3. Solution business acceleration
Vectia Case: Wärtsilä
Grow with strategic account management
Starting point
Based on the strategic principles previously developed with Vectia, Wärtsilä wanted to further develop its customer focus by identifying strategic customers and defining principles for strategic account management. To stay ahead of competition requires that Wärtsilä’s development is in phase with the development of the industry, which is one reason for Wärtsilä’s ambition to always work with industry shapers and pioneers.
Objective of cooperation
By implementing strategic account management (SAM) Wärtsilä aims to offer extensive service to specific customers and to create synergies between the company’s three different divisions. Working with industry forerunners continuously challenges Wärtsilä to develop its technology, which creates a constant need for innovations. However, implementing strategic account management requires extensive alignment both internally and externally.
Results and business impacts
One of the results of the project is a top management forum for where Wärtsilä top managers and their customers meet to create shared innovations. The SAM process has also improved internal alignment and has become a solid part of Wärtsilä’s business.
Based on case article in Vectia Explore magazine Spring 2010.
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets.
Vectia Case: Microsoft
Broader offerings, bigger business
Starting point
Microsoft’s business has traditionally – and successfully – been based on technology and products. However, new approaches and new capabilities are required to be able to create credible value propositions for business-critical solutions. As advanced, integrated business solutions have a strong business impact, the investments are often made at the executive level. In order to enable access to executives and to create capabilities for preparing relevant arguments to support solution sales an outside support and partner was needed.
Objective of cooperation
The consideration of the significance and potential in solution sales together with Microsoft’s business executives indicated a lot to be gained. Vectia facilitated sessions for account managers and team leaders on how to prepare a sales process, and how to build relevant sales cases and create relevant offerings. In the process actual sales cases instead of just theory were utilized, which turned out to be crucial to the implementation.
Results and business impacts
The project led to organizational changes, which resulted in enhanced co-operation of account teams, improved communication and increased understanding of the benefits of organizational resources and enhanced usage of resources. Sales and Marketing Director Juha Koivisto praises the results: “Salespeople are more prepared and have more courage to meet business decision makers, as they have learned to build strong and relevant stories to support their sales pitches.”
Based on case article in Vectia Explore magazine Autumn 2009
Microsoft a worldwide leader in software services and solutions.
Vectia Case: Uponor
Refocusing existing business
Starting point
Uponor has business in more than hundred countries. It has grown to be a major provider and its systems are practically ubiquitous. Deeper insight was needed in order to understand who the customers really are and how they are served in the most profitable way. Uponor saw a great deal of potential in project sales to large customers. However, Uponor did not have a systematic procedure to deal directly with such customers.
Objective of cooperation
Vectia was engaged to enable Uponor to better respond to the need of different customer groups. A uniform way of operating in all markets is required to fully exploit the business potential of major project customers. A market segmentation based on data from five markets was carried out. Two different segments were found trough the market segmentation: the traditional installer customers served through wholesales partners and larger project customers. In contrast to the installer segment, the project segment required long-term partnerships, a different pricing logic and, as sales cycles are long, also patience from management.
Results and business impacts
The market segmentation made Uponor realize that they needed two parallel business models and two sets of sales competencies to handle two completely different market segments. The two models were defined in detailed from customer, offering, operations and management perspectives. Uponor’s Vice President Ilari Aho states: “The project with Vectia ran smoothly. It helped to refocus and structure our thinking, and to find a common approach.”
Based on case article in Vectia Explore magazine Autumn 2009
Uponor is a leading international provider of plumbing and indoor climate systems.
Vectia Case: BE Group
Ride the positive wave
Starting point
With economic trends supporting the business, the European steel and metal merchant BE Group decided that the time was ripe for substantial growth. Instead of just selling more, BE Group focuses on selling that is complimented with service elements.
Objective of cooperation
Vectia helped speed up the transformation of a company focused on sales to a company with a strong service offering. Vectia identified three key development areas: segmentation, sales tools and sales capabilities. Novel approaches and solutions were created for all key development areas. Sales capabilities in the organisation are enhanced in two stages. First, managers from the BE Group are trained to be trainers. These managers are then well prepared to train their respective organisations in different markets.
Results and business impacts
President and CEO of BE Group, Håkan Jeppsson has a positive feeling at the launching phase of the implementation: “With the help of the methodology created by Vectia, we expect quite dramatic changes in our business during the next few years.”
Based on case article in Vectia Explore magazine Spring 2009.
BE Group is a European steel and metal merchant.
Vectia Case: Stork Food Systems
Services mean business
Starting point
The challenge for an equipment provider is to convince the producer to invest in after-sales services to keep the equipment in top shape, up to date and productive. Stork Food Systems decided to productise their services by customer value. Customers do not necessarily understand the value of service. Marco Vos, Service Support Manager at Stork Food Systems says that most of the customers don’t see that good service could contribute to their business.
Objective of cooperation
In order to make their services more enticing, and to productise them for a better price, Stork Food Systems and Vectia decided to benchmark companies with similar after-sales challenges. The goal was to try to focus on the customers’ problems and questions and to make the customers understand where Stork can support and add value. The benchmark exercise produced ideas and information, which in turn led to three different, modular service packages and quantification tools for value-based selling. Also, detailed presentation material to sell the packages was prepared.
Results and business impacts
Service Director, Gerrit den Bok says that “with our new service packages, we try to get part of the financial benefit of the customer for ourselves. Our target is to obtain 30% of the benefits. We trust that in a few years’ time this approach will give us a substantial increase in turnover.” One of Vectia’s strong points was to focus on the customers’ perspective. “We trust that with training, these service packages will result in a strategic direction for our company”, Gerrit den Bok says.
Based on case article in Vectia Explore magazine Spring 2009.
Stork Food Systems is a leading global provider of poultry processing systems.
Vectia Case: Metso Paper
Finding excellence in the service business
Starting point
Successful in engineering and technology but facing challenges in the service business – Metso Paper wanted to refresh and broaden its view on how to operate and develop the service business in the process industry. They also had a desire for finding new ideas. Metso Paper was interested in the logic of combining different services and eager to see how other companies acknowledged the customers’ point of view.
Objective of cooperation
Vectia acted as a process consultant and recruited six companies with similar business logics operating in the process industry for Metso Paper benchmark sessions. The process revealed that Vectia had laid good groundwork and the benchmark sessions were found useful. The process also revealed why and how the service business had been established in the benchmark companies and what kind of best practices and experiences they had that Metso Paper could harness.
Results and business impacts
The results of the benchmark sessions were documented and presented organisation-wide. The central results were incorporated into the global Metso corporation’s strategy and action plan. Other concrete results include the changes made in the Metso Paper service organisation. After the benchmark sessions Metso Paper started to organise its services according to its customers’ point of view and another project concerning the sales force has already begun.
Based on case article in Vectia Explore magazine Autumn 2008.
Metso Paper is a global leader in pulp, paper and power technology.
Vectia Case: IonPhasE
Selling the value of an innovation.
Starting point
IonPhasE IPE is an innovation with vast possibilities and a wide array of application areas. It is a dissipative polymer that controls static energy. Refining the innovation into a profitable, growing business is not easy. IonPhasE’s main challenge was how to capitalise the remarkable discovery, being a small player in a distant country with several possible target segments all over the world.
Objective of cooperation
Vectia was engaged to develop IonPhasE’s solution offering from the customer point of view to be able to express the company’s value to the market. The target was also to find a differentiated market message based on the company’s competitive edge and customer benefits. A sales presentation and value quantification tool were created and a proactive sales process was mapped out to facilitate the company’s value-based sales approach. Vectia was also involved in the development and the rehearsing for investor presentations.
Results and business impacts
Vectia helped IonPhasE to develop value-selling capabilities for capitalizing on the IPE innovation. Now IonPhasE is moving forward with the target of selling the company in three to four years. Rapid growth will be reached by targeting the right customers and growing together with them. Project with Vectia helped IonPhasE people with scientific backgrounds to better understand what it takes to reach the company’s long-term business targets.
Based on case article in Vectia Explore magazine Autumn 2008.
IonPhase is an innovative solution provider for dissipative polymers.
Vectia Case: Teleca
Creating a platform for growth
Starting point
With a history of growth through acquisitions, Teleca’s units around the world were run as independent entities with little coordination. Teleca was not able to fully capitalise on its strengths and presence at global customers. Independent units with different business substances caused Teleca to operate with a broad offering scope, leading to ineffectiveness and difficulty in serving global customers.
Objective of the co-operation
With the challenges identified, Teleca set clear targets for financial performance and internal alignment. The goal was to serve the global customers with a service-based offering in a cohesive way. Vectia acted as a process consultant and engaged 25 Teleca key people in a fact-finding process to identify the profitable core. Teleca decided to have services and solutions to the mobile industry as its core business. All non-core operations were divested within a year. As acquisitions had brought on board different cultures and values, the values were tuned and aligned to ensure successful implementation of company-wide processes. A unified model for proactive account management and sales process with clearly defined roles and responsibilities was created.
Results and business impacts
A structured process for serving customers is now in use. Global account teams and implemented engagement models enable Teleca to serve its global customers in a unified way. Teleca had its first profitable quarter in two years in 2007, and expects to see improving results also in the future. Teleca is now able to concentrate on profitable growth, and is a global, manageable and profitable enterprise with a strong future outlook.
Published in Vectia Explore magazine in Spring 2008.
Teleca is a solution provider of services to the mobile industry.
Vectia Case: Dynea
Harnessing price and pricing
Starting point
Dynea is striving to modernise traditional business models, turning the focus from production to customer needs. The company seeks to serve its customers with the promise “Just what you need”. With international growth and increased cultural diversity, a common understanding of business principles and of how to apply them was needed.
Objective of the co-operation
Dynea set out to define the sales process and to create a pricing guideline to be implemented in the whole organisation. With Vectia, Dynea defined the details affecting pricing, and documented them into a guideline for use in all units. The pricing document included guidelines on pricing preparation, setting the price, preparing a value proposition and planning a sales meeting. Customer responsibles received a guiding framework to apply when considering pricing, with the authority to set the final price still remaining.
Results and business impacts
Several representatives from Dyneas sales and management teams from Asia and Europe were involved in creating the guidelines, and were thus committed to the process. This enabled Dynea to implement the framework by itself. Dynea was satisfied with the outcome; a clear document with a clear structure that was easy to adapt to and implement in the organisation. A common understanding of the customer, a common platform and language and a common pricing policy based on creating value for the customer helps Dynea reach the target of increased margins.
Based on case article published in Vectia Explore magazine Spring 2008.
Dynea is a leading provider of adhesion and surfacing systems.
Vectia Case: Halton
Finding new business out of thin air
Starting point
The importance of indoor air is understood better, and as a result the demand for innovative indoor environment solutions is growing. With signals from the market and the first tentative steps into service business, Halton wanted to see if it could turn its experience and knowledge from product sales into a new prosperous service business.
Objective of the co-operation
To be efficient and credible in service business, Halton needed to create a common language and common principles to build the service business on. Also, the scope and earnings logic of the service business and the structure of selling and delivering the services had to be defined. Halton’s outside unit Indoorium was recognised as a good platform upon which to build the service business. Indoorium now provides indoor environment services under the name of Halton Solutions, and operates under the Halton umbrella.
Results and business impacts
One of the quick wins of the project was the common understanding and language on service business, which enabled communicating the goals and actions beyond the project group. Since its establishment the indoor environment management business has grown by 100% and Halton has received more assignments than anticipated. Also, the company has acquired new customers from outside its product-oriented customer base. The service concept is going to be further refined in Finland, and after that it will be implemented in other markets. By the year 2015, Halton expects the service business to be its biggest business area.
Based on case article published in Vectia Explore magazine Spring 2008
Halton is a specialist in indoor climate solutions.