Cloud Leadership Symposium

Dynamics Industry Summit

March, 2016

Mark Stuyt

About Mark:

Founder – Chief Engagement Officer

25 year sales professional (CA, Pivotal CRM, PeopleSoft,

SAP)

Advisor to Microsoft & Tier 1 & 2 Microsoft AX/NAV/CRM

Partners: Europe, North America, Asia

Creator: Microsoft Accelerated Selling Methodology

Creator: Microsoft Industry Acceleration Content

Mark’s contact info:

LinkedIn

(604) 617-8522

Website

4 Leadership & 8 Industry Sales & marketing workshops delivered to over

450 partner personnel

55 Industry Acceleration Workshops delivered in 1:1 sessions with partners

75 Partners in Program today: FR, UK, GER, WE (SWE, FIN, AUS, CH, SP, BL,

NL, NO, DK, IT), MEA

20/50/80

The Cloud Buyer Profile

Reimagining Customer Acquisition

Marketing as a Strategic Imperative

Tribal/Industry Engagement

Selling in the Cloud

Cloud Services Impacts

Valuation Drivers & Business Model Impacts

What Will You Learn?

The Cloud Buyer

High implementation costs

Lack of interoperability

Extraordinary complexity

Frustrated business leaders

High cost of ownership

High switching costs

Poor end-user adoption

Hard-to-measure business results

Buyer 2.0Self Educating

Wants to be in Control

External Validation

Accelerated Time-to-

Value

Fear Consciousness

Industry Orientation

Will find you before you

find them!

Our average attention span

has dropped to 8 seconds,

one second less than a

goldfish.

HISTORICAL PROOFRESEARCH

What’s IN:

The Business Buyer

Selling into OpEx Budgets

Business Content

Vertical Focus

Selling Results/Outcomes

Fixed Price Contracts

Business Processes

Social Media Expertise

Prescriptive Consulting

What’s OUT:

The IT Buyer

Selling into CapEx budgets

Technical Expertise

Geographic Coverage

Selling Features

Time & Materials

Features & Functionality

Social Graces

Solution Selling

Economic• Demand has shifted to favor vertically-specific solutions

• IP becoming both a strategic differentiator and economic necessity

Marketing:• Moving from tactical necessity to strategic growth engine

• Prospects will find you before you find them: higher volume of lower value “leads”

Sales:• Sales engagement cycles contracting

• Solution Selling far less effective

• Increasingly difficult to differentiate on product

Services:• Traditional “services” business model under pressure

Redefining Customer Acquisition

HISTORICAL PROOFRESEARCH

Current Marketing Void

Primacy &

Recency

Premature

Cognitive

Commitment

Confirmation

Bias

Consistency

Principle

Profile Anchor Collaborate Confirm Commit

Emotional

Discovery

BDM

Whiteboard

BIA

Workshop

Solution

Demo

Proposal

Presentation

STP

Strategic

Tipping

Point STP

Bias

Creation

Few partners currently nurture their prospects.

In the past marketing created a lead (10%) handed it to sales for closure.

Outbound marketing (telemarketing, e-mail, events) no longer works

Triage has become strategic

to.

Get Found Convert PromoteNurture

Industry Focus

Thought Leadership

SEO, SEM, Social

Digital Engagement

Calls-to-Action

High Value Offers

Build Relevance

Remain in Conscience

CRM/Automation

Frictionless Sales

Hand-Off

Triage

Sales Engagement

Nurture Marketing

Lead

WHAT

The right content will engage the right personas

.

HOWWHY

Prospects will find you long before you find them

Two primary prospect types

Higher volume of lower value “leads”

Requirement for unbiased/3rd party content

Emotion based INDUSTRY messaging

Nurture has become a necessity

Executing The Industry Shift

350,000,000

40,000

10,000

151

A phenomenon characterized by the unconscious redirection of feelings from one person to another

Drives an unconscious affinity for people who are similar to you

A tribe, is a social group of humans connected by a shared

system of values and organized for mutual care, defense,

and survival beyond that which could be attained by a lone

individual or family.

Features

Requirement

IT

Team Workspaces

Compliance Reporting

Dashboards –

KPIs/Reporting

Jobsite Mobility

Mobile Time Capture

Web Services

BMI Integration

Records Management

Cloud

EDI

Subscription Licensing

Text

HOW

Function

Business Process

Management

Fin. Consolidation

Project Collaboration

Resource Planning

Project Management

Field Service

Budgeting & Forecasting

Time & Expense, Billing

Project Accounting

Scheduling

Billing

Estimating

Inventory Control

Talent Mgmt

Project Profitability

Subcontractor Mgmt

Equipment Mgmt.

Client/Opportunity Mgmt

Marketing Campaign

Mgmt

RFI/Bid/Proposal Mgmt.

Forecasting

HR/Payroll

Billing

Text/Video

WHY

(Trigger Event)

Metric

Business Challenge

Leadership

GrowthMerger or acquisition

Large or complex new project

Increase margins/profitability

FearLost a key customer

Lost a strategic bid

Signed a bad/high risk contract

Project overrun or missed milestone

Project write-off

Utilization <70%

Increase margins/profitability

RiskSystem Failure/obsolescence

Compliance penalty

Litigation

ControlPoor decision (due to bad data)

Change in leadership

Dialogue/Video

WHATMarket Forces &

Industry Drivers

Economic:All major private sectors

showing growth

Federally funded construction

down sharply

Recession flooded market with

independent contractors

Regulatory:Rapidly changing

building/zoning codes

Global “green/sustainable”

standardization

Impending demand based on

pending legislation

Competitive:M&A - larger, specialized

competitors

Aggressive discounting

New solution/service offerings

Predatory hiring practices

Customer:Risk resistant buyers (fixed fee

projects/penalties)

Price driven award criteria

Changing solution

requirements (green)

Increasing expectations

Impacts

Economic:Growing backlog

Larger projects

Resource scarcity

Increasing employee attrition

Increasing labor costs

Regulatory:Requirement for specialization

and training in new “green”

standards/building practices

Increase in compliance and

litigation risk

Capacity planning

Competitive:Increasing lost bids

Declining margins (BMR)

Increasing sales cost

Declining project profitability

Limited differentiation

Customer:Declining customer loyalty

Increased project risk

Declining project profitability

Increasing litigation, legal costs

& settlements

Increase in “rework”

Declining utilization

IP/Product

Development

Prioritization

Marketing

Messaging &

Assets

Sales

Engagement &

Assets

Behavioral Economics Summary

Buying Decisions Are Made Early

Emotions Drive Decisions

Tribal Member = Safety

Safety (Fear) > Greed

Why > (How + What)

Industry (Tribal) Selling

Logical

(Historical)

Differentiation

Product Advantage

Pricing Advantage

Geographical Advantage

People Advantage

Emotional

(Modern)

Differentiation

Industry/Vertical Content

Teaching Moment

Change Selection Criteria/Process

Executive Bias

Tribal Membership

Lower Risk Profile/Safety Perception

Profile Anchor Collaborate Confirm Commit

Emotional

Discovery

BDM

Whiteboard

BIA

Workshop

Solution

Demo

Proposal

Presentation

STP

Strategic

Tipping

Point STP

Progressive Disclosure

Visual Superiority Effect

Interactive

• Drives engagement - PowerPoints?

• Extends interaction time

• Differentiates

• Appeals to the buying brain

Customers are immune to solution selling techniques (pay people to keep us out)

Technology has out-paced the capabilities of the majority of today’s sales professional

Sales professionals need content and consulting skills - only 20-25% will transition

Industry (Tribal) Service

Services

$

$

$

$

$

$

Consult Design Implement Integrate Maintain Manage Adopt

Project

Services

Support

Services

Traditional Services Portfolio

Services

$

$

$

$

$

$

Consult Design Implement Integrate Maintain Manage Adopt

Project

Services

Disruptive

Services

Optimization

Services

Industry Services Portfolio

• Business Impact Assessment

• Leadership Workshop

• Business Process Review

• Technical Readiness Assessment

• Vision and Scope Definition

• Proof of Concept

• Business Case Expansion/Validation

• Business/Project Risk Assessment

• Cloud Readiness Assessment

Disruptive Services - Examples

Business Model Impacts

Total revenue levels?

Total revenue growth?

Recurring revenue levels?

Recurring revenue growth?

Profitability (EBITDA)?

Gross margins?

Recurring margin?

Others?

Recurring revenue growth?

Gross margins?

• Solution Analysis, Scope, &

Design

• Configuration

• Customization

• Installation

• Training

• Reactive Help Desk

Support

• Pro-active Solution

Maintenance

• Troubleshooting

• Mobile Device Connectivity

& Management

• Industry-specific

Functionality

• Function-specific

Workflows (e.g. HR,

Procurement)

• SharePoint-Based

Workflows

• Office Connectivity &

Other Plug-Ins & Add-ons

• External Portals for End

Customer Information

• Pre-Configured

Dashboards

• Dynamics Software

Differentiated

Competitive

Position

Undifferentiated

Market Pricing Premium

Relevant to

Needs of

Customer

Irrelevant to

The Experience Economy – Pine & Gilmore (2011)

Commodities

Extract

Goods

Manufacture

Services

Deliver

Experiences

Stage

Progression of Economic Value

$1.35

$14.99

$50

$150

$600

Differentiated

Competitive

Position

Undifferentiated

Market Pricing Premium

Relevant to

Needs of

Customer

Irrelevant to

The Experience Economy – Pine & Gilmore (2011)

Applications

Configure

Solutions

Implement

Business Services

Outsource

Transformation

Advise

Progression of Economic Value

Telephony

ERP (GP, NAV, AX)

CRM, Marketing Automation,

Social Media Leverage

Document Management &

Workflows (SharePoint)

Office 365, Intune,

Managed Services

BI, Dashboards, Data Services

Mobile Access

Business Process Consulting

Customer

CuratorAX

Industry

Partner

ISV

IP Extension

Potential ValuationTraditional Revenue

Business

Recurring Revenue

(Cloud) Business

Revenue Multiple 0.2-1.5x 2-6x

EBITDA Multiple 2-2.5x 5-14x

IDC Partner Valuation Study 2014

Is based on recurring revenue

Drives higher valuations, because of that recurring revenue (2-4x more)

Contains some form of Partner-generated IP

Requires successfully navigating the “cash flow trough”

Differentiation is anchored in “industry solution sets”

Moving Into Action….

What ‘landed’ today?