THE DARK COCKPIT. The future of sales productivity. Rebecca Wettemann NucleusResearch.

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1 THE DARK COCKPIT The future of sales productivity Rebecca Wettemann

2 Let s talk about > The promise of SFA > The Dark Cockpit > Case examples > Measuring sales productivity > Best practices

3 About Nucleus Research An independent IT research and advisory firm that specializes in the financial and operational value that technology delivers to enterprise organizations. > Founded in 2000, based in Boston MA > More than 450 published ROI case studies > Standard, consistent, globally understood research methodology focusing on ROI and financial Payback. > The only firm registered with the National Association of State Boards of Accountancy Registration #108024

4 The good old days?

5

6 Does this look familiar? > Multiple click-throughs > Alerts, notifications, fields, COLORS! > Primary goal: capture data

7 The Challenge of SFA Managers need better data! > The biggest SFA challenge is data entry > Poor data drives poor forecasting > Old data means missed coaching opportunities > Pushing data entry is not the answer

8 The SFA Conundrum 7.56% Profits Time spent in CRM Nucleus Research n167 Enterprise software must adopt the principles of Dark Cockpit, November 2013

9 SFA Evolution From transactional systems of record to systems of guided action From information overload to only the information I need From old-school SFA to the Dark Cockpit

10 The Dark Cockpit

11 The Dark Cockpit SFA+ > Simplify > Focus > Automate > Coach

12 Simplify

13 Simplify > UI, UI, UI the rule of 3 > Mobile > One click to view and manage > CRM without training > Cloud

14 Cloud quick facts > 1.7 times greater ROI > Time to go-live measured in weeks rather than months. > Average payback in 5 months versus 1.1 years for on premise > 85% lower upfront costs > 75% of IT departments report they are resource constrained > Tax advantages of OPEX versus CAPEX can save 5% of the project

15 Focus

16 Focus The rule of three > Deal - Move a deal forward > Ahead - Build pipeline > Dump / delegate

17 Automate

18 Automate > Integration > Industry > Intelligent

19 Coach

20 Coach > Mobile MOM > Embedded real-time analytics drive coaching in the moment > Automation of tasks frees up time for more meaningful conversations > Real reporting: when a deal changed, how it changes, who changed it > Accelerate sales onboarding 50-75% > Reduce tactical management by 75% > Increase close rates by 10-15%

21 CRM delivers $8.71 for every dollar spent. (Nucleus Research o128, June 2014)

22 Example: Apex IT The Challenge: ROI: 724% Payback: 2 months Needed a new CRM to support the growth needs of the business with integrated sales and marketing functions. The Strategy: Implemented Sales Cloud integrated with Eloqua. Key Benefits: - Increased visibility - Increased sales and marketing productivity - Improved margins

23 Example: Batesville The Challenge: ROI: 111% Payback: 1.1 years Needed better way to track and manage sales performance while facing changing marketing conditions. The Strategy: Implemented Sales Cloud with an ipad pilot and integration with JD Edwards. Key Benefits: - Increased visibility - Increased sales and management productivity

24 Pulling it together the Business Case for Dark Cockpit

25 The 5 Factors that Drive Value > Breadth How many people will the application affect? > Repeatability How often will they use it? > Risk > Collaboration > Knowledge Could this cost money if done wrong? Will employees need to share? Can I reuse the information I create?

26 How do Financial Decision Makers really view benefits? Believable? Variable?

27 Types of benefits Direct savings > Reduction in cost Semi-direct savings > Expected reduction in cost Believability Indirect savings > Increase in worker productivity Very indirect savings > Increase manager productivity 1 st Order 2 nd Order 3 rd Order 4 th Order Direct Indirect

28 Measuring Sales Productivity

29 Inefficient Transfer of Time The fact of life: time saved does not equal time worked. Use correction factors to adjust the estimate of time saved to a reasonable estimate of the value to the company. Range from 10% to 100% to adjust time saved to time worked.

30 Why are Correction Factors Important? Everyone discounts indirect benefits Typical scenario > Initial estimate: 10% > Project manager wants to be conservative : 7% > Business sponsor wants to be conservative : 3% > CFO assumes everyone has overestimated: 1% Correction factors allow everyone to first agree on the initial benefit then on the discount of the benefit back to a value to the organization.

31 Benefit assessment worksheet Estimate of productivity increase: 5% (based on: direct survey and estimate) Value of increase for 10 $100K ea: $50,000 (use fully loaded cost) Correction factor: 50% (Correct for inefficient transfer of time) Expected benefit to company: $25,000 How will the benefit be achieved? Reduction in staff or staff hours Increase in productivity, limiting the need for more staff Increase in profit to company Gradual attrition over next 3 years (10%, 50%, 100%)

32 Best Practices

33 Keys to Success > Simplify, Automate, Focus, Coach > DAD > MOM > Take Advantage of Cloud Multiplier > Be realistic about Benefits > Use breadth, repeatability as your guide > Look at credibility and variability of productivity > Users are your Pilots

34 Human Issues > Individual > Hierarchical > Structural > Cultural 70% of bad projects have a root cause in a human factor

35 The Dark Cockpit

36 Resources Resources: Nucleus Research p40 Technology Value Matrix 1H 2015 CRM, March 2015 Nucleus Research o53 A closer look at Oracle Sales Cloud, April 2014 Nucleus Research Knowledge Center Nucleus Research CRM ROI Financial Modeling Tool