business for engineers part 1: customers and sales

BUSINESS FOR ENGINEERS: CUSTOMERS AND SALES

Jan Isakovic @iYan

ABOUT THE WORKSHOPS

ShortNo-nonsense

Customers

Value propositionProduct design

MVPCompany values

A typical R&D engineer question

SALES DEPARTMENT

Y U NO SELL MORE NEW PRODUCTS?

But it’s not really that simple..

CUSTOMER NEED STAGES

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

SO.. WHAT DOES THAT MEAN?

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

SALES CYCLE LENGTHShort

Long

Sales

cyc

le

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

SERVICES VS PRODUCTSShort

Long

Sales

cyc

le

Professional services (CRM, infrastructure..)Established products (PCs, IP telephony..)

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

YOUR SOLUTIONSShort

Long

Sales

cyc

le

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Where on the spectrum

do they fall?

(PRE)SALES ACTIVITIES

Educate the market*

Beat competition, send invoice

Present solution benefits

Marketing

Start selling

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

* note: does not work

NOT EVERYONE WINSLow

High

Failu

re ra

te

Market testing

Absolute

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

Doesn't have a problem

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

SO WHY TRY?Low

High

Reve

nue

pote

ntial

Cost+15% Lots of competition

Potential $1B business

Almost no competition

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

ADDITIONAL COMPLICATIONA

B C

How conservative is your market?

KEY CHALLENGES• Identify and adjust to customer/market stage • Different stages require different marketing and sales approaches • New product revenue is by definition much lower • Get market feedback as soon as possible • If the product succeeds, be prepared for a fast ramp-up

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BUSINESS FOR ENGINEERS

Jan Isakovic @iYan

1: Customers and sales 4: Value proposition

2: Product conception 5: Core competencies

3: Minimum Viable Product 6: Company values