Completely redesigned the Digital Sales business model for the IBM Services Business to address limitations in previous sales unit. Implemented a 3-phase step-change in the sales unit over 2 years which drove a turnaround in participation in volume business from 44% to 80% through business re-design by: A) Integrating 8 different regional market models into a single European strategy and sales team B) Evolved business from a 'stacked' sales assist role to a completely de-stacked sales model C) Switched from a 'direct' only to an 'all channel' sales team working with all routes to market.

1. © 2009 IBM Corporation
What’s the Problem?
1
Business Challenge
 Symptom : A lot of smaller TSS customers exists without extensive ‘relationship cover’ as
Business Partners are reluctant to invest much time without seeing adequate return
 Cause : Sales Cycle issues (Tools and Process) result in a Cost of Transaction to BPs that
makes it economically inefficient for BPs to engage on a lot of smaller Transactions
Proposed Solution
A. TSS Brand : Work on core Tools and Process initiatives to reduce Sales Cycle times and
thus make it economically efficient for more sellers to engage in this area.
– Proposal to reduce Cycle times from 20 Days to 2 Days 2012 through 2015
B. Inside Sales : Deploy Inside Sales to drive closure on this ‘focus’ business in transactional
space based on SWG and STG Best of Breed Channel Neutral principles
– IS to engage on TRIAGE approach where required with Clients based on agreed RoEs

2. © 2009 IBM Corporation
Key Operational Pillars
A) SMART Prospecting
Inside Sales will leverage its SMART Prospecting capabilities to run sets of
Analytics on the Channel Neutral Territory and determine where Upsell or value-
creation potential exists.
B) Territory Management
Each IMT Team will create Rep alignments between Inside Sales and Channel
Reps to build one-to-one relationships, trust and understanding of each other’s
respective roles. The combined Team will then engage in a formal Territory
Management exercise using the SMART analytics and any other available
information that is available.
C) TRIAGE Customer Engagement
Using MSAT as the core Tool IS Reps should engage with Distributers, Business
Partners and End Users on a TRIAGE basis :
• Green’ renewals requiring no intervention
• Amber’ or ‘Stuck’ renewals that have progression issues
• Red’ or ‘Problem’ renewals/WAXITs requiring intervention with Client/BP
Key Operating Pillars & Value-Add Phases

3. © 2009 IBM Corporation3
SMART Territory Management : IS TSS HeatMap
Region
Boxeswith
no HWMA
HW WE
Indicator
HW
Technical
Upsell
SWMA Drop-
Off
Boxeswith
HWMA No
SWMA
ETS Upsell
Opportunity
SW Technical
Upsell
Power Storage System x SPL 3 SPL 4
Multi-
Vendor
Competitive
Multi-
Vendor
Competitive
Multi-
Vendor
Competitive
System X
Install
ALPS 1 106 1178 54 429 700 192 47 42 41 3 9 447 394 239 317
BENELUX 2 91 646 16 490 649 273 405 346 174 176
FRANCE 2 39 1809 22 992 508 198 32 20 20 1 6 139 241 23 49
GERMANY 72 538 29 287 152 72 216 94 124 81
ITALY 43 1067 7 439 159 17 22 14 10 1 9 65 76 32 112
NORDIC 97 795 97 298 695 217 68 60 49 4 208 228 80 164
SPGI 189 1465 38 789 333 166 41 40 32 19 25 158 73 73 235
UKI 30 266 19 169 152 87 12 15 17 4 6 118 66 26 76
Grand Total 5 667 7764 282 3893 3348 1222 222 191 169 28 59 1756 1518 771 1210
Volumes by Offering/IMT
Sector
Boxeswith
no HWMA
HW WE
Indicator
HW
Technical
Upsell
SWMA Drop-
Off
Boxeswith
HWMA No
SWMA
Coverage
ETS Upsell
Opportunity
SW Technical
Upsell
Power Storage System x SPL 3 SPL 4
Multi-
Vendor
Competitive
HW
Multi-
Vendor
Competitive
NW
Multi-
Vendor
Competitive
SW
System X
Install
Communications 1 11 1 3 7 5 1 2 2 1 5 3 4 3
Computer Services 9 2 8 5 4 3 2 1 1
Distribution 3 38 1 33 15 11 1 2 7 7 1 3
Financial Services 7 36 1 25 24 21 4 4 2 2 16 10 8 8
General Business Enterpr 2 261 2079 63 1095 977 566 46 52 30 12 24 595 489 332 342
Industrial 2 13 1 4 7 3 1 4 4 3 5
Mid Market 2 326 5466 195 2677 2267 573 157 118 119 5 11 1042 956 384 779
Other 1 1 14 4 5 4
Public 16 89 5 43 35 31 2 6 4 23 21 15 19
#N/A 50 9 13 1 6 4 10 9 10 10 22 61 26 23 50
Grand Total 5 667 7764 282 3893 3348 1222 222 191 169 28 59 1756 1518 771 1,210
Low levels of cover (9*5) in key industries
such as FSS, Public and GB-E
Current open STG/ITS Oppties
without TSS attach
MVS on hardware and
networking in GB-E and MM
ETS potential in MMLack of SWMA cover in MM
1 2
3 4
5
Volumes by Offering/Market
Inside Sales SMART
Prospecting
4 Step Process
1. Run Upsell/New Business analytics on Rep Client set
2. Cross check within Siebel for any Open Oppties
3. Highlight and Prioritise Clients where NetNew potential but no current Oppty
4. List integrated into SSL for weekly review

4. © 2009 IBM Corporation
1. What is the Business NEED?
– Is there a current gap in Channel performance?
– IS there to add-value in Sales not replace STS support > 3 value-add stages
A. Channel Pipeline VISIBILITY dependency : manual effort to start build insight(2,4)
B. Systematic TRIAGE of Renewals and WAXIT dependency : MSAT adoption(3)
C. Pro-Active UPSELL via Territory Management dependency : integrated Offerings(3,4)
2. Channel Buy-In to the Channel Neutral model
– BPs and Distys need to see development as positive not ‘policing’
– to perceive Sales value-add – not Admin help
3. Channel buy-in to MSAT – the Distys and BPs need to ADOPT
– MSAT required for TRIAGE principle to work
– MSAT needs to be both deployed and ADOPTED
4. Management System – what’s in place and what’s expected?
– Workload can be choked by manual management systems
– Need IS to be engaged in Sales not just obtaining PV visibility
– What is currently in place – how comprehensive, how manual is it?
5. Clarity on Territory
– Need stability and clarity of Client set – can’t Territory Plan otherwise
4
Key Dependencies and Lessons Learnt