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Enhance Your Sales and Marketing Dialogue – Best Practice 2: Quantify & Demonstrate Your Value

In earlier blogs, we’ve established that IT is equipped to speak the business side about their goals. We’ve also explained why linking your products and services to business goals is so important. Now let’s turn to value and why you must quantify the value.  As businesses articulate their desired business outcomes, it is increasingly important that there is a dollar figure associated with those outcomes. If not, why would an organization invest in certain products or services? It’s your job to quantify that value.

Digital transformation today has three touchstones:

  1. One: increasing agility. Doing things faster than your competition should lead to increased revenue. Automation, which is one of the elements of increasing agility, may also lower operating costs as well.
  2. Two: customer experience. And by customer, we mean anyone using an application to do work, to make buying decisions, to purchase, or to get information. Essentially, the application becomes the driver of business transformation, in that it generates new business and creates differentiating customer experiences. When it comes to customer experiences, we all must be consumer-focused. Think about customers like ourselves – we want to products and services designed specifically for us and we want to enjoy purchasing and using them. Think of your customers in the same way.
  3. And three: CEOs always talk about innovation – they praise the idea of doing new things, or doing familiar things better. Pursuing innovation requires using digital transformation to create new business models. These new models should enable organizations to move up and down the supply chain, offer different products, transition from a product sell to an as-a-services sell.

Put a Price on Performance

In effect, companies must pursue all the different kinds of initiatives that create new revenue sources and new business models. The new models enabled by digital transformation can deliver better business outcomes which in turn drive business performance – results that can be demonstrated when they are quantified. This is how your company proves its value. Show how – by adopting your solution – your customer can increase speed to market, say by 48%, which could deliver $1 million in additional revenue. This is just the kind of compelling statement that quantifies the value of your solution.

By the way, don’t forget to build an ROI case as well. Business people make decisions based on return on investment. Business buyers understand the need for investment; they understand that their obligation to the owners of the business is to show a return. That’s why it’s so important to quantify in dollars what improving business outcomes is going to do for the business. And by putting together the whole picture, you can help your customer understand that investing in your solution is going to deliver a return.

Randy Perry

Vice President, Business Value Strategy Practice

Mr. Perry developed and has led IDC's Business Value Strategy practice for over twenty years. As IDC's thought leader in promoting the financial benefits of IT, he has pioneered Return-on-Investment and cost of ownership methodologies and Business Value sales tools development and sales training, completing more than 500 studies over the past 10 years. He is currently working on multiple projects linking IT initiatives (cloud, mobility, BDA, social and IoT) to improving business outcomes such as increasing agility, improving customer experience and becoming more innovative; and quantifying the financial impact in terms of business metrics (revenue growth and lower operational costs).

Mr. Perry has more than 30 years of experience in strategic planning and consulting. He has spoken at industry seminars and has been published in North America, Latin America, Europe and Asia Pacific.

Prior to joining IDC, Mr. Perry was a senior consultant for JSA International, a strategic marketing and management consulting firm where he managed new technologies market consulting and mergers and acquisition projects.

Mr. Perry holds a B.S. in engineering from West Point.

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Nancy Selig

Vice President, Interactive Platforms Services

Nancy Selig is the Research Vice President of IDC’s Interactive Platforms Services, a team of experts in the design and development of lead generation and sales enablement web-based tools. Nancy is responsible for managing custom research engagements involving clients’ transformations to both digital marketing and sales enablement.

Previously, Nancy was Research Director with IDC's Business Value Strategy Practice, a team of ROI and business value experts. Nancy's research was focused on the financial impact of technology on organizations. Consulting engagements, managed by Nancy helped clients provide financial justification for their products and solutions across a wide spectrum of technology areas.

Background

Nancy has over 20 years of experience in the high-tech industry helping organizations grow their businesses through innovation.

Prior to joining IDC, Nancy was Vice President, Operations of a privately-owned retail/wholesale business. Previously, Nancy worked at Texas Instruments and Digital Equipment Corporation in product management, marketing, and sales.

Education/Industry Accomplishments

  • B.S. in Engineering from the University of Vermont
  • M.B.A. from Clark University
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