Building the Foundation
for Solutions Success in Europe
6 October 2005—Technology companies
face many challenges in making the transition from selling discrete
products and services to offering integrated solutions. These challenges,
often shared by companies across the board and around the world, include
re-educating the sales force, rethinking customer communications, and
defining appropriate metrics. European companies (or divisions), however,
frequently grapple with several additional, European-specific challenges
to solutions success, including:
Taking worldwide
solutions to market in the countries across Europe
Developing
solutions "outside-in," starting
from industry and/or geographic market requirements rather than company
capabilities
Aligning marketing,
sales, business, and partners to close and deliver on local solutions
opportunities
First, European marketers
are tasked with bringing a global portfolio of repeatable offers to
market. But the level of buyer sophistication varies from country to
country, and awareness of each local culture is therefore key. At a
recent marketing roundtable ITSMA held in Germany, most participants
indicated that they had developed a solutions council or equivalent
group to make investment and localisation decisions. BearingPoint,
for example, uses its solutions council to set the strategic direction
for solutions activity, prioritise investment decisions, manage operational
issues, and resolve any delivery or customer issues.
Although there is
still debate about how best to structure this type of council, in Europe
there's a preference for industry verticals to take the lead in attempting
to find some commonality across geographic boundaries. Within this
overall portfolio management issue, the question arises as to where
offer development should take placein the field versus centrally or
globally. On this topic there is a consensus that the best one-off
solutions are inevitably developed in the field with specific clients
in specific verticals and geographies.
If
there is one accelerator for solutions growth that is guaranteed
to help across Europe, it's hiring local experts from the industry
vertical you are targetingthat way you have the insight into both
the customer's culture and business in which you need to take a more "outside-in" approach to
solutions. BT, like many other companies, does this by hiring experts
from within specific customers' industriescaring less about the
experts' understanding of technology than their knowledge of industry
dynamics. The company then leverages this expertise by conducting detailed
situation reviews to identify the emerging issues within an industry,
drilling down to see how these issues impact individual customer accounts.
Another
critical issue for marketing solutions across Europe is alignment
among marketing, sales, and the business leaders. Regional or global
marketers may propose solutions campaigns, but ultimately it is the
business and sales leaders within a specific country who prioritise
where they invest their time for the best local results. The partner
ecosystem can also play a very important role in solutions selling
in Europe. This whole area is relatively underdeveloped in most companies
today, but it will receive more attention in the near future, with
dashboards being constructed for the countries and sets of customers
the partners want to jointly target. Capgemini is a great example
of a company designing and delivering solutions with partners. Using
its "collaborative business experience" positioning
to guide its thinking, the company partnered with Intel, Cisco, and
Microsoft to design and take what they termed "extended retail
solutions" to market, letting the company with the best relationships
with each target customer take the lead in selling the new solution.
Solutions companies
in Europe face some unique challenges in developing and marketing their
solutions, but most are navigating the difficulties quite well, and
much exciting progress is being made!
ITSMA would like
to thank Dagmar Fischer of Hewlett-Packard for her support in organising
and hosting the European solutions roundtable.
About ITSMA
ITSMA specializes in helping companies market and sell services and solutions more effectively. As a membership organization, we provide research, consulting, and training to the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.