Negotiating with Software Vendors (MSIL22)
Participants
CIO, IT Management, Procurement Officers
Course duration
1 day
Course preparation
If possible, participants should come prepared with detailed information regarding a current (early stage) or imminently planned purchase. This information will be used to develop a generic action plan for understanding, preparing the team, and defeating the Vendor’s sales approach to reach an optimal agreement. All information will be treated in strict confidence and used only for the purpose of developing negotiation strategies.
Program Overview
- Although Procurement Officers may have been taught professional negotiating skills, CIOs and IT Managers typically have not (even though they also play a negotiation role with software Vendor salespeople). It is highly unlikely that Procurement Officers, the CIO and IT Management have been taught how salespeople have been taught to negotiate and what their motivations are. As such, there is no equality because negotiating skills are a fundamental aspect of sales training but not IT management. Essentially, the CIO and IT Managers face experienced negotiators without the necessary training to conduct the negotiation process. As a result, you may well end up with reduced purchase value.
- Huge Vendor pressure is exerted on their salespeople to negotiate more and richer contracts, especially during economic downturns. This course is aimed at helping you understand, prepare, and beat software Vendor salespeople. It helps equalize the two sides (corporation needing the software licensing renewal and vendor supplying the software). The course proves that improved negotiation skills ensure increased value for money.
Course Objectives
- Learn how Vendor salespeople are compensated and measured
- Learn what Vendor salespeople have been taught
- Identify the best times to negotiate for maximum value
- Understand modern, best practise negotiation fundamentals/principles
- Learn how to beat salespeople and maximize the value of your purchases
- Develop an action plan for an imminent negotiation
- Ensure positive negotiation and results
Introduction
- Synopsis of ‘solution sales’ training
- Understanding how salespeople are compensated and what motivates them
- The real meaning of business value
- The importance of starting the negotiation at the right time
- Identifying the best person to negotiate with in the Vendor organization
Preparation
- Preparing a value-oriented approach to negotiation
- Building a winning team (IT/Procurement/Legal/Finance)
- Timeline planning using the ‘fishbone’ approach
- Creating a Value Chart
- Focusing on ‘interest’ rather than ‘position’
- Trade-offs and alternatives to the ideal outcome
- Business Intelligence – Gathering inside information on the Vendor’s negotiation team and goals
- BATNA (Best Alternative To No Agreement)
- Message points and Product Requirements Document
The face-to-face negotiation
- Negotiation cycle – what to expect and how to prepare for each round of negotiations
- Posture, proxemics and negotiation table seating arrangements
- Body language specific to negotiations, including the 5 signs of untruth
- Active listening
- Handling provocation
- Creating a Mutual Interest Chart to weaken the Vendor’s negotiating position
- Aiming high from the start
- The Vendor’s approach to discounting
Apply Microsoft® Product Use Rights
- How to use the Product Use Rights Document (PUR)
- Licensing options (Per device, Per Server, Server / CAL, Per Processor, External Connector)
- Licensing the Core Infrastructure (Desktop, Server, Virtualized, Systems Management – Systems Center, Security - Forefront
- Licensing the Business Productivity Infrastructure (Office, Exchange, SharePoint®, Lync®, Project)
- Licensing the Application Platform (Visual Studio®, SQL Server®, BizTalk® Server)
