Management Development Institute, Gurgaon

Part Time PGPM, July Sept 2014

Business Development in te IT In!ustry
Prof Sangeeta S Bhardwaj
Prof. Dhruva Nath
Management Development Institute
Gurgaon 122 1
1. Ba!"ground #
The process of Business Development involves the following broad steps :
a) Identifying a potential client, or prospect
b) Identifying the clients needs, or even creating needs
c) Proposing a possible solution in response to these needs
d) esolving any issues that may come up
e) !losing the deal and obtaining the order
Identifying or developing needs is a critical issue in the area of Business
Development, and it starts early on " at the prospecting stage# In many cases, it
would also include helping the client to identify or at least clear up his own
thin$ing#
In the field of Information %ystems, identifying needs is a comple& process for
several reasons# 'irst of all, needs are often not $nown, or at least not $nown
clearly# (ften the identified need has no significant lin$ with the Business )oals
or %trategies of the company# %econdly, there is no standard off*the*shelf product
that can satisfy the need# +ven if an off*the*shelf product were to be used, it
would have to be part of a customi,ed solution# -nd finally, the need as
perceived by the IT Department of a company, is often limited in scope, since the
IT Department is usually not involved in %trategic Decision ma$ing#
!onse.uently, many software firms employ the !onsulting approach to
identifying and crystalli,ing needs#
In the /Propose %olution0 phase, most organi,ations use the 'P or e.uest for
Proposal oute, based on which the service provider ma$es his presentation and
proposal# !ritical issues here include the stage at which the service provider
needs to get involved, whether to ta$e the product route or the service route, and
the appropriate pricing models#
In the /!lose0 phase, contracts and IP become ma1or issues, which therefore
form the third component of this course#
2e also ta$e a loo$ at the process of managing Business Development, which
includes pipeline management, metrics and measures#
'inally, we ta$e some instances of people and political issues in the Business
Development process#
2. $ourse %&je!tives #
To give 3anagement students an understanding of :
The Business Development Process in %oftware %ervice companies#
Issues in 3anaging this BD Process
'. Methodolog( #
!ase %tudies
+&ercises
Discussions
)roup Pro1ect
). *valuation #
!ases, Presentations, -ssignments, Pro1ects * 456
7ui,,es * 456
3id Term +&am * 856
+nd term +&am * 856
+. ,eferen!es #
Te&t Boo$ : IT %ervices Business 3anagement : !oncepts, Processes,
and Practices, by % % Dubey, Prentice 9all of India
The %PI: %elling 'ieldboo$, by :eil a$ham, Tata 3c)raw 9ill
!ases and :otes to be provided
-. $ourse %utline .tentative/ #
No. of
sess.
0opi! Su& 0opi! 1ead
2a!
,eferen!es 3
$ases
8 Intro
The Buying and
%elling
Process
Developing :eeds
++D ; (DP+!
Identifying :eeds
!hannelising
Promotional 3aterial
D: !ases
< Developing a
!ampaign
!reating promotional material %%B -ndura
4 The !onsulting
-pproach
Involving %enior 3anagement
The !onsulting -pproach
D: -I!
< Problems ;
(pportunities
with
Development
Influencers
3ultiple ; !onflicting re.uirements
D: !ase :
!itiban$ " 3ulti*
location
< Proposing a %olution The 'P ; 'I
The Proposal
D: -I!
4 Developing a
!ustomer
%trategy
Developing a !ustomer %trategy %%B %iebel %ystems
and
!omerge
nt
< Proposing a %olution Pricing=product and software
services
%%B :uway ; Trilogy
-I!
< Proposing a %olution
and 3anaging
conflicts
ole of Business Development
Team and %olution Delivery
team
%%B %oft %ervice Inc
case,
< People ; Politics in
Bus Devp
D: %urvey of India
2heels India
33T!
-I!
8 3anaging the Bus
Devp Process
eporting and Pipeline
3anagement
3etrics and 3easurements
%%B >
D
:
Pipeline !ase,
!omergent
Tech#, !learion
%oftware, !ross
%elling or !ross
Purposes,
!entra
? )uest %essions )uest
'
a
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