Actionable Sales Insight

Enabling Sales Effectiveness
Through Actionable Insight
Sales Readiness Series

Sales Readiness Series Hosts

Dan Hudson Matt Smith
3forward 3forward
President, Co-Founder Exec VP, Co-Founder
Dan.Hudson@3forward.net Matt.Smith@3forward.net

3forward.com 1
Create. Increase. Accelerate.TM ©2010, 3forward, LLC

Visit us at 3forward.com
3forward.com 2

Guest Expert

Carl Esposti
Principal, Sales & Market Development
Everest Group
cesposti@everestgrp.com

3forward.com 3

Everest offers unparalleled market
insight and intelligence to service providers

Company profile Market segments served
 Leading consulting and research firm
 Founded in 1991
 Served over 25% of Global 250 companies
 Over 600 client engagements to date
Service Service
 Offices in Dallas (headquarters), Amsterdam, London,
recipients providers
New Delhi, New York, Sydney, and Toronto Business Third-parties
users, Outsourcing and captives/
governance, and shared
Key differentiators and sourcing Offshoring services
Market
 Fact-based insight and advice
 Joint research and consulting capabilities
 Recognized for thought leadership – Total Value Service enablers
Equation (TVE), Joint Design, NASSCOM India BPO Software/hardware and
study, and other industry-leading innovations industry associations

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Outsourcing Market is Changing

Large outsourcing contracts1

Less opportunity
Greenfield sales territory is drying up, as
202
170 indicated by significant declines in large
139
contract signings

2007 2008 2009
(projected)

Resources

Economic pressure Sales
Cost of sales is becoming an increasingly organizations

important issue as most companies seek to Revenue
achieve “more with less” target

1 Everest Transaction Intelligence database; large contracts defined as $100MM TCV or greater
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Buying Patterns are Changing

Reduced IT supplier
relationships from Portfolio consolidation
40 to 5
Buyers are demanding fewer suppliers to do
Consolidated IT more work
portfolio
relationships to 3

New Buying Process
Based On: Designing Nurturing Programs to Drive Sales, by Ardath Albee

New buying process
Developments in technology (web 2.0) have Status Quo
Business
Event
Research Options
Engage-
ment
Validation Choice

dramatically altered the way buyers research,
engage, and select providers
8
3forward.com Create. Increase. Accelerate.TM
©2010, 3forward, LLC

3forward.com 6

New Buying Process
From Designing Nurturing Programs to Drive Sales, by Ardath Albee

Business Engage-
Status Quo Research Options Validation Choice
Event ment

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Changing market calls for new selling
philosophy
Market Stage

Introduction Growth Maturity

Most sales organizations still selling
as though market has not changed
Worldwide Outsourcing Sales

Supplier consolidation,
Intense marketing to Increasing sales and
reduced sales velocity,
establish identity, emergence of
sales volume reaches
promote awareness competitors
steady state

Competition is scarce; Market develops a “gold Fewer opportunities drive
success is based on the rush” mentality; success need for “smarter”
ability to build awareness becomes a numbers approach; success
and educate prospects game where the highest based on ability to
on a unique value level of hustle wins compete for share using
proposition deep account insights
3forward.com and relationships 8

Sales Organizations Must Adapt
Account Penetration Game Plan Strategic Playbook Activities

 Gain in-depth knowledge of the account‟s sourcing portfolio, including active
projects and planned investments
Understand the  Chart the competitive landscape by supplier and functional scope
Landscape  Identify opportunities for account expansion and competitive share-shift

 Determine when opportunities will move from latent to sales-ready
 Prioritize account pursuits by predicting likelihood and timing of sourcing
activity
Prioritize  Focus resources on opportunities with the highest propensity for value
Investments  Develop the groundwork for pursuit strategies

 Identify clients‟ interest areas
 Develop a compelling and relevant message to align with key interest points
Formulate Value  Address identified account expansion opportunities
proposition

 Build a contextual backdrop for relevant discussions with clients by
monitoring business events, announcements, and activities that will shape
Engage Clients in the account‟s strategic plan
Dialogue  Use key occurrences as entry points for informed, relevant dialogue
 Develop pursuit strategy and launch pursuit

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Typical Sales Engagement

Understand Landscape

Prioritize Investments
Formulate Value Proposition
Engage in Dialogue

Business Engage-
Event ment

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Typical Sales Engagement
These sales activities typically occur after the buyer has
formally signaled their outsourcing intentions.


Engage in Dialogue

Business Engage-
Event ment

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Ideal Sales Engagement
In the ideal sales engagement these activities occur much earlier in the
buyer’s process – likely before any official or formal requests or notices


Engage in Dialogue

Business Engage-
Event ment

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with Everest InsightsTM
Account Penetration Game Plan
EVEREST INSIGHTSTM Enabling assets

 Semi-annual deep dive into key account
Understand the
Account Intelligence information and stats
landscape
 Detailed sourcing profile with active projects,
supplier portfolio, and functional scope

 Monthly analysis of account‟s propensity to
Account Readiness outsource and priority score
Prioritize investments
 Accurate prediction of likelihood and timing
of sourcing activity

 Monthly insider view into account‟s interest
Formulate value Special Insights areas based on a robust library of
proposition information-gathering behaviors (i.e., “what
mail they are reading”)

 Monthly dynamic newsfeed of timely and
Engage clients in Active Surveillance relevant business events, announcements,
dialogue and activities

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Alignment with Buying Process

Everest InsightsTM is identifying and highlighting buyer
behavior that predicts likely next steps in the
outsourcing consideration process.

Account Account Special
Intelligence Readiness Insights

Active Surveillance

Business Engage-
Event ment

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Selling with Everest InsightsTM
Engage in
Dialogue
Formulate
Understand Prioritize Value
Landscape Investments Proposition

Account Account Special
Intelligence Readiness Insights

Active Surveillance

Business Engage-
Event ment

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Everest InsightsTM Account Intelligence

EVEREST INSIGHTSTM

 Supplier names
Sourcing appetite
Account Intelligence

 Function view
 Sourcing models  IT and BPO profiles Account Readiness

 Outsourced scope Key
 Trends by bus. unit observations Special Insights

and potential Supplier
landscape
Active Surveillance

implications

Verizon Communications Inc. Confidence level:

Company overview and significant developments

Verizon
Company snapshot Significant developments (last 12 months)
Confidence level:
Overview: Verizon Communications Inc. (Verizon) is engaged in providing
Merger & acquisitions

IT application landscape – Enterprise
communication services worldwide. The company delivers broadband and
Jan 2009: Verizon Wireless completes acquisition of Alltel Corporation


Company snapshot
other wireline and wireless communication innovations to mass market,
from Atlantis Holdings LLC.

 business, government, and wholesale customers.
Headquarters: New York, USA
Revenues: US$97,354 million
 Aug 2008: Verizon Wireless completes purchase of Rural Cellular
Corporation
Executive change
NOT EXHAUSTIVE
Number of employees: 237,255
Verizon Feb 2009: Verizon Communications names John Killian as Chief
 Confidence level:

Financial data
Key leadership: Ivan G Seidenberg, CEO; Dennis F Strigl, COO; Richard J.
Financial Officer, effective March 1


Enterprise
Lynch, CTO; Doreen A Toben, CFO; Lowell C McAdam, CEO (Verizon
Supplier landscape – function view its intent to sell Application
Divestures
Wireless) May 2009: Verizon announces
 its local wireline NOT EXHAUSTIVE
Fortune 1000 Rank: 17 of
Name Technology Application
business in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North
application type Description Carolina, Ohio, Oregon, Southexposure Washington, West exposure
Significant Carolina,
Supplier Moderate Virginia,
development1 No/limited exposure
maintenance2
Business divisions
Wisconsin, and some rural areas of California to Frontier

Recent developments Wireline Infinys Billing and Infinys is Convergys‟ billing/BSS system Co. for about US$8.6 billion
Communications Convergys IT  IT consulting/


 provisioning
 Verizon Telecom: Verizon Telecom offers voice, data and video services to
consumers, small and medium-sized businesses, and wholesale customers
 May 2009: AT&T announces that it will buy the bulk of Alltel Wireless ADM

Business Verizon acquired MCI Inc.SAP‟s Business Objects isand will sell some Centennial Communications Corp IT
 Verizon Business: In 2006,
Business to create Verizon used for Business Captive
infrastructure
Global majors divested by Verizon Communications Inc  $2.35 billion,
assets being

for
assets to Verizon
BPO
 Largely voice-
Objects Intelligence/ Intelligence and reporting Wireless for US$240 million
Business. The company offers advanced IP communications and information infrastructure based
Assurance
technology (IT) products and services including managed services, security,  Jul 2008: MTN Group Limited acquires 100% of Verizon outsourced customer care
mobility, collaboration, and professional services Communications' Verizon South Africa Ltd. primarily by  Benefits admin
Wireless: The domestic wireless business provides wireless voice and data Business Intelligence Airways's LiveTV to buy Verizon Communications
SABIT Business Service Assurance  Jun 2008: JetBlue
Captive 
products and services across the U.S.Intelligence/ Toolkit (SABIT) is Verizon‟s Business Network acquired outsourced to
Inc's Airfone
Assurance Intelligence and Assurance technology
 Verizon Wireless: The company is a joint venture of Verizon and Vodafone companies Hewitt
 Alltel: Verizon Wireless acquired Alltel Wireless on January 9, 2009
Other outsourcing relevant developments
TBA HR Offshore majors
Total Benefits Administration is2009: Verizon Wireless' Chief Technology Officer  he does not
 May
Hewitt‟s Hewitt said   Limited largely
Key financial information: proprietary benefits administration platform outsourcing, implying the carrier's intention to retain
believe in network to technical
Revenue split by business
PeopleSoft F&A
Revenue split by direct control of its CDMA network and LTE rollout

PeopleSoft financials system 2009: Verizon announces its intent to bring work back to the
Infosys 
helpdesk
segments geographical segments  Jan

Others United States from overseas. The CEO also announces that Verizon
will reduce the amount of outsourcing that was earlier performed and
8%
expresses the need to create jobs in the United States
Wireline 49%

Captives
51% Wireless Other suppliers  Customer
service (APAC
92% Customer) and
USA
RPO
Sources: Onesource; company website; news articles; Everest Research Institute (2009) (PeopleScout)


Proprietary & Confidential. © 2009 Everest Global, Inc.
While Verizon uses a number of suppliers, there are no publicly announced, large, multi-year relationships
6
footprint
Company 1
2
Source:
Application development includes, development, implementation,IT ADM support (largely project based). Given Verizon‟s own offerings for IT
 Verizon‟s IT outsourcing is largely concentrated to enhancements, and testing of applications
Application Maintenanceservices,on-going management and maintenance primarily in-sourced. Most outsourced relationships for IT
infrastructure includes Verizon‟s IT infrastructure has been of applications
Everest Research Institute (2009) their acquisitions (e.g., Alltel or MCI)
infrastructure were for
 Verizon‟s BPO outsourcing is largely limited to customer service / technical helpdesk services which are outsourced to a
23

overview
combination of onshore (TeleTech, SITEL) and offshore suppliers (Infosys, Wipro, Sutherland, Satyam, Firstsource). Corporate
functions (finance, procurement, etc.) are delivered primarily through Verizon‟s shared services group
 Verizon has opportunistic relationships with other suppliers primarily for telecom-specific engineering/ADM support
Source: Everest Research Institute (2009)
12

 Geographies served
 Functional scope
IT  Bus. units served
 Application names application
 Application providers landscape
 Functional scope

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Everest InsightsTM Account Readiness

List of Business events during Q209 (contd.)
EVEREST INSIGHTSTM

List of Business events during Q209
Q2- 2009: Business Event Examples Event Type Date
Verizon Communications To Offer Its FiOS TV Service Over All-Fiber-Optic Network Renew major client contract 08/Jul/2009 Account Intelligence
Vodafone Group Plc And Verizon Communications' Verizon Wireless Expands 3G Wireless
Network in Salisbury, CT Increase Capacity 08/Jul/2009
Verizon Communications Inc. To Cut Business Event Examples Slowdown-DJ
Q2- 2009: More Jobs In Response To Consolidate Operations Event Type10/Sep/2009 Date
Verizon Communications Plans Job Cuts-AP
The Virgin Blue Group Selects Verizon Communications Inc.'s Verizon Business Operations
Consolidate To Remotely 27/Jul/2009
TESSCO Technologies Inc. Manage Core Business Applications
And Vodafone Group Plc's And Verizon Communications Inc.'s Renew major client contract 21/Sep/2009
Verizon Wireless to Jointly Market Wireless Million Cell Phone Contract To AT&T Inc., Sprint Nextel Corporation Agreement
Navy Awards $60 Products and Solutions Announce Alliance And 28/Sep/2009
Verizon Communications Inc.'s Verizon Online Teams Up With Office Depot To Offer Small
Verizon Communications Inc.- Renew major client contract 21/Sep/2009
Businesses Across Country Additional Savings On Office Supplies
LeasePlan Selects Verizon Communications Inc.'s Verizon Business Announce Alliance Agreement
To Provide Global 21/Sep/2009
Verizon Communications Inc.'s And Vodafone Group Plc's Verizon Wireless Teams Up With
Communications Services Renew major client contract 10/Sep/2009
ESPN To Offer Ultimate Fantasy Football Experience Verizon Business Announces Contract From NikonAlliance Agreement major client contract
Verizon Communications's Announce Corporation Renew 16/Sep/2009 24/Aug/2009 Account Readiness
Verizon Communications Inc. and Vodafone Group Plc's Joint Venture VerizonYork University to Install FiOS Services
Verizon Communications Wins Approval From New Wireless And
Nokia Oyj Introduces Nokia 7705 Twist
in Faculty Housing Commission New ServicesRenew major client contract
10/Sep/2009 12/Aug/2009
Sybase, Inc. And Verizon Communications Inc. Team Up ToDeploying Optical Solutions For
Verizon Communications Begins Manage Mobility Technology Commission new services 28/Jul/2009
Enterprises Worldwide Announce Alliance Agreement 09/Sep/2009
Verizon Communications' Verizon Business To Provide U.S. Social Security Administration
Verizon Communications Inc. and NFL NetworkServices
Reach Agreement to Offer NFL RedZone

Sourcing
With Advanced Data Renew major client contract 24/Jul/2009
Channel to FiOS TV Subscribers Announce Alliance Agreement 02/Sep/2009
Fleming Awards TV Franchise To Verizon Communications Increase Capacity 17/Jul/2009
Verizon Communications And Vodafone Group Plc Joint Venture Verizon Wireless
AirSage Teams Up With Verizon Communications And Vodafone Group Plc's Verizon
Introduces Interoperability For Push To Talk and Mobile Radio Commission New Services 17/Aug/2009
Wireless To Provide Real-Time Traffic data across US Announce Alliance Agreement 14/Jul/2009
Verizon Communications and YES Network Team Up to Bring Online Yankees Games to
SPORTSLINK Trademark To Be Sold on Behalf of Verizon Communications Divest Business Unit 16/Jul/2009
FiOS TV, Broadband Customers
Verizon Communications Inc. Raises Quarterly Dividend
Announce Alliance Agreement 13/Aug/2009
Dividend Announced 03/Sep/2009 Special Insights

Business events
Verizon Wireless A Joint Venture Of Verizon Communications And Vodafone Group Plc And
Verizon Communications Inc. Opens FiOS Services Store In The Bronx Increase Capacity 17/Sep/2009
ZTE Corporation's ZTE USA Inc. Introduce AD3700 Commission New Services 13/Aug/2009

Activity
Verizon Communications and Vodafone Group plc. JV Expands Network With New Cell Site
In Stowe, Vermont Increase Capacity 04/Aug/2009
Network in Easton, Connecticut Increase Capacity 29/Jul/2009
Synterra And Verizon Communications's Verizon Business Sign Agreement To Provide
Network In Revere, MA Increase Capacity 28/Jul/2009
Customers Direct Network Connectivity To Russia And The World Announce Alliance Agreement 08/Jul/2009
Verizon Communications' Verizon Wireless Announces Network Expansion Increase Capacity 09/Jul/2009
Verizon Communications' Joint Venture Verizon Wireless Expands 3G Wireless Network In
Unity, Maine Increase Capacity 06/Jul/2009
Verizon Communications Inc.'s President Plans to Retire Senior Executive Retires 9 03/Sep/2009
Verizon Communications' Verizon Business Rolls Out 2009 Everest Global, Inc. Platform Commission New Services
Proprietary & Confidential. © Managed Security Services 05/Aug/2009 Active Surveillance
Verizon Communications' Verizon Business Extends Managed Services Capabilities to
Corporate Customers in India Increase Capacity 30/Jul/2009
Verizon Communications And Vodafone Group Plc's Verizon Wireless Expands 3G Wireless
Network in Hartford, CT Increase Capacity 09/Jul/2009
8

Events tracked Likelihood to outsource Timing of outsourcing
 Cost structure changes
 Executive changes / Indicating events Indicating events
organizational restructuring (% likely) (# of months)
 Financing events
 Marketing events
 Operational changes
 Ownership changes
 Performance declines
 Regulatory changes

Drivers of correlation
 Event type
 Event frequency
 Predictive accuracy of each event
 Lag time of outsourcing following
business event
 Lead time available until the event
is predicted to occur
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Everest InsightsTM Account Readiness

EVEREST INSIGHTSTM


Build Build
credibility preference Account Readiness

Opportunity Segmentation Special Insights

 Demonstrate  Build case for
expertise II. Soon I. Immediate preference Active Surveillance

(3-12 month sales start) (1-3 month sales start) with buyer
 Preempt RFP
High

by helping High likelihood indicates High likelihood and near-  Secure sole-
buyer think that the company will term timing indicates that source pursuit
through advance to an outsourcing the company is close to or
sourcing event in the future has already made a  Prepare for
Likelihood

options decision to outsource potential RFP
process
IV. Never III. Sometime
(36-60 month sales start) (12-36 month sales start)

With low likelihood and Near-term timing with low
Low

long-term timing, the likelihood indicates that the
company is unlikely to company has no plans to
outsource in the outsource yet, but recent
foreseeable future events point to a possibility Build awareness
Freeze further
Longer Term Near Term  Increase
investment Timing
awareness
through
targeted sales
outreach

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Account Readiness: Case Study
EVEREST INSIGHTSTM

2007 2009 Account Intelligence

Account Readiness

Targets prioritized as “Immediate”
Total universe of Special Insights

companies analyzed Account 44% accuracy Active Surveillance

Readiness
filter
16 companies 7 companies
shortlisted signed deals

Targets prioritized as “Soon”

29% accuracy

~ 400 companies shortlisted signed deals
Targets prioritized as “Sometime”

27% accuracy
shortlisted signed deals

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Everest InsightsTM Special Insights

EVEREST INSIGHTSTM


Everest web portals Direct canvassing
Account Readiness

Special Insights

Outsourcing Center Active Surveillance

 500,000 unique
site visitors / year
 Most prominent
media source for
outsourcing-related
information Custom contact list
 Company-provided contact
list is uploaded into the
Everest Research Institute Everest database
 Industry leader in fact-  Contacts are sent
based analysis related to information across interest
sourcing areas, and Everest reports
 Widely requested research what is accessed
in all major process areas

Industry’s largest
database of sourcing
interest queries

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Everest InsightsTM Special Insights

EVEREST INSIGHTSTM

What your clients are reading… Account Intelligence

Webinars Account Readiness

participation Special Insights

Whitepapers Active Surveillance

download
Industry’s largest
Research database of sourcing
download interest queries

Articles
download

…signals their future actions
EVEREST INSIGHTSTM
Special Insights Report - Verizon Communications
Period: September 2009

Reference Guide

• High interest level

• Medium interest level

• Low interest level

•
Interest area Sep 2009 ∆ from previous month

Example:
Process :: ITO ↑↑

Focus :: Location Optimization

Domain :: ADM
•
•
↑

↑

Focus :: Mid-Term Realignment

Focus :: Captive Center
•
•
↓

↔ Account has strong interest in
Domain :: Contact Center

Domain :: FAO
•
•
↑

↔

ITO, ADM, and Location
Domain :: PO

•
•
↔

Optimization
Focus :: Business Case Development ↓

Focus :: Cloud Computing

Focus :: Pricing
•
•
↔

↔

Process :: BPO

Domain :: HRO
•
•
↔

↓

Focus :: Retained Organization

Domain :: Document Management
•
•
↓↓

↔

Domain :: ERP

Domain :: Help Desk
•
•
↓

↔

Domain :: Industry-Specific BPO

Domain :: IO
•
•
↔

↓

Domain :: KPO

Domain :: RIMO
•
•
↔

↓

Focus :: Contract & Negotiation

Focus :: End of Term Strategy
•
•
↓

↔

Focus :: Governance

Focus :: Information Security
•
•
↔

↓

Focus :: Supplier Selection & Management

Focus :: Transition & Change Management
•
•
↔

↓

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Everest InsightsTM Active Surveillance

EVEREST INSIGHTSTM


Account Readiness

Executive JV and M&A Special Insights

changes and activity Active Surveillance

organization
restructuring

New and Shareholder
renewed news
client
contracts

Commission
of new
Expansions services
and
divestitures

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Everest InsightsTM
Sales Effectiveness Through Actionable Insight
Account Penetration Game Plan
EVEREST INSIGHTSTM

Understand the
landscape Account Intelligence

Prioritize investments Account Readiness

Formulate value Special Insights
proposition

Engage clients in Active Surveillance
dialogue

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Takeaways

Mature market requires changing sales tactics and new tools to
compete

Today‟s sales objective is expansion and protection as „new logo
wins‟ become more scarce

Actionable research and insight enables better sales targeting,
resource decisions and team effectiveness

Insight combined with strategic account planning accelerates
selling process, greatly improves alignment with prospect

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Questions and Discussion

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3forward’s Sales Transformation ModelTM

SALES READINESS Research,
Surveillance
Market Anchor & Insight
Market
Entry Client
Expansion
Programs Acquisition Social Media
Strategy &
Engagement
LEAD CREATION Virtual
Outbound Inbound Event
Lead
Demand Demand Campaigns
Nurturing
Generation Generation

Sales 2.0
Enablement
2.0 SERVICES INTEGRATION
3forward.com 26

3forward Resources
Everest InsightsTM Solution Overview

Sales Readiness

3forward Become a Fan
3forward
Dan_3forward
Mattat3forward

Sales Leaders Blog

Sales Leader Resources New Tools Directory

3forward.com 27

Everest – Get the Answers Today that
Lead to Tomorrow’s Success
Everest has the resources, experience, and capabilities to provide our clients the appropriate
consultancy services support coupled with the strategic intelligence, analysis, and insight that are crucial
to making the right decisions in today‟s environment.

With the vision of our leadership team, the personal commitment, and the passion of our professionals to
deliver real value to our clients, our organization is unsurpassed in its ability to help guide your
company‟s future success.

Everest Global Everest India
Two Galleria Tower Ground Floor, Tower A
13455 Noel Road, Suite 2100 Unitech Business Park
Dallas, TX 75240 South City - I, Gurgaon
U.S.A. National Capital Region
+1-214-451-3000 India 122001
www.everestgrp.com +91-124-304-1000
www.everestresearchinstitute.com
Everest Australasia
Everest Group 409a Wattletree Road
150 E., 52nd Street, 16th Floor East Malvern
New York, NY 10022 VIC 3145
U.S.A. Australia
+1-646-805-4000 +61-3-9509-3933

Everest Canada Everest UK Everest Netherlands & Continental Europe Everest Australia
The Exchange Tower 1st Floor, Accurist House Atrium Building 3rd Floor Level 6, 90 Mount Street
130 King Street West, 44 Baker Street Strawinskylaan 3051 North Sydney
Suite 1800 London, W1U 7AL 1007 ZX Amsterdam NSW 2060
Toronto, ON United Kingdom Netherlands Australia
Canada M5X 1E3 +44-870-770-0270 +31-20-301-2138 +61-3-9509-3933
+1-416-865-2033

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Thank You For Joining

Through Actionable Insight

3forward.com www.everestgrp.com

Actionable Sales Insight

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