In this article, we will discuss an integrated approach to plan, design, and transform GTM capabilities in five key areas that can help companies stay competitive with new portfolio and business models while maintaining revenues from legacy businesses:
- GTM strategy
- Customer engagement model (CEM)
- GTM operating model
- Sales enablement
- GTM metrics
GTM strategy: Aligning with enterprise vision and strategy
When organizations are reinventing their core business, a holistic approach to transformation is critical for success. The digital industrial transformation framework,4 introduced in previous articles in this series, lays out the transformation approach—beginning with a refresh of the enterprise strategy and vision for the new business/business model, determining where to play and how to win, helping leadership determine the capabilities required, and defining the operating model needed to execute the transformation.
As organizations revamp their GTM strategy, a critical step is to align it with the overall enterprise vision and strategy. The GTM strategy needs to align with the enterprise choices made at each step of the transformation framework. For instance, the route-to-market choices need to be aligned to the enterprise choices around where to play and how to win; the GTM capabilities and operating model need to be closely aligned with the enterprise model.
In 2017, Hitachi Vantara, then Hitachi5 Data Systems, a market leader in data storage, transformed itself into a provider of software solutions that use data to generate customer and operational insights. Hitachi had to reimagine its hardware-oriented strategy and business model to one that focused on software and services and identify cross-organizational capabilities across product, sales, and services functions. The organization also reconfigured its product-led operating model toward a more services-led delivery model.
Pitfalls to avoid: Even well-designed transformation efforts may not drive desired outcomes if the company fails to communicate with stakeholders at every level—from the C-suite to the field sales team—and ensure they understand the transformation vision and strategy and are committed to it.
Customer engagement model: Focusing on optimal coverage
Once the GTM strategy is set, the next step is to determine a CEM that serves the new business as well as the core ones.
The purpose of a CEM is to provide the right coverage at key customer engagement points across the sales cycle. Organizations can leverage customer usage insights to tailor CEMs at different points of the customer journey to improve customer experience and outcomes. As customers become better informed, more digitally savvy, and faster at decision-making, the challenge is to ensure the CEM is in step with not only the transformation but also changes in customer behavior.
Often, organizations equate the customer engagement model with seller coverage. But an optimal blend of sellers and technology is required to enable always-on, cost-effective customer engagement; we call this CEM the customer surround model (see figure 1).