Selling MOM Solutions to Risk Adverse Businesses

April 9, 2009

Selling MOM Solutions to Risk Adverse Businesses By Utilizing Performance-based ROI Guarantee and Contracts

Selling MOM Solutions to Risk Adverse Businesses By Utilizing Performance-based ROI Guarantee and Contracts

The Basic Idea
  1. Conduct a structured ROI tailored to Key Business Drivers of business in Production Transformation Assessment (PTA) to establish a baseline for Performance-base Contracting (PBC) : a.  Quantify Production waste streams, b.  Idenfiy Corresponding form and high level requirements of high impact manufacturing operations management (MOM) solutions, c. Tangible defendable return-on-investment (ROI) benefits and calculations,  d.      Solution Risk Profile and Mitigation Requirements
  2. PTA Baselines establish Solution Risk Profile for solution provider and customer to make the ultimate Go/NoGo decision on a PBC approach going forward
  3. If risks are manageable and shared equitably between vendor and end user, the baselines and payment criteria are incorporated in terms and conditions for PBC
  4. All consulting services, software fees, and implementation services typically carry 30-40% hold back until 50% of ROI is met based on Value-Add Audits with executive status review during plant adoption of MOM solution 
It is a very doable process who time has come.  Today, Business growth depends on share risk.