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8/10/2019 Hp Cso Team2
1/23
Hewlett Packard-Computer Systems OrganizSelling to Enterprise Customers
Team 2
Bharat Arava(13pgp010)Monika Sakkarwal(13pgp031)Piyush Mohit(13pgp042)Rajendra Shahane(13pgp050)Shreesti Rastogi(13pgp054)Aniruddh Mukerji(13pgp063)
Kunal Kumar(13pgSumit Ranjan(13pgAshish Mehta(13pgSamkit Jain(12pgpRajakumar r b (11
Submitted by
8/10/2019 Hp Cso Team2
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Timelines
Robust Sales and Long lifecycles. Higher prices on thebasis of strong productfeatures and superior
reliability
HP was stuck in the downand middle stream businesssegment. Diaz look for newways to reduce costs in salesand support
While succesproduworkin
appro
DiaDuCopro
1980
1992
1996
Latest
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HP selling costs are higher than the industry average.
The compensation plan is short term
Increasing pressure on the Representative who are not effectivemonitoring the process.
Case Facts
Indian Institute of Management Raipur4
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HP sellers are not business developers but just order takers.
There is a severe need for cost reduction.
The amendments that the company intends to make for costreduction, should not erode the brand equity.
Indian Institute of Management Raipur5
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Customer-in perspective on the purchasing process and buyingvalues of HPs enterprise.
Accurate documentation of the sales processes currently executeHPs sales force and analysis of the productivity
Identification of potential breakthrough paths at the field andheadquarters levels
Initiation of both fast-start and long term productivity improvemactions by the sales teams involved in the study
Sales Process Audit Stages
Indian Institute of Management Raipur6
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Doing well in capturing downstream business and increasingmidstream business.
Migration strategy causing trouble.
Modification in requisite critical success factors in moving frommanaging downstream to upstream.
Need to prioritize opportunities and choose Projects based on potential and Competency
Findings
Indian Institute of Management Raipur7
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Q1)Is this the time forHP-CSO to institutemore changes?
Indian Institute of Management Raipur8
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HPs current sales strategy and sales process did not optimizetotal sales opportunity from the customer
Sales regions were measured as cost centres. Sales forceconcentrated on achieving sales target without worrying aboumaking profits and spending time in non-core activities
Selling efforts in the enterprise customer segment specially secosts was very high as 30 cents to every order dollar in 1990
HP Employees spent more time trying to sell inside HP than tocustomers
80% of the customer sales were initiated by the customerthemselves
Indian Institute of Management Raipur9
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Although HP was a preferred vendor, customers doubted its ato deliver in case of Innovation projects
Customers were moving towards consolidating their supplier bincreasing pricing pressure on HP
The sales process (specially the qualifying and post-sales servsteps) had enormous time drains
Sales force was having difficulty in converting sales opportunitreplacement and expansion projects
Sales team was spending less time in the early stages of the scycle for Innovation projects
Indian Institute of Management Raipur10
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Sales team lacked prioritization of opportunities for Innovativprojects
HP was not good at transferring knowledge from one opportuanother
Much emphasis was on how to run faster and just sell boxes
move up the relationship curve
replacement sales were often extremely expensive, involvingsignificant price concessions up front
Indian Institute of Management Raipur11
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Q2) Would benefitsoutweigh the cost ofImplementation?
Indian Institute of Management Raipur12
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Based on customer portfolio management and alignment withresources.
Greater sales volumes due to specialised sales force.
Optimised returns to sales efforts.
Superior value delivered at every stage
Greater insight into customer buying behaviour.
Creation of platform for long standing relationships.
Indian Institute of Management Raipur13
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Training cost of sales force
Loss of Enterprise customers and time to get them back
Overburdening of sales force and hence loss of motivation
Cost of researching into the requirements of the customerorganisations
Indian Institute of Management Raipur14
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Q3) Why does HP trSales force as cost cen
and what are implications?
Indian Institute of Management Raipur15
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Sales force as cost center
Regrouping of divisions within HP with each group having its sales force
Sales force- responsible for revenues, field marketing and cuservice
HP focused on additional profits, making sales force strive haincrease number of orders
Indian Institute of Management Raipur16
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Implication
Sales force can concentrate on the achieving sales target witthinking about making profits for itself
Need not spend time in non-core activities
Pressure on sales force to cut cost, bring down its numbers
Added pressure on individuals to perform & deliver
Indian Institute of Management Raipur17
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Q4) What were
advantages and disadvanta
of the new structure?
Indian Institute of Management Raipur18
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Improved segmentation - facilitates better targeting
Competition among divisions improve performance
Better control as each division can act as separate profit centThis decentralizes decision making and provides accountabilit
Advantages
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Duplication of functions would add redundancy and drop efficie
Too much competition can blur long term vision for overallprofitability
Decentralization can loosen the grip of higher management ondifferent aspects of the companies decision making
Disadvantages
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Recommendations
Standardized process for downstream purchases
Automated ordering systems to reduce unproductive time
Collaboration with customers to implement online ordering port
Indian Institute of Management Raipur21
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Educate & encourage customers to use tech support executivesinstead of sales reps for problem solving
CRM application will facilitate knowledge and information transfabout the customer within the various departments of HP
Train the tech support executives to leverage CRM for cross se
of the products
Form collaborative partnerships with tech consulting firms tocapture innovation opportunities
Indian Institute of Management Raipur22
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Thank You
Indian Institute of Management Raipur23