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EMEA Update

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  1. EMEA Update Bill Koehl Vice President and General Manager

  2. FY08 Observations © Copyright 07/03/2014 BMC Software, Inc. Internal View • Not Consistently Achieving Quota External View • “BMC’s focus on it’s install base could limit growth opportunities in segments outside its traditional user community” • Forester Research • “Gartner believes that most of BMC’s sales are to existing BMC’s customers not now stand-alone customers” • Gartner Group INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  3. 3 Year Historical View 75% of Revenue 25% of Revenue ESM Revenue 30,000 ACCOUNTS 6,770 ACCOUNTS © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  4. Customer Segmentation Metrics Size of Account DSM Total Spend Metric Weight Metric Weight Based on company’s ESM TB BMC FY06 – Q3FY08 Ranked by Revenue 30% 30% Vertical Industry Opportunity Product Penetration Number of BSM Solution groups purchased FY06 – Q3FY08 Based on knowledge worker and IT spending rates 35% 20% Total Points Available 20 Country Market Maturity MSM Total Spend Based on readiness of business & govt. w/in a country to leverage IT Based on company’s MSM TB FY06 – Q3FY08 15% 20% Propensity to Buy Core License Spend Propensity to buy across 6 ESM product areas SM/IM License bookings from FY06 – Q3FY08 20% 30% © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  5. Business Relationship (BR) Deploys and runs a large complex IT Organization Propensity to buy into our BMC vision High license ($1m) potential to spend on solutions offered by BMC Strong BMC relationship except in investment accounts © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  6. Business Impact (BI) Global 2000 – Highly complex IT environment – All industry sectors represented BSM Platform for growth BMC has the potential for an Invitation to grow or enter account Customer relationship tends to be opportunistic Customer tends to buy to “pain” – solve problems © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  7. Named Typically less than 10 billion in revenue and more than 2500 Employee’s Typically transactional buyers - Solve Point Problems Partner lead sales and services Primary Buyer Type - IT point product specialist © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  8. Mass Market Huge Partner Opportunity Partners’ Manage and Lead Generally Product and Solution Based Partners are Trained Exactly to the Same Standard as BMC Sales and Services Delivery Capabilities © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  9. New Worldwide Segmentation Model Investment BR < $1M in ESM TB FY06 – Q308 BI < $500K in ESM TB FY-06 – Q308 Customer BR > $1M in ESM TB FY06 – Q308 BI > $500K in ESM TB FY-06 – Q308 Platform for Growth Partner Led Services Sell To Pain Solution Sell Partner Led Sales & Services Platform / Consultative Sell BMC Services Embedded Tied to Global Initiatives Communication Coordination Business Relationship 11 151 CUSTOMER INVESTMENT 162 Accounts Business Impact 1,594 689 2,283 Accounts Named Territory Accounts 1,891 Accounts Mass Market 9 INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc. © Copyright 07/03/2014 BMC Software, Inc.

  10. Worldwide Exponential Opportunity Service Support Service Support BMC Global Services ServiceAssurance ServiceAssurance Service Automation Service Automation SI’s Partners Communication Coordination Business Relationship 11 151 1,605 Accounts 162 Accounts Business Impact 1,594 689 BMC Primary Account Manager 2,283 Accounts Named Territory Accounts 1,891 Accounts Mass Market © Copyright 07/03/2014 BMC Software, Inc.

  11. Client Take-a-ways We Must Embrace Behavioral Change in FY09 Protect and Grow the BR and BI customer segments through Collaboration Build Pipeline and Incremental Revenue Through Communication with specialist organization Increase Sales Productivity Repurposed Inside Sales Improve Channel Alignment © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  12. Worldwide Product Organization Craig Harper 3/7/2014 © Copyright 07/03/2014 BMC Software, Inc.

  13. WW Product OrganizationOur Mission Dominance of the BSM Marketplace Accelerate Growth Deliver balanced revenue achievement across all BSM Disciplines Focus Expertise / Value Add Teamwork Communicate with Business Units on behalf of our clients and Field Sales organization Influence our Product Strategy Communicate our Product/Solution Strategy and Roadmaps Establish the over all Go to Market Strategy Localize BU/Field Strategy to specific markets © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  14. WW Product OrganizationCraig Harper Field Marketing BSM Field Strategy M&A Software Consulting Field Process Solution Architects Sales Specialists Field Process Partner Kathy Bexley Steve Vierra Jeff Hodges Tom Schodorf Ron Clegg Sean McDermott Mary Nugent John McMahon Service Support $260M (lic.) Ron Clegg Service Automation $132M (lic.) John McMahon Service Assurance $270m (TB) Mary Nugent Identify $45M (TB) Tom Schodorf © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  15. Alignment with our ESM Business UnitProducts Jim Grant Senior Vice President ESM Business Unit Herb Van Hook ESM Business Planning Paul Avenant Sol Development K Behnia/T Bishop Office of the CTO John Peters ESM Marketing Alisa Nessler Solution Support Scott Hassett ESM Ops & Value Chain Product Line Product Management Warren Cook Product Mgmt Atwell Williams CTO Office Krishna Prasad Product Line Gerry Roy Marketing Jay Shankar Support Mitch Landry Program Mgmt Brent Brightwell Product Mgmt Troy Cline CTO Office Bob Gutekunst Product Line Bronna Shapiro Marketing DeWayne McNally Support Mary Morgan Program Mgmt P. Padmanabhan Product Mgmt Doug Bagley CTO Office Scott Fulton Product Line Paul Farr Marketing Lucy Karis Support Mary Morgan Program Mgmt Roy Ritthaler Product Mgmt Eli Almog CTO Office Israel Gat Product Line Mark Kusionowicz Marketing Becky Strauss Support Brian Borack Program Mgmt Service Support Atrium Service Automation Service Assurance © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  16. WW Product Organization- EMEACraig Harper Field Marketing Software Consulting Jonathan Priestley Rob Cole Service Support Robert Cole Service Automation Luca Lazzaron Service Assurance Herve Timsit Greg Rahim Identify Tom Schodorf © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  17. Field Sales Specialists Profile “Hunter among Hunters” Ability to cover a broader territory Inventory Opportunities Qualify and Prioritize Expert in qualifying opportunities. Flexible based on role Capable of leading the sales effort Capable of becoming a part of an overall account team and strategy Rapid value add Establishes trust and credibility with both the technology buyer and economic buyer Understand and customizes the ROI to the customer Cultivates and effective uses client references Gracefully transitions the relationships to be “farmed” by account manager Works well with the client team © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  18. BMC Global Services SI’s Partners Intentional Alignment Service Support Service Automation Service Assurance Identify 18 © Copyright 07/03/2014 BMC Software, Inc. INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc.

  19. Amsterdam – EMEA Headquarters EMEA 78 Countries 3300 Customers >$600m Revenues 1,100 Employees © Copyright 07/03/2014 BMC Software, Inc.

  20. Investment Accounts Existing Accounts Aligning How a Customer Buys With How BMC Sells How Customers Buy Key Customer Buyer Approach & EMEA Numbers Total BR Accounts: 210Parent: 76 Child: 134Consultative Selling, Upselling, Renewals and Services Total of 70 Account Reps covering BI and BR (not inclusive of management) Business and IT Executive Buyers BSM Total BI Accounts: 535Parent: 440 Child: 95Solution Selling, Upselling, Renewals and Services Solution Buyer BSM via Discipline INVESTMENT CUSTOMER Total Named Accounts: 51516 Territory Managers + 19 ISD Territory ManagersProduct Selling, Upselling, Renewals and Services BSM via Solution up to Discipline Product / Solution Buyer 100% Partner Driven Mainly Product Focus Purely Partner DrivenProduct Selling 20 INTERNAL USE ONLY © Copyright 3/7/2014 BMC Software, Inc. © Copyright 07/03/2014 BMC Software, Inc.

  21. New Organization Structure • All conflict is removed so we can focus on the customer • FY09 is all about the country… not which sales division • Country Managers now have total revenue responsibility in their country • How does it effect you? • Increase your focus on the customer, right people on the right set of accounts • Strong infrastructure and specialization support • A much clearer line of sight to services, products and operation • Both Client and Product disciplines working closer together • Larger quotas but paid on everything • Simplified compensation plan © Copyright 07/03/2014 BMC Software, Inc.

  22. EMEA Executive Team Bill Koehl VP and General Manager Marja Schalks Executive Assistant Mark Newton Regional Director NER Olav Strand Regional Director CER TBD Regional Director SER Vishal Rao DirectorGlobal Accounts Dermot Costello Director iSD Edouard Fourcade VP, WW Comp & BP Nick Glover VP, MSM EMEA Eric Blum VP Consulting Services Neil Yekell VP Finance Luca Lazzaron VP & GM Bladelogic Bjorn Mattsson Director Channels Robert Cole Director SW Consulting Gertjan van Dam Director Best Practices Jim Darragh Director WW Field Ops Nick McEvoy Director Field Operations Todd Reeves Sr. Director HR Jonathan Priestley Director Field Marketing Elodie Dowling Sr. Legal Counsel Jon Rendle Director Cust. Support Gavin Tapper Director Order Mgmt Huub Smeets Director Procurement © Copyright 07/03/2014 BMC Software, Inc.

  23. Mark NewtonRegional Director NER Olav StrandRegional Director CER TBDRegional Director SER Dermot CostelloDirectoriSD Europe EUROPE Sales Organization Bill Koehl VP and General Manager Vishal RaoDirector Global Accounts Gertjan van DamDirectorBest Practices Nick McEvoyDirector Field Ops UK Mark Newton GERMANY Olav Strand ITALY Bettina Giordani NER Michelle Murphy NORDIC Mats Ferm AUSTRIA/SWITZERLAND Christian Winkelbauer IBERIA Miguel Fito CER Ives Bretzer NETHERLANDS Hans van Donge FRANCE Eric Lecoq SER Marco Vascellari BELGIUM/LUX Jan Duthoo © Copyright 07/03/2014 BMC Software, Inc.

  24. Global Accounts EMEA-based Global Accounts U.S.-based Global Accounts © Copyright 07/03/2014 BMC Software, Inc.

  25. BMC Is Better Equipped Than Ever Before To Service This Need BMC ITSM Change Management Service Request System Incident Management Asset Management Definitive Software Library (DSL) BMC Configuration Automation • BCA for Servers • BCA for Clients • BCA for Networks (BladeLogic) • Run Book Automation (RealOps) • BMC Performance Assurance BMC Event Manager (BEM) Service Impact Manager (SIM) ProactiveNet Analytics (PNET) BMC Performance Manager (BPM) Transaction Management (TMART) © Copyright 07/03/2014 BMC Software, Inc.

  26. 1 Meet or achieve our financial goals (predictable revenue) Do your job – let the customer know we’re the best, change the game, increase sales productivity and demonstrate teamwork 2 3 Service Assurance – must compete and claim victory in this space 5 Develop our relationships and our references (more time with our customers) Our Areas Of Focus in EMEA Claim victory with CMDB and win with Service Automation 4 © Copyright 07/03/2014 BMC Software, Inc.

  27. Be Self Sufficient and Add Value Understand we have Quarterly Targets Focus More on ESM Solutions and Less on Point Products Too much focus still on only Remedy Sell New Licenses Learn the way we do business and follow the rules we must follow Best Practices and Revenue Recognition Training Must grow DSM Business Pan European organizations What can you do for me? © Copyright 07/03/2014 BMC Software, Inc.