Characterize your IT Solution provider: part 1 Phases

Resulting from a discussion around My IT Solution Checklist, the question came up if there is a pragmatic model to specify the business development stage in which the solution provider is in. There are many elaborate models to typify and qualify companies. But at Results2Match we like the simple and practical models. So I looked back to the many companies I dealt with over the years and derived a phase model.

The phases as such do not include a quality opinion or even a go/no-go for doing business but give you a typical situation to deal with when you take up business with a provider in that stage. The phases are characterized through product, value, team, sales and delivery.

Incubator phase

• A bright idea
• Specs and price are tailor-made
• A zealot like group of founder & friends do it all
• Sales and technology are one
• No references, just blue eyes.

Start-up phase

• A product
• Specs and price are preset but up for negotiation
• The zealots have found disciples
• It is found out that sales and technology are not the same
• The first installations are available but not generic references.

Black number phase

• Standardized product implementations
• Pricing becomes standard and spec changes a paid service
• Although specialist are hired, the zealots still are omnipresent
• Sales is all around copying one or two references
• Limited partners visible.

Flux phase

• Growth is stalling but installed base is stable
• Pricing, specs and support are points of discussion
• The zealots are getting tired but find it hard to step back
• Marketing tries to re-brand the solution and a new account manager every 6 months
• Number of partners grow without clear program.

Second life phase

• Growth is back
• Solution has a clear road-map and a next generation is in the pipeline
• Ownership and management are separate roles
• The organization is sales driven and is seen as an established market player
• A partner ecosystem is emerging.

In a next blog I will zoom in on the typical value elements that you will encounter dealing with suppliers in the respective phases.

Comments welcomed.

Hans.van.nes@results2match.com