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Seizing the Opportunity Growing your Sales into the Public Sector Market Amidst the Current Economic Chaos Alex Hart The World We Live in Today… • Financial Market Meltdown & subsequent Credit Paralysis • GDP down 3 quarters in a row (4th is a safe bet too) • Worst Economic downturn in SEVEN DECADES • 5.1 million jobs lost since 12-07 (3.3 million lost over last 5 months alone! ) • • 47/50 states hemorrhaging red ink Housing Market?...Don’t Ask This economic crisis does not represent a cycle. It represents a reset. It is an emotional, social, economic reset. People who understand that will prosper. Those who don’t will be left behind.” “ Jeffrey Immelt CEO, General Electric Nov 9, 2008 2 Tech Data Confidential Universal Truths of Economic Uncertainty • • • • Great Mechanism to “Cull the Herd” Presents Opportunity to Gain Market Share Over Competitors Customer Flight to Quality Solutions That Enable Customers To Establish Near Term ROI Become Top of Mind • Buying Decisions Revolve Around “GOTTA HAVE” vs “NICE TO HAVE” “Managers who see economic strife only as a threat are missing out on an ideal opportunity to implement change and instill best practice” Donald Sull Dir. Executive Education, London Business School 3 Tech Data Confidential The Good News… Federal IT Spend ~ $72 billion SLG IT Spend ~ $47 billion Ed IT Spend ~ $20 billion Recovery Act Spend ~ $506 billion Source: Input, Center for Digital Government 4 Tech Data Confidential So What Does $645 Billion Look Like Anyway? 6,450 Standard Pallets of $100 bills... 5 Tech Data Confidential How Do We Capitalize? • Agility – Identify and seize opportunity – Flexibility- Ability to turn on a dime – Calculated Aggression NOKIA, CISCO, SAMSUNG, HP, AIRBUS 6 Tech Data Confidential How Do We Capitalize? • Absorption – “Weather The Storm” – Cash Rich – Risk Mitigation – Calculated Investment IBM, ORACLE, MICROSOFT, GE, FORD 7 Tech Data Confidential Ready to Enter the Ring? • Review existing vendor portfolio & ask hard questions – – – Does this vendor fully align with my GTM strategy and customer focus (and do I align to theirs) ? Is this technology core and complementary to my other key vendors and does it address the problems my customers want solved? Are my reps communicating regularly with their counterparts EARLY into opportunities? • Invest In Yourself and your Organization – – – Training is key to success! – Business and Technical Key Vendor Sales and Technical certs are a MUST Learn to speak your customers’ language • • – Expand your sales teams where appropriate • – 8 Leverage resources Educate yourself Take advantage to the top flight talent pool in transition Define and be able to clearly communicate your Sustainable Competitive Advantage Tech Data Confidential Really Ready to Enter the Ring? • Understand WHY , WHEN and HOW the customer buys – Agency/Department imperatives – Political Alignment – Procurement Process, Proclivities and Predisposition – Difference in Color and Source of Money • Don’t just sell them the solution…show them how to pay for it! • Where/how can you insert yourself in the money shaping process? – Harmonize Your Contract Landscape 9 • Identify target customer’s preferred buying vehicle(s)? • Do you have access? – IF NOT TEAM – CO-OPETITON IS A MUST Tech Data Confidential Really, Really Ready to Enter the Ring? • Don’t sell stuff – Solve Problems! – TRULY understand the customer imperative – Develop Integrated Solution “Stacks” to address • How do complementary vendors work with each other? • Buy in from Vendor and Distribution Partners • Quantify the ROI – Become a Drag King or Queen – what technologies are catalysts? – Think “stew” pricing 10 Tech Data Confidential Gratuitous Stimulus Slide 11 Tech Data Confidential …Because That’s Where The Money Is 12 Tech Data Confidential “Bankable” Technologies • Virtualization • Information Security • Green IT • Electronic Medical Records/Healthcare IT • Oversight and Transparency • Email and Document Content Management • Consolidation/Shared Services • Data Center Efficiency 13 Tech Data Confidential Focus Agencies - Federal • Energy ($32.7B) • General Services Administration ($5.5B) • HHS ($135 B) – Health IT • Ntl. Coordinator for Health IT ($2B) • SSA Data Center ($500M) $20.6B • Commerce ($7.9B) – Broadband Technology Program $4.7 B • DoD – BRAC (Base Realignment and Closure) 14 Tech Data Confidential Focus Agencies - SLG • Health and Human Services • Public Safety • Courts/Justice • Administration • Transportation ARRA is forcing tighter coordination between Federal grantor and SLG grantee 15 Tech Data Confidential RESOURCES • • • • • • TECH DATA Input/CDG Grant Consultants System Integrator Small Business Office Vendor “Stimulus Program Offices” www.whitehouse.gov/omb – Peter Orszag’s Blog – M-09-10 Initial Implementing Guidance for ARRA ‘09 – M-09-15 Updated Implementing Guidance for ARRA ‘09 • www.recovery.gov – State Progress and Resources – Agency Progress and Resources 16 Tech Data Confidential TAKEAWAYS • BUSINESS AS USUAL WILL NOT WORK • DO YOUR HOMEWORK • KNOW AND BE ABLE TO EXPLAIN YOUR COMPETITIVE ADVANTAGE • THINK FEDERAL ACT LOCAL • LEVERAGE RESOURCES AVAILABLE TO YOU (IF YOU DON’T YOUR COMPETITORS WILL) 17 Tech Data Confidential QUESTIONS? THANK YOU! The Difference In Distribution