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GE Healthcare

GE Healthcare. “Selling Internally…an Easy Job”. GSSI 2011 - Milan June 23, 2011 Marco Ortolina – GM Accessories EMEA. Company Proprietary Information - Confidential. GE – A heritage of innovation. Founded by Thomas Edison in 1878

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GE Healthcare

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  1. GE Healthcare “Selling Internally…an Easy Job” GSSI 2011 - Milan June 23, 2011 Marco Ortolina – GM Accessories EMEA Company Proprietary Information - Confidential

  2. GE – A heritage of innovation Founded by Thomas Edison in 1878 Only company from the original 1896 Dow Jones index still listed today 300,000+ employees world-wide $157 billion revenue in 2009 Company Proprietary Information - Confidential

  3. Energy Infrastructure Technology Infrastructure NBCUniversal GECapital Commercial Finance Healthcare Energy Aviation Water GE Money Transportation Corporate Treasury Oil & Gas Home & Business Solutions GE business segments Company Proprietary Information - Confidential

  4. GE Healthcare $16 billion global business unit of GE 46,000 employees worldwide $1 billion+/year investment in R&D Core strengths in bio-sciences, technology, business Company Proprietary Information - Confidential

  5. Broad-based Technologies Information Technology Life Sciences Diagnostic imaging &surgery technologies Integrated admin. & clinical Electronic medical records Protein & cell sciences Clinicalproducts Picture Archiving System (PACS) Medical diagnostics Service Broad solutions for healthcare Biopharma- ceutical solutions Company Proprietary Information - Confidential

  6. EMEA Accessories for Diagnostic Imaging “Selling Internally…an Easy Job?”

  7. #1 – Setting the Stage Our business model

  8. Accessories for Diagnostic Imaging What we sell • Distribution of ~ 1,000 products, ~$50m turnover • Selling price from $50 to $150,000 • ~ 80 suppliers • ~ 1,000 final customers across EMEA • Public hospitals and private clinics • From consumables to peripheral products • Injectors • Uninterrupted Power Supplies • Printers • Positioning lasers • Starter kits for clinical procedures Company Proprietary Information - Confidential

  9. Equipment sales End customers Service sales Accessories Regional accessories leaders Accessories for Diagnostic Imaging How we sell End customers: mainly buy “locked-in” configurations…accessories w/o a true market price Equipment sales: our 1st internal customer…no hierarchy leverage…can source accessories locally if our transfer price is too high or the service delivery for accessories is better at local level…90% of accessories sales through them Service sales: 10% of sales through them…no hierarchy leverage…accessories sold as standalone and subject to open market price Regional leaders: part of the accessories team…no direct contact with customers…support and influence the Equipment and Service sales teams Company Proprietary Information - Confidential

  10. #2 – Key Learning How to maximize sales when your customer is an internal one

  11. Learning #1 Transform your multi-functional team into an all-around “sales team”. Everyone to adopt a sale approach. Sales growth as ultimate goal for everyone Status • 15 people team. Marketing, Operations, Service, Quality, Finance, Complaints, Sourcing, IT How to • Alignment of individual Goals & Objectives and rewards policies • Weekly sales & orders reports, sent to everyone • Daily business updates (1 hour), all functions contributing and living the “full picture” • Leadership to infect the team with a “love for growth”…and live it everyday • Invest time to create the right connections between the team and the internal stakeholders. Provoke meetings, connect the dots, and let the team carry on from that. The objective is to talk with the right people…the outcome will naturally follow Company Proprietary Information - Confidential

  12. Learning #2 Go-to-Market simplification. Make it extremely easy to sell an accessory and service it, from quotation to physical delivery and installed base management Status • Accessories is a small and complex business within GEHC. Nobody really care about them…except when there are issues How to • Reduce # of suppliers, choose global ones with bullet-proof service delivery • 1 full time resource to manage systems for quotation, order, sale, shipment (there are 8 different IT systems!!!) • 1 senior resource to act super-fast on customer complaints • Quarterly newsletter to +400 equipment and service sales team • Be aware that “over-communication” to internal stakeholders is the norm, and not the exception Company Proprietary Information - Confidential

  13. Learning #3 Leverage the Regional Accessories Leader. Transform former sales guys (“Soldiers”) into “Generals” whose goal is to manage the business through influence, coaching, and technical support Status • Regional Leaders do not see the customers and do not have a hierarchical link with equipment and service sales How to • Change the compensation plan, and introduce metrics to measure influence on local sales teams and feedback of new products to headquarters • Make sure the entire team (and not only the Marketing folks) are connected with the Regional Leaders • Take the sales report preparation out of their daily routine…and let them focus on driving the business from a higher perspective Company Proprietary Information - Confidential

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