Management magazine search

Loading

Thursday, January 10, 2013

A Portfolio Approach to Sales - Harvard Business Review

A Portfolio Approach to Sales - Harvard Business Review: "A Portfolio Approach to Sales"


What do sales reps at some of today’s biggest B2B vendors have in common with Fuller Brush men of yore? They both have relied on the foot-in-the-door approach to sales: Establish the relationship by leveraging price and performance advantages over competitors, then expand the business by methodically migrating from one adjacent sales opportunity to the next. That approach may still work if you’re selling home care products door-to-door in the suburbs, but it’s inefficient—and often ineffective—when your customers are located in big enterprises and your goal is to become a long-term strategic partner and solutions provider.
Among the major challenges vendors now face is that the skills needed to sell, say, replacement printers to a large customer’s IT organization are very different from those required to get buy-in from a customer’s senior managers on a long-term strategic alliance. So how can vendors anticipate and meet enterprise customers’ diverse needs? First and foremost, they should enter accounts at several management and administrative levels with resources that are tailored to each sales opportunity. By matching capabilities to specific opportunities and providing carefully considered support, vendors can optimize their return on their sales efforts.
The companies that do this best, we’ve found, are those that take a portfolio approach to managing sales. In 2000, we described in a Harvard Business School case study how Hewlett-Packard reorganized its sales functions around defined sales opportunity portfolios. Since then, we have studied variants of this practice at dozens of companies in industries ranging from financial services to pharmaceuticals. Teams using portfolio tools have new-business growth rates that are on average three times those of their peers.
The portfolio approach divides potential sales opportunities into four categories—repurchase, replacement, expansion, and innovation—and then supports sales reps in ways that maximize their performance for each type of sale. The skill sets required to manage each type of opportunity may overlap, but they are substantially different. Therefore, vendors can benefit by reorganizing their sales forces and redefining the roles of reps to best service the portfolio customers represent. This means giving salespeople more autonomy and allowing them to function more like account managers.
Repurchase occurs when customers buy more of a product from a given vendor. To win repurchase orders, a rep needs to remain front and center in customers’ minds, have their full confidence, anticipate their needs, and be there when those needs arise (an absent rep invites competitors to steal away business). The rep must also, of course, be able to meet customers’ specifications for features, delivery, and price.
Because ongoing service typically adds great value to product purchases, it is usually the vendor’s service organization, rather than the sales rep, that is critical in securing repurchases. Yet firms rarely leverage service to support sales. As a result, sales reps waste time and effort juggling service-oriented tasks related to their customers’ previous purchases when they should be nurturing the relationship and selling.
In addition to increasing the service organization’s overall involvement in selling efforts, a shrewd vendor will establish a dedicated in-house sales support team to serve as the contact point for customers in repurchase relationships. This group keeps abreast of customers’ repurchasing needs by performing such tasks as responding to requests for quotations (RFQ) and customer inquiries on pending RFQs. It also heads off rejections by defending quotes that might marginally deviate from customers’ specified needs and monitors customers’ future purchase requirements to help sales reps forecast demand. These support activities free reps to focus on higher-level sales efforts that can help secure repurchases.
Replacement occurs when customers with repurchase opportunities substitute a new vendor for an existing one. To successfully seize replacement opportunities, vendors need to be good at monitoring competitors’ sales activities at both the customer and the market levels. Vendors that keep close watch on rivals are best positioned to replace them when they slip up in product or service performance. Several companies we studied support their sales reps in this arena by assigning competitive intelligence groups within their market research function to track industry trends, competitors’ product and services failures, and impending product or technology changes that could benefit or harm the vendor.
Expansion occurs when a vendor identifies and fulfills customer needs that are not currently being serviced. Expansion opportunities demand that reps develop a more strategic view of both the customer’s business and their own.
A common way companies support sales in expansion efforts is by creating business development organizations. These cross-functional groups, which may include people from marketing, R&D, and finance, generate detailed expansion project proposals that reps can utilize to engage product users and managers in the customer company. Freed from much of the distracting proposal development work, reps can focus on building the trust in their own firm’s technical and project management skills that is essential to securing expansion accounts. This also allows reps to devote more energy to influencing customers’ specifications and budgets.
Innovation occurs when vendors engage with existing customers to identify needs they didn’t realize they had—and (often jointly) develop new solutions. These opportunities are almost always supported by senior executives in the customer company, are little influenced by mid-level managers there, and usually require a sizable budget.
Gaining access to customers’ top executives isn’t easy, but it is essential in developing innovation possibilities. Often, those executives expect to meet with their counterparts in the vendor firm to discuss long-term vision and strategy. One company we studied was a telecom vendor whose software could spot potentially catastrophic service problems before failures occurred. The vendor initially created a dedicated sales force to build relationships with mid-level executives in prospective accounts and used these to sell up. Though the team made progress, the sales message was slow to climb through the customers’ hierarchy, and it took 22 months to make the first major ($110 million) sale.
Then the sales team tried a new strategy: It identified the customers whose business was most vulnerable to a service failure and therefore could benefit most from the vendor’s software. The team then used existing mid-level contacts in the business to arrange a meeting between the CEOs of both firms. About 30 minutes into the meeting, the customer CEO asked his management team to evaluate the financial impact of a service failure and determine a timeline and costs for implementing the vendor’s solution. A few weeks later, the vendor made the sale; over time, it became a trusted ally in the customer’s business development strategy.
Vendors that manage innovation opportunities well, we’ve found, explicitly empower sales reps to serve as emissaries between senior management at their own companies and at customer firms, fostering the formation of strategic partnerships.
Companies that free their sales reps to manage opportunities, rather than simply sell products, will find not only that they can steal business from competitors but also that they can create new business their competitors hadn’t even conceived of.

Tuesday, January 1, 2013

Entre2003- Identifying Your Next Big Opportunity - HBS Working Knowledge

Entre2003- Identifying Your Next Big Opportunity - HBS Working Knowledge: "Identifying Your Next Big Opportunity"


How do you identify a big opportunity, go after it, and execute it? Those big questions were debated by entrepreneurs and venture capitalists.

Nothing like the words "the big opportunity" get a group of entrepreneurs and venture capitalists salivating. Or debating.
The nature and dynamics of TBO were the subjects of a discussion at the Entrepreneurship Conference 2003, held at Harvard Business School on April 5.
For VC Ullas Naik, managing director in JAFCO Ventures' Boston office, the very term big opportunity is heading entrepreneurs down the wrong road.
"I don't think entrepreneurs should be looking around for the next big idea," said Naik. Instead, they should be looking for projects that are within their areas of expertise, that incite a passion backed by pragmatism, that have customers, and that have the right market timing.
Firdaus Bhathene, founder and CEO of Relicore, which offers IT support software, agreed there is no use going after a big opportunity unless you can deliver on it, he said. When considering any opportunity the entrepreneur should ask a series of questions including: What are my strengths? Who are my early adopters? What are the barriers to customers buying the product? Can we deliver before a bigger competitor arrives in the market?
Knowledge not needed
Do entrepreneurs necessarily need serious domain knowledge to pursue TBO? Although several panelists said expertise is a must, venture capitalist David Flaschen was of the contrary opinion. Flaschen, managing director of Flagship Ventures, said most Nobel Prize winners win the award for work not in their original field of study. He told the story of one of his entrepreneurs who, while sitting in rush-hour traffic, came up with the idea of a delivery service that delivers the goods at night. With less traffic at night, drivers can make more deliveries. That idea is on the path to raising some $50 million from investors.
I'll be blunt; don't go to venture capitalists right now.
— Firdaus Bhathene,
Relicore
Sundar Subramaniam, Chairman of Cell Exchange, said the big opportunity might come unexpectedly. Today, some 70 percent of his revenue in business consulting and mobile technology comes from the homeland security market, a business that hardly existed before September 11, 2001. The company changed its focus as the new possibilities became apparent. "Your architecture has to be flexible," Subramaniam said.
All the panelists agreed that student entrepreneurs should take advantage of this time in their life to throw caution to the wind. Taking risks becomes harder as you grow older, raise a family, and approach retirement, said Flaschen.
"Now is the time to take the big risks," he said, adding that he was disappointed hearing so many students talking about going to work for Microsoft.
But panelists also noted this is an extremely difficult time for young entrepreneurs to get funding for their big opportunity. Venture capitalists are very risk-averse now and are not very likely to take a chance on an entrepreneur without a track record.
"I'll be blunt; don't go to venture capitalists right now" for funding, said Bhathene. Instead, tap into relatives, friends, and other angel investors for the absolute minimum funds you need.
Networking for dollars
If you must go after VCs, find the top five investors who invest in your area and network your way into interviews, perhaps through the entrepreneurs that the VC has funded in the past.
An audience member asked what his communications company should do during the economic downturn, which is sapping away business and morale. Flaschen said the company should consider downsizing—"You always need less people than you think you do"—and consider retooling into a smaller company with a new focus.
No matter what size the opportunity, said moderator Shoba Purushothaman, founder and CEO of The NewsMarket, be prepared with a plan and filled with passion, which can overcome all kinds of obstacles.
"You have to be totally passionate, and surround yourself with people that share that passion," she said.

Tuesday, December 18, 2012

Email, social marketing, mobile apps, segmentation and targeting

Marketing Land: Studies: As Mobile Email Usage Soars, Marketers Budget More For Email, Mobile And Social. http://goo.gl/mag/8gnoc8J

More people are accessing email through mobile so email marketing is pnce again getting important.

Internet news takeover tv news

paidContent: Internet may soon beat TV as main source of national news. http://goo.gl/mag/xcfrJVw

Internet news will soon take over internet news so internet availability become an important issue. Free highway internet is important.

Thursday, November 15, 2012

The Function Mixer: Bypassing MyDownZone and similar sites

The Function Mixer: Bypassing MyDownZone and similar sites: "Bypassing MyDownZone and similar sites"

Just before reading the rest of the post, you should that many of the warez apps which use MyDownZone and other similar sites to store the password of file X are just fake apps, scam, etc... They aren't malware, but only a way to some bastards to earn money each time someone fills one of the surveys.

Anyway, if you want still to get the password without completing the survey, follow this steps:
I will use http://mydownzone.com/pwbk.html as example.

1. Enter the website with Google Chrome. If you want to use Firefox, make sure Firebug plugin is installed.
2. Right click in the center of the page and select "Inspect element".
3. Expand the HTML code until you find the JavaScript function showHidden()
Copy the packed part of that function, that is:
    eval(function(p,a,c,k,e,r){e=function(c){return ...
    ...
    ... split('|'),0,{}));

4. Enter the website Try It Editor: http://www.w3schools.com/html/tryit.asp?filename=tryhtml_basic
and paste the copied code in the following way:
   
   


5. Press "Edit and Click Me »" and copy the website URL which appears at the right side:
In this example, the website is: http://www.satellitetvonyourpcblog.com/app/4/pindex.html
6. Enter that website. You will see "Process is successfully completed!". Then, press "Continue" and you will be redirected to another site (in the sample case: http://www.satellitetvonyourpcblog.com/app/4/ghjdftzrtvnsdxfnjgdcdbdhgj.html).

There you will find the password. :-)

Tuesday, November 13, 2012

Apkudo's Antidote To Android Anxiety | Dr Dobb's

Apkudo's Antidote To Android Anxiety | Dr Dobb's: "Apkudo's Antidote To Android Anxiety"


Android application development specialist Apkudo has been vocal of late with regard to its online application test platform. The company's developer proposition rests on providing a place for programmers to see their apps run on every available Android device, thereby reducing what Apkudo calls launch anxiety.
"Apkudo lets developers run their apps on every Android device on the market. Period," said Josh Matthews, Apkudo CEO and cofounder. "Improving user experience on devices consumers actually buy and own benefits the whole Android ecosystem, from developers to OEMs to operators to end-users."
Apkudo points out that the openness of Android has fuelled its rapid growth but that it can also promote platform fragmentation, which is the bane of Android developers, device manufacturers, mobile operators, and end-users alike. When Android implementations diverge in look-and-feel, behavior, APIs, and other aspects, developers can find their apps working on some Android phones and tablets but not on others. With hundreds of Android-based devices on the market, app testing is daunting and risk of consumer rejection is high.
"Apkudo finesses fragmentation by testing on every available Android device. Developers upload APKs (Android Packages) for testing and view streamed video output of applications running on the actual Android device collection," said Apkudo's Matthews. Developers also receive test reports detailing execution and performance results across the whole Akpudo portfolio. When new devices are released and integrated into Apkudo, apps are automatically retested and updated results pushed out to subscribing developers.
Apkudo is free to Android application developers. The Apkudo team is working in "lean startup mode" to evolve and mature Apkudo capabilities to match developer needs and eventually the requirements of the larger Android ecosystem — mobile enterprise developers, ISVs, device OEMs, mobile operators, and beyond.
"The Apkudo vision for a better user experience builds on developer feedback and gleaning insight from exercising apps on Android hardware," noted Benno Leslie, Apkudo president and director of Products. "Lean startup methods and data analytics give Apkudo a clear edge over device clouds that just rent device access by the minute."