Characteristics of the process

Characteristics of the processSelection of Strategic accountsProcess & Resource allocationCompetence Advanced Research

RoleIssuesRole of the Strategic Account ManagerAMSupplierCustomer Sales person Product seller Interface Relationship? Team player? Administration Co-ordinator

Culture Management Support Communication Systems/Process Turf wars Authority workload/focus Credibility

Traditional Key Account Selling

Strategic Account ManagerCompetencesSource: A. Millman & K. Wilson, 2000Importance Ranking1 = Most Important10 = Less Important

Communication skills1Global Team leadership & Management2Business & Financial Knowledge3Relationship management skills4Strategic Vision & Planning5Problem Solving Capabilities6Cultural Empathy7Selling Skills8Industry & Market Knowledge9Customer Knowledge10

Strategic Account Manager:Competence ProfilePOLITICALENTREPRENEUR:

Influence power Take opportunitiesThe strategic account manager must have the capability to solve problems for the customer and realize entrepreneurial opportunities thru the coordination and application of personal, team and organizational competences, without having the full control over all resources.Source: D-P Gosselin, 2002

Impact of the context on CompetencesDegree of organisational Interdependence and IntegrationLevels of Organisational complexityHHLLP: Political E: EntrepreneurialStrategic Account ManagementKey Account ManagementKey Account SellingSource: SAMA, K. Wilson, 2000

PeRelational ManagerPEPotential CEO ?peSalespEEntrepreneur

Characteristics of the processSelection of Strategic accountsProcess & Resource allocationCompetence Advanced Research

Market Performance inStrategic Account ManagementPreliminary Research on Strategic Account Management at Ghent University, Department of Management and Organization (FEB) suggests a high probability that:Source: D.P. Gosselin, 2000(*) Growth in % Customer Market Share and % of Company Portfolio sold to the AccountThe market performance (*) of a supplier with a strategic customer is related to the PLC of the customer. This implies a process of dynamic allocation of resources: different relational behaviours at different times and the willingness to invest in specific and time related customers solutions using all available company competences.The market performance of a supplier is higher with strategic selected customers if the supplier adjust his offer and performance according to the PLC of the customers Decision Units.Market performance with strategic customers is higher if an explicit and recognized fit exists between the strategies of both the supplier and the customer.

CaseThe Telecom world

When did it all started ?

Four concurrent trendsshape(d) the Telecom Market?Today

DeregulationInternet BoomDemand for Broadband ContentNeed for differentiated OfferBundled ServicesMarket DriversMarket Inhibitors Infrastructure Legacy Financing shortage Cost of LicensesCritical Size20002004Main Market Trends - Customer View3G launch

Customers: before liberalisation

Customers: (soon) after liberalisation

A few trends ...There are now:more and more (potential) customers in a more competitive environment.more and more (potential) customers operating on a truly global scalemore and more (potential) Customers who are not tied anymore by national or regional boundariesAnd more and more financial difficulties

Just an example of leveraging global branding ... Vodafone now sponsor of Manchester United!

6 M fans in the UK30 M fans in the world !and + 100 M Customers !

Changing customer environment

One CountryOne Customer (PTT)

Today: 1 country Multiple Customers

former Matrix Focus: Product - Geographical Selling products within a countryProduct FocusCountry Focus

Customer Refocus : Key Account ManagementOffering solutions to customers

Key Account ManagementDedicated teams assigned to major accounts:Tier 1 accounts > 100 M Euro/yearTier 2 accounts > 10 M Euro/yearTier 3 accounts = Major opportunity, Key account plan existingPrime interface with customerPrime focus on customer satisfactionRepresents all of Alcatel in front of customer

The Key Account PlanApproval DocumentSales & Order Plan 20xx + 20xyCustomer Perspective & own Positioning

Status: March 5, 1999 Page *

Responsible: "Name"

Industry confidential

CustomerInvestment Trends

Reasons for change: .. ..

1)

example

Questions addressedHow does the customer spend his money?Which business lines show strong increase / decrease?What is the portion of services or other Telecom areas (outsourcing, IT, ..)?Do we address all types of business?What are the reasons for changes in spending?

GoalGive a clear picture of the spending of the customer in terms of its business lines.Explain trends.Develop a clear reason for changes.

Orders

Key Account Order Plan 1999

Date:Account Name:

Customer1999 BudgetYTD

Business Divisions/Product LinesSpendOrdersAlcatelOrdersOrders

(in ME)(in ME)Share(in ME)(%)

SWITCHING SYSTEMS

L00101E10 Fixed Applications201050.0%330.0%

L00102S12 Fixed Applications201050.0%330.0%

L00106TMN (partially)201050.0%330.0%

L00107Platforms201050.0%330.0%

L00108Other SSD201050.0%330.0%

L00109OAS003

L00110BBXx10330.0%

L00111DSC - EMX Fixed Appli.x10330.0%

L00112DSC EMX Motorola NSSx10330.0%

L00113GMH 2000 NSSx10330.0%

L00114CDMA NSSx10330.0%

L00115GSM/DCS NSS201050.0%330.0%

L00116HLR NSS201050.0%330.0%

L00117UMTS NSS201050.0%330.0%

L00118GPRS NSS2000.0%

L00119SATCOM NSS2000.0%

L00301Access Nodes2000.0%

L00302Leased Lines2000.0%

L00303Subscriber Line Equipment2000.0%

L00306L.L. / B.A. 1540 Family (MSAN)00

L00307A.N. 1540 Family (MSAN)00

L00311Litespan00

L00312Other DSC Products00

L01403Carrier Data (excluding US)00

L01401HSS00

Subtotal - SSD26013050.0%4232.3%

RADIO COMMUNICATIONS0

L00509GMH 2000 BSS2000.0%00.0%

L00513GSM/DCS BSS20000.0%00.0%

L00514UMTS BSS2000.0%00.0%

L00304Wireless Access2000.0%00.0%

L00310Microwave Low Capacity2000.0%00.0%

Subtotal - RCD28000.0%00.0%

NETWORK APPLICATIONS0

TAS0

L01301Rail Transport2000.0%00.0%

L01302Mass Transit2000.0%00.0%

L01303Road and Fare collection2000.0%00.0%

L01304Integrated Rail Communications2000.0%00.0%

Tess/IN0

L001700TeSS2000.0%00.0%

L00105IN201050.0%00.0%

Subtotal - NAD120108.3%00.0%

TRANSMISSION SYSTEMS0

L00201PDH (including services)201050.0%440.0%

L00202SDH ADM2000.0%00.0%

L00203SDH Line Systems201050.0%440.0%

L00204SDH Cross Connect2000.0%00.0%

L00205SDH Network Management2000.0%00.0%

L00206SDH Services2000.0%00.0%

L00207SONET Lightwave2000.0%00.0%

L00208SONET Cross-Connect2000.0%00.0%

L00209SONET Network Management2000.0%00.0%

L00210SONET Services2000.0%00.0%

L00211Video/Audio Codec Products and Services2000.0%00.0%

L00212Other TSD2000.0%00.0%

L00213Optical networks2000.0%00.0%

L00214Microwave High Capacity2000.0%00.0%

Subtotal - TSD280207.1%840.0%

INTERNET ACCESS0

L00308Internet Access2000.0%00.0%

L00305Hybrid Fiber Coax2000.0%00.0%

L01104Packet Engine2000.0%00.0%

L00600Xylan (excluding Corporate Data)201050.0%660.0%

L00601Assured Access201050.0%770.0%

Subtotal - IAD1002020.0%1365.0%

SND201050.0%330.0%

SPACE0

L00801Space Industries2000.0%00.0%

L00802Operations and Services2000.0%00.0%

L00803Earth Station2000.0%00.0%

Subtotal - SPD6000.0%00.0%

ENTERPRISE SOLUTIONS0

L01402Enterprise incl. Applications2000.0%00.0%

L01406Corporate Data2000.0%00.0%

L001407Xylan (Corporate data)201050.0%880.0%

Subtotal - ESD601016.7%880.0%

PROFESSIONAL AND CONSUMER0

L01501Mobile Phones2000.0%00.0%

L01504Internet Terminals2000.0%00.0%

L01502Residential Phones2000.0%00.0%

L01503Professional Systems201050.0%990.0%

Subtotal - PCD801012.5%990.0%

SERVICE AND DISTRIBUTION0

L01601Customer Operation201050.0%440.0%

L01602Customer Support, including Teleservices, Training and Year 2000201050.0%550.0%

L01606Other SDD201050.0%660.0%

Subtotal - SDD603050.0%1550.0%

NETWORK SERVICES0

L0XXXXNetwork Design (ex-Alco activities)2000.0%00.0%

L0XXXXNetwork Design Operator Support2000.0%00.0%

Subtotal - NSD4000.0%00.0%

OTHER CUSTOMER SPEND0

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

Subtotal - Other spend10000.0%00.0%

0

TOTAL146024016.4%9840.8%

&R&"Arial,Gras"&9&UPage&U:&"Arial,Normal"&P/&N

Sales

Key Account Sales Plan 1999

Date:Account Name:


Business Divisions/Product LinesSpendSalesAlcatelSalesSales


SWITCHING SYSTEMS



L00106TMN (partially)201050.0%330.0%

L00107Platforms201050.0%330.0%

L00108Other SSD201050.0%330.0%

L00109OAS201050.0%330.0%

L00110BBX201050.0%330.0%

L00111DSC - EMX Fixed Appli.201050.0%330.0%

L00112DSC EMX Motorola NSS201050.0%330.0%

L00113GMH 2000 NSS201050.0%330.0%

L00114CDMA NSS201050.0%330.0%

L00115GSM/DCS NSS201050.0%330.0%

L00116HLR NSS201050.0%330.0%

L00117UMTS NSS201050.0%330.0%

L00118GPRS NSS201050.0%330.0%

L00119SATCOM NSS201050.0%330.0%

L00301Access Nodes201050.0%330.0%

L00302Leased Lines201050.0%330.0%

L00303Subscriber Line Equipment201050.0%330.0%

L00306L.L. / B.A. 1540 Family (MSAN)201050.0%330.0%

L00307A.N. 1540 Family (MSAN)201050.0%330.0%

L00311Litespan201050.0%330.0%

L00312Other DSC Products201050.0%330.0%

L01403Carrier Data (excluding US)201050.0%330.0%

L01401HSS201050.0%330.0%

Subtotal - SSD50025050.0%7530.0%

RADIO COMMUNICATIONS

L00509GMH 2000 BSS2000.0%00.0%

L00513GSM/DCS BSS2000.0%00.0%

L00514UMTS BSS2000.0%00.0%




NETWORK APPLICATIONS

TAS





Tess/IN

L001700TeSS2000.0%00.0%

L00105IN201050.0%00.0%

Subtotal - NAD120108.3%00.0%

TRANSMISSION SYSTEMS


L00202SDH ADM201050.0%440.0%










L00212Other TSD2000.0%00.0%



Subtotal - TSD280207.1%840.0%

INTERNET ACCESS






Subtotal - IAD1001010.0%770.0%

SND201050.0%330.0%

SPACE





ENTERPRISE SOLUTIONS




Subtotal - ESD603050.0%2170.0%

PROFESSIONAL AND CONSUMER





Subtotal - PCD801012.5%00.0%

SERVICE AND DISTRIBUTION



L01606Other SDD201050.0%660.0%

Subtotal - SDD603050.0%1550.0%

NETWORK SERVICES



Subtotal - NSD602541.7%936.0%

OTHER CUSTOMER SPEND

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%


TOTAL154039525.6%13834.9%

&R&"Arial,Gras"&9&UPage&U: &"Arial,Normal"&P/&N

Charts

Total Customer spend:1460MeuroTotal Alcatel Budget:240Meuro


&CSales and Order 1999

Charts

260

280

120

280

100

20

60

60

80

60

40

100

Orders

Orders - Customer spend

Data

130

0

10

20

20

10

0

10

10

30

0

0

Orders-Alcatel

Orders -Alcatel

500

100

120

280

100

20

60

60

80

60

60

100

Sales-Customer spend

Sales - Customer spend

250

0

10

20

10

10

0

30

10

30

25

0

Sales-Alcatel

Sales - Alcatel

ORDERSSALES

CustomerAlcatelCustomerAlcatel

spendbudgetspendbudget

SSD260130500250

RCD28001000

NAD1201012010

TSD2802028020

IAD1002010010

SND20102010

SPD600600

ESD60106030

PCD80108010

SDD60306030

NSD4006025

Other spend10001000

Total14602401540395


Key Account Approval Document

V1.2

[Account name] Key Account

Approval Document

Key Account

Account category

Tier X

Key Account Manager

Country

Area

Date Reviewed

Contents

31.Approval

2.Sales and Order Plan4

3.Action and Development Plan5

3.1Actions and Issues on Orders Plan 19995

3.2Actions and Issues on Sales Plan 19996

3.3Unbudgeted Opportunities for 1999 (by priority)7

3.4Actions and Issues on Order Plan 20008



3.7Customer satisfaction11

3.7Account Team12

Attachment Business Division breakdown14

1. Approval

Review date

Place of Review

Approved by

Area/BD

Function

Name

Remarks (if any)

Signature

2. Sales and Order Plan

(Include Excel Spreadsheets of Attachment B)

3. Action and Development Plan

3.1 Actions and Issues on Orders Plan 1999

Project / Opportunity

Action

Close date

Who

O1

O2

O3

O4

O5

O6

O7

O8

O9

O10

3.2 Actions and Issues on Sales Plan 1999


Action

Close date

Who

S1

S2

S3

S4

S5

S6

S7

S8

S9

S10

3.3 Unbudgeted Opportunities for 1999 (by priority)

Opportunity

Order target (in ME)

Prob. of winning

Solution/ Product

Action

Who

Close date

U1

U2

U3

U4

U5

U6

U7

U8

U9

3.4 Actions and Issues on Order Plan 2000


Action

Close date

Who

P1

P2

P3

P4

P5

P6

P7

P8

P9

P10



Action

Close date

Who

T1

T2

T3

T4

T5

T6

T7

T8

T9

T10


Opportunity


Sales target (in ME)

Prob. of winning

Solution/ Product

Action

Who

Close date

V1

V2

V3

V4

V5

V6

V7

V8

V9

3.7 Customer satisfaction

Assessment

Survey

Survey date:

Results:

Self assessment (if no survey done)

Action Plan

Action

Who

Close date

C1

C2

C3

C4

C5

C6

C7

3.7 Account Team

Area Resources

Core Team

Name

Virtual Team

Name (X% of time)

Key Account Manager

Account Team

Total

*1

Business Division Resources

Core Team

Name (BD)

Virtual Team

Name (BD-X% of time)


Network Solutions Management

Sales Development

Proposal Management

Product Management

Total

*1

Total (Core +Virtual)

*1

Note *1: No. of Man/Years

Action Plan on Account Team resources

Action

Who

Close date

T1

T2

T3

T4

T5

T6

T7

T8

T9

Attachment Business Division breakdown

Business Division: BDx

Plan (in ME)

1998

1999

2000

2001

Sales

Orders

Unbudgeted Opportunities

Business development opportunities

Resources

Core Team

Name

Virtual Team

Name (X% of time)



Sales Development

Proposal Management

Product Management

Total

Action Plan

Action

Who

Close date

S

O..

U..

V..

B..

C..

T..

S: Actions related to sales O: Actions related to orders U: Actions related to unbudgeted opportunities 1999 V: Actions related to unbudgeted opportunities 2000 B: Actions related to Business Development opportunities C: Actions related to Customer Satisfaction T: Actions related to Account Team

QUALCOMM and Alcatel ProprietoryFebruary 1998

Error! Main Document Only.

iii

1

15-09-99

Approval DocumentApprovalSales & Order PlanAction & Development PlanActions and Issues Orders & Sales 20xxUnbudgeted Opportunities for 20xxActions & Issues Orders & Sales 20xyUnbudgeted Opportunities for 20xyCustomer SatisfactionAccount Team

Key Account Approval Document

V1.2

[Account name] Key Account

Approval Document

Key Account

Account category

Tier X

Key Account Manager

Country

Area

Date Reviewed

Contents

31.Approval

2.Sales and Order Plan4

3.Action and Development Plan5

3.1Actions and Issues on Orders Plan 19995



3.4Actions and Issues on Order Plan 20008



3.7Customer satisfaction11

3.7Account Team12

Attachment Business Division breakdown14

1. Approval

Review date

Place of Review

Approved by

Area/BD

Function

Name

Remarks (if any)

Signature

2. Sales and Order Plan

(Include Excel Spreadsheets of Attachment B)

3. Action and Development Plan

3.1 Actions and Issues on Orders Plan 1999


Action

Close date

Who

O1

O2

O3

O4

O5

O6

O7

O8

O9

O10



Action

Close date

Who

S1

S2

S3

S4

S5

S6

S7

S8

S9

S10


Opportunity


Prob. of winning

Solution/ Product

Action

Who

Close date

U1

U2

U3

U4

U5

U6

U7

U8

U9

3.4 Actions and Issues on Order Plan 2000


Action

Close date

Who

P1

P2

P3

P4

P5

P6

P7

P8

P9

P10



Action

Close date

Who

T1

T2

T3

T4

T5

T6

T7

T8

T9

T10


Opportunity


Sales target (in ME)

Prob. of winning

Solution/ Product

Action

Who

Close date

V1

V2

V3

V4

V5

V6

V7

V8

V9

3.7 Customer satisfaction

Assessment

Survey

Survey date:

Results:

Self assessment (if no survey done)

Action Plan

Action

Who

Close date

C1

C2

C3

C4

C5

C6

C7

3.7 Account Team

Area Resources

Core Team

Name

Virtual Team

Name (X% of time)

Key Account Manager

Account Team

Total

*1


Core Team

Name (BD)

Virtual Team

Name (BD-X% of time)



Sales Development

Proposal Management

Product Management

Total

*1

Total (Core +Virtual)

*1

Note *1: No. of Man/Years

Action Plan on Account Team resources

Action

Who

Close date

T1

T2

T3

T4

T5

T6

T7

T8

T9

Attachment Business Division breakdown

Business Division: BDx

Plan (in ME)

1998

1999

2000

2001

Sales

Orders

Unbudgeted Opportunities

Business development opportunities

Resources

Core Team

Name

Virtual Team

Name (X% of time)



Sales Development

Proposal Management

Product Management

Total

Action Plan

Action

Who

Close date

S

O..

U..

V..

B..

C..

T..

S: Actions related to sales O: Actions related to orders U: Actions related to unbudgeted opportunities 1999 V: Actions related to unbudgeted opportunities 2000 B: Actions related to Business Development opportunities C: Actions related to Customer Satisfaction T: Actions related to Account Team

QUALCOMM and Alcatel ProprietoryFebruary 1998

Error! Main Document Only.

iii

1

15-09-99

Orders & Sales PlanFor 20xx and 20xy and For each Business Division/Product Line:Customer SpendBudget:Orders/SalesOwn shareYTD:Orders/Sales (in EUR)Orders/Sales (in %)

Orders

Key Account Order Plan 1999

Date:Account Name:


Business Divisions/Product LinesSpendOrdersAlcatelOrdersOrders


SWITCHING SYSTEMS



L00106TMN (partially)201050.0%330.0%

L00107Platforms201050.0%330.0%

L00108Other SSD201050.0%330.0%

L00109OAS003

L00110BBXx10330.0%

L00111DSC - EMX Fixed Appli.x10330.0%

L00112DSC EMX Motorola NSSx10330.0%

L00113GMH 2000 NSSx10330.0%

L00114CDMA NSSx10330.0%

L00115GSM/DCS NSS201050.0%330.0%

L00116HLR NSS201050.0%330.0%

L00117UMTS NSS201050.0%330.0%

L00118GPRS NSS2000.0%

L00119SATCOM NSS2000.0%

L00301Access Nodes2000.0%

L00302Leased Lines2000.0%

L00303Subscriber Line Equipment2000.0%

L00306L.L. / B.A. 1540 Family (MSAN)00

L00307A.N. 1540 Family (MSAN)00

L00311Litespan00

L00312Other DSC Products00

L01403Carrier Data (excluding US)00

L01401HSS00

Subtotal - SSD26013050.0%4232.3%

RADIO COMMUNICATIONS0

L00509GMH 2000 BSS2000.0%00.0%

L00513GSM/DCS BSS20000.0%00.0%

L00514UMTS BSS2000.0%00.0%




NETWORK APPLICATIONS0

TAS0





Tess/IN0

L001700TeSS2000.0%00.0%

L00105IN201050.0%00.0%

Subtotal - NAD120108.3%00.0%

TRANSMISSION SYSTEMS0


L00202SDH ADM2000.0%00.0%










L00212Other TSD2000.0%00.0%



Subtotal - TSD280207.1%840.0%

INTERNET ACCESS0






Subtotal - IAD1002020.0%1365.0%

SND201050.0%330.0%

SPACE0





ENTERPRISE SOLUTIONS0




Subtotal - ESD601016.7%880.0%

PROFESSIONAL AND CONSUMER0





Subtotal - PCD801012.5%990.0%

SERVICE AND DISTRIBUTION0



L01606Other SDD201050.0%660.0%

Subtotal - SDD603050.0%1550.0%

NETWORK SERVICES0



Subtotal - NSD4000.0%00.0%

OTHER CUSTOMER SPEND0

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%


0

TOTAL146024016.4%9840.8%

&R&"Arial,Gras"&9&UPage&U:&"Arial,Normal"&P/&N

Sales

Key Account Sales Plan 1999

Date:Account Name:


Business Divisions/Product LinesSpendSalesAlcatelSalesSales


SWITCHING SYSTEMS



L00106TMN (partially)201050.0%330.0%

L00107Platforms201050.0%330.0%

L00108Other SSD201050.0%330.0%

L00109OAS201050.0%330.0%

L00110BBX201050.0%330.0%

L00111DSC - EMX Fixed Appli.201050.0%330.0%

L00112DSC EMX Motorola NSS201050.0%330.0%

L00113GMH 2000 NSS201050.0%330.0%

L00114CDMA NSS201050.0%330.0%

L00115GSM/DCS NSS201050.0%330.0%

L00116HLR NSS201050.0%330.0%

L00117UMTS NSS201050.0%330.0%

L00118GPRS NSS201050.0%330.0%

L00119SATCOM NSS201050.0%330.0%

L00301Access Nodes201050.0%330.0%

L00302Leased Lines201050.0%330.0%

L00303Subscriber Line Equipment201050.0%330.0%

L00306L.L. / B.A. 1540 Family (MSAN)201050.0%330.0%

L00307A.N. 1540 Family (MSAN)201050.0%330.0%

L00311Litespan201050.0%330.0%

L00312Other DSC Products201050.0%330.0%

L01403Carrier Data (excluding US)201050.0%330.0%

L01401HSS201050.0%330.0%

Subtotal - SSD50025050.0%7530.0%

RADIO COMMUNICATIONS

L00509GMH 2000 BSS2000.0%00.0%

L00513GSM/DCS BSS2000.0%00.0%

L00514UMTS BSS2000.0%00.0%




NETWORK APPLICATIONS

TAS





Tess/IN

L001700TeSS2000.0%00.0%

L00105IN201050.0%00.0%

Subtotal - NAD120108.3%00.0%

TRANSMISSION SYSTEMS


L00202SDH ADM201050.0%440.0%










L00212Other TSD2000.0%00.0%



Subtotal - TSD280207.1%840.0%

INTERNET ACCESS






Subtotal - IAD1001010.0%770.0%

SND201050.0%330.0%

SPACE





ENTERPRISE SOLUTIONS




Subtotal - ESD603050.0%2170.0%

PROFESSIONAL AND CONSUMER





Subtotal - PCD801012.5%00.0%

SERVICE AND DISTRIBUTION



L01606Other SDD201050.0%660.0%

Subtotal - SDD603050.0%1550.0%

NETWORK SERVICES



Subtotal - NSD602541.7%936.0%

OTHER CUSTOMER SPEND

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%

2000.0%00.0%


TOTAL154039525.6%13834.9%

&R&"Arial,Gras"&9&UPage&U: &"Arial,Normal"&P/&N

Charts




Charts

260

280

120

280

100

20

60

60

80

60

40

100

Orders

Orders - Customer spend

Data

130

0

10

20

20

10

0

10

10

30

0

0

Orders-Alcatel

Orders -Alcatel

500

100

120

280

100

20

60

60

80

60

60

100

Sales-Customer spend

Sales - Customer spend

250

0

10

20

10

10

0

30

10

30

25

0

Sales-Alcatel

Sales - Alcatel

ORDERSSALES

CustomerAlcatelCustomerAlcatel

spendbudgetspendbudget

SSD260130500250

RCD28001000

NAD1201012010

TSD2802028020

IAD1002010010

SND20102010

SPD600600

ESD60106030

PCD80108010

SDD60306030

NSD4006025

Other spend10001000

Total14602401540395


Customer Perspective & PositioningCustomer PerspectiveShareholder structure and business linesFinancial Key DataPortfolio Analysis (BCG)Investment TrendsCustomer StrategyCustomer SWOTOwn PositioningOwn Mission and Main ObjectivesStrategy and TacticsOwn SWOTCompetitors PositioningInvestment Volume / Own ShareMain OpportunitiesObjectives & strategy per product lineRelationship compared to competitorsCustomer / KAM organization map

Status: March 5, 1999 Page *

Responsible: "Name"

Industry confidential

CustomerInvestment Trends

Reasons for change: .. ..

1)

example

Questions addressedHow does the customer spend his money?Which business lines show strong increase / decrease?What is the portion of services or other Telecom areas (outsourcing, IT, ..)?Do we address all types of business?What are the reasons for changes in spending?

GoalGive a clear picture of the spending of the customer in terms of its business lines.Explain trends.Develop a clear reason for changes.

Customer" Portfolio analysis (BCG)

?Relative Market share (competitive position)LowHighHighLowMarket Growth Rate1.020%100,110%0%B.C.G. = Boston Consulting Groupexchange rate:?Trend example

Customer" Financial Key DataE s t i m a t eexampleSources: Annual report, ..

CustomerInvestment Trends1)exampleReasons for change: .. ..

CustomerStrategyMission / ObjectivesCustomer business prioritiesLong term development strategiesExisting versus future lines of businessReaction to changing environment

Customer" Customer SWOTStrengths (internal)- Excellent network (bandwidth + coverage)- Experienced staff with up-to-date technical know how - International strategic alliances (good access to the most promising markets) + good corporate management fit- etc..Opportunities (external)-

Threats (external) - Price decline ->shrinking margins, uncertain business planning/pricing policy - Profitability ?- Substitution of.... -

Weaknesses (internal)- Burden of high number of employees- Amount of debts restricting investments - Time-to-market (6 months too late)- etc.

example

Customer Own company Mission and Main ObjectivesOwn MissionTo become ...Market share & sales goalGet 10% share of the accessible investments of Account in the next 24 months = 100 Millions EUR / yearRelationship goalImprove the business relationship from vendor/credible source to solution provider level within the next 24 monthsCustomer satisfaction goalMeasure customer index and improve the index by more than 30% over the next 3 yearsexample

Customer" Own company Strategy and TacticsOwn company overall strategy to reach the objectivesin the customers home market:

international (when applicable):

Tactics

Sources: Annual report, ..example

Strengths (internal)Opportunities (external)

Threats (external)

Weaknesses (internal)

See examples in Customer SWOTCustomer" Own company SWOTexample

CustomerCompetitiors positioningexample

Tabelle1

CompetitorKey ContractsProductsSales 1999Delivery Performance to DateStrengthsWeaknesses

MEUR%

Transit-SSPAXEgoodHigh ManpowerLocal signalling integration

SDH-BackboneADM (PKI, Lucent)weakInstalled base, delivery datesNetwork Management

Radio systems, SDHADM, PMP, Radio systemstrongStrong Network ManagementProduct availability

Mobile networkNSS, BSSvery strongvery reliable, good servicesweak product portfolio

Network Manag.AS400, Softwarevery weakgood relationshipvery weak reliabilities and functionality

UK-GermanyINDIANACross Connect,Internet RANgoodshort reaction timeweak service organization

&A

Seite &P

CustomerInvestment Volume / Own ShareSalesTotal Invest: xxxOwnl share : x %M EURO Product linesTotal Invest: xxxOwn share : x %Total Invest: xxxOwn share : x %Total Invest: xxxOwn share : x %example

VendorCredible sourceSolution providerTrustedAdvisorPartnerCustomer Relationship compared to competitorsOwn company Competitor #1#2#3#4#5According to Relationship Assessment Questionnaireexample

CustomerCustomer / KAM Organization Mapexample1. Buying roleA ApprovalE EvaluatorDM Decision MakerU User

2. Buying Orientation$ FinancialT TechnicalR RelationshipB Business

3. Status* Mentor+ Supporter= Neutral- Non-supporterx Ennemy

4. Frequency of contactsNo Contact/ Brief contact! Multiple contacts** Ongoing access

1234

Dont have to tell you... always listen first to your Customer!

ReferencesResearch on Strategic Account management Ghent University: http://studwww.rug.ac.be/~dgosseliSAMA: Strategic Account Management Association : http://www.nams.orgResearch on Sales & Account Management Erasmus University: http://www.erasmusforum.nl/index.htmlSales Research Trust of Dr. Kevin Wilson: http://www.sales-research-trust.org/

Lewis, J.D. (2000) Trusted Partners, How Companies build Mutual Trust and Win Together, Free Press: New YorkVerbeke, W and Nagy, J. (2000) Adaptief en Strategisch Accountmanagement, Samsom: Alphen a/d Rijn, Netherlands.McDonald, M. and Rogers, B. (1998) Key Account Management, Butterworth Heinemann: Oxford, UK.Day, G.S. (1999) The Market Driven Organization, Free Press: New York

ContentConcepts & DefinitionsDifferent types of Account Management

Definition of Strategic Account Management

Strategic Account Management Process

Case Study

Conclusions

Summary

Conclusions (1)Develop Strategy, based on customer portfolio and not on products.Select your customers and focus, based on relationship potential.Think in terms of value for the customer, using all capabilities of the company to solve problems.Trust = Be immediately available for the customer with the same team.Use Account Management for the most important customer portfolio who are willing to develop a relationship.Source: D-P Gosselin, 2002

Conclusions (2)Account managers are not sales peoplefocus on relationshipbuildingSolutions/coordinationlong termEntrepreneurship

Limit the number of key customers! Not applicable for everyone: very expensive

Key account management only possible if operations are integrated in the process !

A key account is a market on its own => Develop a customer business plan to approach and deliver in a consistent way

Source: D-P Gosselin, 2002

Conclusions (3)It takes a lot of commitment to implement a strategic account organization: time, resources, top management focus

Internal communication is key (80% of success)

Selection of strategic accounts: criteria!

CRM is not about Strategic Account Management. A customer database software can not compensate for a bad process or strategy.

Source: D-P Gosselin, 2002

ContentConcepts & DefinitionsDifferent types of Account Management

Definition of Strategic Account Management

Strategic Account Management Process

Case Study

Conclusions

Summary

Summary (1)5-7 times more easy and cost effective to grow the existing customer base.

Value of a Strategic Relationship is worth 15% price increase.

Select customers on Relationship potential, strategic fit and your willigness to invest in specific competence leverage

Strategic account management is a different process compared to key account management or key account selling

Its nature is more strategic, interactive, dynamic, proactive and competence driven than a sales or marketing process

Courtesy: D-P. Gosselin

Summary (2)

Building a customer focused organisation for competitive advantage in business markets implies to manage a customer base thru strategic account management

The strategic account manager should coordinate the dynamic resource allocation and solution adjustment related to the PLC of the customer: This is a top management function.

Top management should understand their role, the change impact, investments and process implications needed to introduce Strategic account management: It takes time, money, vision and leadership to succeed.

Courtesy: D-P. Gosselin

Goal Understand Alcatel's position in the account and the prospects for the future. Overview and evaluation of the total invest of the customer versus Alcatels share for each line of business Evaluation of Alcatels future addressable market also in a broad account perspective: Contribution to market share with cross BD, cross company and other type of businesses (compensation) .

Remark: all figures are based on order intake

Use TAS criteria (organisational analysis)Buying roles: E = Evaluator/D = Decision Maker/A = Approver/U = UserBuying orientation: T = Technical/$ = Financial/R = Relationship/B = BusinessStatus: * = Mentor/+ = Supporter/ = =Neutral/ - = Non Supporter/ X = EnemyTime spent: Contact Meeting In-Depth

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Documents

Characteristics of the process