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#BVSummit
Why Business Value is So Important
1
Tom PiselloCEO / Founder
[email protected]@tpisello@AlineanROIhttp://www.alinean.com
Copyright © 2001-2017 Alinean, Inc
Randy PerryVice President, Business Value Consulting
@IDChttp://www.idc.com
#BVSummit 2
Who Controls the Purchase Decision?
58%
Business
42%
IT
#BVSummit 3
Stakeholders Involved in Decision Making?
43%
over past two years
8 to10stakeholders involved in typical technology purchase decision
LOB Leaders
Security
Procurement
Finance
ExecutivesIT
Dev Ops
User Groups
#BVSummit 4
What Business Value Matters Most?
13% 24%
28% 35%Value Map™
#BVSummit© IDC Visit us at IDC.com and follow us on Twitter: @IDC
5
There is a new set of buying criteria
IT priorities Scalability Reliability Flexibility Performance Customer experience
Business priorities Revenue growth Customer experience Profitability Agility Innovation
IT Challenges Infrastructure
limitations IT skillset limitations Capacity Efficiency and Control
Buying Criteria Improve business
outcomes Improve business
performance Financial justification
#BVSummit© IDC Visit us at IDC.com and follow us on Twitter: @IDC
6
Companies digitally linking their distributed enterprises have increased their profit margins by 30-50%
Organizations with digital ready networks are seeing 2 to 3 times the revenue growth of organizations without.
Companies with the majority of their business applications running in public and private cloud have reduced their operating costs by 5 to15% compared to companies with most of their apps running on traditional infrastructure
Companies with 65%+ of their business applications available to all mobile users were able to reduce time to market for new products by 58%
Companies implementing data analytics solutions were able to predict events or outcomes with16% more accuracy
Transformative technologies lead to better business outcomes….
#BVSummit© IDC Visit us at IDC.com and follow us on Twitter: @IDC
7
Business Outcomes KPI Gains Annual Benefits per Cloud Application
Better business outcomes drive business performance
#BVSummit© IDC Visit us at IDC.com and follow us on Twitter: @IDC
8
Performance
Impo
rtan
ce
Revenue growth $3,354 Revenue from
new products $2,075
Employee productiv-ity $3,549
Customer Retention
$1,191
Reduced Op-erational
Costs $1,103
Quicken the adop-tion of new applica-tions $1,573
Time to market for new services/products
$2,270
New customer Acquisition
$569
Business Outcomes by Performance and Importance ($ per Employee)
Business buyers value linkages between your products/services & business outcomes
#BVSummit 9
CompanyProducts / ServicesFeatures
Price74%
Remain too focused on features & price vs. business value 55%
Don’t do a good job articulating unique business value of
proposed solutions65%
Are not investing enough in business value marketing / selling or are worse, cutting back on
their efforts & investments
How do Buyers Perceive your Marketing & Selling?
#BVSummit 10
Why you can’t leave Financial Justification to Chance?
95%
Require financial justification on significant technology
purchases
2/3rds
Don’t have the knowledge, research metrics or tools needed
to deliver requisite financial justification
81%
Expect vendors to quantify value / deliver financial justification for
proposed solutions
<15%
Trust the financial justification unless it includes 3rd party models, tools &
research
#BVSummit 11
BenefitsValue
The Difference Between Benefits & Business Value
Inside OutOutside In
#BVSummit 12
New Brain,Logic
Logos
Reptilian Brain,Emotions
Pathos
Middle Brain,Credibility
Ethos
Why Change?
Why Now? Why You?
Ideas Exploration Evaluation Selection
3rd Party Certification
The Buyer’s Journey & Business Value Articulation
#BVSummit
Why Change? Why Now? Why You?
Ideas Exploration Evaluation Selection RenewalWhy Renew?
Value Surveys & ResearchValue Messaging Workshops & Value Matrices
Value Training and Certification
Mar
ketin
gSa
les &
Co
nsul
ting
Foundational
Value Articulation Tools ROI / TCO Business Case ToolsDynamic White PapersAssessment & Financial /
Metric Benchmarking Tools
Business Value Sales & Marketing Tools
$8.10 for every $1 invested
#BVSummit
Why Business Value is So Important
14
Tom PiselloCEO / Founder
[email protected]@tpisello@AlineanROIhttp://www.alinean.com
Copyright © 2001-2016 Alinean, Inc
Randy PerryVice President, Business Value Consulting
@IDChttp://www.idc.com
