Sales Logic - Recognizing and Shaping Opportunities

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Sales Logic - Recognizing and Shaping Opportunities

It is rightly said, “Opportunities are not defined, and rather they are created”. The myth of being lucky to get an idea and finding an opportunity out of it has been removed from the society by some of the dignities who with their hard-work and skills made it to the top of their journey. From these stories, it is clear that the ideas are found and opportunities are carved out of these ideas. With the advent of time, shaping and reshaping happens until the ultimate refinement point. The story is being plotted on three basic pillars:

1. Highlighting how ideas are identified and which business model would be needed to build inputs and outputs based on these ideas.
2. With the environmental analysis, what changes would increase the sustainability of that business model
3. Relate the business model with the Revenue generation stream and reduce uncertainty which would pave the path of failure

SalesLogic is another such idea by a successful Entrepreneur named Patrick Hunnewell, who could design his entrepreneurial journey abiding to the three pillars above. According to the case, the software development and business analytics expertise required to build predictive analytical models was in short supply in 2005. SalesLogic had three different business models in mind that it could pursue and choosing the best one is an important decision for SalesLogic to take. A brief about the available options are as follows:

Option – 1: Licensed Software:

To pursue this option, SalesLogic had to create a packaged software product that could be licensed to retail customers, and run within the customer data center thus addressing the privacy issue of the customer as well.

Pre-requisite for implementing this business model

To implement this model a rewrite of the existing forecasting model would be required and additionally it would also require on the company’s part to hire experienced software developers, system integrators  and experienced sales force. Added to this the company estimated that it would have to spend $1million per month between January 2007 and December 2007.

Option-2: Saas Model with standardized back end:

To implement this the company would have to do the same rewriting the existing code of forecasts and creating a UI/UX all again minus it would need lesser number of work force who would only be needed to work with the customer to teach them to use the program. By implementing this model the company could reduce its burn rate to $750,000 per month.

Option-3: Custom Consulting Model:

This model would be inline with the same model being implemented now, but the only difference would be that the model developed for each customer would be hosted on SalesLogic server. The company estimated that it could reduce its burn rate to $500,000 per month by implementing this model.