I once heard a story about a demo of a smart system for Russian Railways.

Clear problem statement
Technically sound solution
ROI calculation and effects

Throughout the demo, the potential client representatives were actively discussing, nodding approvingly, and generally looked quite enthusiastic.

Then came questions
Well-argued answers
It seemed the deal was done

Until at the very end, one guy said:

Guys, thank you!
Everything is great.

I just didn't understand one thing..

Who will go to prison if the system fails?!


There was no answer
The deal fell through

Why am I saying this..

Product value for big business is usually sought in terms of "revenue growth" and/or "cost reduction"

In reality, at the top management level, they buy two things: peace of mind and KPIs

If the software for smart machine control at a factory goes down, and while it's being fixed, the client loses hundreds of millions of rubles due to downtime and supply disruptions..

Then the decision-maker gets fired

So our "we'll increase your productivity by 8%" and "the solution will pay for itself in just 16 months" is good

But it seems the decision-maker would pay 3 times more..

If we somehow provide him with an alibi before the board of directors that he chose the most reliable (and therefore the most expensive) solution on the market

Insurance for the top manager's peace of mind, guaranteeing maximum reduction of personal risks

A value that cannot be overlooked when developing a solution

That's the first thing

And second.

If the product's value clearly aligns with the company's strategic goal (task)..

But that goal needs to be achieved in 3-4 years..

And the decision-maker's personal KPIs for this task are set for 1-2 years

Then it's crucial for the product to deliver effects specifically on those KPIs

Because if the solution doesn't take off
Or there are issues during implementation

The decision-maker will be blamed for the mistakes.
(these are his career risks)

And if the other side of the scale is empty - then it's easier to refuse!

than to engage in long-term innovations for the common good

(with the risk that you won't even be at the company when they raise glasses of champagne for annual bonuses success)


Therefore..

It's hardly news that Enterprise doesn't buy software - they buy results

However, in the search for global value for the business..

Remember that decisions are ultimately made by specific living people.

Who want to find a personal balance between personal responsibility and benefit

Just some thoughts! What do you think?

Share your experience working with corporates. Interesting!

#value_search