategic Outsourcing:
Exploiting the Skills of Third Parties
by Ian Benn with Jill Pearcy
Selling Complex Services: BPO and ITO
Housekeeping
• Phones & Pagers
• Start Times
• Breakout Rooms
• Breaks & Lunches
• Smoking Area/Rest Rooms
• Issues Parking Lot
Selling Complex Services: BPO and ITO
Selling Complex Services: BPO and ITO
Module 1: Introduction
1) Charles Gerhards, Deputy Secretary and CIO
Governor’s Office of Administration
2) Jim Tinney, Director of the Commonwealth Technology Center
Selling Complex Services: BPO and ITO
Market Trends & Business Demands
Driving Business Strategies
Through Sourcing Strategies:
• More Effective Delivery of Services
• Improved Overall Business
Performance
• Cost Predictability and Efficiencies
• Improved Customer Loyalty
• Increased Market Share
• Improved Shareholder Value
Selling Complex Services: BPO and ITO
Barriers to Success
Barriers
Outsourcing Reasons
Strategic
• Improve company focus
Financial
• Reduce & Control operating costs
• Make Capital Funds Available
• Cash Infusion
Resource
Performance
Risk
FIVE
CATEGORIES
• Gain access to world class capabilities
• Free up internal resources
• Resources not available internally
• Accelerate re-engineering benefits
• Function difficult to manage
• Share risks
Selling Complex Services: BPO and ITO
Sourcing Strategies Meeting
Business Demands
Selling Complex Services: BPO and ITO
Senior Executive Involvement
Business Cycle
Executive
Involvement
Sales Cycle
Vendor Jail
RFP
Time
Selling Complex Services: BPO and ITO
“Vendor Jail”
Sales Cycle
Third Parties
Competitors
RFP
Selling Complex Services: BPO and ITO
Know Who the Key BPO Influencers Are
Initial Decision
to Outsource
Vendor Selection
Final Sign-Off
CFO
33%
14%
27%
CEO
30%
5%
29%
Vice President
of Business Unit
14%
16%
8%
Chief-Level
Officer/COO
12%
8%
10%
Function Head
9%
29%
10%
CIO
2%
3%
5%
Cross-Functional
Procurement Team
0%
14%
8%
Procurement
0%
11%
3%
125 respondents
Selling Complex Services: BPO and ITO
Source: Gartner
Blended e-Learning GO Sales Solution
WEB Based, Self-Directed
Outsourcing
Presentations
WEB Cast
Archives
(Placeware)
Instructor
Led
Classroom
Selling
Complex
Services
Selling
Complex
Services
Instructor Led
Training with
Computer
Simulation
Online
Assessment
& Tests
PASS
WEB
Based,
SelfDirected
GO
Executive
Led
Coaching /
Mentoring /
Post work
GO & Global
Sales WEB
Site Links,
Manuals &
Guides &
Simulation
Archived
portfolio WEB
Casts
Selling Complex Services: BPO and ITO
Panel of GO Sr.
Mgmt reviewing
opportunity
success
Life Cycle of Business Change
solution
phase:
goals
objectives
desired
desired
performance
performance
level
level
Conceptualize
UNDER
CONSTRUCTION
Requirements
gap
Current:
People
Processes
Infrastructure
Resources
Assessment
Design
LOI
Due Diligence
current
performance
level
SOW
Contract
evaluate
& adjust
Implement
implement
and Manage
& change
Selling Complex Services: BPO and ITO
What Are Your Top 5 Benefits?
1. Increase client’s loyalty to buy more
from Unisys.
2. Create greater value for your clients.
3. Increase client’s perceptions of you as a
“Trusted Advisor”.
4. Increase knowledge of customers
business and the issues driving their
decisions.
5. Increase your “Cross Selling” capability
and thereby increase your total sales.
Selling Complex Services: BPO and ITO
The Trusted Advisor Role
“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
Selling Complex Services: BPO and ITO
10 Key Components of Trust
in an Outsourcing Deal
Selling Complex Services: BPO and 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
Selling Complex Services: BPO and ITO
Introductions
• Name
• Market / Accounts
• Services Sales Experience
• Expectations
Selling Complex Services: BPO and ITO
Selling Complex Services: BPO and ITO
Module 2: Business Drivers
1) Curt Haines, Director, Bureau of Consolidated
Computer Services, Governor’s Office of
Administration
2) Martin Horn, Former Secretary of Administration
Selling Complex Services: BPO and ITO
Module 2: Business Drivers
Objectives:
1. Define outsourcing from the market point of view
and link the Unisys definition of Information
Technology and Business Process Outsourcing
(ITO/BPO).
2. Identify the business drivers that lead to an
outsourcing opportunity.
3. Identify the Business Drivers of “C” level
executives that lead to outsourcing initiatives
and expanded business opportunities.
Selling Complex Services: BPO and ITO
Outsourcing: Definition and
Overview
• What is Outsourcing?
• The Unisys “Brand” of Outsourcing:
What’s in a Name?
• Types of Outsourcing: ITO, BPO
• Why Outsourcing: External
(Customer) Benefits
• Why Sell Outsourcing: Internal
(Unisys) Benefits
• Why Outsource Now?
Selling Complex Services: BPO and ITO
What is Outsourcing?
• A long term contractual arrangement in
which a service provider takes
ownership of, and manages, a client’s
• Information systems
• IT operations
• Technology-enabled business processes
Selling Complex Services: BPO and ITO
What’s in a Name?
Selling Complex Services: BPO and ITO
Business Process Outsourcing (BPO)
Definition:
• Performing entire business operations functions which
may include the information technology operations,
applications management and business
process integration
Examples:
•
•
•
•
•
•
•
Payment Processing
Life & Pension
Mortgage Processing
Healthcare Payer Administration
Finance
Contact Center
Imaging/Workflow
Selling Complex Services: BPO and ITO
Information Technology
Outsourcing (ITO)
Definition:
• Long-term, contractual arrangement in which a service
provider takes ownership of and manages a client's
information systems operations or department
Examples:
•
•
•
•
Data Center Management
Applications Management
Distributed Systems
Desktop and Network Services
Selling Complex Services: BPO and ITO
BPO vs Managed Services
• Business Process Outsourcing: Performing entire
business operations on a one-on-one basis.
• Managed Services: outsourcing provided to mutliple
clients from one or several locations.
Selling Complex Services: BPO and ITO
Core, Non Core
NON-CORE,
YET CRITICAL
• Check
Processing
• Policy
Administration
CORE BUSINESS
• Managing market
Image/trademarks
• Caring for patiuents
• Developing new
consumer products
• Mortgage Loan
Administration
• Human
Resources
• Supply Chain
Mgmt.
NON-CORE,
NON-CRITICAL
• Cafetieria
• Laundry
• Maintenance
Selling Complex Services: BPO and ITO
Why Outsource?
What’s in it for the customer?
Selling Complex Services: BPO and ITO
Why Sell Outsourcing?
What’s in it for Unisys?
Long term,
recurring
revenue
stream
Enhanced
financial
predictability
& visibility
Builds long
term client
relationships
Promotes
other
Unisys
products
Increases
company
value
Improves
business
stability
Selling Complex Services: BPO and ITO
Why Outsource Now?
The compelling event.
• Image problems?
• “Is our industry reputation where we want it to be?”
• Strategic direction change?
• “We are moving toward a more ‘virtual’ corporate model.”
• Financial goals not being met?
• “Our year-end results were lower than expected, we have
to do something!”
• Business pressures mounting?
• “This pending merger—we must show ROI—
and quickly.”
Selling Complex Services: BPO and ITO
Life Cycle of Business Change
External
Drivers:
Image: Wall Street, Customers, Competitive
Strategic: Trends, Directions, Future
Financial: Profit, Budgets, Analyst
Pressures: Market, Industry, Technology, Servicing, Media
goals
objectives
solution
phase:
Conceptualize
Assessment
desired
performance
level
Requirements
Design
gap
LOI
Due Diligence
current:
People
Processes
Infrastructure
Resources
current
performance
level
evaluate
& adjust
SOW
Contract
Implement
implement
and
&Manage
change
Selling Complex Services: BPO and ITO
“C” Levels and Internal & External Drivers
IMAGE
CEO
Overall External
View,
CFO
Financial and Analyst
Comments
/ Internal
Strife
FINANCIAL
PRESSURES
Balance Sheet and
Income Statement
Growth,
Stock Valuation
Competitive Changes,
Globalization,
Commoditization,
Symbiosis
ROI, Profitability
Cost Predictability
Security of assets
ROI, Profitability,
Cost Predictability
Market Slumps,
Regulation, Changes,
Asset longevity
Needs of Business
vs. ROI
Standardization
Cost Containment
and effectiveness
Technology Realization,
Market changes
Practicality vs.
demand
Cost
Symbiosis, Impartial,
Prioritization
Justification of
recommendations
Vendors, Political and
Inner circle structure
STRATEGIC
3 Year Plan
CIO
End User Support
COO
Overall operational
effectiveness
CTO
Standardization and
competitive
advantage
Operational,
Functional,
Relevance to mission
critical
CKO
Overall effectiveness
and completeness of
information
Repository of
intellectual capital
and it’s application
CMO
Market Position and
Public View
Market Share and
Retention
Move the business
forward by year
Justification of cost
Revenue Growth
Immortality
Equity
distribution,
Protect his
decisions,
Grounded and
Impulsive
Keeping it real,
Tangible proof of
value
Attention, Recognition,
Competition
Competitive Gain,
Perceived Value
Selling Complex Services: BPO and ITO
Outsourcing’s New Emphasis:
Business Benefit
• Improved service
• Access to key IT resources
business processes
and skills
• Speed to Market
• Financial stability,
diminished customer risk
Selling Complex Services: BPO and ITO
Practice Exercise Module 2:
Part 1:
Review the Client Case introduction sheet in Appendix A.
and begin documenting on the TAS Opportunity Plan in
the following:
1.
Customer Business Profile
2.
Opportunity Profile
3.
Compelling Event
Part 2:
Complete the Module 2 Simulation and Initial Executive call and identify:
1.
Business Drivers (capture in Compelling Events of TAS)
2.
Key Issues per Executive (capture in the Decision Criteria of TAS)
3.
Business and Personal Agendas for Key Executives (capture in TAS)
4.
Initial Tactics
Selling Complex Services: BPO and ITO
TAS Form
Customer’s
Business Profile
Describe the customer’s business conditions. Include finance, revenue, profit and key
performance indicators. Identify the customer’s major lines of business, affiliations,
products, and markets. Include information about recent mergers and acquisitions.
Target Account
Selling
Opportunity
Plan
REVENUE
PROFIT
FISCAL YEAR END
CORPORATE AFFILIATION
Opportunity
Profile
Describe the customer’s project or application. What are the customer’s business
objectives for the project? What is the total cost and/or budget for the project? How does
the project affect the customer’s overall business?
Compelling
Event
What is driving the customer to make a decision or a change in the current situation? What
is the payback if they make a change? What are the consequences if they do not act?
What specific date is associated with the consequences/payback?
Account
Sales Opportunity
Date
Team
(CONFIDENTIAL WHEN COMPLETE)
Target Marketing
Systems
Selling Complex Services: BPO and ITO
Selling Complex Services: BPO and ITO
Module 3: Current Environment
Karl Kaiser, CIO
City of Minneapolis
Selling Complex Services: BPO and ITO
Module 3: Current Environment
Objectives:
1. Identify the capabilities of an
organization’s ability to change.
2. Determine the strengths and
weaknesses in an organization’s ability
to change.
Selling Complex Services: BPO and ITO
Life Cycle of Business Change
solution
phase:
Conceptualize
goals
objectives
desired
performance
level
Assessment
Requirements
Design
gap
current:
People
Processes
Infrastructure
Resources
current
performance
level
evaluate
& adjust
LOI
Due Diligence
SOW
Contract
Implement
implement
and
&Manage
change
Selling Complex Services: BPO and ITO
Current Environment
• People
• Processes
• Infrastructure
“You can only carry
and accomplish so
much with what
you have.”
• Resources
Selling Complex Services: BPO and ITO
People
Organization Capability: People
• Skills
• Knowledge
• Experience
• Bandwidth
Barrier or Enabler?
1. Retaining
2. Training
3. Maintaining
“I lost the new play
book, what do we do
and when?”
And at what Cost?
Selling Complex Services: BPO and ITO
Processes
Organization Capability: Processes
70s, 80s, 90s, and 00s: it’s all about change
1. How you do work:
•
Beginning to end
2. What you do work with:
•
Tools
•
Applications
•
Support
“Businesses continue
searching for greater results
with reduced overhead.”
Selling Complex Services: BPO and ITO
Processes Cut Across Departmental Boundaries
Records
Records
Closing
Package
Processing
Edina
Office
Open/
Setup
Closing
Bank
Branches
250
Secondary
Marketing
Underwriting
Servicing
Reality
Offices
Scottsdale
39
Open/
Setup
Processing
Closing
Property
Underwriting
Loan
Offices
20
Underwriting
Fargo
Open/
Setup
Processing
Closing
Infrastructure
Records
Selling Complex Services: BPO and ITO
Infrastructure
Organization Capability: Infrastructure
• Systems /
Technologies
• Facilities (Locations)
• Networks
• Applications /
Operating Systems
“If they see it they
may take it away.”
Selling Complex Services: BPO and ITO
Resources
Organization Capability: Resources
• Alliance Partners
• Budgets
• Contractors
and Vendors
• Policies
“If they see it they
may take it away.”
Selling Complex Services: BPO and ITO
Force Field
Driving
Force
Restraining
Force
Business Drivers
People
Processes
Emerging
Technologies
Resources
Infrastructure
Trends
Selling Complex Services: BPO and ITO
Scope vs. Ability
Match scope and pace of change to companies’ need
for and ability to change!
Business
Re-invention
Market
Position
Focus
Of
Benefit
Organization
Transformation
Business
Performance
Process
Efficiency
Process
Redesign
Single
Change
Multiple
Changes
Enterprise
Wide Changes
Scope Of Change
Selling Complex Services: BPO and ITO
Current Environment “Checklist”











1. Scope of Current Operations
2. Target Operating Model
3. Details by Work Type
4. Staffing Numbers and Costs
5. HR Terms and Conditions
6. Premises
7. Assets
8. Technology
9. Third Party Contracts
10. Other Costs
11. Costs Associated with Transfer
Selling Complex Services: BPO and ITO
Practice Exercise Module 3:
Part 1:
Complete Module 3 Simulation and Executive call; identify the barriers the company is facing in:
1. People and their skills / knowledge
2. Processes in the way they perform their work
3. Infrastructure in the systems they use and that are deployed
4. Resources in additional partners and providers they use
As you go through the simulation, document on the TAS form:
• The problem areas
• Identified areas the company has indicated they need to change (opportunity section)
• Identify the infrastructure areas that would most likely require change to support
successful achievement of the business goals.
Part 2:
Create a Force Field diagram that illustrates their barriers & enablers in People, Processes,
Resources and Infrastructure.
Selling Complex Services: BPO and ITO
TAS Form
Opportunity Assessment
Target Account
Selling
Opportunity
Plan
SALES OPPORTUNITY
Write in the date and assess your position using + or –.
If you don’t know, put a question mark. Assess
your competitor’s position.
Repeat at critical points in the sales campaign.
IS THERE AN OPPORTUNITY?
1
CUSTOMER’S APPLICATION
OR PROJECT
DEFINED
UNDEFINED
2
+
–
CUSTOMER’S BUSINESS
PROFILE
STRONG
WEAK
+
–
3
CUSTOMER’S FINANCIAL
CONDITION
STRONG
WEAK
+
–
4
ACCESS TO FUNDS
YES
NO
+
–
5
COMPELLING EVENT
DEFINED
UNDEFINED
+
–
6
FORMAL DECISION
CRITERIA
DEFINED
UNDEFINED
+
–
7
SOLUTION FIT
GOOD
POOF
+
–
8
SALES RESOURCE
REQUIREMENTS
LOW
HIGH
+
–
9
ORDER AMOUNT
CLOSE DATE
DATE
DATE
DATE
OUR
CO.
OUR
CO.
OUR
CO.
CAN WE COMPETE?
Account
Sales Opportunity
Date
Team
CURRENT RELATIONSHIP
STRONG
WEAK
+
–
10
UNIQUE BUSINESS VALUE
STRONG
WEAK
+
–
11
INSIDE SUPPORT
STRONG
WEAK
+
–
12
EXECUTIVE CREDIBILITY
STRONG
WEAK
+
–
13
CULTURAL COMPATIBILITY
GOOD
POOF
+
–
14
CAN WE WIN?
(CONFIDENTIAL WHEN COMPLETE)
INFORMAL DECISION
CRITERIA
DEFINED
UNDEFINED
+
–
15
POLITICAL ALIGNMENT
STRONG
WEAK
+
–
16
SHORT-TERM REVENUE
HIGH
LOW
+
–
17
IS IT WORTH WINNING?
Target Marketing
Systems
FUTURE REVENUE
HIGH
LOW
+
–
18
PROFITABILITY
HIGH
LOW
+
–
19
DEGREE OF RISK
LOW
HIGH
+
–
STRATEGIC VALUE
YES
NO
+
–
20
Selling Complex Services: BPO and ITO
Selling Complex Services: BPO and ITO
Module 4: Mapping Out
A Sourcing Strategy
John Little, Director of Retail Services,
Barclay’s Bank
Part of Intelligent Processing Solutions, Ltd. (iPSL)
Selling Complex Services: BPO and ITO
Module 4: Mapping Out A
Sourcing Strategy
Objectives:
1. Identify the gap.
2. Identify the reasons the gap exists.
3. Determine the sourcing strategy.
Selling Complex Services: BPO and ITO
Life Cycle of Business Change
solution
phase:
Conceptualize
goals
objectives
desired
performance
level
Assessment
Requirements
gap
current:
People
Processes
Infrastructure
Resources
current
performance
level
evaluate
& adjust
Design
LOI
Due Diligence
SOW
Contract
Implement
implement
and
&Manage
change
Selling Complex Services: BPO and ITO
Traditional Paths
1
Goals
Objectives
Do it Better
solution
phase:
• Design
2
Current:
People
Processes
Technology
Failure to achieve
expected results
• Build
Problems
Implement
& Manage
Selling Complex Services: BPO and ITO
What is Possible?
1. What is possible?
2. What happens if we
miss?
desired
performance
level
3. Where do I measure:
• Productivity?
• Focus Areas?
gap
current
performance
level
• Costs?
• Effectiveness?
Selling Complex Services: BPO and ITO
What is Possible?
Current:
People
Processes
Infrastructure
Resources
Unisys
Current:
People
Processes
Infrastructure
Resources
Client
Selling Complex Services: BPO and ITO
Developing Sourcing Strategies
The Sourcing Lifecycle
IT Capability vs. Contribution
• Business Alignment
IT Capability vs. Contribution
•Map to business plan
• IT Assessment
High
High
•Skills, value, ability to improve
Transformational
Transformational
• Sourcing Strategy
Outsourcing
Outsourcing
• Source Selection
•Evaluation criteria
• Sourcing Management
•Tools, SLAs, improvement
Outsourcing is accepted business
practice. Lacking balance supply
and demand, IT responses to service
crises achieve little until next crisis.
IT
IT Contribution
Contribution
•Value vs. Capability
Low
Low
Strong
Strong
Outsourcing
Outsourcing
Candidates
Candidates
Strong
Strong
Insourcing
Insourcing
Candidates
Candidates
Selective
Selective
Outsourcing
Outsourcing
IT
ITCapability
Capability
High
High
Source: META Group
Selling Complex Services: BPO and ITO
Outsourcing vs. Insourcing
1. Do I want to be in the check processing
services business?
2. Do I gain competitive advantage by retaining this
service in house?
3. Can someone else provide this service?
4. Can someone else do it more effectively?
5. What risks am I taking by having someone else
perform the service?
6. Are there measures that can be taken to limit
my risks?
7. Are there some things that I should
always retain?
Selling Complex Services: BPO and ITO
New Sourcing Models
Business Outcomes
OPTIMIZATION
Value
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
Deploy and apply resources and
processes to maximize return on
assets
ACCESS
Procure functionality to
maximize operating income
IT Efficiency
Selling Complex Services: BPO and ITO
Service Provider Segments
• Business services - e.g., business process re-engineering
(BPR), business process outsourcing (BPO), business
service provider (BSP)
• Traditional outsourcing - e.g., data center, desktop services
• Applications - e.g., application maintenance, ASP models
• Management - e.g., management service provider (MSP),
security service provider (SSP)
• Infrastructure service providers - e.g., Internet service
provider (ISP), network service provider (NSP), commerce
service provider (CSP), hosting service provider (HSP)
Selling Complex Services: BPO and ITO
Mapping Services to Sourcing Models
OPTIMIZATION
Business Outcomes
CREATION
Meta Market Maker
Internet Market Maker
BPR/Change Mgt.
BSP/PSP
Consulting
Integration
Applications Outsourcing
Enterprise
Environment
ASP
Shared
Environment
Enterprise Operations
Help Desk
Network
Service Provider
(TSSP and SSP)
IT Outsourcing
Hosting — Internet Data Center
Desktop
Product Support
IT Efficiency
MANAGEMENT
ACCESS
Selling Complex Services: BPO and ITO
Analysts’ Views: Unisys Positioning
Challengers
Leaders
ACS
IBM
Perot Systems
EDS
CGI Group
Ability
to Execute
Lockheed
Martin
Compaq
Unisys
CSC
SAIC
Verizon
Niche Players
Visionaries
Completeness of Vision
Gartner’s “Magic Quadrant”
The “META Spectrum”
Selling Complex Services: BPO and ITO
Client’s Sourcing Strategy
Based on:
• Vision & Values
• Political and Financial Assessment
• An Action Plan
Selling Complex Services: BPO and ITO
Client’s Sourcing Strategies
• Standardize
• Centralize
• Streamline
• Outsource
Selling Complex Services: BPO and ITO
Three Types of Relationship
Competitive Advantage
Effectiveness
Focused
Business
Value
Frontier
Enhancement
Efficiency
Focused
Utility
Relationship Complexity
Selling Complex Services: BPO and ITO
Measuring Performance:
• Does the client currently measure and track
their performance?
• What areas do the measure?
• Why are they focusing on these areas?
• What improvements have they stated they
want to achieve in those areas?
• Do they know what is possible?
Selling Complex Services: BPO and ITO
What Causes the Problems?
Process
Transaction
Inefficient service management
• Duplicate problems
• Title & land registration
• Process inefficiency
• Labor utilization
• Small/remote sites
Inefficient service transactions
• Number of mortgage applications
• Application processing time
• Underwriting time
• Exception processing
• Appraiser reliance
Standards
Cross-Training and Knowledge Management
Online services and routine automation
Remote management
Cross-functional and integrated services
Change management and root cause analysis
Selling Complex Services: BPO and ITO
Example:
Mortgage
Processing
Outsourcing Value Proposition
2
1
Increased
End User Satisfaction
Predictability
6
3
Risk Mitigation
5
Lower Cost
Measurable
Business
Value
Scalability
4
Flexibility
Selling Complex Services: BPO and ITO
How Much Transformation Is Possible?
Gain/Strengthen Control
• Provide consistent service delivery processes
• Achieve predictability of infrastructure performance
and budget
Improve Service Quality
• Apply transferred knowledge to better align IT with
business objectives
• Continuously improve end-user service experience
and your customers experience
Address Skill Set Requirements
• Execute faster
• Reallocate resources to strategic IT business
Selling Complex Services: BPO and ITO
How Much Transformation Is Possible?
Gain/Strengthen Control
• Provide consistent service delivery processes
• Achieve predictability of infrastructure performance
and budget
Improve Service Quality
• Apply transferred knowledge to better align IT with
business objectives
• Continuously improve end-user service experience
and your customers experience
Address Skill Set Requirements
• Execute faster
• Reallocate resources to strategic IT business
Achieve Predictable Costs
•
•
•
•
Leverage Unisys resources
Manage service delivery costs
Leverage vendor toolset
Reduce Training Expenses
Selling Complex Services: BPO and ITO
How Much Transformation Is Possible?
• Productivity Improvements
• Improved User Satisfaction
• Lower TCO
• Greater Flexibility to match Business
Requirements to User Needs
• Measurable Results
• Formal Service Levels
• Predictive Costs
• Fixed for given level of Service over time
• Greater Strategic Value
Selling Complex Services: BPO and ITO
Potential Showstoppers
 Tax
 Transfer of staff
 Premises
 Assets
 Liabilities
 Regulatory
Selling Complex Services: BPO and ITO
Target Prospect Profile: BPO & ITO
• Compelling business event driving outsourcing decision
• Change in financial model
• Change in management structure
• Examples - merger/acquisition, executive turnover, industry
turmoil, division sold
• Opportunity in Unisys targeted industries
•
•
•
•
•
Financial Services
Public Sector
Transportation
Communications
Media/Commercial
Selling Complex Services: BPO and ITO
Target Prospect Profile: BPO & ITO
• Project budgeted or required
• Predisposed to outsource non-core and non-strategic
core business processes or IT operations (e.g., directed
by Chairman via annual report or identified executive
sponsor/advocate)
• No major labor issues with the proposed outsourcing
solution
• No major government (e.g., tax laws) or political issues
(e.g., state protectionism) limiting outsourcing
• TPI or other third party not in the account
Selling Complex Services: BPO and ITO
Target Prospect Profile (BPO-Specific)
• Sales relationship at Business Unit Head, COO, CFO or
CEO level
• Contract value $50M or greater
• Contract term 5 years or more
• Opportunity in existing Unisys BPO market
• Payment processing
• Check processing
• Remittance processing
• Mortgage administration
• Life & pension insurance administration
• Healthcare payer administration
• Airline operations administration
• Cargo or baggage management
• Passenger ticketing
• Boarding Inventory
• Passenger baggage reconciliation
Selling Complex Services: BPO and ITO
Target Prospect Profile (ITO-Specific)
•
•
•
•
Sales relationship at VP MIS, CIO, COO or CFO level
Contract value $20M or greater
Contract term 3 years or more
Client has mixed hardware environment, which includes
Unisys equipment
• Opportunity is for an existing ITO offering
•
•
•
•
•
Data Center Management
Managed Hosting Services
Application Management
Network Management
Desktop Management
• Lowest cost is not the ONLY vendor selection criteria
Selling Complex Services: BPO and ITO
Practice Exercise Module 4:
1. List the areas discovered in the
simulation case study where
the client does not appear to
understand the magnitude of
risk and consequences.
2. Create two or three
consequence questions that
will expose the gap to a C-level
executive.
3. Identify areas in which Unisys
can help the client achieve
greater results.
Selling Complex Services: BPO and ITO
TAS Form
Opportunity Assessment
Target Account
Selling
Opportunity
Plan
SALES OPPORTUNITY
Write in the date and assess your position using + or –.
If you don’t know, put a question mark. Assess
your competitor’s position.
Repeat at critical points in the sales campaign.
IS THERE AN OPPORTUNITY?
1
CUSTOMER’S APPLICATION
OR PROJECT
DEFINED
UNDEFINED
2
+
–
CUSTOMER’S BUSINESS
PROFILE
STRONG
WEAK
+
–
3
CUSTOMER’S FINANCIAL
CONDITION
STRONG
WEAK
+
–
4
ACCESS TO FUNDS
YES
NO
+
–
5
COMPELLING EVENT
DEFINED
UNDEFINED
+
–
6
FORMAL DECISION
CRITERIA
DEFINED
UNDEFINED
+
–
7
SOLUTION FIT
GOOD
POOF
+
–
8
SALES RESOURCE
REQUIREMENTS
LOW
HIGH
+
–
9
ORDER AMOUNT
CLOSE DATE
DATE
DATE
DATE
OUR
CO.
OUR
CO.
OUR
CO.
CAN WE COMPETE?
Account
Sales Opportunity
Date
Team
CURRENT RELATIONSHIP
STRONG
WEAK
+
–
10
UNIQUE BUSINESS VALUE
STRONG
WEAK
+
–
11
INSIDE SUPPORT
STRONG
WEAK
+
–
12
EXECUTIVE CREDIBILITY
STRONG
WEAK
+
–
13
CULTURAL COMPATIBILITY
GOOD
POOF
+
–
14
CAN WE WIN?
(CONFIDENTIAL WHEN COMPLETE)
INFORMAL DECISION
CRITERIA
DEFINED
UNDEFINED
+
–
15
POLITICAL ALIGNMENT
STRONG
WEAK
+
–
16
SHORT-TERM REVENUE
HIGH
LOW
+
–
17
IS IT WORTH WINNING?
Target Marketing
Systems
FUTURE REVENUE
HIGH
LOW
+
–
18
PROFITABILITY
HIGH
LOW
+
–
19
DEGREE OF RISK
LOW
HIGH
+
–
STRATEGIC VALUE
YES
NO
+
–
20
Selling Complex Services: BPO and ITO
Selling Complex Services: BPO and ITO
Module 5: Filling the Gap
HOME LOANS
Charles Weiser, Group CEO,
RAMS Home Loans
Selling Complex Services: BPO and ITO
Module 5: Filling The Gap
Objectives:
1.
Identify the outsourcing
services Unisys provides that
are required for the client to
achieve their performance
goals.
2.
Create a conceptual solution
that represents the future
state of the client’s operations.
3.
Understand the key drivers
and inhibiting factors that
affect customers’ outsourcing
decisions
Selling Complex Services: BPO and ITO
Life Cycle of Business Change
solution
phase:
goals
objectives
Conceptualize
desired
desired
performance
performance
level
level
Assessment
Requirements
Design
gap
LOI
Due Diligence
Current:
People
Processes
Infrastructure
Resources
current
performance
level
SOW
Contract
evaluate
& adjust
Implement
implement
and Manage
& change
Selling Complex Services: BPO and ITO
Outsourcing Drivers / C-Level Benefits:
General
Business Drivers:
C Level Benefits:
• IT/ Business Alignment
• Speed-To-Business Results
• Staffing Issues
• Recruiting
• Training
• Retention
• Core Competency Decisions
• Rising Costs & Limited Budgets
• Globalization of Business
• Complexity & Rate of Change
• Increasing End User Demands
• Security of Assets
• Image
• Increasing Revenue
• Decreasing Costs & Predicting
Costs
• Profitability
• Market Share
• Competitive Advantage
• Productivity
• Alternative Uses of Capital
• Protection of Corporate Assets
& Officer Liability
Selling Complex Services: BPO and ITO
BPO Services
Major Components
1. Payments
•
•
•
•
•
•
Check
Remittance
Image Archive
FEDI & Internet-based
EBPP
Research, adjustment
& exceptions
• Cards
2. Mortgage
• Origination
• Servicing
- Payments
- Secondary Mrktng.
3. Insurance
•
•
•
•
Policy Admin
Pension
Customer Care
Claims
4. Healthcare
• Member & provider
• Claims Management
• Call Center Support
Major Benefits
Single Point of accountability
Reduced & Predictable
Transaction Costs
Economies of Process
Cash flow improvements
Risk Share & Gain Share
Major
Competitors
Major
Differentiation
EDS, IBM, CSC,
ACS, Fiserv,
Accenture
Vertical industry
expertise
Niche:
Exult, Remitco,
Convergys,
Convansys
Technology
heritage
Global reach
End-to-end
capability
Contract Flexibility
Reduced Capital Investment
Reduction in headcount
Speed to business
Change
Management
Expertise
Partnership
Approach
Multi-vendor
support
Employer of
Choice
Selling Complex Services: BPO and ITO
ITO Services
Major Components
Major Benefits
1.
Data Center
1. Scalability
2.
Applications
Management
2. Lower Unit Costs
3.
Distributed
Computing
3. Improved Service
4.
Desktops &
Networks
4. Expanded career
paths for transitioned
employees
5. Predictable IT costs
6. Skills Infusion
7. Avoidance of capital
investment
8. Access to latest
technology
Major
Competitors
IBM, EDS, CSC,
ACS, Perot,
CGEY, CGI, SAIC
Major
Differentiation
Technology
Heritage (Unisys)
Customer intimacy
Experience
Global reach
Contract Flexibility
Change
Management
Expertise
Partnership
Approach
Multi-vendor
support
Employer of
Choice
Selling Complex Services: BPO and ITO
Unisys Outsourcing Differentiators
• Business partner approach
• Benefit sharing
• Cost efficiencies
• Profits
• Listen to the client’s needs before formulating a solution
• Help clients define initial requirements drawing on operations
and industry expertise
• Outsourcing contracts developed to anticipate changing
requirements and future enhancement needs
• Relationship operates on mutual respect and trust, not contract
administration
• Focused areas of industry expertise
• Financial Services
• Communications
• Public Sector
• Commercial/Media
• Transportation
Selling Complex Services: BPO and ITO
Unisys Outsourcing Differentiators
• Strong reference accounts - for example:
• Payment processing
• Check Processing (iPSL, UPSL, WaMu and Maybank)
• Remittance Processing (Comcast)
• Insurance Claims Administration (UISL, Royal & SunAlliance)
• Mortgage Loan Administration (RAMS)
• State & Local Government Administration (Commonwealth of PA,
City of Minneapolis)
• Large-scale transaction processing expertise
• Transition management expertise (people, processes &
technology)
• Unisys equipment expertise
Selling Complex Services: BPO and ITO
Evolving to Meet Our Clients' Needs
Helping our clients
move to the next step
in IT support value!
Vertically-Specific BPO
Value Principles
•
•
•
•
•
•
•
IT alignment with business
Measurable improvement
Accountability
Cost control
Predictability
Risk sharing
Flexible contracting
Horizontal BPO
Traditional ITO
Partnering to produce measurable business value
Selling Complex Services: BPO and ITO
Outsourcing Deal “Flavors”
• Lift and Drop: takes on an existing operation and makes no change to
either the operational processes or IT systems involved.
• Financial Engineering: releases capital from the operation or seeks some
new method of pricing which allows the client to meet his business
objectives, i.e., moving costs from fixed to variable based on volume.
• Platform for growth: service provider sees a market opportunity to create a
service offering and leverage this across incremental volume by winning
business from additional clients.
• Process change: transformational – often a “greenfield” approach,
wherein the service provider acts as a change agent for the client.
In this case, significant investment, and often long payback period
Selling Complex Services: BPO and ITO
Business Benefit
Unisys Outsourcing “Landscape”
“Horizontal BPO”
BPR, Workflow,
Doc. Mgmt., HR,
Call Center, CRM,
SCM
Payments
• IPS
• RPS
• R&L
Insurance
• Unisure
• OSIRIS
Mortgage
• UFSS
Healthcare
• HealthPas
“ITO”
Data Center
Application Management
Distributed Computing
Desktops/Networks
Hosting
Technology Cost Savings
Selling Complex Services: BPO and ITO
Business Process
Outsourcing (BPO)
Basic Set of BPO Services
Additional Services:
1. Payments Processing
2. Insurance Processing
3. Healthcare Payer
Administration
4. Mortgage Processing
1.
2.
3.
4.
Finance & Accounting
Human Resources
Travel Expense Reporting
Call Center
On our radar (future):
5. Transportation (Ground and
Air)
Load it up!!!
Selling Complex Services: BPO and ITO
IT Issues + Business Issues = BPO
From “IT-Enabled BPO: Is There Any Other Kind?”
“
Katrina Menzigian, IDC
“ . . . BPO has always been technology enabled . . . if
the BPO provider had not leveraged technology at
some level, then it would not have been able to
generate profit margins capable of keeping it in
business.”
”IDC research shows that gaining access to
technology through BPO engagements is one of the
strongest drivers behind many companies' decisions
to work with outsourcing providers. . . . clients
assume that technology is an inherent aspect of any
BPO engagement.”
”
Selling Complex Services: BPO and ITO
BPO-Specific Drivers
Selling Complex Services: BPO and ITO
BPO Barriers
Selling Complex Services: BPO and ITO
BPO Vendor Selection Criteria
Selling Complex Services: BPO and ITO
BPO Solutions: Payment Processing
Payment Processing: An umbrella term covering all forms of payment
processing, including: Check Processing, Remittance Processing and
Non-Check Payment Processing.
• Check Processing: Activities relating to reading,
recording and reconciling bank check deposits made by
individuals and businesses.
• Remittance Processing: Bill payment processing
involving checks and payment slips (e.g., utility payments
and cable bills).
• Non-Check Payment Processing: Includes wire transfer,
ACH, debit/credit card, telephone and web payments
Selling Complex Services: BPO and ITO
BPO Vendor “Must Haves”
• Capability
• Application of multiple technologies
• Specific vertical industry expertise and its
process best practices
• Contracting Flexibility
• Risk/gain sharing
• Customer Intimacy
• Relationship oriented
• Customer advocacy
Selling Complex Services: BPO and ITO
Information Technology
Outsourcing (ITO)
Basic Set of ITO Services:
Additional Services:
1.
2.
3.
4.
1. Help Desk
2. Business Continuity &
Recovery
3. Managed Hosting
4. Managed Application
Services
Data Center Management
Applications Management
Distributed Computing
Desktops, Networks
Load it up!!!
Selling Complex Services: BPO and ITO
ITO-Specific Drivers
•
•
•
•
•
•
•
•
Critical skills
Business performance/competitiveness
Speed
Core business focus
Costs
IT ROI
IT and business alignment
Control
Selling Complex Services: BPO and ITO
ITO-Specific Drivers
Selling Complex Services: BPO and ITO
ITO-Specific Barriers
Selling Complex Services: BPO and ITO
ITO Vendor Selection Criteria
Selling Complex Services: BPO and ITO
Summary: Factors Influencing
Outsourcing Vendor Choice
•
•
•
•
Must deliver on promises in a measurable way
Strong, positive & relevant references
Clear message with relevant value propositions
Validation (via analyst community) of success in
the day-to-day delivery of
outsourcing services
Selling Complex Services: BPO and ITO
Practice Exercise Module 5
Fill out the TAS opportunity plan:
1. Your Solution
2. Strengths and Weaknesses
3. Unique Business Value
4. Sales Goal and Objective
5. Competitive Strategy
6. Critical Success Factors
Selling Complex Services: BPO and ITO
Your Solution
TAS Form
Target Account
Selling
Relationship
Strategy
Describe your solution. How will it work in this customer’s environment? How does it meet
their compelling event? Include any alliances or business partner solutions required to
make it operational for the customer.
Who are the key people who affect the decision or who will be significantly affected by the
decision? Describe their business and personal agendas and the relationship strategy
(Leverage, Motivate or Neutralize) you will use with each.
Key Player
Business Agenda
Opportunity
Plan
Personal Agenda
your unique business value with a value proposition that is specific to this
Unique Business Define
customer, defines a measurable business result, and creates credibility by proving your
to deliver. Have you confirmed this with the customer? How does this differentiate
ValueRelationship Strategy ability
you from your competitors?
Competitors
For each competitor describe their solution, including products, services, partners, and
price. Identify their alignment and their strengths and weaknesses. Determine their most
likely strategy.
COMPETITOR #1
COMPETITOR #2
COMPETITOR #3
Solution
Proposed
Alignment
Account
Sales Opportunity
Date
Team
Our Strengths &
Weaknesses
Identify all of your strengths and weaknesses. Focus on theStrengths
business, organizational, and
Describe your desired, long-term position with the customer. Identify how a closer
political issues.
Strengths
Goal
relationship with you will advance the attainment of their business goals. Also include the
long-term gain for your business, i.e., future revenue or strategic value.
Weaknesses
Weaknesses
Sales
Objective
Describe your specific products and services. Identify the projected close date and total
order amount.
(CONFIDENTIAL WHEN COMPLETE)
Target Marketing
Systems
Competitive
Strategy
Critical
Success Factors
Review your strengths and weaknesses. Compare your position to the competition.
Determine your strategy (frontal, flanking, fragment, develop or defend) and the variation
that you will employ to win this opportunity.
What has to happen for you to win this opportunity? Identify things the customer must do,
things the competition must do, and things you must do.
Selling Complex Services: BPO and ITO
Selling Complex Services: BPO and ITO
Module 6: Selling the Solution
Dyan Beito, Executive Vice President, Banking and
Financial Services Division, Washington Mutual
Selling Complex Services: BPO and ITO
Module 6: Selling the Solution
Objectives:
1. Create the approach plan that moves the
client from current performance to
desired performance
2. Identify the services and resources
required to propose and implement an
outsourcing solution for the client
Selling Complex Services: BPO and ITO
Life Cycle of Business Change
solution
phase:
Conceptualize
goals
Goals
objectives
Objectives
desired
Desired
performance
Performance
level
Assessment
Requirements
Level
Design
gap
current:
People
Processes
Infrastructure
Resources
LOI
Due Diligence
current
performance
level
SOW
Contract
evaluate
& adjust
Evaluate &
implement
& change
Adjust
Selling Complex Services: BPO and ITO
Instruments of Analysis
• Assessment
• Requirements
• Design
• Due Diligence
Letter of Intent
(LOI)
Selling Complex Services: BPO and ITO
Why Analyze First?
Proper analysis answers
many questions:
• What should I do first?
• Which direction should I go?
• Will this be enough?
• Will it be too much?
• What are my options?
• How else could it be done?
• What are my risks?
Selling Complex Services: BPO and ITO
Tools for Customer Commitment
STAGE
MILESTONE
Agree on Business
Drivers?
Joint
Vision
Decided?
Letter of
Engagement
Financial
& Operating
Models
Done?
Heads of
Terms
Built the Business
Case?
Due
Diligence?
Statement
of Work
Complete?
COMMITMENT
Contract
Selling Complex Services: BPO and ITO
The Process
• Identify Opportunity
• Manage Opportunity
• Generate Proposal
• Close Sale
Selling Complex Services: BPO and ITO
Identify Opportunity
Selling Complex Services: BPO and ITO
Identify Opportunity
• Sales Executive conducts research
• Target account is selected
• Sales strategy is formulated
• Team with other Unisys groups as needed
• Sales Executive gains sales management
approval to pursue
Selling Complex Services: BPO and ITO
Manage Opportunity
Selling Complex Services: BPO and ITO
Manage Opportunity
•
•
•
•
Sales Executive develops preliminary solution
Sales Executive develops preliminary revenue model
Bid/No-Bid review is conducted
If bid approval given, then bid team is formed
•
•
•
•
•
•
Bid/Capture Manager
Financial Analyst
Solution Lead
Proposal Manager
Contract Specialist
HR Business Partner
Selling Complex Services: BPO and ITO
Generate Proposal
Selling Complex Services: BPO and ITO
Generate Proposal
• High-level assessment/requirements definition
• High-level solution development
• Preliminary P&L
• Detailed requirements definition
• Detailed solution development (Will it work?)
• Proposed P&L and pricing strategy (Will it sell?)
• Deal Description and Review
• If approved, complete proposal and submit
to client
Selling Complex Services: BPO and ITO
Close Sale
Selling Complex Services: BPO and ITO
Close Sale
• Sell proposal
• Obtain LOI
• Conduct Due Diligence (DD)
• Minimum two weeks lead time to start DD
• Client must provide extensive data before we can go on-site to
verify
• DD is highly-structured solution verification process
• AE/PM, SDM, and TM join bid team
•
•
•
•
Develop Statement of Work (SOW)
Finalize P&L and create BAFO
Negotiate Contract (Ts&Cs) and SOW (including
Execute contract
Selling Complex Services: BPO and ITO
SLAs)
Selling Obstacles
•
•
•
•
•
•
•
•
•
Cost of Sale
Relationship based sales cycle
Client Internal resistance to relinquishing control
Specific and complex needs
3rd party consultants
Strategic / tactical alliances
Resources
Internal ( Unisys ) Challenges
Tools & processes for outsourcing
Selling Complex Services: BPO and ITO
Outsourcing - Traps
• Sole Source – Good news or not?
• Client not well prepared
• Longer & more difficult than expected sales cycle
• Our work get used against us
• No customer compelling event
• Sales & Delivery
• Balancing selling with delivery
• Proposal / Engagement team continuity
•
•
•
•
Under estimating / avoiding HR issues
Poorly defined / incomplete scope
Unrealistic / incomplete contract
The belief that “any big deal is a good deal”
Selling Complex Services: BPO and ITO
Industry Led Model - Collaborative Leads
• Industry Led
• Build the relationship with the Client
• Spot the need and build the initial Client opportunity
• Bring in the skills and talents of Unisys Business units to develop
the total solution
• Manage the high level customer relationship through the sales
cycle
• Outsourcing Led
• Once defined as an outsourcing opportunity, work as key team
member to coordinate the GO activities
• Bring outsourcing knowledge and operational depth personally
and through use of other GO resources; complimenting the
Industry domain knowledge
• A “One Unisys” face to the client at all times!
Selling Complex Services: BPO and ITO
Coordination & Effectiveness
Sales Strategy Development
Market opportunity identification
Deliver sustainable operational
process excellence
Deliver Operational IT Excellence
Program multi functional Unisys team
Selling Complex Services: BPO and ITO
Sales Roles in an Industry Led Model
• Create
•
•
•
•
•
Relationship building skills
Domain knowledge of market
Market trend awareness
Business case skills
Broad based knowledge
• Sell
•
•
•
•
•
•
•
Client Knowledge
Domain knowledge of market
Sales process awareness
Relationship building skills
Business case preparation
Commercial skills
Closing skills
Capture
• Program Management
• Commercial / Negotiation skills
• Domain & operational knowledge of
business processes
• Due diligence capability
• Closing skills
Run
•
•
•
•
•
•
•
Domain knowledge of business processes
Service level management
Change program management
People management
Delivery focus ( on time, to specification)
Operational profit
Account Management / Client liaison
Selling Complex Services: BPO and ITO
Sales Approval Process
• Provides a structured approval process
consistent with TAS, Siebel, TeamMethod,
WINS, Joint GI / GO reviews.
• All opportunities have a minimum of three
approvals points:
• Qualification Approval (“suspect” into “prospect”)
• Proposal Approval (proposal sign-off)
• Deal Approval (BAFO or contract sign off)
Selling Complex Services: BPO and ITO
The Transition Plan
• Account team installation
• PMO establishment
• Facility preparation
• Personnel / staff transfer
• Task / work transfer
• Subcontract agreements
• Third party right-to-use
(RTU)
• SLA tracking
Contract Effective
Contract Taken
• Baseline information
• Detailed understanding of
client operations,
procedures, and policies
• Third-party contracts
development
• Statement of Work (SOW)
development
• Contract negotiation and
execution
• Employee communications
Migration
Transition
Due Diligence
• Processing
environments
• Assess implications of
financial alternatives
• New process design
• Facilities and
configurations
• Detailed migration
plans: hardware,
software and support
Selling Complex Services: BPO and ITO
E /Mar keting
R
C
E/
PS
e Mgr/Financial
r
u
Ana
t
lyst
ap
P
/So
lut
ion
s
s
po
ro
Bid
-C
Roles by Sales Phase
gr
M
on
i
t
i
ans
r
T
/
M gr
y
live r
e
D
c
/Sv e gal Co unsel
r
g
L
Ex
ec
LEVEL OF EFFORT
eam
al T
-M
Mg
r
c
Ac
Bid / No Bid
t.
LOI
Selling Complex Services: BPO and ITO
Contract Effective
Roles And Responsibilities
(Defined in Participant’s Guide)
•
•
•
•
•
•
•
•
•
•
Bid & Capture Manager
PSE/CRE
Financial Analyst
Solutions Architect
Proposal Manager
Due Diligence Manager
Legal Counsel
Account Executive/Manager
Service Delivery Manager
Transition Manager
Selling Complex Services: BPO and ITO
Human Resources
Management Process
Sales &
Implementation
Phase
Who’s
Involved?
HR Activity
Pre-Sales
Client
Develop People Strategy &
Make Risk Assessment
Due Diligence
Client/
Employees
Analyze Current Situation &
Propose Transition Strategy
Transition
Client/
Employees
Plan & Implement People
Transition (Hire/Orient/Train)
Employees
Provide Change Management &
Facilitate Team Building
Integration
Selling Complex Services: BPO and ITO
Outsourcing Intranet (Additional Resources)
http://iwww.unisys.com/go
Selling Complex Services: BPO and ITO
Practice Exercise Module 6:
Using the results obtained
from the Case Study and
Simulation, identify:
• Overall Approach
• Resources
…that will move the client from current
performance to desired performance.
Selling Complex Services: BPO and ITO
TAS Form
Target Account
Selling
Tactics
Prime
Tactics
Action
P rove your value
R etrieve missing information
I nsulate against competition
Resources Required
M
E
inimize your weaknesses
mphasize your strengths
Responsibility
Opportunity
Plan
Account
Sales Opportunity
Date
Team
(CONFIDENTIAL WHEN COMPLETE)
Target Marketing
Systems
Selling Complex Services: BPO and ITO
Timing
Selling Complex Services: BPO and ITO
Module 7: Value Tracking & Feedback
Unisys
Unisys Insurance
Services, Limited (UISL)
Neil Tointon,
Director of Business Relationships, Abbey Life
Part of Unisys Insurance Services, Ltd. (UISL)
Selling Complex Services: BPO and ITO
Module 7: Value Tracking Success
Objectives:
1. Identify the key performance
indicators that provide the
opportunity to communicate
success to the client executive
community
2. Monitor the on-going
performance of the services
engagement and recommend
areas to adjust
Selling Complex Services: BPO and ITO
Life Cycle of Business Change
solution
phase:
Conceptualize
goals
Goals
objectives
Objectives
desired
Desired
performance
Performance
level
Assessment
Requirements
Level
Design
gap
current:
People
Processes
Infrastructure
Resources
current
performance
level
evaluate
& adjust
LOI
Due Diligence
SOW
Contract
implement
& change
Selling Complex Services: BPO and ITO
Business Impact to Track
New [current] State
Business
Result
Strategic
Direction
Image
“Before State”
Financial
Goals and
Requirements
Business
Pressures
Selling Complex Services: BPO and ITO
Value Tracking & Feedback Tools
• Customer Loyalty &
Improvement Process (CLIP)
• Customer Value Index (CVI)
• Benchmarking
Selling Complex Services: BPO and ITO
Practice Exercise Module 7:
For the case study
and simulation
account, list the
areas to measure
success.
Selling Complex Services: BPO and ITO
Wall Charts
&
Backup
Material
Speed to Business Results
Driving
Change
Barriers or
Enablers?
Path without
understanding
the gap
Business Processes
Payment, Policy Admin, Claims, etc.
Business Drivers
People
Market Trends
Processes
Competition
Infrastructure
Technology Trends
Our Core
Competency is
understanding
the gap
Transformation:
Assess, Design,
Model, Build
Mod 2
Mod 3
Mod 6
Infrastructure Layer
Resources
Manage
Steady
State
Application
Layer
Siebel, Ariba,
SAP,
PeopleSoft,
e-Business,
Internet
Access,
Custom
Application
Change
SPOC
PMO
Systems Mgmt
Security Mgmt
Network Mgmt.
Asset Mgmt
Goal:
Image
Financial
Strategic
Business
Pressure
Infrastructure
Maintenance
IMAC
Provisioning
Mod 4 & 5
Selling Complex Services: BPO and ITO
Mod 2
Selling Cycle
Unisys Benefit
•Build Trust
•Influence RFP
•Shorten sales cycle
•Less Competition
Sell high end / low entry services
18 Month Time Frame
Customer Benefit
•Risk Mitigation
•Cost Avoidance
•Shorten time to
desired result
Selling Complex Services: BPO and ITO
“C” Level Trust & Credibility
T
R
U
S
T
V
A
L
U
E
Feelings
Ideas
&
Judgments
Fact’s &
Gossip
Rituals & Clichés
Selling Complex Services: BPO and ITO
R
I
S
K
Credibility & Trust
High
Collaborative
Friends & Therapists
Understands my
Business
Interdependent
Demonstrated
Problem Solver
Trusted Advisor
Intent for long term
Trust
Accountable
Techno Babble
Extra pair of Hands
Sell Stuff
Technical Expert
Tell
Take briefcase for a
ride through your
territory
Low
Credibility
High
Selling Complex Services: BPO and ITO
Mapping the Sales Cycle to the Business Cycle
Research
Business
- Drivers
- Goals
- Financials
- Potential
Compelling
event
Build Unisys
Reference
Story
Matching
Above
Identify
Call
Strategy
Services
Contracts
Close Full IMS
Tech Practice
Walk Through
ITS
PMO
- approach to
service
- overall
solution
Health /
Data M&D
SD
Tech Plan
SPOC
Managed
Deploy
Dispatch Services
Provisions
Asset Tracking
Executive
Calls
Presales
1 – Achieve
Accomplish
2 – Barriers and
enablers
- People
- Processes
- Infrastructure
- Resources
4 – Conceptualize
the future
Present value to
“C” level
- recommended
paths
Convergence
5 – Next Steps
Obtain
appointments
Selling Complex Services: BPO and ITO
Security M&M
Executive Calls
• Business Research
• Drivers
• Goals
• Compelling Events
• Build Unisys Story
• References Based on business results, not solutions
• Calling Strategy
• Obtain appointments
• Conduct calls
• Call breakdown
• Achieve / accomplish – validate research (7-10 minutes)
• Barriers (5-7 min)
• Gap / Pain (3-5 min)
• Conceptualize the future (3-5 min)
• Next Steps
Selling Complex Services: BPO and ITO
Strategies (TAS)
Solution
3 to 1
Reputation
Market view
Alter rules
Buying criteria
Frontal
Flanking
Acknowledge & Capabilities
Expand
Niche
Fragment
Peaceful
Coexists
Pick and stick
until
Segment something significant
changes
Partner
Selling Complex Services: BPO and ITO