characteristics of the process
DESCRIPTION
Characteristics of the process. Selection of Strategic accounts Process & Resource allocation Competence Advanced Research. Role of the Strategic Account Manager. Traditional Key Account Selling. Role. Issues. Sales person Product seller Interface Relationship? Team player? - PowerPoint PPT PresentationTRANSCRIPT
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Characteristics of the processSelection of Strategic accountsProcess & Resource allocationCompetence Advanced Research
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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
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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
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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
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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
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Characteristics of the processSelection of Strategic accountsProcess & Resource allocationCompetence Advanced Research
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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.
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CaseThe Telecom world
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When did it all started ?
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Four concurrent trendsshape(d) the Telecom Market?Today
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DeregulationInternet BoomDemand for Broadband ContentNeed for differentiated OfferBundled ServicesMarket DriversMarket Inhibitors Infrastructure Legacy Financing shortage Cost of LicensesCritical Size20002004Main Market Trends - Customer View3G launch
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Customers: before liberalisation
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Customers: (soon) after liberalisation
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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
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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 !
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Changing customer environment
One CountryOne Customer (PTT)
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Today: 1 country Multiple Customers
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former Matrix Focus: Product - Geographical Selling products within a countryProduct FocusCountry Focus
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Customer Refocus : Key Account ManagementOffering solutions to customers
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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
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Tools
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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:
Customer1999 BudgetYTD
Business Divisions/Product LinesSpendSalesAlcatelSalesSales
(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%
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%
L00304Wireless Access2000.0%00.0%
L00310Microwave Low Capacity2000.0%00.0%
Subtotal - RCD10000.0%00.0%
NETWORK APPLICATIONS
TAS
L01301Rail Transport2000.0%00.0%
L01302Mass Transit2000.0%00.0%
L01303Road and Fare collection2000.0%00.0%
L01304Integrated Rail Communications2000.0%00.0%
Tess/IN
L001700TeSS2000.0%00.0%
L00105IN201050.0%00.0%
Subtotal - NAD120108.3%00.0%
TRANSMISSION SYSTEMS
L00201PDH (including services)201050.0%440.0%
L00202SDH ADM201050.0%440.0%
L00203SDH Line Systems2000.0%00.0%
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 ACCESS
L00308Internet Access2000.0%00.0%
L00305Hybrid Fiber Coax2000.0%00.0%
L01104Packet Engine2000.0%00.0%
L00600Xylan (excluding Corporate Data)2000.0%00.0%
L00601Assured Access201050.0%770.0%
Subtotal - IAD1001010.0%770.0%
SND201050.0%330.0%
SPACE
L00801Space Industries2000.0%00.0%
L00802Operations and Services2000.0%00.0%
L00803Earth Station2000.0%00.0%
Subtotal - SPD6000.0%00.0%
ENTERPRISE SOLUTIONS
L01402Enterprise incl. Applications201050.0%660.0%
L01406Corporate Data201050.0%770.0%
L001407Xylan (Corporate data)201050.0%880.0%
Subtotal - ESD603050.0%2170.0%
PROFESSIONAL AND CONSUMER
L01501Mobile Phones2000.0%00.0%
L01504Internet Terminals2000.0%00.0%
L01502Residential Phones2000.0%00.0%
L01503Professional Systems201050.0%00.0%
Subtotal - PCD801012.5%00.0%
SERVICE AND DISTRIBUTION
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 SERVICES
L0XXXXNetwork Design (ex-Alco activities)401537.5%426.7%
L0XXXXNetwork Design Operator Support201050.0%550.0%
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%
Subtotal - Other spend10000.0%00.0%
TOTAL154039525.6%13834.9%
&R&"Arial,Gras"&9&UPage&U: &"Arial,Normal"&P/&N
Charts
Total Customer spend:1460MeuroTotal Alcatel Budget:240Meuro
Total Customer spend:1540MeuroTotal Alcatel Budget:395Meuro
&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
&CSales and Order 1999
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
3.5Actions and Issues on Sales Plan 20009
3.6Unbudgeted Opportunities for 2000 (by priority)10
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
Project / Opportunity
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
Project / Opportunity
Action
Close date
Who
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
3.5 Actions and Issues on Sales Plan 2000
Project / Opportunity
Action
Close date
Who
T1
T2
T3
T4
T5
T6
T7
T8
T9
T10
3.6 Unbudgeted Opportunities for 2000 (by priority)
Opportunity
Order target (in ME)
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)
Business Division Resources
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)
Business Division Resources
Network Solutions Management
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
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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
3.2Actions and Issues on Sales Plan 19996
3.3Unbudgeted Opportunities for 1999 (by priority)7
3.4Actions and Issues on Order Plan 20008
3.5Actions and Issues on Sales Plan 20009
3.6Unbudgeted Opportunities for 2000 (by priority)10
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
Project / Opportunity
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
Project / Opportunity
Action
Close date
Who
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
3.5 Actions and Issues on Sales Plan 2000
Project / Opportunity
Action
Close date
Who
T1
T2
T3
T4
T5
T6
T7
T8
T9
T10
3.6 Unbudgeted Opportunities for 2000 (by priority)
Opportunity
Order target (in ME)
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)
Business Division Resources
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)
Business Division Resources
Network Solutions Management
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:
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:
Customer1999 BudgetYTD
Business Divisions/Product LinesSpendSalesAlcatelSalesSales
(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%
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%
L00304Wireless Access2000.0%00.0%
L00310Microwave Low Capacity2000.0%00.0%
Subtotal - RCD10000.0%00.0%
NETWORK APPLICATIONS
TAS
L01301Rail Transport2000.0%00.0%
L01302Mass Transit2000.0%00.0%
L01303Road and Fare collection2000.0%00.0%
L01304Integrated Rail Communications2000.0%00.0%
Tess/IN
L001700TeSS2000.0%00.0%
L00105IN201050.0%00.0%
Subtotal - NAD120108.3%00.0%
TRANSMISSION SYSTEMS
L00201PDH (including services)201050.0%440.0%
L00202SDH ADM201050.0%440.0%
L00203SDH Line Systems2000.0%00.0%
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 ACCESS
L00308Internet Access2000.0%00.0%
L00305Hybrid Fiber Coax2000.0%00.0%
L01104Packet Engine2000.0%00.0%
L00600Xylan (excluding Corporate Data)2000.0%00.0%
L00601Assured Access201050.0%770.0%
Subtotal - IAD1001010.0%770.0%
SND201050.0%330.0%
SPACE
L00801Space Industries2000.0%00.0%
L00802Operations and Services2000.0%00.0%
L00803Earth Station2000.0%00.0%
Subtotal - SPD6000.0%00.0%
ENTERPRISE SOLUTIONS
L01402Enterprise incl. Applications201050.0%660.0%
L01406Corporate Data201050.0%770.0%
L001407Xylan (Corporate data)201050.0%880.0%
Subtotal - ESD603050.0%2170.0%
PROFESSIONAL AND CONSUMER
L01501Mobile Phones2000.0%00.0%
L01504Internet Terminals2000.0%00.0%
L01502Residential Phones2000.0%00.0%
L01503Professional Systems201050.0%00.0%
Subtotal - PCD801012.5%00.0%
SERVICE AND DISTRIBUTION
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 SERVICES
L0XXXXNetwork Design (ex-Alco activities)401537.5%426.7%
L0XXXXNetwork Design Operator Support201050.0%550.0%
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%
Subtotal - Other spend10000.0%00.0%
TOTAL154039525.6%13834.9%
&R&"Arial,Gras"&9&UPage&U: &"Arial,Normal"&P/&N
Charts
Total Customer spend:1460MeuroTotal Alcatel Budget:240Meuro
Total Customer spend:1540MeuroTotal Alcatel Budget:395Meuro
&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
&CSales and Order 1999
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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
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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
447