Tuesday, October 19, 2021

IT Sales Business Case Drivers - Single Page View

IT Sales Business Case Drivers - Single Page View

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Nature of IT Industry has evolved in a post digital era. Today, IT is primarily divided in 2 domains, that is Traditional (inc. legacy) and Digital. 

Traditional technology and domain is about cost management, risk mitigation and functional fulfilment, where as Digital is about revenue and demand generation, taking risks and creating new experiences. 
With this segmentation of IT and its business function in play, positioning of Sales Business Case and Calibrating triggers has changed in post Digital Era. 

Key factors to influence are highlighted below: 
  • Growth Enabler 
    • IT is Linear 
    • Digital is Exponential 
  • Complexity Resolution 
    •  IT is about Predictability 
    •  Digital is through Resilience, Adaptability, Scale 
  • Competition 
    • IT - against the Companies 
    • Digital - against the Companies and their Ecosystem 
  • Spending 
    • IT - CIO driven 
    •  Digital - CXO, BU Head and CDO driven 
  • Economics 
    • IT - Increase in Marginal Cost leads to Increase in Marginal Revenue 
    • Digital - minimal increase in Marginal Cost leads to higher Marginal Revenue (true network effects and platform economy to be in play) 
  • Pricing 
    • IT (Commodity) - Price is the key driver, as long as Risk of doing business is minimal and Functionality is fulfilled 
    • Digital (Premium) - Price is not the key, its Agility, Scale and CX. Saying “No” to price discounts or relief and being pressurised for work is a key to maintain 
  • Insights 
    • IT - know their problems and looking for bargain, operational insights are valuable 
    • Digital - need Commercial Insights not Thought Leadership 
  • Roadmap Know How 
    • IT - IT Strategy driven via Business Strategy 
    • Digital - Corporate Strategy spectrum and then Business Strategy 
  • Commercial Engagement 
    • IT - MSA or BSA driven 
    • Digital - 30 to 40% reduction on MSA or a skeleton of MSA being leveraged, in some cases non existent
first published on Linkedin 
Source: Gartner

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