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Old Industry New Tricks | The Intellectual Property Strategy makes the difference

8/2/2018

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Intellectual Property
Source: Shutterstock
Speaking with manufacturing industry customers is more exciting than ever. The Digital Transformation and Industry 4.0 meanwhile have arrived everywhere. However, the approach and progress vary significantly - especially, when it comes to the Intellectual Property Strategy.
While some companies focus on internal digital end-to-end optimization of their product design- and production processes for shorter time to market, individualized product offerings and cost efficiency, others are taking the digital value directly to market - leveraging their enormous industry process know-how, specialized data insight and their ability to predict or optimize their customer´s value creation.
There is a chicken-egg-interdependency of business- and Intellectual Property strategy. This explains, why IP-strategy discussions without a deep understanding of business makes no sense.
Bowman Heiden – Deputy Director, Center for Intellectual Property, University of Gothenburg
Seeking the core of business transformation in digital technology adoption only is not enough. The Intellectual Property Strategy will likely decide who takes control on the whole value chain and the underlying business model - who sits in the front seat and who must find a place on the backbench.
Even though that patents represent a part of innovation only, they still indicate where the energy is in a respective geography, industry, or even company. The annual reports of patent offices provide some interesting perspectives worth exploring.
The factory of the future will have only two employees, a man, and a dog.  The man will be there to feed the dog.  The dog will be there to keep the man from touching the equipment.
Warren G. Bennis
Let´s have a short excurse into research intense industries like bio-tech or pharma. The use of new developed seeding material or next generation drug is primarily not limited by the physical reproduction but by rights the patent holders reserved to protect their IP. Even, if you don´t like gene modified crop, patenting- or trademarking nature, separating the intellectual contribution from its physical representation may imply revolutionary effects to the business establishment in your industry as well. E.g. the agricultural-technology and licensing exports from the Netherlands meanwhile surpassed their traditional food production exports in value.
Decades ago, the Software Industry emancipated form Hardware Industry by introducing the commercial concept of selling usage rights for software independently from hardware - usage gets monetized while the IP remains in hands of the software vendor. This revolutionary approach explains the disruptive potential software has to traditional, hardware centric business models. Again, it´s about who takes control in a digitized industry to come.
World Intellectual Property Organization (WIPO)
European Patent Office [EPO 2017] - Annual Report 2017
World Intellectual Property Organization (WIPO)
Infographics - International patent, trademark and design filings under the PCT, Madrid and Hague systems (2016)
With the separation of Software from Hardware arriving in automotive industry, a whole set of new proprietary software with respective End User Licensing Agreements (EULA) will be coming down the road. It seems we soon have to familiarize ourselves with  the fact that we can´t own a car entirely anymore - primarily not because we all move into the share economy model but driven by the fact that the car manufacturer will no longer own or control the required software IP. Automotive Industry for years pushed towards external innovation and external labor to reduce capital lockup - Software IP will be a game changer for car vendors who want to keep control on their core business.
This idea is intriguing us because manufacturers need to go beyond selling physical car assets and must discover us drivers as customers - welcome to next generation Customer Relationship Management and the essence of customer intimacy for an old economy!
However, transformation in software industry is going deep as well. What has worked in a traditional productized Sell-To model needs to get complemented by Sell-With and Sell-Through approaches to meet the new customer expectations. Software IP gets embedded in products, cloud-based services become essential part of other products or your current customer may want to join forces with you on innovation. Either way, it´s time to revise value propositions, to reskill the salesforce and to tune the commercial backbone towards new ways of monetization. Digital Transformation, Industry 4.0 and a solid IP Strategy belong together and form the common ground for your business in near future, so let´s prepare for it now.
Good news, the cheese may already have moved on but the opportunity maybe bigger than ever and the driver seat is not decided yet!
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Spectre and Meltdown | High-Tech learns to wash it´s hands

14/1/2018

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The Semmelweis reflex or “Semmelweis effect” is a metaphor for the reflex-like tendency to reject new evidence or new knowledge because it contradicts established norms, beliefs or paradigms.
Medicine men and women still work on their discipline in washing hands to fight lethal super bugs and super fungis in hospitals but no one would dispute the relevance of hygiene today.
The medical establishment was sceptic when physician Ignaz Semmelweis  found clear evidence, by 1847, that mortality through puerperal fever ("childbed fever"), could be drastically reduced by simply washing hands.
He instituted a clinic-wide policy of mandatory hand washing between cutting up a body during autopsy and assisting in a birth. Despite proven success the experts of his time ignored his advice to clean and separate different work tasks.
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Source: npr.org - The Doctor Who Championed Hand-Washing And Briefly Saved Lives
High-Tech Industry also realizes it´s Semmelweis reflex on data protection and digital security and collectively started washing hands in a metaphorical sense to fight most recent super bugs like Spectre and Meltdown.​
Bugs and viruses in software, micro code or silicone can´t get prevented by washing hands, however, the traits of hygiene well translate into (software-) engineering disciplines since, it is a concept of clean separation of entities.
The skilled cut of a surgeon or the smart hack of an engineer are admirable but certainly not the only definition of success. The collective realization is needed that, data privacy is tightly connected with security and ultimately safety. New definitions of performance are needed since, what we face is not a technological crisis only. Recent Facebook hearing shows the need for clean separation, all the way from business models to digital implementation and makes the conflict of public, private and economic interests evident.
Given the opportunity cost of cyber crime, major data breaches, political destabilization or global financial crisis, we -societies, industries or markets- should overcome the Semmelweis reflex and establish common norms and standards for Trustworthy Computing.
In times where globalization turns into protectionism this seems a big ask and may create discomfort with a whole industry but it is possible. Similar to Civil Aviation back in 1944 where, the Chicago Convention on International Civil Aviation led to common, binding security standards and safety procedures which saved millions of lives.
Moreover, it shows that meaningful regulation can instill trust and enable global economic growth over decades. The Chicago Convention changed the face of an industry and keeps reminding us that innovation is not finished when making the possible happen but also requires relentless work on preventing what ought to be impossible.
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Source: The World Bank and B3A Data
Fix a problem before regulation makes it a crisis.
Wayne Brown, Ernst & Young - Ten lessons Financial Services can learn from other industries
It will probably take time to reach consensus in High-Tech Industry but, meanwhile let´s keep washing hands and remind all parties on the essence of integrity: Doing the right thing, even when no one is looking!
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The New World of Work | The Cultural Opportunity

6/11/2017

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The New World of Work | The Cultural Opportunity
Source: Shutterstock
It´s 12 years ago that Bill Gates posited the New World of Work, where collaboration, business intelligence and prioritizing scarce time and attention are critical factors for success. It´s time to look into the progress we made on software enabled business productivity because it impacts each and everyone.
The innovation journey continues at amazing speed of technological progress but also adds new complexity for people who already feel the pressure of an "always-on" world and ever-rising expectations for productivity.
The need for change is even more pressing: Neuroscience found evidence why our good old flexible office work environment is not productive.
No matter where you start doing things differently it will be a journey without final state of perfection. My personal experience in software industry started with empowerment, trust, investment and an innovative environment - all invaluable assets to be successful and certainly something to secure to back your own digital transformation!
The New World of Work offers more than saving commute time and a better CO2 footprint for the individual. It´s certainly more than saving office space, reducing travel cost and increasing employer attractiveness scores. Optimizing work and life for more productivity means a  fundamental change of habits - professionally and privately.
The problem is not the problem. The problem is your attitude about the problem - Do you understand me?
Captain Jack Sparrow
Let´s not confuse, the digital transformation of our work- and lifestyle remains a cultural challenge, a social responsibility and it mandates innovation in leadership approaches. What may work on an individual- or team level requires a more systematic effort to organizational structures. Conventional Change Management is not sufficient to address the topic says Barbara Josef, Partner at 5to9. ​It requires general management attention to orchestrate the cultural transformation and realize the productivity potential. All functions from IT, Finance, HR and the Line Organizations need to be onboard and synchronized. Make sure, you keep it simple and rational in your approach to policies.
Transforming the organization means dealing with complexity in:
  • how to articulate business requirements and the definition of success?
  • how to become explicit on expectations?
  • how to renegotiate work contracts and revisit mutual agreements?
  • how to work inside and outside the office?
  • how to prioritize professional and private life?
  • how to individually and collectively organize collaboration?
  • how to interact online, offline and across desks, sites, cities, regions and time zones?
The World Economic Forum has provided a navigation system on the global transformation agenda to become systematic with Workforce and Employment of the future. You may also find some interesting perspectives there.
World Economic Forum - Workforce and Employment
Source: World Economic Forum, "Workforce and Employment"
"Now that it's definitely not cool anymore, it feels safe for me to start tweeting as well ..."
​Posted by my old friend, Prof. Ulle Endriss, 2017 ... or 25 years after we learned about Quantum Computing at University
During my career, I had the pleasure to work in mobile workplaces, use flexible- and drop-in offices, collaborate during intense travel, perform in international roles, manage remote teams, lead business in distributed environments and experience diverse cultures. Still, I keep exploring, learning, optimizing and innovating my environment - always aware that there will be no perfect time to try new things.
The next big transformation in sales is within reach. Therefore, I dive deep into Artificial Intelligence to further benefit Business Insight and, I look into seamless channel integration to imagine teamwork with our future colleagues, the AI Bots. If sales can add value to customers through well articulated procedures, repetitive activities and standardized offerings, than the combination of new technology with experienced sellers will lead to new exciting ways of customer experience.
Finally, I enjoy working in remote teams, managing distributed organizations but, I also learned that even the most sophisticated technology can´t do what a good cup of coffee can do - stimulate the creation of inspiring ideas when sitting together in person.​​
Technology can help you learn and follow-up on things in a structured way but it will not help you in cases where you even don´t know what you don´t know.
Conscious Knowledge
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Account Planning | Busting the Napkin Myth

18/9/2017

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A GOAL WITHOUT A PLAN IS JUST A WISH!
Source: Shutterstock
One myth keeps following me during my two decades in direct sales: Best Account Plans fit on Napkins!
Wow, what a bold statement - it feels equally untrue like: brightest minds fit into double-digit IQs.
Everything should be made as simple as possible, but no simpler.
​Albert Einstein
Despite all standardization efforts, enterprise business environments keep getting more complex. The ability to innovate simple and effective approaches in business practice has become a competitive advantage. Oversimplification, however, is tempting but remains an act of negligence.
Account Planning means planning for results. In a number driven world of sales, the decomposition of an aspired revenue goal is psychologically the first step to accepting the challenge. While SMART goals and respective objectives may well fit on a small napkin, they by no means are the plan. I would even argue that it is the wrong end to start with - relevant account plans are starting with the customer.
In recent years, Business-to-Business sales has evolved in various dimensions, redefining how we engage with customers:
  1. ​Sustainability - With Digital Transformation and the move to the Cloud, customer Business Models have embraced external vendors to become integrated part of the value chain. Continuously earning trust, adhering to ethical and legal standards, and delivering positive customer experience are non-negotiable foundations to sustainable commercial success. Yes, the definition of success is far more than transacting in the short term or "making the number" only.
  2. Customer Alignment - Cutomer Centricity is all about understanding the customers business priorities and translating them into strong and precise value propositions. As much as, I agree no Account Plan should be called complete without customer validation. Aligning with customer key stakeholders on the plan and finally signing off on a joint business roadmap is what makes a good plan a demand generation engine.
  3. Teamwork - Enterprise sales has become a team sport of specialized professionals, all working towards joint goals. It´s the heart of every effective Account Plan to ensure a common understanding and efficient orchestration with all stakeholders - internally (Sales, Marketing, Engineering, Consulting, Support, ...) and externally in the ecosystem (Partners, Advisors, Influencers ...).
Account Planning is a reflection on the evolution in sales but even more, so it is a yardstick on the sophistication of your teams work - what a great coaching opportunity or moment to personally benefit the customer relationship in form of executive sponsorship.
Imagine the business potential of getting the perception right by moving away from a necessary evil and abandoning the disrespect which a napkin implies.
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Digital Transformation | The Race is On!

11/5/2017

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Speed without Limit
Source: Shutterstock

​In 1965, Gordon E. Moore made a prediction, that the compute power will double every 2 years, while decreasing in relative cost. It is a race at an exponential pace meanwhile lasting for decades fueling economic growth.
Digital Transformation? - No worries, I will not join the battle on the prerogative of interpretation but connect some dots.
The digital innovation meanwhile continues for decades and each phase impacted it´s own aspect of productivity or made new things possible. While the natural resources on earth are trending towards a physical limit, we see the human intellectual capacity and imagination prosper almost infinitely.
​
Looking back, the focus remained on strengthening the status quo of computing capability towards faster, better, cheaper - neglecting the fact that in a current world of predominantly linear computing requirements the availability of resource no longer remains the limit for businesses - instead, time is the ultimate scarce resource.
Moors law keeps democratizing affordable compute resource and turns blessing into obligation. It´s an obligation to make better use of affordable digital resource within shorter innovation cycles. In a cloud based world, which is trending towards zero marginal cost and global reach (as predicted by Jeremy Rifkin) -  the better business model innovator with the fastest implementation wins - The Race is On!
In skating over thin ice our safety is in our speed.
Ralph Waldo Emerson
That doesn't mean that business experts need to become technical experts, but it does mean that business people need to get serious about understanding the core of technologies that they use to run their mission and into the right direction.
How is your own digital fitness level doing and what approach are you taking to lead in the digital era?
When it comes to digital, the only thing worse than standing still is running in the wrong direction.
INSEAD Knowledge  Read more here
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The Balance in Sales Management | Art & Science?

23/2/2017

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Time for Facts
Source: Shutterstock
We have arrived in “post-truth world”, so let´s start with a quote respectively: “So much of what we call management consists of making it difficult for people to work”. Out of context and without supporting facts, it could well be a comment from a subversive employee, but it is an old statement from Peter Drucker.
Whether we like it or not, pluralism is a great achievement of modern civilization and along we carry the obligation to adhere to valid facts [WP: “The Pinocchio Test”]: “Comment is free, but facts are sacred.” — C.P. Scott, editor of the Manchester Guardian, 1921.
​In sales business this is true as well, it comes down to the everlasting question of Art & Science. The fine arts of dealing with people, emotions, expectations and the fact based, systematic, scientific approach. Provocatively speaking, neither wine & dine nor bean counting is the answer. The journey towards the right blend is the master discipline in sales leadership, since it is closely connected to both, organizational culture and customer intimacy.
​Diversity needs room in every healthy organization but it must reside with the people and perspectives. It is not defined by the variety of proprietary spreadsheets in a room. We all have attended far too many meetings which did not follow the courses of action.
Actually, it´s great to rely on intuition and discuss different standpoints but let´s calibrate it with insight, driven by relentless curiosity – trying to avoid justifying ones own personal bias. In memory of  Hans Rosling, the founder of gapminder.org, who recently passed away: “I want to talk about mindset; Does your mindset correspond to my data set? – if not, one or the other needs an upgrade!” [TED 2009].
Keep it simple for all parties: What can you do in your next business meeting to stimulate the customer mindset and concrete plan of action through valid and compelling facts? – Think about it!
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    Andreas Engel

    Andreas Engel


    ​is an experienced business leader working 20+ year in high-tech industry - leading, growing and transforming high-performance sales organizations, balancing short term results with long term strategy to drive new business growth.

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