ROI Program
Increase success rate and deal size, whilst reducing the sales cycle, through value-centric selling.
Key Objectives
- Clearly articulate value of HP solutions by empowering Value-Centric Sales Teams Worldwide
- Effectively respond to budget requests/justify resource requests
- Help close bigger deals(20% on average)
- Reduce sales cycle (30% on average)
- Create high margin opportunities for licence (i.e. 15% - 35%) and services (i.e. up to 90%+)
- Create incremental opportunities with through focused messaging and proactive lead generation
- Allow mainstream sales people to understand and effectively communicate HP Software solutions
- Maximise portfolio breadth, increase customer spend and elevate such accounts to tier one “strategic” status within our Partners base
- Reduce the risk of losing custom to competition
Why?
Did you know that over 82% of projects £50,000 and higher require business value analysis!
In recent times there have been a few interesting developments in the world of technology sales, most significantly in the role that “the business” is taking in IT decisions. Some recent facts from Forester research show that:
- 71% of business leaders believe that technology is a vital element to their success and 58% of business leaders are directly involved in IT decision making
- Internally, over 80% of investment decisions of £50,000 and above require a business value justification
- 65% of buyers indicated that they do not have the tools or knowledge to do business value calculations
- 81% of buyers expect solution providers to quantify the business value of a proposed solution
And most importantly, the professionalisation of procurement. The role of procurement departments in an organisation has expanded, often resulting in centralised spend management and a consequential reduction in the number of suppliers.
Again, quoting Forrester, “Buyers would prefer to funnel more spending through providers that add value; however buyers perceive that less than 10% of the vendors that try to do business with them exhibit characteristics they consider valuable.”
So, taking all this into consideration it can be seen that your customers need to see you demonstrating value to them.
One way in which you can demonstrate that value, especially when dealing with the increasing number of non-IT decision makers involved in the procurement process, is to deliver an honest, open, accountable business value case to support the proposal you are making.
The remainder of this document describes how you can engage Avnet to help you deliver that measurable business value and become more valuable to your customers.
Achieved By - Avnet works with Partners to deliver an ROI analysis in 4 stages:
Discover: A meeting or conference call to identify the challenges, initiatives, business applications and infrastructure of your customer.
Align: Your customer works with you / us to complete a questionnaire designed to gather the key business metrics that will define the shape of the business case.
Model: Using the data from the questionnaire and the information from the Discover phase, Avnet will agree the “pain point / value proposition” statements to be explored in the business case. Then all this information will be fed into the Alinean ROI Analyst tool to produce benefit and cost models. These models will be tuned to meet exactly the customer situation.
Deliver: Avnet will prepare the presentations, reports and package them together for you in a format that will allow you to present the business case to your customer. If needed, Avnet will present the material to the customer – taking and responding to questions to make the session more interactive. The package presented will show a detailed ROI analysis, using the financial metrics your customer wants to see – Internal Rate of Return (IRR), - Net Present Value (NPV), - Payback Period, - Return on Investment. Moreover, it uses your customer’s data wherever possible. Where customer specific data is not available, data based on many years of research by IDC is used. All metrics that are used are defined and can be questioned and amended by your customer – your customer owns the data, you have facilitated the analysis.
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