Solutions: Beyond the Buzzword

Pity the poor buzzword “solutions.” Some would argue that it has so many meanings that it has none at all. For most companies, it is a swap-out word for a product or service—the idea being that a solution sounds more valuable than a plain old product or service.

If you’ve hung around with ITSMA for a few years, you know that we take the word way more seriously than that. We think of a solution as a combination of products and/or services along with a special sauce of IP that makes it unique and fitted to the particular business need of a customer.

We haven’t given up on solutions, because we have a group of 23 different companies that we call the ITSMA Solutions Council—and they haven’t given up on it. They are actually fulfilling the promise of solutions from the customer perspective.

This is not to say that a solutions strategy is an easy path to take. It means a longer sales cycle; it means knowing the customer inside out; and it requires unprecedented levels of cooperation both inside the organization and with external partners supplying pieces of the solution. Yet at our most recent meeting of the Solutions Council this month in London, we may have made a breakthrough in terms of managing some of the complexity.

Integration Is the Key

ITSMA research shows that a critical competence in solutions is integration—the ability to integrate products, services, people, and external providers together into a solution that meets the specific needs of customers. But the interesting thing we’re learning is that the level of integration varies quite a bit. Not all solutions require a mind meld with customers and two-year consulting engagements. Some may only need a tiny bit of customization to fulfill the need.

For this reason, the level of organizational integration necessary to back up a solution can vary quite a bit—even for solutions offered inside the same company or even at the business unit level. For example, within a telecom group of one of the Solutions Council organizations, solutions drive a close integration of multiple, independent P&Ls. The strategy is driven by the buying behavior of telecom customers, who increasingly come from the business side rather than IT. They demand an integrated solution—a billing system, for example—rather than tolerating being sold individual pieces of software or hardware. Thus, the general manager for the telecom group has a large number of people dedicated to solutions and can draw on resources from other business units to deliver components optimized for that industry.

Meanwhile, in other areas of the organization, solutions are at the opposite end of the spectrum. The primary component of the solution is marketing—a small group of marketers backs the solution with a campaign. There is very little customization or integration necessary, so fewer employees are devoted to supporting the solution. Indeed, the organization has the market-leading software in the category and a team of consultants that can optimize the processes that the software controls. The solution consists of marketing those capabilities together so that the consultants can then customize them for each customer.

Switch the DNA

So you can see there is a big range of possibilities. However, there is one major constant across all solutions: the need to switch the organizational DNA from transactional selling (Here’s what we got; do you want it or not?) to relationship-based selling (What are your biggest business challenges and how can we help you solve them?). You can’t sell a solution if you can’t figure out what customers need. This is a huge challenge. It requires a new level of integration and cooperation between marketing and sales. It also means big changes in the sales force in terms of training (and perhaps new staff).

The key issue is to decide what level of integration (and its attendant organizational disruption) you need—or have the stomach for. We’re working on a model that defines the different levels of organizational integration needed to support various types of solutions. We’re trying to define each stage of integration along the following parameters:

• Executive role
• Organizational structure
• Metrics
• Employee skills
• Governance
• Incremental customer value
• Internal/external supplier ecosystem

Like to learn more? Contact me at ckoch@itsma.com.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.