Making Sense of Investment?
Shaun Finegan Sponsored by Konica Minolta
We are on the verge of a paperless world!
Bill Gates, The Times
Oct 29th 2005
Document trends
16
14
12
10 8 6 4 2 0
Software
Hardware
1985 1990 1995 2000 2005 2010 2015
1980
% increase /reduction
Traditional Print Buying Hierarchy
Business Solutions Support & Advice Applications Quality / Features Price
Buying Print is a price decision
Solution Buying Hierarchy
Business Solutions
Support & Advice
Applications
Quality/Features
Price
A SOLUTION IS A VALUE DECISION
Solution example
• Customer can buy manuals • Customer can invest in bar code tracking
If the world around you is changing faster than you are changing, you will be left behind!
Investment is not an option!
When did your organisation make a significant investment?
Why Invest?
• • • • • • Growth (Stakeholders) Decline Trouble (need to take action to survive) Research inspired Customer triggered Salesman persuaded The perception is that there will be a return on the investment
Business Objectives
Inputs
Resources •Brand & Image •People •Equipment •Technology •Premises •Partners
Quality Management System
Outputs Results
•Revenue •Profit •Cash Flow •Share Value •Market Share •Image •Customer Satisfaction
Investment is a journey! If you don’t know where you are going, you won’t know if you can afford the fare!
You will also not be able to describe what it will be like when you get there!
Business Objectives
Inputs
Resources •Brand & Image •People •Equipment •Technology •Premises •Partners
Quality Management System
Outputs Results
•Revenue •Profit •Cash Flow •Share Value •Market Share •Image •Customer Satisfaction
Where are you and where are you going?
Business Objectives
Inputs
Resources •Brand & Image •People •Equipment •Technology •Premises •Partners
Quality Management System
Outputs Results
•Revenue •Profit •Cash Flow •Share Value •Market Share •Image •Customer Satisfaction
Where are you now?
Areas for Investment
• Branding & Company Image • People- Training, development, benefits etc. • Equipment • Technology • Premises • Consultants & market research
Prontaprint
• Research found that logo & colours are significant to buyers (78%) alongside value! • 50% admit they spent little time considering their brand image when they launched • Most companies agree that investment in their brand image would significantly increase their turnover • 88% have no plans to invest! • Prontaprint invested £3M over 2 years • Growth in the first year is 18%
S.W.O.T
Strengths Opportunities Make the most of these
Weaknesses Watch competition closely
Threats
Restore strengths
Strategic turn around required
P.E.S.T.L.E.
Political
Economic
what is happening politically in the environment in which you operate? tax policy, employment laws, environmental regulations, trade restrictions and reform, tariffs etc. what is happening within the economy? economic growth/ decline, interest rates, exchange rates and inflation rate, wage rates, minimum wage, working hours, unemployment (local and national), credit availability, cost of living, etc. what is occurring socially in the markets in which you operate or expect to operate? cultural norms and expectations, health consciousness, population growth rate, age distribution, career attitudes, emphasis on safety, global warming. what is happening technology-wise which can impact what you do, technology is leaping every two years, how will this impact your products or services? New technologies are continually being developed and the rate of change itself is increasing. There are also changes to barriers to entry in given markets, and changes to financial decisions like outsourcing and insourcing. what is happening with changes to legislation. This may impact employment, access to materials, quotas, resources, imports/ exports, taxation etc.
Sociological
Technological
Legal
Environmental
what is happening with respect to ecological and environmental aspects. Many of these factors will be economic or social in nature.
Your customers customer
You
Customer
Customer
Problems?
Inputs Resources
•Brand & Image •People •Equipment •Technology •Premises •Partners
Quality Management System
What is your current situation??
Effect?
The consequential results of the current problems
Outputs Results •Revenue •Profit •Cash Flow •Within Budget •Share Value •Market Share •Image •Customer Satisfaction
How is your current situation effecting your business results??
Solution & Benefits
Exposing the real benefits you can deliver
Outputs Results •Revenue •Profit •Cash Flow •Within Budget •Share Value •Market Share •Image •Customer Satisfaction
How will your solution improve your business results??
The case for investment
Cost? or The value it will deliver compared to the cost?
Case study
Pinstripe
Recommended reference sites
www.cipd.co.uk www.businessballs.co.uk (free consultative selling e-book) www.prontaprint.co.uk