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