Jay's Blog: How to Deal with the Top 5 Derailment Factors
General Watson
Contracts/Legal
Selling the CVA
Getting Started Selling Watson
100
While this is a very traditional push back sell the value we are unlocking with this long term partnership. We have the CVA to help combat this push back and demonstrate IBM's plan to deliver bottom line value at each stage of the partnership. Do not have a "knee jerk" reaction to this push back.
What is, why is it so much money?
100
If the organization has a CTO or innovation group with budget, offer them this. They can purchase a subscription and build prototypes of Watson Apps in order to preview the business value and get comfortable with the technology. This is perfectly suited for ELA.
What is, Watson Developer Cloud Enterprise (WDCE)?
100
Once in production, IBM continuously updates and modifies the Watson technology. Once the Corpus is deleted, what remains is the improved Watson -- the updated natural language algorithms, machine learning algorithms, etc. All updates are owned by IBM and are incorporated into IBM’s Watson technology to be used in future engagements. It is critical to Watson's future business that this be protected in every contract.
What is, Intellectual Property (IP)?
100
These are the three deliverables in a CVA.
What are, use case, benefits case, and journey map?
100
When positioning our solutions this is the mentality we need to take. Take advantage of the publicity around Watson, C suite decision makers want to see innovation from IBM! At the C level you need provide a provocative proposition...how can you make a difference to millions of their customers.
What is, Think Big and Go High?
200
While it may seem like there are not a lot of these, a lot has changed over the last 12 months. In 2015 alone we have doubled our number of production SaaS customers. However the key to overcoming this derailment is to remind the customer of the strategic benefit they will receive by being a "first mover."
What is, there aren't enough proof points in production to make me comfortable?
200
Deals slip if all leverage is with the client. We need to identify the ____ early in the opportunity and remind the customer throughout the effects of inaction. Identifying the client's ___ will be essential to closing deals in a timely manner.
What is, Compelling Reason to Act (CRA)?
200
This document is a contract between IBM brands and defines the scope, schedule, cost, and price for services delivered by each brand. It takes time to negotiate this document so it must be started early in the deal process to stay on track. Without a signed version of it in place, the approval process in each brand will be delayed and your signing will be at risk.
What is, a Document of Understanding (DOU)?
200
*****************************WATSON FACTOID DAILY DOUBLE***************************** During the Grand Challenge Watson's final score was $77,147. However IBM received this much money for winning the challenge.
What is, One Million Dollars? (IBM donated 50% of those winnings to World Vision and 50% going to World Community Grid)
200
Don't find yourself trapped in these. The IT department's technologists may want to talk about how Watson works, but they can't make a Watson project happen. Watson is a business transformation, so use Watson as a 'reason to call' the line-of-business.
What is, Avoiding Science Fiction Meetings?
300
This is the basis of a traditional sale, and we have the CVA to help prove this. However, Watson solutions cannot be constrained by traditional _____ because it will provide capabilities that clients don't have today.
What are, the KPIs to justify my investment?
300
Sometime we fall into the trap of not fully integrating our "story telling" with a horizontal theme, i.e. we refer to IBM Analytics, Watson, IBM Interactive, etc....when in reality, none of that matters to the client. At the end of the day, in the eyes of the customer we are this.
What is, IBM?
300
This document is critical to the development of a solution and contract for the client. It includes key contractual information needed for the Watson approval process and technical information needed for scoping, pricing, and SOW development.
What is, Solution Requirements Document (SRD)?
300
We have received growing client interest since the release of our 25 new cognitive APIs which can be bundled with our WEX product. Often we can start the Watson journey with our clients by getting them started with quick wins via this offering then expand our presence by positioning a CVA.
What is, Hybrid Cloud?
300
*****************************WATSON FACTOID DAILY DOUBLE***************************** Ken Jennings wrote this under his Final Jeopardy answer during the Grand Challenge.
What is, "I for one welcome our new computer overlords"?
400
This behavior is a major red flag, especially later in a quarter. If you have effectively articulated the value prop & spent time educating stakeholders then you have earned the right to push back on this. However if we cannot get the customer to do this you are wasting time and money and unfortunately you might have to walk away...at least for the time being.
What is, commit to a signing date?
400
This is a discipline that is required of every seller on every deal. It requires significant up-front work to find the answers to a standard set of questions about the client and the deal structure so that a solution can be developed with confidence and unnecessary surprises are avoided that delay or kill the deal.
What is, Deal Qualification?
400
This happens when a client has agreed to a firm, funded commitment to a project to build Watson capability. This is one of Watson Group's most important success metrics so it is very important to understand what is required in a contract to get it.
What is, a signing?
400
This is the main success metric for the CVA team and necessary for sellers to turn CVAs into large deals. We are selling a “cognitive journey” to the client and the CVA is just the first step. To achieve this make sure you have the correct Key Stakeholder from the beginning, we need to be getting initial support from C-Suite Executives.
What is, Conversion or Conversion Rate?
400
We have found that a paid-for 'Phase 0' engagement will help the customer determine how Watson will work for them, what effort is needed, the business benefit and the roadmap. Charging for this initial phase is critical as it qualifies who has decision authority and is serious about innovation with Watson. We aim to get to this proposal by the third meeting.
What is, the CVA?
500
Do not be afraid to do this. Remember no one in the marketplace has what we have today. If you have done a good job articulating a compelling value prop then there is no reason not to be super aggressive in asking for this.
What is, asking for the order?
500
We can only do 3-4 of these projects a year, and we need the right kind of client who is willing to engage in this project type because there is a huge opportunity cost for us here. Explain that cheaper more standard solutions are available on the developer cloud, but if you want to stay AHEAD of the market you need this kind of solution.
What is, First of a Kind (FOAK)?
500
This is foundation contract, with onerous terms and conditions on intellectual property, liability, etc. Sellers think this contract vehicle "is easy'; when, in fact, it requires many exceptions and slows the deal down
What is, a MSA (Master Services Agreement)?
500
When a client commits to a CVA we are asking for more than just a dollar amount. The CVA is a joint effort between the CVA team on one side and ____ from the client on the other. By working hand-in-hand the team ensures that the selected use case has business value; this process also helps create buy-in and understanding on the client side. Nothing is more powerful than the client organization itself pitching Watson to the main C-suite stakeholder.
Who are, Subject Matter Experts (SMEs)? [End Users is also an acceptable answer]
500
Watson is constantly growing allowing us to deliver more and more value to our clients. Sell the value Watson can deliver today, but also do this as well. Large long term engagements are not only the most valuable to IBM but are the most impactful for the client as well.
What is, sell the journey?
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