How to win SAP as a new client and how to build a strategic account relationship with SAP

1. How to win SAP as a new client
and how to build a strategic
account relationship
Aristoteles Kabarganos
Managing Partner
Ariston Group
Enterprise in Limit: 305318297
www.aristongroup.de
Date range: 01/01/09 - 08/31/09 Thursday, August 13, 2009 12:41:14
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1 UNIVERSAL
7/25/2012

2. SAP at a Glance (1)
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2
7/25/2012

3. SAP at a Glance (2)
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3
7/25/2012

4. SAP at a Glance (3)
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4
7/25/2012

5. SAP at a Glance (4)
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7/25/2012

6. SAP at a Glance (4)
Conclusion:
Everything is going tremendously well!!!
BUT
Is it really going that well???
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7/25/2012

7. SAP looking behind the curtain (1)
• In 2009 sw sales plunged for the first time since 1992
• Absence of breakthrough innovation
• New products fell short of expectations
• According to Bloomberg ERP produced 72% of software sales in
2010
• Acquisitions had high costs but returned limited revenues yet
• Ongoing customer complaints (Support & Maintenance costs,
relicensing, etc.)
• The core ERP product hasn‘t been modernized
• Missed some big trends and market traction (SaaS, CRM, Cloud,
HCM, etc.)
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7
7/25/2012

8. SAP looking behind the curtain (2)
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8
7/25/2012

9. How to win SAP as a new customer (1)
Cross-sell und Up-sell
Business
Transformation
Business
Enhancement
Efficiency
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9
7/25/2012

10. How to win SAP as a new customer (2)
From solution selling to consultative selling (aka value
selling, challenger selling, insight selling)
Business
Consultative Transformation
Selling
• Role: Value Creator/Consultant
• Focus: Understanding business value Business
Solution from the customer’s point of view
Selling Enhancement
• How to Win: Create and communicate
and demonstrate a differentiated
• Role: Problem solver offering that delivers new value
• Focus: Product/service based features • Challenge the status quo
• How to Win: Discover needs and match with Efficiency
better features and benefits + Trust
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10
7/25/2012

11. Building a strategic account model for SAP
• Win-loose
• Loose-win
• Win-win Strategic intent of seller Integrated
Interdependent
Cooperative
Basic
Exploratory
Strategic intent of buyer
Goal: Deepen & enhance the relationship in order to increase mutual value
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12. Building a strategic account model for SAP (2)
• Transactional: focus on efficiency
• Price driven
• Probably multi-sourcing
• Easy to exit
• Single point of contact
• Business relationship only
• Little information sharing
• Reactive rather than proactive
• Probably low common interests
• Organization suits selling company
• Small chance of growing business
• Can be stable state or trial stage
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13. Building a strategic account model for SAP (3)
• Selling company adds value to relationship
• Based on experience of delivery performance
• May be preferred supplier
• Exit not particularly difficult
• Multi-function contacts
• Relationship still mainly with buyer
• Organisation mainly standard
• Limited visits to customer
• Limited information sharing
• Forecasting rather than joint strategic planning
• Not yet trusted by customer
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14. Building a strategic account model for SAP (4)
• Both acknowledge importance to each other
• Principal or sole supplier
• Exit more difficult
• Large number of multifunctional contacts
• Developing social relationships
• High volume of dialogue
• Streamlined processes
• High level of information exchange,
• Better understanding of customer
• Development of trust
• Pro-active rather than reactive
• Prepared to invest in relationship
• Wider range of joint activity
• Joint strategic planning,
• Opportunity to grow business
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15. Some generic account strategies for SAP
Interdependent KAM Supplier’s business
strength with customer
Integrated KAM
Exploratory KAM Invest
Invest in Joint in tailoring product
High information
Basic KAM Invest in
Attractiveness
systems and building relationships
Customer
focus teams
Cooperative KAM Invest in
improving processes
Invest in
Vigilance devolved Basic KAM
Low and relationships
Interdepend. KAM motivation Co-operative KAM
Maintenance &
Co-operative KAM Consistency
Stage of KAM relationship
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16. How to develop a strategic account plan for SAP ?
Understand the customer’s Understand the customer’s
external environment internal capabilities & resources
Work out the customer’s strategies and
its critical success factors for us
Understand our internal
capabilities & resources
Work out our objectives &
strategies, plus key actions
Agree a process to produce
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a strategic customer plan
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17. The contents of a strategic account plan for SAP
• Purpose statement
• Financial summary
• KA overview
• Client’s CSF analysis summary
• Applications portfolio summary
• Assumptions
• Objectives and strategies
• Budget
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