1. Market Forces ↑ ↓ Industry Consolidation Macroeconomic
Microsoft Dynamics
Market Forces
Industry Consolidation
Merger and acquisition activity
Expand geographic reach, expand customer base and entering new lines of business and primary M&A drivers
Macroeconomic
Macro level economic shifts.
Rapid industrialization of 3rd world
Cost of energy increasing
Cost of labour increasing
Unpredictable commodity prices
Mining & Construction sectors fluctuating
Automotive sector rebounding
Fracking , Oil & Gas industries strong
Emerging Economies : Brazil, Russia, India and China still growing
Public sector infr. projects flat
Renewable energy projects (solar, wind) drive demand
Competitive Behavior
Changes in competitor behaviour/new entrants.
BRICs producing lower cost machines
(no regulatory constraints, lower energy prices, lower labor costs, China & Mexico)
High labor content cost advantages ↑
New Prod. Development
New Equipment Sales
Labor Costs ↓
Differentiation
Warranty Periods
Field Service Contracts
Cost of Sale
Profitability
Capital investments
Automation Investments
New Services Offerings
Technology Investments
Penalties
Skills Training
Receivables
Customer Demand/Behavior Shifts
Changes in Customer Behavior
Personalization & Customization - customer driven configurations & packages (product + service offerings)
Demand for improved service
Asset management (EAM) and flexible
Manufacturing are also forecast to drive factory-enterprise integration, significant potential for automation and customized service solutions in industrial applications.
To effectively facilitate the Closing Whiteboard it is important that sales professionals position their recommended solutions as strategic, not purely operational, to the business.
For an IT solution to be viewed as strategic it must address a business challenge that originates in one of six industry driver/market forces buckets, which are changes in the economy, regulatory requirements, competitive behavior or customer behavior and/or is resulting from the commoditization of their offering or consolidation in the industry.
Most ERP initiatives are a downstream by-product of a major shift or change in one of the above. The goal is to identify what that alignment is through the selling cycle and then use it to open the Closing Whiteboard session.
Regulatory
Anticipated or legislated changes
EPA Wastewater treatment
OSHA/Dept. of Labor – increasing workplace safety regulations
Clean Air Solvents and Lubricants
Focus on Explosion Proof Compliance
Product/Service Commoditization
Inability to differentiate based
on product or service offering.
Extremely difficult to differentiate
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2. Whiteboard Facilitation (IEM)
Microsoft Dynamics
Whiteboard Facilitation (IEM)
Industry Driver
Impacts
Macroeconomic:
US emerging from recession
Growth in heavy industry
Increasing energy costs
Higher labour costs
Regulatory:
EPA:
Clean air/CO2 emissions
Green landfill
Green Lubricants
OSHA & Dept. of Labor
Competitive
Lower prices
Commoditization of non-specialized products
Customer
Consumer driven product configurations (personalization)
Increasing demand for improved service
Increasing Dealer expectations
Slight increase in demand from a number of industry sectors; mining, oil and gas and construction.
Opportunity to capitalize on growing demand
Increasing regulatory oversight over environmental and employee safety.
Cost of labor increasing
Re-engineering of machinery and manufacturing processes required to achieve green compliance (manufacturing and field service)
look and perform equally). Price disadvantage (emerging nations produce lower cost machinery due to lower labor costs, lower energy costs and limited regulatory oversight.
Product parity (machines
Requirement to develop new offerings (service/warranty) Field Service Contracts Differentiate via warranties & spare Parts packages (add-ons)
Each of the four primary industry drivers (economy, regulatory, competition/customers) and market forces (commoditization and consolidation) typically have 3-5 meaningful elements in play at any given time that will materially impact the prospect.
The impact metrics will include both traditional operating metrics (EBITDA/profitability, revenue, margins, as well as softer metrics like customer loyalty, customer satisfaction and cost of sales (which are seldom measured).
For clarity, the industry drivers and market forces are always external pressures that the prospect cannot control. The impacts are where those forces show up in their business.
Price driven decision making.
Customers want to configure their own “solutions” or products.
Customers want Packages- product and services solutions
Dealers demanding self service tools
New product development investments required
Dealer management increasingly important
Services costs increasing