IDC predicted that “By 2020, 70% of enterprises will integrate cloud management—across their public and private clouds—by deploying unified hybrid/multi-cloud management technologies, tools, and processes.” CEO’s riding the cloud computing wave will have to be mindful of a consumption-based model. One focus area needs to be the GTM structure.
A thorough assessment is needed, given the change in strategy. There are seven different organizational models you could adopt. We have provided a tool here on the seven models. The impact derives from changes in sectors, routes, buyers, buyer behaviors, and perceived value. We will double click on each one of these. You can also download the Sales Org Design- Discovery Document to get started designing a model that is stage appropriate, and achieve the alignment needed with buyers, processes, skills, and structure to support your customers.
- Sectors- Do you know your ideal customers and prospects? According to the Cloud Maturity Index produced by Tieto, 13% of organizations are immature. Another 42% are on a basic level of their journey. 27% are considered proficient, and 18% are mature. Within the sectors, Financial Services leads the way while the Public sector is lagging.
SBI Recommendation: Conduct / Refresh your account segmentation. Ensure that you dimension by region, sector (i.e., maturity model), solution, and other propensity-to-buy factors.
- Routes- Providers have launched solutions that appeal to early adopters. Customers that have now entered or are about to enter the market have different expectations. They have a much more extensive range of business needs and IT priorities. Do you know how these customers want to be served?
SBI Recommendation: Focus on four key assessment areas. One, assess the nature of the solution you sell. Two is the capability of the channel. Three is the customer preference on how they want to buy. Lastly, geographic location or country that cohort of customers reside.
- Buyers- IT used to be the key decision-maker inside organizations. Their role has slowly transitioned to one of advisory. This has been caused by the increase in awareness of executives and functional leaders. This creates complexity in trying to understand different goals, objectives, and outcomes of these newly introduced personas. Who do you sell to, and what is most important to them?
SBI Recommendation: Interview Customers and Prospects across segments to understand what is most important to them. This will help define the skill sets needed in your org model. Think of talent as it pertains to product expertise vs. industry domain.
- Buyer Behavior- Successful sales comes down to buyers agreeing on a problem, solution, and vendor. A consensus-building event becomes critical in order to become a trusted advisor. The risk is to become single-threaded, and the solution is commoditized. Now every deal becomes a slugfest with your competition. Who will the solution impact, and do you have internal consensus?
SBI Recommendation: Build the buyer’s journey, which will help inform the model to support your customers.
- Perceived value- With on-premise solutions, the level of effort in the sale was upfront. Given the significant capital investment, customers are forced to work with their current provider. Now with a cloud-based solution, the emphasis in the customer life cycle has shifted. What do your customers expect, and how do they define value?
SBI Recommendation: Determine the level of effort in serving your customers. Acceleration of cloud-based solutions, customer success has become important to reinforce the value. Do you have proper coverage where your customers need it the most?
The cloud market is evolving rapidly. Organizations today can choose from many different approaches for organizational deployment. There is no “one-size-fits-all” approach. Rather, organizations will need to formulate an approach enabling them to meet the customer goals. SBI’s Sales Org Lens Evaluation Tool will help bring clarity to your business model and understand key tradeoff decisions.
If you would like to leverage a framework to accelerate the design of your deployment model, start by downloading SBI’s 2020 How to Make Your Number Workbook, exploring our Sales Strategy insights, or by connecting with an expert.