July 1, 2009 – 5:38 pm by Dinesh G
Managing IT beyond operational benefits can create significant value and can go a long way in building a competitive advantage. However, this requires a differentiated approach that many companies find difficult to execute. Some companies with a long-term vision that aligns IT with their strategic business direction have achieved significant results and created a hard-to-replicate competitive advantage.
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May 29, 2009 – 1:18 pm by Jason Shamas
During these difficult economic times, companies are facing the challenge of balancing two competing goals: minimizing costs while encouraging revenue growth. Nowhere is this challenge more apparent than within a company’s sales organization. It is responsible for of maximizing revenue in an environment in which customers are aggressively reducing expenditures and delaying buying decisions. However, the sales organization is expected to do so with fewer resources, given that companies often cut SG&A expenses during economic downturns.
One approach for balancing these competing goals is to consider adjusting different levers that make up an overall sales strategy. This article examines how companies can adjust their sales coverage models to better manage the impact of the economic downturn. It focuses on five elements of the sales coverage model: Go-To-Market (GTM) Models, Account Coverage, Use of Overlays, Product and Customer Mix, and Operational Support.
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Posted in Sales and Channel Operations | Permalink | 1 Comment » |
April 30, 2009 – 3:21 pm by Jhanvi Vyas
The global economy has taken a dramatic turn for the worse. With limited credit availability in the market and operational performance under pressure, many businesses are seeking to optimize performance on their balance sheets. Having an effective, focused, and operationally sound sales planning cycle is critical for any company to reduce its working capital requirement and remain profitable while focusing on the right opportunity, products and markets.
This article discusses the three main components of the sales planning cycle – strategy development, operational planning and implementation. The proposed framework allows companies to conduct sales planning in a structured manner.
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March 30, 2009 – 11:50 am by Cindy Lo
In today’s economic downturn, many high tech companies face the challenge of sustaining or improving their sales growth rates despite suboptimal margins and profitability erosion in such a complex business environment. The inability to strategically manage a closed-loop pricing process (Figure 1) is also a major concern for these organizations, especially when current policies and analytics systems lack accessibility, scalability, and technical capabilities. Overcoming these challenges in order to effectively price and discount products and services is critical in order to minimize revenue and margin leakage.
This article will discuss why strategic pricing and profitability management is important to companies, and the types of investment returns gained from improvement opportunities such as pricing optimization software. A large part of the successful implementation of this software is not only putting the technology in place, but also assessing the degree of change management required throughout the organization and proactively managing executive sponsorship, stakeholder engagement, communications and user training.
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February 26, 2009 – 4:55 pm by Namrita Singh
If revenues and profits are the lifeblood of a business, then sales forecasts are the leading indicator of a business’s financial health. Faced with the pressures of today’s weakening economy, keeping a check on the financial health of a business is essential for planning ahead and preparing the company to best deal with unknown cliffs and craters.
Given the complexity and size of today’s organizations, sales forecasting is no longer an isolated exercise. Rather, it must be integrated into all facets of an organization to produce a business that runs more efficiently; thus saving money, increasing profitability and serving its customers better. Quality people, accurate data, current systems, relevant policies, and streamlined processes can support reliable sales forecasting, but it is a wasteful activity if it is not incorporated by management into the very core of decision making for all key business functions:
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January 11, 2009 – 3:26 pm by Uday Chaka
In a challenging economic climate like the one we are in, many semiconductor companies facing demand declines and rising capital costs are increasingly resorting to across-the-board cuts to survive the downturn. Leading semiconductor companies, on the other hand, are preparing for the upturn by making strategic investments to move up the value chain.
Consumers have always demanded high tech products that are smaller, lighter and cheaper. Consumer electronics giants and their component suppliers have been catering to this demand by developing new technologies and subsystems that are smaller and more compact. System in a Package (SiP) or Multi-Chip Module (MCM) is an innovation in the semiconductor industry to create portable ‘plug-and-play’ systems that combine multiple functions or expand the functionality of a single chip to form a smaller and cheaper subsystem in a consumer electronics product.
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December 10, 2008 – 12:00 pm by Bryan Green
As the pressures of an economic recession mount, high tech companies’ heavy investments in growth begin to take on greater risk with fewer dependable rewards. Organic growth declines, both within direct sales and partners, and the cash needed to expand into new markets either directly or through acquisition is held at a premium. The dampened revenue estimates require that companies look inward rather than outward to meet their profitability standards. Therefore, the focus naturally turns to cost reduction and cost avoidance. Managers primarily focus on three main areas: 1) Centralization & Sharing Services; 2) Utilization of Cheaper Alternatives; and 3) Optimization of Resource Alignment.
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November 26, 2008 – 2:13 pm by Anthony DeLuca
Globalization, market maturation, new customer segments and increased competition are forcing high tech companies to expand into new markets. Often, these evolving market expansions demand innovative go-to-market strategies that compel channel management teams to develop new operational competencies. High tech companies have utilized the Original Equipment Manufacturer (OEM) model to respond to expansion pressures, however, this model involves a significant departure from core route-to-market approaches. In particular, optimizing the OEM sales coverage model becomes critical, not only so that a company’s sales organization continues to deliver robust sales, but also to retain the benefits of solid execution in three key operational areas: timely sales crediting, accurate revenue recognition, and visibility to the ultimate end customer.
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October 27, 2008 – 9:31 am by Trey Pruitt
In the current economic environment, businesses are undertaking initiatives to drive major cost-cutting measures. These include cutting internal waste, reducing headcount, off-shoring non-core activities, and selling / discontinuing unprofitable areas of the business. However, while cost-cutting measures are underway the real question still remains – how do I continue to grow in a recessionary environment? What strategic decisions or investments do I need to make for the future of the business? Many businesses struggle to make informed decisions that will drive their overall economic success, especially during slow growth periods.
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September 3, 2008 – 11:35 am by Gurdeep Rai
Traditionally, high tech companies have been selling to large OEMs and distributors; but in pursuit of top line growth, companies are marketing and selling to end consumers directly and through retailers. High tech companies are also attempting to increase their market share globally in emerging markets. With this change in customer mix, there is a widening gap in the end customer’s service expectations, which need to be addressed across a company’s service value chain.
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