Technology innovators targeting enterprise business and other large organizations in the public and not-for-profit sectors should look to product development for substantial, defensible barriers to competitor entry. Entering today’s ultra competitive markets for traditional solutions (for example, ERP) requires highly sophisticated sales and marketing. Human resources with the right skills for these sales and marketing requirements may not be available to start ups. Nevertheless, a very keen eye for products is required to determine precisely the right markets for product development.
It’s worth spending a brief moment simply highlighting the very high level of sophistication required of successful enterprise sales personnel selling into highly competitive markets. Merely a careless harsh phrase, or a momentary lapse in judgement can push promising sales opportunities off a cliff. Please understand that in these highly competitive markets, the true driving force is not the product or service, rather, it is precisely the sales person who is the driving force for customer interest. Betting a business on sales personalities is at best a highly risky endeavor and, at worst, a strategy with a highly limited upside. This mediocre scenario plays out clearly in the contract technology consulting business where a limitless number of businesses compete to deliver human resources with the same skills to enterprise customers. In fact, it is not uncommon in this marketplace for the same IT consultant to be present to the customer by multiple consulting firms.
Better to take the time to study markets very closely to determine aspects of IT operations and processes that are broken and in sore need of repair through open ended conversations with enterprise prospects who are directly involved in these very same procedures. Building specific fixes for one or more of these aspects can pay off with the required revenue to launch a promising business. These niches do not have to be dramatic. Rather, through engaging in carefully structured conversations with industry participants information can be gathered that will illuminate probable marketplace value for a method of fixing an aspect or two of an important IT system. Better to take this approach than to be on the lookout for exceptional sales personnel who can flawlessly handle any high pressure engagement with prospects. In our experience these sales personnel are in very short supply. Engaging with a talented individual can end up to be a very costly exercise for an early stage business.
If you are embarking on a new business effort and understand the value of sampling marketplace opinion about IT operations and processes, then we would like to hear from you. Please contact Ira Michael Blonder at +1 631-673-2929 to further a discussion. You may also email Mike at email@example.com.
© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved