A Lesson in Process, Patience, Persistence
Paul J Karch
Chief Executive Officer
Gardant Global Inc.
[email protected]
+1-866-855-3788
Proprietary and Confidential - Gardant Global
The SLED Market
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• PROCESS
“a systematic series of actions directed to some end”
• Government / SLED Sales Success must be Process driven
• What are the elements that you need to address?
• The Process is critical to your company success
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Government/SLED
Selling is a Process
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Your Processes…
Are you disciplined?
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• The Process of Government
• Funding
• Sessions
• Strategic Sourcing
• The Process of Industry
• Registrations
• New Solutions
• A Presence in the Locale
• The Process of Solutions
• Certifications
• Repeatable Solutions
• Cloud ( SAaS, PAaS, IAaS others)
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The Process of
Government
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• More than $60 billion forecasted in 10,000+ state and local
contract opportunities
• More than 1,000,000 state, local, and public education bid
notifications
• More than $20 billion in annual spending across 14,700
individual term contracts.
• More than 300,000 verified state and local contacts
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The Market
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The Declining
Revenues in SLED
• The Plains region showed the largest declines at 5.4 percent,
followed by the Far West region at 4 percent. The Mid-Atlantic and
Great Lakes regions also showed declines in total state collections at
1.0 and 0.5 percent, respectively.
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• Total state tax revenue declined in the first quarter of 2014 by 0.3
percent relative to a year ago, before adjustments for inflation and
legislated changes (such as changes in tax rates).
• The remaining regions showed growth in state collections, with
Rocky Mountain states reporting the greatest growth at 6.4 percent.
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• The individual income tax also showed a decline at 1.2 percent,
while the sales tax and corporate income tax grew by 1.7 and 1.4
percent, respectively.
Preliminary figures collected by the Rockefeller Institute for the April-June quarter of 2014 indicate that collections in personal
income tax revenues declined.
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The Sessions
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State Legislative Sessions October 2014
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Now is the time to
lead not follow
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• Fulfillment will not last
• Lead by Solution
• Solutions are defined and budgeted when
Legislatures are out of Session
• Solutions are funded during Session
• Develop and design your offerings with the state
agencies
• Target and Focus
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Why are the Sessions
important
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• Over 9000 state term contracts with over 12 million priced line
items
• E-RATE is Strategic Sourcing
• WSCA for all
• PEPPM
• MiCTA
• GSA Schedule 70
• Others
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The Role of Strategic
Sourcing
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•
•
•
•
•
•
OEMS
Value Added Resellers
Certified by the State as a provider
Less unique vendors
Less potential to break in
Example
• Illinois has 55 unique qualified vendors
• Florida has 536
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Provider Types
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Strategic Sourcing
Strategic Sourcing Cost Savings/Cost Avoidance Analysis (Conservative Approach)
Category
Verified as of (Date)
Analyzed Spent
($Millions)
Realized Savings
($Millions)
Realized Savings (%)
Change Since
8/31/2013
Road Aggregate
4/30/2014
$1,086.82
$68.98
6.0%
$9.08
Food
4/30/2014
$424.10
$16.06
3.6%
$9.23
Fleet
4/30/2014
$281.48
$4.38
1.5%
($1.36)
Energy
Management
4/30/2014
$56.12
$14.67
20.7%
$6.56
Office Equipment
8/31/2013
$46.05
$10.59
18.7%
$0.00
Mail Services
4/30/2014
$54.08
$21.49
28.4%
$0.53
Traffic Control
Devices
4/30/2014
$49.34
$8.11
14.1%
$1.94
Travel Services
4/30/2014
$2.85
$0.59
17.2%
$0.04
Charge Cards
4/30/2014
$20.47
$8.89
30.3%
$2.14
Merchant Card
Services
4/30/2014
$1.98
$0.70
26.1%
$0.15
Mail Equipment*
4/30/2014
$18.85
$3.54
15.8%
$0.27
Office Supplies*
4/30/2014
$29.63
$5.54
15.8%
$0.58
$2,071.77
$163.54
7.3%
$29.16
Grand Totals
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TX Strategic Sourcing Initiative Saves More Than $134M
The Comptroller’s Strategic Sourcing initiative has realized savings across more than a dozen state contracts. The savings have been found by analyzing commonly
purchased goods and services and developing new contracts to secure better prices, as well as monitoring vendor performance to achieve long-term cost savings.
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Instructions for Technology Resources Planning Section of the 2015–2019 Agency Strategic Plan
Planning for technology resources is a key component of the strategic planning process. Statewide and agency
planning provides a roadmap for the implementation of enterprise and agency-specific technology solutions that
will result in more efficient expenditure of limited resources and more effective delivery of services to Texas
citizens and agency constituents.
TECHNOLOGY INITIATIVE ASSESSMENT AND ALIGNMENT
“Technology Initiative Assessment and Alignment” describes how technology will be deployed within the
agency to address its organizational objectives. For the purpose of this section, a technology initiative is defined
as a current or planned activity that will improve, expand, or significantly change the way information
technology (hardware, software, services) is used to support one or more agency objectives. A technology
initiative may correspond to one or more projects in the agency’s Information Technology Detail or Biennial
Operating Plan, or it may not be specifically referenced as a project.
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Identify the Strategic Plan for
the State of Texas 2015 -2019
http://www.dir.texas.gov/management/strategy/Pages/ASPs-TechnologyResourcesPlanning.aspx#instructions
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Identify the Strategic Plan for
the State of Texas 2015 -2019
1. Initiative Name: Name of the technology initiative.
2. Initiative Description: Brief description of the technology initiative.
3. Associated Project(s): Name and status of current or planned project(s), if any, that support the technology initiative and
that will be included in agency’s Information Technology Detail.
4. Agency Objective(s): Identify the agency objective(s) that the technology initiative supports.
5. Statewide Technology Priority(ies): Identify the statewide technology priority or priorities the technology initiative aligns
with, if any.
a) Security and Privacy
b) Cloud Services
c) Legacy Applications
d) Business Continuity
e) IT Workforce
f) Virtualization
g) Data Management
h) Mobility
i) Network
6. Anticipated Benefit(s): Identify the benefits to the agency, the state, and citizens/customers that are expected to
be gained through the technology initiative. Types of benefits include:
a)
b)
c)
d)
e)
Operational efficiencies (time, cost, productivity, reduced error rate)
Citizen/customer satisfaction (service delivery quality, cycle time, cost, mobility, accessibility)
Security improvements
Foundation for future operational improvements (including legacy system modernization)
Compliance (required by State/Federal laws or regulations)
7. Capabilities or Barriers: Describe current agency capabilities or barriers that may advance or impede the
agency’s ability to successfully implement the technology initiative.
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For each of the agency’s current or planned technology initiatives, provide the following information
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The Ultimate Strategic
Sourcing Vehicles… GSA
• Under the Cooperative Purchasing Program, state and local government entities
may purchase a variety of IT products, software, and services from contracts
awarded under GSA Federal Supply Schedule 70, Information Technology, as well
as from contracts under the Consolidated (formerly Corporate Contracts)
Schedule containing IT special item numbers.
• Only a handful of states purchase directly off of Schedule 70; states can most
often achieve competitive pricing through their own term contracts and avoid
GSA’s industrial fee.
• Local governments, K-12, and higher education organizations are historically
more receptive to GSA Schedule 70 for the administrative and time savings, and
leveraged pricing.
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Source Deltek
• California, New Mexico and Texas negotiate contracts based on GSA Schedules.
• Florida, the District of Columbia (open to all federal contracts), Georgia, New
York City, and Ohio governments all proactively leverage Schedule 70 contracts.
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GSA in SLED
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• Patience and Understanding is lost in today’s SLED Sales
Environment
• Millennials, the Establishment and You!
• Unreasonable Expectations
• Return on Investment
• 12 – 18 month sales cycle
• Expectation of Company
• Solution Direction
• Demographic
• Expectation of Sales
• The State and Local Agenda
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Patience in the
Process is Critical
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Millennials and the New
Market
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Your Market
The Role of Government
and the Millennial
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• Online Catalogs
• Social Media
• Look to Market using new methods
• Participate in Bids – Work can be Painful
• Develop a Standardized Proposal Baseline
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Add Technology to your
Organization
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• Patience
• The SLED Market is not for the Millennial Sales Person
• Bridging the Gap between the Millennial and the Establishment
• Long-term planning with Short term results
• No Immediate Return
• Expectations must change especially for the new players
• Realize that speed of business is the value proposition for
Government, the citizens and the Millennials
• Strategic Sourcing and Cooperative agreements are a fast go
to market for all parties
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The Role of Industry, the SLED
Market and the Millennial
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• Going to Market is painful
• Locations
• Are you in the State Capital?
• Goals and Objectives
• Your Company
• Your Offerings
• Can you bridge the Solution Gap or are you a leader in your space?
• How creative is your technology team?
• Your Product Suppliers
• Use your OEMs…They have to be included or
• Develop your own specific spin on solutions
• The State
• The Local Jurisdiction
• The Municipality
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Developing a Go To
Market Strategy
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•
•
•
•
•
•
•
•
•
Security and Privacy
Cloud Services
Legacy Application migration
Business Continuity
IT Workforce
Virtualization
Data Management
Mobility
Network
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Opportunities in 2015
“The Horizontals”
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• Oklahoma – IT Staffing Services – Q1 2015
• 15 high level categories including services for
•
•
•
•
•
•
Infrastructure
Data Processing
Computer Help Desk
Software Maintenance
Security Design
Other
• 60 current vendors
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5 Upcoming Initiatives
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• Massachusetts Software – Q4 2014
• 5 NE States can purchase off of this contract
• Incumbents are
• DELL
• En Pointe
• SHI International
• $150M
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5 Upcoming Initiatives
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• Georgia Multifunctional Devices – Q4 2014
• Existing Contract expires May 2015
• Mandatory use by State agencies
• Incumbents are
•
•
•
•
XEROX
SHARP
RICOH
CANON
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5 Upcoming Initiatives
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• Virginia – Networking Equipment and Services – Q1 2015
• Mandatory Contract for State agencies
• Optional for others
• Reseller contracts for
•
•
•
•
•
Avaya
Brocade
CISCO
HP
Others
• Current Vendors include
•
•
•
•
•
•
•
•
•
Knowledge Information Systems
Electronic Systems Inc.
Eastern Data
DISYS Solutions
Davis Associates
DALY Computers
Carousel Industries
Avaya Inc.
Enterasys
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5 Upcoming Initiatives
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• New York IT Services / Software / Hardware
– Q4 2014, Q1 2015
•
•
•
•
Umbrella Contract Approach
Project Based IT Services based on size of company
Manufacturer Based Hardware and Software
Reseller Based Hardware and Software
• Very interesting approach and if successful may
be endorsed by other states
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5 Upcoming Initiatives
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• Florida Term
• Maryland CATS
• State of Washington IT Professional
Services
• Massachusetts IT Staffing
• Delaware IT Equipment
• WSCA Software VAR
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Other initiatives
include
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Conclusions
•
•
•
•
•
Health IT
Mobility
Cyber Security
Cloud
Big Data
• Collected by Local Governments, State and Federal
• Analytics
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The Offerings
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Conclusions
•
•
•
•
•
Focus
Location
Millennials
Process
Patience
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The Strategy
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Paul J Karch
[email protected]
1-866-855-3788
Proprietary and Confidential - Gardant Global
Thank You!
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