Stage View |
Demand Generation
Prospect
Qualify
Develop
Solution
Proof
Close
Deploy
Support
Execute evaluat...
• Define initia...
• Define initia...
• Build value p...
• Develop SOW f...
• Conduct initi...
• Meet with cus...
Confirm verifia...
Key Step:
| Build value proposition
Rationale:
| A company’s investments in IT are to increasingly rigorous economic evaluation criteria. The expectation is to positively impact the bottom line. Therefore, it is crucial Microsoft develops a concise value proposition. A value proposition is a statement backed by quantitative analysis or other business metrics that help the customer understand the value of the solution in terms that are important to him or her.
| Guidance:
The initial proposal/solution that is presented to the customer in the Solution stage should be accompanied by a value proposition. Although this value proposition should be customer-specific (i.e., customized), it should be developed relatively quickly and at a low cost to Microsoft. More exhaustive, resource intensive business value justification should be reserved for the proof stage. 1. Format value proposition statement The value proposition statement should contain the following components: · Customer’s name · What the improvement will be (improvement should be customer defined). · Quantified benefit · Product/service capability responsible for delivering benefit · Costs to customer Example of value proposition statement: We believe [Your company’s name] should be able to [improve what?] by [how much, what %?] through the ability to [do what?] as a result of [what capability, product, service?] for [what relative cost?]. Use the following link to see a sample value proposition statement: Sample Value Proposition 2. Back-up value proposition statement with financial details The value proposition statement should be backed-up by a cost/ benefit analysis for the MS/ Partner solution. Some value propositions may be difficult to back up with hard numbers. In these cases, use case studies to show the value from sample situations. A number of MS tools and services are available to help you develop this financial justification analysis. These include:
Stage | Goal | Financial Justification tools and services
Solution | Back-up value proposition statement | · MS case studies, white papers, analyst reports · Web based calculators · Business Value Advisor · Nucleas- TCO · NerveWire XP Deployment Calculator · IAM ROI · Immedient – Enterprise Productivity Solutions · Nucleas- TCO for EAI · TCO Service for – Migration to WS 2003, Linux vs. WS 2003, NT upgrade to WS 2003, and Server Consolidation
Proof | Provide exhaustive proof of business value for final proposal | · Business Value Advisor · NerveWire XP Deployment Calculator · TVO for Linux · TCO for Linux
Use the following link for more on each of these business value / financial justification tools: Aids for developingValue Propositions and Financial Justifications
Samples & Templates:
Documents for this Key Step include: |
| Sample Value Proposition |  |
Links:
| Aids for Developing Value Propositions and Financial Justifications - additional information on the aids available for value proposition and financial justification.