Selling Ibm's Innovative Solutions

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Selling IBM’s Innovative SolutionsJanuary 2007

Text of Selling Ibm's Innovative Solutions

  • ibm.com/redbooks

    Selling IBMs Innovative Solutions

    Dave BartekLynn Behnke

    Srini BezwadaRichard Lai

    Cheryl McPhersonLindaMay Patterson

    Murthy RallapalliKeng Loon Yap

    Starting point for selling solutions based on IBMs innovative technology

    Practical reference for Solution Advisor certification

    Tools to help you drive sales

    Front cover

  • Selling IBMs Innovative Solutions

    January 2007

    International Technical Support Organization

    SG24-6330-01

  • Copyright International Business Machines Corporation 2004, 2007. All rights reserved.Note to U.S. Government Users Restricted Rights -- Use, duplication or disclosure restricted by GSA ADPSchedule Contract with IBM Corp.

    Second Edition (January 2007)This edition applies to selling IBM innovative technology.

    Note: Before using this information and the product it supports, read the information in Notices on page ix.

  • Contents

    Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixTrademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x

    Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiThe team that wrote this redbook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiBecome a published author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xivComments welcome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv

    Chapter 1. Introduction to selling solutions . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 What is Innovation enabled by on demand business? . . . . . . . . . . . . . . . . 21.2 Defining business in the on demand era . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    1.2.1 What is an on demand business? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.2.2 Becoming an on demand business . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.2.3 What is the IBM on demand business strategy?. . . . . . . . . . . . . . . . . 41.2.4 Why is IBM talking about innovation? . . . . . . . . . . . . . . . . . . . . . . . . . 5

    1.3 Dealing with a changing world. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.4 Focus on small and midsized businesses . . . . . . . . . . . . . . . . . . . . . . . . . . 71.5 Delivering innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.6 A practical solution: IBM Express Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . 91.7 The IBM Innovation for On Demand initiative . . . . . . . . . . . . . . . . . . . . . . 11

    Chapter 2. Innovation and on demand business . . . . . . . . . . . . . . . . . . . . 132.1 Value proposition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    2.1.1 Innovating the business to differentiate and capture new value . . . . 162.1.2 Making better use of resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

    2.2 Things to know about innovation and on demand business . . . . . . . . . . . 162.2.1 The on demand story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

    2.3 The journey to becoming on demand business. . . . . . . . . . . . . . . . . . . . . 202.4 Continuing with the next steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

    Chapter 3. Marketplace directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.1 Innovation is driving change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

    3.1.1 Technology plays a key role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273.2 The four unstoppable drivers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

    3.2.1 Continuous change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303.2.2 Rigorous competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313.2.3 Unrelenting financial pressures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313.2.4 Unpredictable threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

    3.3 The response to the unstoppable drivers . . . . . . . . . . . . . . . . . . . . . . . . . 32 Copyright IBM Corp. 2007. All rights reserved. iii

  • 3.3.1 Responsive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333.3.2 Focused . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343.3.3 Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353.3.4 Resilient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

    3.4 Industry examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363.4.1 Utilities industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363.4.2 Banking industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373.4.3 Healthcare industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

    Chapter 4. Sustaining innovation through on demand business . . . . . . 394.1 Beginning the discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

    4.1.1 Questions to ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414.1.2 A question to answer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

    4.2 The evolution of on demand business. . . . . . . . . . . . . . . . . . . . . . . . . . . . 424.2.1 How on demand business delivers innovation that matters . . . . . . . 424.2.2 Innovation at IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

    4.3 Solutions that sustain innovation that matters. . . . . . . . . . . . . . . . . . . . . . 444.3.1 Functional expertise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444.3.2 Infrastructure solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474.3.3 Innovative solutions for midsized companies . . . . . . . . . . . . . . . . . . 49

    4.4 IBM solution implementation techniques. . . . . . . . . . . . . . . . . . . . . . . . . . 544.4.1 Summary of IBM implementation techniques . . . . . . . . . . . . . . . . . . 55

    4.5 Flexible Financial and Delivery Options . . . . . . . . . . . . . . . . . . . . . . . . . . 564.5.1 Financing options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574.5.2 Making the right on demand business decisions . . . . . . . . . . . . . . . 594.5.3 Value across the enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

    Chapter 5. Innovation enabled with on demand business value proposition61

    5.1 Enabling innovation through on demand business . . . . . . . . . . . . . . . . . . 625.2 Innovating the business to differentiate and capture new value . . . . . . . . 63

    5.2.1 Optimizing the value net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635.2.2 Increasing business flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645.2.3 Improving the client experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655.2.4 Extracting greater value from data . . . . . . . . . . . . . . . . . . . . . . . . . . 655.2.5 Driving business innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

    5.3 Making better use of resources to be more productive . . . . . . . . . . . . . . . 665.3.1 Optimizing todays IT investments . . . . . . . . . . . . . . . . . . . . . . . . . . 665.3.2 Improving employee productivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 675.3.3 Streamlining processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

    5.4 Increasing security and resiliency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685.5 Increasing data privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705.6 Facilitating and enhancing business control compliance requirements . . 72iv Selling IBMs Innovative Solutions

  • Chapter 6. Mapping the IBM offerings: business and infrastructure solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

    6.1 Key investment areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 766.2 Business value proposition for large enterprise . . . . . . . . . . . . . . . . . . . . 786.3 Business value proposition for small and midsized business . . . . . . . . . . 796.4 Business value proposition for IBM Global Services. . . . . . . . . . . . . . . . . 806.5 Business value proposition for IBM Software and industry solutions . . . . 816.6 Business value proposition for the IBM Systems Group . . . . . . . . . . . . . . 816.7 Business value proposition for IBM Printing systems . . . . . . . . . . . . . . . . 83

    Chapter 7. Building client relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . 877.1 Understanding the client imperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887.2 Qualifying questions to access a clients critical needs. . . . . . . . . . . . . . . 897.3 Understanding a clients business strategy . . . . . . . . . . . . . . . . . . . . . . . . 90

    7.3.1 Busines