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GE Healthcare GSSI 2011 - Milan June 23, 2011 Marco Ortolina – GM Accessories EMEA “Selling Internally…an Easy Job” Company Proprietary Information - Confidential
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2 / 3/31/2015 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 GE – A heritage of innovation Company Proprietary Information - Confidential
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3 / 3/31/2015 GE business segments Aviation Energy Home & Business Solutions Water Oil & Gas Commercial Finance GE Money Corporate Treasury Transportation Healthcare Technology Infrastructure Energy Infrastructure GE Capital NBC Universal Company Proprietary Information - Confidential
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4 / 3/31/2015 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
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5 / 3/31/2015 Broad solutions for healthcare Biopharma- ceutical solutions Medical diagnostics Electronic medical records Diagnostic imaging & surgery technologies Integrated admin. & clinical Clinical products Picture Archiving System (PACS) Protein & cell sciences Service Broad-based Technologies Life Sciences Information Technology Company Proprietary Information - Confidential
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EMEA Accessories for Diagnostic Imaging “Selling Internally…an Easy Job?”
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#1 – Setting the Stage Our business model
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8 / 3/31/2015 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
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9 / 3/31/2015 Accessories for Diagnostic Imaging How we sell Accessories End customers Equipment sales Service sales Regional accessories leaders End customers: mainly buy “locked-in” configurations…accessories w/o a true market price Company Proprietary Information - Confidential Equipment sales: our 1 st 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
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#2 – Key Learning How to maximize sales when your customer is an internal one
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11 / 3/31/2015 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 Company Proprietary Information - Confidential 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
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12 / 3/31/2015 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 Company Proprietary Information - Confidential 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
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13 / 3/31/2015 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 Company Proprietary Information - Confidential 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
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