Services / Helping you Optimise your Business Model

Moving up the value chain

For many organisations we speak to, what ever their industry, they would like to have more influence with their clients, more senior level relationships, larger more long term contracts. All of this involves moving up the value chain.

Let's look at an example of how this works in IT.

Here we are looking at the typical stages for any client in making IT purchasing decisions. Key decisions made in company strategy eventually filter down to implementation and purchasing decisions. In smaller client organisations the process may be more informal but the same principles apply.

Moving up the value chain

The key question we ask is…  Where do you as an organisation typically interface with your clients? Are you interfacing at a later stage, once most important decisions have been made… or do you interface earlier in the process and higher up in the client management structure where you have more influence on what the client buys? The level you operate will have a dramatic effect on client loyalty, degree of influence, contract size, value-added services percentage, and ultimately your profit margin.

We use this model to explore with your management team – Where do you operate now? Where would you like to interface? How will your offering and skill-set need to develop in order to operate successfully at the desired level? How can the transition be managed?