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息 SPUTNIK-3 Customer Centric Systems Confidential
The Economics of Selling
Complex Solutions
息 SPUTNIK-3 Customer Centric Systems Confidential
The Economics of Selling
Complex Solutions
Presented by Paul Mulder
Sputnik-3: Executive
paul@sputnik-3.com
mrpaulmulder
息 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 Whats in it for the customer
o Deliver the business case
息 SPUTNIK-3 Customer Centric Systems Confidential
息 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.
息 SPUTNIK-3 Customer Centric Systems Confidential
息 SPUTNIK-3 Customer Centric Systems Confidential
Business
Insight
and
Stakelholders
息 SPUTNIK-3 Customer Centric Systems Confidential
Model the Cause & Effect
 Understand the root cause
 How do we achieve the desired benefits?
 What activities must change?
息 SPUTNIK-3 Customer Centric Systems Confidential
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
息 SPUTNIK-3 Customer Centric Systems Confidential
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
息 SPUTNIK-3 Customer Centric Systems Confidential
Assess the Risks
 Categorise
 Business, functional, cost & financial
measures
 Weight risk factors
 Magnitude of loss in currency
 Overall threat = Weight x Magnitude
Risk Definition
A 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.
息 SPUTNIK-3 Customer Centric Systems Confidential
Calculate Shareholder Value
 Time value of money (NPV)
 Internal Rate of Return
 Return on Investment
 Payback Period
 Economic value add
 Earnings per share
息 SPUTNIK-3 Customer Centric Systems Confidential
Resources
Web: www.sputnik-3.co.za
Email: info@sputnik-3.co.za
TEL: +27 12 661 2142
Blog
 Part 1: Bono - Great Leaders Achieve Results
Download
 Free Download: Why SMB should use a proven sales methodology
 Free Download: The Account Planning Process
Offerings
 The Economic Justification Workshop
 Opportunity Manager
 Deal EVOLUTION
 Sales Process EVOLUTION
Ad

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Sputnik-3 The Economics of Selling

  • 1. 息 SPUTNIK-3 Customer Centric Systems Confidential The Economics of Selling Complex Solutions
  • 2. 息 SPUTNIK-3 Customer Centric Systems Confidential The Economics of Selling Complex Solutions Presented by Paul Mulder Sputnik-3: Executive paul@sputnik-3.com mrpaulmulder
  • 3. 息 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 Whats in it for the customer o Deliver the business case
  • 4. 息 SPUTNIK-3 Customer Centric Systems Confidential
  • 5. 息 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.
  • 6. 息 SPUTNIK-3 Customer Centric Systems Confidential
  • 7. 息 SPUTNIK-3 Customer Centric Systems Confidential Business Insight and Stakelholders
  • 8. 息 SPUTNIK-3 Customer Centric Systems Confidential Model the Cause & Effect Understand the root cause How do we achieve the desired benefits? What activities must change?
  • 9. 息 SPUTNIK-3 Customer Centric Systems Confidential 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
  • 10. 息 SPUTNIK-3 Customer Centric Systems Confidential 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
  • 11. 息 SPUTNIK-3 Customer Centric Systems Confidential Assess the Risks Categorise Business, functional, cost & financial measures Weight risk factors Magnitude of loss in currency Overall threat = Weight x Magnitude Risk Definition A 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.
  • 12. 息 SPUTNIK-3 Customer Centric Systems Confidential Calculate Shareholder Value Time value of money (NPV) Internal Rate of Return Return on Investment Payback Period Economic value add Earnings per share
  • 13. 息 SPUTNIK-3 Customer Centric Systems Confidential Resources Web: www.sputnik-3.co.za Email: info@sputnik-3.co.za TEL: +27 12 661 2142 Blog Part 1: Bono - Great Leaders Achieve Results Download Free Download: Why SMB should use a proven sales methodology Free Download: The Account Planning Process Offerings The Economic Justification Workshop Opportunity Manager Deal EVOLUTION Sales Process EVOLUTION