Transcript Investment?
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 Software 6 4 2 Hardware 0 1980 1985 1990 1995 2000 2005 2010 2015 % 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 Quality Management System •Brand & Image •People •Equipment •Technology •Premises •Partners Where are you and where are you going? Outputs Results •Revenue •Profit •Cash Flow •Share Value •Market Share •Image •Customer Satisfaction Business Objectives Inputs Quality Management System Resources •Brand & Image •People •Equipment •Technology •Premises •Partners Where are you now? Outputs Results •Revenue •Profit •Cash Flow •Share Value •Market Share •Image •Customer Satisfaction 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 Weaknesses Opportunities Make the most of these Watch competition closely Threats Restore strengths Strategic turn around required P.E.S.T.L.E. Political what is happening politically in the environment in which you operate? tax policy, employment laws, environmental regulations, trade restrictions and reform, tariffs etc. Economic 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. Sociological 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. Technological 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. Legal what is happening with changes to legislation. This may impact employment, access to materials, quotas, resources, imports/ exports, taxation etc. 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 How is your current situation effecting your business results?? Results •Revenue •Profit •Cash Flow •Within Budget •Share Value •Market Share •Image •Customer Satisfaction Solution & Benefits Exposing the real benefits you can deliver Outputs How will your solution improve your business results?? Results •Revenue •Profit •Cash Flow •Within Budget •Share Value •Market Share •Image •Customer Satisfaction 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