Digitalization - Death of the B2B salesman
Transcript of Digitalization - Death of the B2B salesman
Restricted © Siemens AG 2016
How the internet changes the information flowFrom passive consuming to proactive demanding
History Future
Customer Customer
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Death of a (B2B) sales man‘Forrester’s report by Andy Hoar and Peter O’Neill’
Buying environmentsimple complex
Solu
tion
type
sim
ple
com
plex
“Serve me” “Guide me”
“Show me” “Enlighten me”
Level of complexity drives customers’ expectation towards supplier
Forrester defines four different
Buyer Archetypes
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Death of a (B2B) sales man‘Forrester’s report by Andy Hoar and Peter O’Neill’
Buying environmentsimple complex
Solu
tion
type
sim
ple
com
plex
“Serve me” “Guide me”
“Show me” “Enlighten me”
Different Buyer Archetypes require individual sales attitudes
Estimated sales head
count developmen
t by 2020-33%
-25%
-15%
+10%
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What does this mean for the sales setup?
Explainer• Integrated support
tools• 24/7 availability• (Online) Training• Application
knowledge
Consultant• Process knowledge• Solution risk taking• New business model
to finance the consultancy is required
Order Taker• State-of-the-art
processes• Standardized
product master data• Online visibility• Price transparency
Navigator• Information broker• Internet Scout• Transactional
charges for services
Separate channels for information and purchase
Total Customer Experience
Integrated Marketing
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From grabbing attention to holding attention
From Gaussian to Bayesian data analysis
From eyeballs to Interfaces
Four mindset shifts marketers need to make now
From crafting messages to designing experiences
Source: Greg Satell, Forbes 2016, March 3rd
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Siemens supports the ‘Digital Marketing’ within the distributor channel
Ready to use for end customers
Ready to use for distributor staff
Ready to use in yourown marketing tools
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Persona: Digital Marketing Expert
EnergyEfficiencyBrochure
F&BApplicationBrochurePackaging
Web pagehosting
If you want to be ‚preferred supplier‘, your marketing content must be easily accessible, pre-selected by end-
customer industries, and covering relevant focus topics (Safety, Energy Efficiency, Legislative Changes, …).
Feed
s fro
m S
uppl
iers
Responsible for the production / selection of suitable marketing tools
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Integrated Marketing in B2B needs more than historical data
Cross-sellingPLC + Power supply; Control products + circuit protection .Up-sellingContactor -> Soft starter -> DriveSolution-sellingLOGO! + Drive + MCB + Motor protection
Value-sellingx + y + z = energy savings
Strategic-selling e.g.• Market launch• Stock clearance
Relevantinformationfor the userSales data
Technical data
Individual targets Additional service offer
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Valentin Dinkelbach
Corporate Account Manager
DF SDA
Gleiwitzer Straße 555
90475 Nürnberg
Phone: +49 (911) 895-2458
Cellular: +49 (172) 291 3377
E-Mail: [email protected]
Thank you for your attention!
siemens.com/answers
WINNING TOGETHER: LEDVANCE AND THE CHANGING MARKET
Dr. Oliver Vogler, VP Strategy & Marketing
EUEW General Convention, Sardinia, June 3, 2016231
In Electrical Wholesale, key players cover the majority of the market
13″5
9″5
4″7
IDEE
5″7
AD
9″3
IMELCO
23″0
t/o IMARK
GEWA
1″0
FEGIME
Large Corporates
22%
Buying Groups
Independents
Total Market
150-170’’
50%
28%
13″5
Rexel
9″1
Grainger
6″9
Sonepar
20″2
5″2
Wesco CED
233
CY 2015; Numbers in bn EURSource: DISC (US); EMR (RoW); Company Websites; Industry expert estimates
EUEW General Convention, Sardinia, June 3, 2016
Lamps1)11″13″
Lighting is an important category – that can be split into 3 main segments
3%
19%
20%
18%5%
7%
13%
15%
Further:Industrial MaterialSwitch GearHeatingSecurity
Lighting
Cables and Wires
Installation Material
Source: EMR, Frost & Sullivan 2015, values in EUR
234
Lighting represents almost one fifth of revenue… … with highest growth in “Over the Counter” Luminaires
Project Luminaires2)
2016
31″
2014
29″
"OTC" Luminaires2)
26″23″
1) Global Lamps Replacement2) Excl. LATAM and MEA
“Over the Counter” luminaires are……marketed directly via wholesaler…applicable for >50% of installations…easy-to-use w/o specification…fast-turning, volume-driven market
“Project” luminaires are……marketed via architects, light planners…wholesaler serves as fulfillment partner…includes customized luminaires…technology-driven market
EUEW General Convention, Sardinia, June 3, 2016
Expectations for the future of the lighting market different depending on research group (here: Lamps)
235
CAGR 2015-2020:
+1%
IHS (2015)
20
15
10
5
02015 2020
9.0
12.3
20
15
10
5
02015 2020
18.918.0
CAGR 2015-2020:
-2%
0
5
10
15
20
2015
15.3
2020
14.0
BCG (2015)F&S (2015)
CAGR 2015-2020:
-6%
Sources: Frost & Sullivan 2015; IHS 2015; BCG 2015 (based on interpolation)Comparable scope: Indoor only (therefore, e.g. HPD excluded)
GLSLPD HALCFLi LED Lamps
EUEW General Convention, Sardinia, June 3, 2016
EUR bn EUR bn EUR bn
Installer ElectricalWholesaleMarket
To explore the market trends, we have invested in some research
236
Frost & Sullivan 2015McKinsey & CompanyBoston Consulting GroupHISGartner
Voltimum Survey (April 2016) US DISC DATABASEEuro Marketing + Research (EMR)LEDVANCE Wholesaler Survey(May 2016)
Whitepaper with external researchers (July’16) Website for registration: www.ews2016.com
DACH:EU-N:EU-SW:EU-E:
3/4th
12/13th
19/20th
26/27th
MayMayMayMay
EUEW General Convention, Sardinia, June 3, 2016
N = 402
N = 273
N = 732
N = 357
Germany
UK
Italy
Turkey
There are big shifts that prompt your customers to demand more from you
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• Top portfolio• Best in class product content• More training & education• Top multichannel experience• Agility• …
LEDification
Market ShiftsA
Smart Products
Tech ShiftsB
Multichannel
Service ShiftsC
NewDemands
NewExpectations /
Behaviors
EUEW General Convention, Sardinia, June 3, 2016
What’s your“winning model”???
LEDification rate – Accelerating each year … (wholesaler view)
240
Electrical Wholesaler Survey May 2016
29%
30%
40%
52%
2013 2014 2015 2016 …2012 2020
EU-S 63%
EU Ø 68%
EU-E 67%EU-N 73%EU-C 76%
A
Source: McKinsey & Company, OSRAM Market Model, Frost & Sullivan, LEDVANCE Wholesaler Survey, May 2016 (Survey Respondents N=69)
MARKET EXPERTS increase the expected LED share in year 2020 yearly
EUEW General Convention, Sardinia, June 3, 2016
… "only one among other technologies"… "first choice" or "close to 100%"
LEDification rate – Accelerating each year … (installer view)
241
LED will be close to 100% of all lighting installations LED will often be the first choice for lighting installations LED will be only one among other technologies for lighting installations
ItalyN = 732
GermanyN = 402
UKN = 273
TurkeyN = 357 26%
25%
25%
16%
In 2016, LED will be …
75%
75%
74%
84%
A
Source: Voltimum Survey Among Electrical Installers, April 2016 (N=1764)
Panel of electrical installers after l&b 2016
EUEW General Convention, Sardinia, June 3, 2016
… while traditional technologies still make sense in several cases
242
Need“CHEAP INSTALLATION/
SHORT OPERATING TIME”“TOTAL COST OF
OWNERSHIP”“HIGH PERFORMANCE
LIGHTING”“MAXIMUM ENERGY &
CO2 SAVINGS”
Solution Halogen / CFL as price sensitive entry technologies
Fluorescent still more cost effective in many installations
High pressure discharge versatile and durable
LED retrofit Standardized / “OTC”LED luminaires
Global Market Today, in € 3’’6 1’’4 1’’1 6’’9 25’’8
Global Market 2020, in € 1’’1 0’’8 0’’6 7’’7 31’’9
Outdoor
Shop
Spor
t
Industry
TCO Calculation
LED LUMT8T5
Let’s manage this pro-actively!
A
Source: Frost & Sullivan, own calculations
EUEW General Convention, Sardinia, June 3, 2016
Digitization and connected products Introducing the “Hype Cycle” ...
244
Expectations
Time
Robotic Vacuum Cleaner
ZigBeeWireless Music Systems for the Home
Innovation trigger
Through of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Peak of Inflated Expectations
B
Source: Gartner 2015
EUEW General Convention, Sardinia, June 3, 2016
While Connected Home is still in the "Innovation Trigger" phase, installers see sales potential for smart lighting increasing after l+b
245
Electrical Installers about sales potentialfor smart lighting after l+b 2016
Expectations
Time
Connected Home
Intelligent Lighting
Innovation trigger
Through of Disillusionment
Slope of Enlightenment
Plateau ofProductivity
Peak of Inflated Expectations
44%
40%
47%
41%
Decreased Increased
3%
1%
6%
2%
B
Source: Gartner 2015, Voltimum Survey Among Electrical Installers, April 2016 (N = 1.764)
Gartner Hype Cycle for Connected Home, 2015
EUEW General Convention, Sardinia, June 3, 2016
... showing that lighting is good entry point to build smart solutions, with confirmed business potential by installers
246
Security
Shades/Blinds
Smart white goods 9%
10%
7%Entertainment
25%HVAC1
27%Lighting
22%
Source: Frost & Sullivan, Voltimum flash survey amongst electrical installers, April 2016 1 Heating, Ventilation and Air Conditioning
Light is …… in every room … replaceable (still “billions” of sockets)… always on power … both, functional and emotional
ELECTRICAL INSTALLERS estimate lighting to be the most important use case for Smart HomeSMART LIGHT is at the core of many applications
Smart Citizen
Smart Healthcare
Smart Infrastructure
Smart Mobility
Smart Building
Smart Governance and Education
Smart Energy
Smart Technology
EUEW General Convention, Sardinia, June 3, 2016
B
Wholesalers and installers with different expectations around purchasing online
248
Share of INSTALLERS who pick given aspects among the most
important when purchasing online
Share of WHOLESALERSwho believe given aspects are the most important for electrical installers when purchasing online
23%
22%
14%
14%
10%
9%
4%
13%
19%
13%
12%
18%
5%
3%
Rank RankGood product feature comparison
Delivery speed
Availability of auxiliary information
Better price than offline
Full range of portfolio
Ease of purchase process
Site / app optimized for mobile devices
Broad payment options
5%
19%
1
2
3
4
5
6
7
8
4
1
4
6
3
2
7
8
C
Source: Voltimum Survey Among Electrical Installers April 2016 (N=1764), LEDVANCE Survey, May 2016 (N=68)
EUEW General Convention, Sardinia, June 3, 2016
At the same time, multichannel becomes key –now also for pure digital players
249
EU: Large online fashion dealer goes offline with store concept
US: Opening more and more offline shops with online customer rating as shelf concept
APAC: USD 4 billion investment in a Chinese brick-and-mortar retailer
C
EUEW General Convention, Sardinia, June 3, 2016
Our challenge: Managing the customer journey… online and offline!
250
C
Reach & Penetration Education Drive Trial
Prospectivecustomer Clients
AdvertorialsAggre-gators
Online Video(all devices)
High Reach Display
Content Marketing
Mobile
(e)POSSEA
Re- and Look-Alike Targeting
Social Media
GTIN /ETIM
EUEW General Convention, Sardinia, June 3, 2016
Expected business challenges by electrical wholesalers in the year 2020
252
Source: LEDVANCE Electrical Wholesaler Surveys May 2016 (N=69)
WHOLESALERS in Europe assess their most important business challenge in the year 2020
EUEW General Convention, Sardinia, June 3, 2016
6%
11%
17%
20%21%
25%
Managing complex logistics
Building an own digital platform
Creating a customer-centric
multichannel business
Dealing with competition from internet platforms
Dealing with price pressure
Offering the right product portfolio with the right innovations
Preliminary, we found five segments across countries –Content and Relationship more important than Price
253
PRELIMINARY
Need business convenience(e.g. payment terms)
Needlowestprice
Need broad product portfolio
Need trustedrelationship
28%
23%
7%
28%
14%
“I want it all”
“I just want best price”
“I want a trusted relationship and product innovation”
“I want business convenience &
good payment terms”
“I want a broad and available product portfolio “
Analytically derived installer segments based on a survey of their needs in four countries
Source: Voltimum Survey Among Electrical Installers April 2016 (N=1.764); Countries covered: DE, IT, UK, TR; Analytical method: Correspondence analysis based on 3 survey questions
EUEW General Convention, Sardinia, June 3, 2016
In a nutshell: How to find the “winning model”?
254
LEDification
Market ShiftsA
Smart Products
Tech ShiftsB
Multichannel
Service ShiftsC
NewDemands
NewExpectations /
Behaviors
EUEW General Convention, Sardinia, June 3, 2016
• “The right product for every need” – let’s not “over pace” with LED products
• Lighting is “ahead of the curve” in smart products – already tangible opportunity for installers
• In online business good product information, delivery speed and auxiliary information (e.g., rich media) are most important for installers
• Offering the right product portfolio with the right innovations is seen as the key business challenge
• Majority of installers is not (just) price driven but wants better content
Brand Positioning & Customer Centricity are key!
More to follow:www.ews2016.com
PRELIMINARY
The “big old 3” in the lighting industry are adapting their business models to a changing market environment
256
Trend1)
in traditional business
• Carve-out of lighting and combine with other businesses around energy
• Introduction of new entrepreneurial corporate culture
“Current combines GE’s products and services in energy efficiency, solar, storage, and onsite power with our digital and analytical capabilities to provide customers […] with more profitable energy solutions” – Jeff Immelt, CEO GE
“As a standalone, listed company we will be committed to […] driving the transition to LED and connected lighting systems and services” – Eric Rondolat, CEO Philips Lighting
“As an independent unit, LEVANCE will be able to operate more freely on the market and realize strategic options such as partnerships more easily.”
– Olaf Berlien, CEO OSRAM
• Separation of technology and volume business
• Higher flexibility for alliances and partnerships
1) Decline in traditional (lamps) business in Q1 CY 2016 Sources: www.edisonreport.net; PHILIPS Prospectus; GE / PHILIPS / OSRAM Capital Market Days
Decision
• Separation of lighting and healthcare/electronics business
• Spin-off of lighting business for direct access to capital markets
Consequences
EUEW General Convention, Sardinia, June 3, 2016
Most of general lighting business will go with LEDVANCE moving forward
257
1) Cross-selling on behalf of “OSRAM GmbH” (not applicable for APAC)
LEDVANCE after CARVE OUTOSRAM before CARVE OUT
Sales: 57 Offices
Production: 34 Sites
Opto SemiconductorsSpeciality LightingLuminaires & Solutions
Digital Systems
ECG LED Drivers LED Modules LMS
Lamps (Traditional / LED)
Thermal / CFLi LPD HPD LED Lamps
LED Lamps
LED Lamps
Traditional Lamps
Thermal / CFLi LPD HPD
Electronics1
ECG / LED ModulesLED Drivers LMS
“OTC” Luminaires Smart Products
Sales: 50 Offices
Production: 17 Sites
EUEW General Convention, Sardinia, June 3, 2016
NEW:
Who we are
“WE HAVE ESTABLISHED A TEAM-ORIENTED, CUSTOMER-DRIVEN PERFORMANCE CULTURE AT LEDVANCE.”
Jes Munk HansenChief ExecutiveOfficer
Erol KirilmazChief Sales & MarketingOfficer
Peter MannhartChief OperationsOfficer
Bettina Kahr-GelengChief Human Relations Officer
Oliver NeubrandChief FinanceOfficer
258 EUEW General Convention, Sardinia, June 3, 2016
LEDVANCE KICKOFF CONFERENCE, May 2016259
How we look like
• Our new company brand
• One global firm• Re-start into more
entrepreneurship
• Our trusted brand for lamps • Association with quality• Demonstrating our heritage
and expertise
• Our new product brand for luminaires
• Leveraging both: “OSRAM quality” and “advancing light”
95%of products are sold in OSRAM brand
LEDVANCE KICKOFF CONFERENCE, May 2016260
58%OF CONSUMERS CLAIMTHEY WILL PURCHASE ASMART HOME PRODUCT INTHE NEXT TWO YEARS
250NEW OVER THE COUNTER LUMINAIRES TO BE LAUNCHED GLOBALLY STARTING FROM JULY
Our commitment to you
1. We are proud of our heritage and worldwide presence – illuminating people’s lives and advancing lighting technology for almost 100 years
2. We will continue to be your “one-stop shop” for almost all OSRAM branded products in general lighting
3. We continue to provide you with latest technology, e.g., in LED lamps, and are expanding our portfolio in luminaires and smart lighting products
4. We strive for continuous improvements in our knowledge of markets and end-user needs through local and application-oriented expert teams (e.g., for verticals)
5. You are the focus of our daily business – we are committed to the 3-level distribution approach!
YOU AND LEDVANCE
MSSI – Market Surveillance Support Initiative
Fernando Ceccarelli Senior VP and General Manager, Power Distribution DivisionEaton EMEA
Working together for safe and compliant electrical products in Europe
© 2016 Eaton, All Rights Reserved.
What is MSSI?
• Joint initiative from CECAPI and CAPIEL, supported by ORGALIME.
A proactive industry lead scheme to monitor the market and support authorities to prevent non-compliant electrical products from entering the European market.
© 2016 Eaton, All Rights Reserved.
Why MSSI?
Non-compliant products are a risk to
• People• Property• Goods
Can damage the reputation of individuals and companies within the electrical industry.
© 2016 Eaton, All Rights Reserved.
The real cost of non-compliant products
Every day in Europe
• Approximately 12 people die in house fires.
• 10 – 20% of fires are due to electrical faults.*Non-compliant products
put people, goods and property at risk.
* Statistics from the EU Fire Safety Network and Forum for European Electrical Domestic Safety (FEEDS)
© 2016 Eaton, All Rights Reserved.
MSSI Overview
Working together for 100% compliant products and fair competition on the European market.Objective
Proactive sampling and testing to support local authorities to take action.Approach
Focus on MCBs, RCDs, MCCBs, SPDs, contactors, wiring accessories, and power distribution.Scope
© 2016 Eaton, All Rights Reserved.
MSSI Charter
• Published charter of the MSSI objectives, obligations and commitments.
• Signed by MSSI members, industry associations and CABs.
© 2016 Eaton, All Rights Reserved.
MSSI Country industry associations
Spain -
UK -
Italy -
France -
Poland -
Germany -
© 2016 Eaton, All Rights Reserved.
MSSI Countries- Established local MSSI
- Local MSSI in development
- Local MSSI 2016 expansion
• Our objective is to cover the European Market
• MSSI Electrical wants to reach out to ‘sister’ organisations horizontally and to reach out across the distribution chain.
© 2016 Eaton, All Rights Reserved.
MSSI Process
• Local MSSI working groups identify products and manage the process within each country.
• Common approach across all regions.• Can be slight differences
due to local laws.
Identify potentially non-compliant products
Third party CABs sample and test suspect products
If non-compliant - market surveillance authorities alerted and informed
Authorities take enforcement measures against non-compliant product
© 2016 Eaton, All Rights Reserved.
MSSI – Reaching out to the industry
• Officially launched at Light & Building 2016 - Frankfurt
• MSSI Electrical website live with Q&As, information etc.• www.mssi-electrical.org
• Knowledge and information sharing throughout the industry – manufacturers, industry associations, CABs.
© 2016 Eaton, All Rights Reserved.
Industry wide responsibility
The whole industry has a collective responsibility to ensure only compliant products are supplied, sold and used.• The revised Low Voltage Directive
places greater responsibility on operators within the supply chain.
• Importers, distributors and wholesalers assume greater responsibility for product imported into the EU.
© 2016 Eaton, All Rights Reserved.
Responsibilities of wholesalersThe European Commission ‘Blue Guide’ makes specific reference to the obligations of distributors within the renewed Low Voltage Directive.
• If the distributor also imports product then the distributor also assumes the further responsibilities of an importer.
• The distributor is a natural or a legal person in the supply chain, other than the manufacturer or the importer, who makes a product available on the market.
• Distributors are subject to specific obligations and have a key role to play in the context of market surveillance.
© 2016 Eaton, All Rights Reserved.
Risks and consequences for wholesalersWithout proper due diligence product which appears to be good could be highly dangerous.
• May cause fire, injury and loss of life.
• Loss of business reputation and confidence in products sold.
• Fines by enforcement agencies.
• Even possibility of imprisonment.
Product could appear to be good from the outside
Non-compliant - internally the reality is very different
© 2016 Eaton, All Rights Reserved.
Wholesalers play a key role
Wholesalers are a key link between manufacturers and installers.
• All products on offer MUST be compliant.
• Greater legal responsibility when importing products into the EU.
• Own brands and third party brands.
• Influence buying behaviour of installers.
• Help to spread the benefits of buying and using proven safe products.
© 2016 Eaton, All Rights Reserved.
How can MSSI help?MSSI can support through local country working groups:
• Point of contact for wholesaler associations to report suspect product found within the market.
• Coordinate testing and work with CABs and local enforcement agencies to remove non-compliant product from the market.
• Collaborate with wider industry groups such as in the UK EMS – lighting, cables, installers.
• Provide education, training and guidance tools.
© 2016 Eaton, All Rights Reserved.
Example guidance document
• MSSI working to produce guidance tools to help installers, wholesalers, customs authorities to identify potentially non-compliant products.
© 2016 Eaton, All Rights Reserved.
Benefits for wholesalers Maintain their reputation within the supply chain.
• Ability to demonstrate they have taken reasonable steps to place compliant product on the market.
Conformity to directives as a market operator.
• As wholesalers, they will be compliant with new LVD requirements
Confidence in product sold to installers
Reduced cost of guarantees and risks of liabilities
Increase the whole value of market