We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byJayce Fowles
Modified about 1 year ago
Buyer – Seller Needs Assessment (BSNA) A structured process for identifying the unmet and unidentified needs of the buyer Reduces the time to acquire the knowledge of buyer needs by a factor 2-4X Increases the accuracy of the market needs by 45%-65% Providing the product marketing team with the knowledge of the root cause of the buyer’s problems 1 Predictive Insights Driving Prescriptive Actions For Peak Performance & Beyond 1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Average offering performance leaves ample room for improvement 2 According to a NPD Best Practices Study, on average only 59% of new offers are successful NorthPoint research indicates, the average new offer only achieves % of its Revenue Plan Where does your organization rank? If more toward “Average”, what would 16% more successful offers and ~40% increase in revenue per offer do for your top and bottom line? 1. Barczak, G., Griffin, A., Kahn, K.; (2003) PERSPECTIVE: Trends and Drivers of Success in NPD Practices: Results of the 2003 PDMA Best Practices Study. Journal of Product Innovation Management 26(1):3-23 (January).
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Inadequate understanding of the Buyers/Customer needs is perhaps the most significant cause for this level of performance 3 Market Sizing/ Revenue Forecast Market sizing without in-depth Buyer interviews are at best 41.5% to 56.4% accurate Assuming that all buyers in a market have the same propensity to buy Understanding Buyer/ Customer Needs Seller’s personal bias represents the #1 cause of offering failure Basing needs solely on current customer requests, not buyers unmet needs No repeatable process to accurately and effectively identify the unmet and unidentified needs of buyers Failure to understand what buyers will pay to satisfy their needs Failure to validate understanding with Buyers Underestimating the competitive response Purchase Factors Buyers buy the most Value Propositions at the lowest Risk Risk consumes between 61% and 76% of the buyer’s decision cycle. Offerings on average miss from 4-7 important value propositions of the 22 possible Process Manual processes for offering management miss 44% to 63% of the most important steps related to identifying the Value and Risk Manual processes for offering and product management add 5-11 months to the Time to Market - 85% of the time No defined metrics to follow the progress of TTM (Time to Market), TTP (Time to Profitability), TTCS (Time to Total Customer Satisfaction) Sales Factors If Value Propositions score > 85%, then pricing criteria is ranked from 5 th -7 th Not including the sales force assessment of the offering. Not delivering sales training based upon knowledge obtained from buyers Not measuring & managing Brand for this offer; (Brand score below 85% increases the Sales Cycle) Poor Offer Performance
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved “Best-in-Class” offers focus the largest portion of their non-development efforts on Buyer Needs Assessment Source: NorthPoint Research Based on 94 assessments accuracy Is -5.6% to +6.7% “Best-in-Class” Companies are more externally focused and use better tools to achieve better revenue results Stronger external Needs Assessment focus… yields better results Internal focus yields inadequate understanding of Buyers’ Needs… resulting in poor revenue performance! 4
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved With the risk to new market offerings at 65% or greater, how can organizations reduce the risk of an offering not meeting expectations? Understanding the unmet and unidentified needs of potential customers through the use of the Buyer Seller Needs Assessment (BSNA) process & tool BSNA provides the following Imperatives required for Peak Performance 1.The severity of their problem / opportunity as well as the root cause of the problem 2.The probability that the problem / opportunity will create important performance issues for the enterprise 3.The options in the mind of the buyer to solve the problem / opportunity 4.The management teams commitment to resolve the problem / opportunity 5.The budget to solve this problem / opportunity 6.The unmet needs of the buyer and their constituency 7.Identify new concepts of previously unidentified needs with the buyer 8.What the right solution must do and not do 9.What are the risks to a given solution in the mind of the buyer 10.What % of the targeted buyers are real buyers at this time (A forecast without this is always in error) 11.Feedback to the solution development team as to the buyers messages about the solution 5
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved BSNA - Buyer Seller Needs Assessment There is a special process required to execute BSNA as Buyers and Sellers have needs to solve PCS (Problem, Cause and Solution) 6 Buyer needs a solution to a problem or opportunitySeller needs to understand the buyers needs Buyer needs to provide the message as to the importance of the problem or opportunity Seller needs to understand the “Root Cause” of the problem Buyer needs to provide the effect of this problem or opportunity on their enterprise Seller needs to identify a solution that mitigates the effect of this problem or opportunity Buyer needs to identify what is the probability of the problem occurring Seller needs to understand what triggers the probability Buyer needs to explain what are the alternate solutionsSeller understands if the alternate solutions are in serious competition with the proposed solution Buyer needs to identify the unmet needsSeller has to understand the unmet needs Buyer needs to identify the concern of Risk and Value achievement Seller needs to be solid on the largest number of value propositions at the lowest risk to the Buyer Buyer needs to listen to the message of the seller on unidentified needs Seller needs to understand the buyers business and provide unidentified needs BSNA enables new concepts and offerings to be tested in the market with very high degrees of accuracy
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved NorthPoint's BSNA process and software tool enables adoption of “Best- in-Class” Marketing methods NorthPoint’s BSNA process provides analytics and a repeatable methodology facilitating the shortest cycle time to identify and priority rank risks to the success of an offer in the marketplace. The process and software enables: A more externally focused process, facilitating a more informative and valuable exchange with prospective buyers Identifies at risk areas and opportunities for improved performance Helps to formulate corrective actions Provides objective metrics that enable management to make timely, informed decisions. Results in: Analytics based insight into market needs Tighter alignment of needs, offer capabilities, and market messages Lower development cost, higher revenue and better market advantage 7
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved BSNA process identifies the unmet needs with market validation 8 Adapt BSNA Interview Statements Macro / Micro Trends Market Data Research Discovery Focus on: Value Propositions Opportunity/problem Customer/Buyer Interviews: Statement based interview Discover opportunities/ Value focus Interviewer scores Adapt BSNA Interview Statements Consolidate Consolidate discussions and scores into “opportunity/problem hypothesis” Focus on: Opportunity /problem validation Value Propositions Customer/Buyer Interviews: Validate the opportunity / problem: understanding, scope, importance, internal solution, value drivers Opportunity / Problem Validation Consolidate Consolidate opportunity /problem understanding and develop “Solution Hypothesis” Adapt BSNA Interview Statements Focus on: Solution Problem, Cause Solution Solution Exploration Buyer Education Consolidate Consolidate Problem, Cause, Solution understanding Customer/Buyer Interviews: Validate causes and solution direction Customer/Buyer Interviews: Unidentified needs require education
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 1- Potential buyer interviews Executive Interviews Adapt assessment to identify the unmet and unidentified needs of potential buyers of the offering Seller’s Agents conduct interviews with their potential buyers to understand: Seller’s understanding of problem / opportunity Unmet needs of the buyer Unidentified needs of the buyer (anticipate the need before the need arises) The buyers potential solution to address the problem Root cause of the problem Problem recognition throughout the enterprise Enterprise commitment to resolve the problem The ROI on resolving the problem Internal decision making process Impact on operations performance Budget commitment to resolve the issue The enterprise view of what is the “Best in Class” solution Results benchmarked to “Best-in-Class” within NorthPoint database Accurate – every statement is weighted in terms of importance to success Provides prescriptive and predictive value 9
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Generate Results And Benchmarks Generate results and benchmarks (1-2 days) Performance metrics generated (baseline performance index) for: Seriousness Index of the problem / opportunity - How serious are the unmet and unidentified needs where there is not a committed solution in place and the commitment to resolve them Offering Opportunity – What needs to be in the proposed solution that resolves the issue or takes advantage of the opportunity at no risk to the achievement of the value Importance of the Implementation of a New Solution - The solution requires a resolution of the “root cause” of the issues to be resolved Market Penetration Opportunity and Validation of the Offering–What are the barriers and what is the resolution and message required for maximum market penetration. The assessment calculates a score and performance % for each of the major categories assessed. The score provides an accurate indication of performance. 10
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Generate results & benchmark (continued) Generate Results & Benchmark (Continued) 11 Performance - identifies an offering’s baseline score and benchmarks against “Best-in- Class” using NorthPoint’s comparable data. The software evaluates the potential customer’s needs and the marketing team’s knowledge, experience and performance.
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Generate results and benchmarks (continued) Generate results and benchmarks (1-2 days- continued) For each of the major areas assessed (component level-Fundamental Business Activity scoring) there is a detailed statement with the Team’s score of the related the Steps, Tasks and Processes. Team scoring of the Steps, Tasks and Processes is the input to the Performance Score The lowest Performance Scores may indicate areas with the most significant ROI’s for improvements Team score Step, Task, Process 1.50Intellectual Property represents,55%, 60%, 70%, 80%, 90%> of the value of ADC’s problem strategy. 0.50There is a clear understanding of the financial value to the ADC enterprise currently related to its IP. 2.00There is a clear understanding of the financial impact of ADC’s current IP if there were a performance issue related to its identification and management. 0.50There is a clear understanding of the financial value of the opportunities current IP. 0.50There are specific programs that identify, measure and are implemented that identified new opportunities to add to the future value of ADC’s IP opportunities. 1.50The objectives and the plan of each of the effected organizations in ADC that could provide new and important IP value have been identified and are totally aligned with ADC’s strategy. 12
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 2- Generate results and benchmarks (continued) Generate results and benchmarks (1-2 days- continued) Leaders are identified to address the areas of low performance. The Steps, Tasks and Processes in conjunction with the notes recorded in the software from the facilitated session (scoring of the statements) provides the knowledge required to commission the teams. Process identifies how to provide the intelligence to design a solution while protecting the IP. The product identifies the unmet and unidentified needs of the industry The offering is developed on a PCS ( Problem, Cause and Solution) architecture. The process is sensitive and designed to leverage IP as part of the PCS ( Problem, Cause and Solution) architecture The identification of the unmet needs and any unidentified needs is built into the proposed solution that provides the value or the IP Team score Step, Task, Process 1.50Intellectual Property represents,55%, 60%, 70%, 80%, 90%> of the value of ADC’s problem strategy. 0.50There is a clear understanding of the financial value to the ADC enterprise currently related to its IP. 2.00There is a clear understanding of the financial impact of ADC’s current IP if there were a performance issue related to its identification and management. 0.50There is a clear understanding of the financial value of the opportunities current IP. 0.50There are specific programs that identify, measure and are implemented that identified new opportunities to add to the future value of ADC’s IP opportunities. 1.50The objectives and the plan of each of the effected organizations in ADC that could provide new and important IP value have been identified and are totally aligned with ADC’s strategy. The solution is based on the unmet and unidentified needs of target qualified buyers and their constituencies in the target markets 13
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Step 3- Management Deliverable Management Deliverable The management deliverable will provide answers to these questions and many others: What is the depth, breath and impact on the enterprise of the subject / issue or opportunity being discussed? Do the buyers / customers really understand the root cause of the problem / opportunity? What are the messages to the offering team that must be implemented in any solution ? Is there an enterprise wide commitment to solve the problem? Is there a desire or need for outside resources? What new capability is most important to solve? Is the solution proposed / provided acceptable in term of the buyers 3 risks: Risk -1 of achieving the total value Risk – 2 appropriate skills available to accept solution and convert into economic value Risk - 3 the budget and resources to implement the solution 14 Comparison to “Best-in-Class” enables accurate predictive and prescriptive assessments: If the GAP of Value and Risk exceeds 20% between the buyer and the seller, the seller loses between 5% and 6% of the market for each point.
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Systematic use of BSNA leads to achieving revenue goals 15 BSNA Unmet Needs Unidentified Needs Structured / Analytical means to interact with buyers / customers Repeatable / Complete Easy to implement Accelerates receipt of new insights Identification of: Unmet Needs, Required Capabilities, Market Messages Lower Development Costs Shorter Time to Market Market Advantage Competitive Advantage Price / Value Advantage Higher Profit Margin Increased Revenue Shorter Sales Cycle Lower Cost of Sales Increased Cash Flow Increased Gross Margin Reduced Cost Structure Improved TTM (Time to Market) Validation of New Markets Improved Service After Sale Facilitates Resulting in Yielding Produces
1992 – 2015 Confidential to The NorthPoint Group © Boston – Charlotte – Cleveland – Naples - NYC All Rights Reserved Value of using this process Identifies how well the buyers actually understand the problem and its root cause Reduces the time to acquire the knowledge of buyer needs by a factor 2-4X Increases the accuracy of the market needs by 45%-65% Eliminates personal bias not aligned with the buyers needs Improves the knowledge of the buyers understanding of the problems associated with the unmet needs by 55% - 65%. Identifies what the seller must be able to provide that solves the buyers problem Provides an understanding of the importance of each of the unmet needs Identification of the severity of the unmet needs and the enterprise management commitment to solve the problem Provides an understanding of the alternative solutions that are in serious competition with the proposed solution Provides an understanding of the concern of risk and the potential value achievement by the buyer Identifies what the products / services should include to maximize return on solution investment Identifies the current and remaining risk that may exist in the enterprise and what are the current mitigation strategies Reduces the risks to performance in the targeted areas by 56% Compares product or concept offering to “Best-in-Class” 16
MFG Assessment Application: Assessment Criteria and Metrics 1 Performance assessment criteria and metrics may be used as the basis for determining the.
MGMT14 marketing U U … mnm institute … makes sense.
Project Management Dr. Anbang Qi Prof. of International Business School of Nankai University.
E-Sourcing Today A Perspective on the Role and Scope of e- Sourcing and the State of the e-Sourcing Marketplace.
Learning Objectives 5.1 Define customer service and identify the managers role in customer service. 5.2 Describe the importance of each of the key components.
What is Trade Promotions? Created August 5, 2004.
Dr. Chen, Electronic Commerce Pearson/Prentice Hall & Dr. Chen, Electronic Commerce Chapter 14 E-Commerce Strategy and Global EC.
UNIT-l Conceptual foundation of Business Process reengineering 1.
Berling Associates, Inc. 1 T.E.A.M. EFFORT A Primer on Process Management (A View From The Improvements Team Perspective)
Learning Objectives 6.1 Explain the importance of mission, vision, and value statement and how they set the foundation for the planning process. 6.2 Describe.
Quality Management and Measurement Multimedia Slides by: Gail A. Mestas, MAcc, New Mexico State University Chapter 11.
So You Want to Use the Baldrige Criteria? Prepared for TNCPE Customers by Dan Jordan 2009/2010 Criteria.
Summers: Quality Management, 2 nd. ed.© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Quality Management Measures of Organizational.
1 Implementation of Application Portfolio Management Overview July 2006.
Competence is the demonstrated ability to apply knowledge and/or skills and, where relevant, personal attributes. A certification scheme contains.
Objective Performance Appraisal has two objectives To help those appraised develop and improve their performance in future To help the organization evaluate.
E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 2: Strategic E-Marketing © Prentice Hall 2003.
Research Methodology Chapter 1. Definition of Research Search for facts – answer to questions and solutions to problems. It is a purposive and organized.
Sales Order Cycle Review Report Insert Date. Source: 2 Table of Contents Executive Summary 3 Objective, Scope & Procedures Performed4.
©2009 Profiles International, Inc. All rights reserved. Expert Insights Seven Factors for Building Extreme Customer Loyalty.
© John Beveridge CobiT Update NSAA IT Conference Richmond, VA John W. Beveridge September 27, 2007.
1 Systems Engineering A Way of Thinking A Way of Doing Business Enabling Organized Transition from Need to Product August 1997 Systems Engineering Technical.
Operating your collaboration Why would you use it?How does it work? Operating a collaboration, collaborative governance or federation is challenging. Schools.
Knowledge in implementing/managing the IS/IT project CASE-The Brose Group Implements Page
Chapter 8 Order Management and Customer Service Learning Objectives After reading this chapter, you should be able to do the following: Understand the.
Purchasing and Supply Chain Management by W.C. Benton Chapter Two Purchasing Decisions And Business Strategy McGraw-Hill/IrwinCopyright © 2010 The McGraw-Hill.
Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations PowerPoint.
Competency Approach to Human Resource Management.
Business Intelligence Solutions for the Retail Industry Syscon Infotech Pvt.Ltd. # 250,5B – Sanjay Building, Mittal Industrial Estate Marol Naka, Andheri.
Software Development QA Best Practices May 20, 2010 Suzette Hackl, CSM Senior Project Manager Skyline Technologies, Inc.
© 2016 SlidePlayer.com Inc. All rights reserved.