The Co-Creation Edge: Harnessing Big Data to Transform Sales and Procurement for Business Innovation

190 Pages·2016·7.103 MB·English

by  Francis Gouillart, Bernard Quancard (auth.)

Additional Praise for T he Co-Creation Edge
“ Commercial insurers, like many other industries, have to learn to co-create not only
with their customers, but also with their distributors, intermediaries, and trading
partners. Gouillart and Quancard provide the best framework I have seen on how
to build those customer ecosystems and provide an engagement model to encourage
co-creation and better utilization of shared data.”
—Peter Linn, CEO North America, AXA MATRIX Risk Consultants
“As the business environment is changing, strategic account management becomes a
key to success. Th e book by Gouillart and Quancard provides a roadmap for all sales
people wanting to survive and grow.”
—Corrado Cesti, Head of Heavy Industry, SKF
“In healthcare, the need to manage outcome data is transforming account manage-
ment as we know it. Th e C o-Creation Edge will show you the process through which
a few pioneers engage new communities of players, utilize novel data platforms and
hence accelerate the journey towards signifi cantly improved patient outcomes, ben-
efi ting all stakeholders involved.”
—Huw Tippett, Global Head Customer Excellence, Baxalta

Francis   Gouillart • Bernard   Quancard
The Co-Creation Edge
Harnessing Big Data to Transform
Sales and Procurement for
Business Innovation
Francis   Gouillart Bernard   Quancard
Concord , Massachusetts, USA Chicago , Illinois , USA
ISBN 978-1-137-52675-5 ISBN 978-1-137-52677-9 (eBook)
DOI 10.1057/978-1-137-52677-9
Library of Congress Control Number: 2016906964
© Th e Editor(s) (if applicable) and Th e Author(s) 2016
Th is work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifi cally the rights of translation, reprinting, reuse of
illustrations, recitation, broadcasting, reproduction on microfi lms or in any other physical way, and trans-
mission or information storage and retrieval, electronic adaptation, computer software, or by similar or
dissimilar methodology now known or hereafter developed.
Th e use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specifi c statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
Th e publisher, the authors and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the
editors give a warranty, express or implied, with respect to the material contained herein or for any errors
or omissions that may have been made.
Cover illustration: © Dorling Kindersley/Th inkstock
Printed on acid-free paper
Th is Palgrave Macmillan imprint is published by Springer Nature
Th e registered company is Nature America Inc. New York
Contents
Chapter 1 Th e Changing World of Sales and Procurement 1
Chapter 2 Th e Co-Creation Cycle 15
Chapter 3 Th e Strategic Relationship-Building Process 37
Chapter 4 Th e Dream: Discover the Opportunity and Organize
Internally 51
Chapter 5 Th e Dance: Envision the Value and Assemble
a Joint Team 77
Chapter 6 Th e Date: Engage as One Team and Connect
Emotionally 93
Chapter 7 Th e Commitment: Finalize Value, Negotiate and Close 113
Chapter 8 Th e Long-Term Relationship: Deliver and Document
Value 133
Chapter 9 Th e Family: Expand Value 151
Chapter 10 Th e Five Levels of Competitive Advantage Yielded by
Co-Creation for Sales and Procurement 173
v

Figures
1.1 Where sales and procurement are headed 14
2.1 Th e co-creation cycle 18
3.1 How the co-creation cycle grows at each step of the
relationship-building cycle 38
3.2 Value co-creation map for Techelec and its O&G
refi nery customer 49
4.1 Five sub-communities SAMs and senior buyers will
typically have to engage 59
4.2 Th e fi ve generic layers of value in co-creation 73
5.1 Co-Creation Value Map for Hotel Co and its Roadwarriors
professional services fi rm customer 91
6.1 How Pellets structured its Analysis and Design eff ort
at Autoparts 98
6.2 Value Co-Creation Map for Pellets working with Autoparts 100
7.1 Value Co-Creation map of Xerox with its customer 126
8.1 Value Co-Creation map of SKF with its paper-making
customer 150
9.1 Co-creation value map of Deutsche Post-DHL and Volvo
Trucks working together on maintenance-on-demand project 159
10.1 Th e fi ve levels of co-creation between supplier and customer 174
vii
CHAPTER 1
The Changing World of Sales
and Procurement
Let us start with the bad news. Th ousands of sales and procurement people
are threatened with extinction.
I f you’re a sales person solely relying on your interpersonal skills to gain
access to customers, your knowledge of the company’s products and your
negotiation ability, you may be in trouble. Here is how you will know. Are
you experiencing any of the following symptoms?
● You’re no longer dealing with individual decision-makers with unique
needs and the latitude to call their own shots.
● Th e central procurement people you are required to work with have
standardized the buying process, and they have little time, or inclina-
tion, to meet with you, except for quarterly business reviews where they
challenge you on service incidents and price.
● Purchasing uses reverse auctions to get the lowest price.
● Your technical colleagues at the company complain that you’re not sell-
ing the latest solutions and wonder aloud “whether you’re getting where
the company’s going”.
● Sales quotas rise every year while your company’s product diff erentiation
erodes. Your status is diminished; your bonus shrinks or disappears, and
your salary gets frozen.
● Th e sales function gets periodically reorganized, leading you to wonder
after each reorganization whether you still have a job.
2 ● The Co-Creation Edge
Like air running out of a balloon, the fun of being in sales is slowly and
steadily disappearing.
Th e situation isn’t much better if you’re a purchasing person. For a while,
procurement departments were riding high, but most of the gains from ven-
dor consolidation have been reaped and you struggle to keep adding value.
Refl ect on whether you’re experiencing any of the following:
● Your traditional skills of knowing your category, managing rigorous
Request for Proposal (RFP) processes, and negotiating hard with suppli-
ers don’t seem to cut it anymore.
● New automated tools create supplier transparency more eff ectively than
pressing suppliers for that information in live interviews.
● A s waves of corporate cost reductions hit, you’re being asked to handle
more and more categories, leaving you with less and less time to famil-
iarize yourself with each of them.
● You run from meeting to meeting and the day gets increasingly longer.
● Y ou’re being exhorted by your technical people to extract more value
from your suppliers, and demand innovation from them, but you’re not
sure exactly what that means.
● Suppliers continually attempt to end-run you by going directly to tech-
nical people inside your company and your role is threatened.
At night, you start wondering whether procurement is the career you
thought it was going to be. It all feels pretty bleak in procurement land.
For sales and procurement alike, it does not have to be that way. Here is
the good news.
Sales and procurement professionals have a bright future ahead of them if
they can respond to six trends we observe in the business-to-business world.
Each trend off ers an opportunity to develop a new skill for sales and procure-
ment professionals and adopt a new practice. Because these practices are not
yet widely adopted as “best practices”, we refer to them as “next practices”,
i.e., they are likely to become best practices over time, but they can only be
found in the most innovative companies. Each of them off ers an opportunity
for sales and procurement professionals to add new value.
Here are the six trends and corresponding next practices.