Customer Type: PE Firms

What is Product Positioning? Framework, Strategy for Marketing

April 17, 2023 Brad Gerick

Product Positioning Framework

Product positioning refers to the strategic process of establishing a distinct and favorable perception of a product in the minds of consumers relative to its competitors. It involves creating a unique and compelling position in the market that differentiates the product from others and resonates with the target customers.

It is also a strategic marketing process that of identifying and communicating a product’s or service’s key attributes, differentiators and positioning statements to target customers.

READ MORE: Voice of Customer Process: Methodologies for Better Service

To effectively position a new product, it is important to have a deep understanding of the factors that influence its adoption within a specific market segment. This involves gathering and analyzing facts, as well as formulating hypotheses and incorporating them into a dynamic model.

The goal of product positioning is to create a favorable perception of the product in the minds of consumers, giving it a competitive advantage in the market and driving customer preference and loyalty.

Let’s dig deeper into the importance of product positioning and what it entails.

Start Your Project
Strategy session facilitator

Positioning Framework Strategy

The right strategy will help private equity firms and their portfolio companies, as well as public or private companies, to position their products and services as favorably as possible.

This can be done by conducting voice of the customer interviews, as well as other market research. By speaking with existing customers, organizations can better understand why people use their product or service.

Speaking to non-customers, however, can be just as important as it sheds light on why people are not using your product or service.

This information can then be used to determine current perceptions, and assess growth opportunities and requirements for deeper market penetration.

Customers – existing and potential – can also be segmented in a way that allows the company to understand which group would be most valuable. Future strategies could then be geared toward those segments.

Many companies seek outside expertise for their particular industry in these situations. Whether healthcare, manufacturing, industrial, technology or more, there are niche-specific third-party service providers that do this on a regular basis.

Start Your Product Positioning Project

Indications

Indications are important considerations in product positioning as they help define the target market and communicate the value proposition of a product. They provide information about the specific problems, needs or desires that a product is designed to address or fulfill. They can be based on various factors, such as the product’s functional attributes, performance characteristics, intended user demographics or usage scenarios.

For example, in the healthcare industry, product positioning for a pharmaceutical drug may involve indicating the specific medical conditions or diseases for which the drug is approved, the recommended dosage, patient age groups or other relevant factors.

In the consumer goods industry, product positioning for a household cleaning product may include indicating the types of surfaces or stains the product is effective on, the recommended usage instructions, or the target market segment, such as families with young children or pet owners.

Indications help guide consumers in understanding how a product can fulfill their needs or solve their problems, and they can also help differentiate a product from competitors by highlighting its specific use cases or advantages.

Clear and accurate indications are crucial in marketing and branding strategies to ensure that the product is positioned effectively in the market and resonates with the needs and preferences of the target customers.

READ MORE: Product Vision Roadmap: What is it?

Product Features and Benefits

Effectively marketing your product’s features and benefits is crucial to a product positioning strategy. Here are some of the more important elements:

  • Differentiation: Positioning a product as unique or superior based on its features and benefits can create a competitive advantage and set it apart from similar offerings.
  • Value Proposition: A well-crafted value prop highlights the unique features and benefits of a product to customers, justifies its price and creates a compelling reason to choose it over competitive alternatives.
  • Target Market Alignment: Understanding the target market’s requirements and desires and aligning the product’s features and benefits accordingly can help position the product as relevant and appealing.
  • Communication: Clear and effective communication of what the product offers through marketing messages, packaging, branding and other promotional materials can create awareness, generate interest and influence perception of the product.
  • Customer Needs Fulfillment: Ultimately, the purpose of a positioning strategy is to fulfill customer needs or solve customer problems. By aligning the product’s features and benefits with customer needs, the positioning strategy can establish the product as a viable solution that addresses pain points and provides value, increasing customer satisfaction and loyalty.
Start Your Product Positioning Project

Price Analysis in Positioning Strategy

A price analysis is conducted to assess and determine the optimal strategy for a product or service based on its intended market positioning.

Pricing is a critical element of a positioning strategy as it affects how a product or service is perceived by consumers in terms of its value proposition and competitive positioning. It can affect the perceived value of a product, influence customer perception of quality, impact customer willingness to pay and affect overall market positioning.

For example, if a product is priced too low, it may be perceived as of low quality or lacking premium features. On the other hand, if a product is priced too high, it may be perceived as overpriced and not providing adequate value.

READ MORE: Pricing Consultants: Hire an Expert

Here are three examples of pricing strategies:

  • Cost-Based Pricing: This strategy involves setting prices based on the production costs, such as materials, labor and overheads, with a desired profit margin. Cost-based pricing can position a product as affordable and budget-friendly, but may not necessarily convey premium quality or unique value.
  • Value-Based Pricing: This strategy involves setting prices based on the perceived value that a product offers to customers. It takes into account the benefits, features and unique value proposition of the product, as well as the target market’s willingness to pay. Value-based pricing can position a product as premium, high-quality and worth the investment.
  • Competitive-Based (Market-Based) Pricing: This strategy involves setting prices based on the prices of competitors’ products. It can be used to position a product as competitive and comparable to other products in the market. It may not, however, necessarily differentiate the product or highlight its unique value proposition.

READ MORE: How To Analyze Sales Data: Tools, Examples, KPIs

Competitive Analysis in Positioning Strategy

Competitive analysis is a critical component of positioning strategy as it provides insights into the competitive landscape, helps identify market opportunities and threats, and guides the development of an effective positioning strategy.

Some key aspects include:

  • Understanding Competitors: This understanding enables a company to identify the competitive advantages it can leverage and the potential vulnerabilities it needs to address in its positioning strategy.
  • Identifying Market Opportunities: By understanding the unmet needs of customers or the gaps in the offerings of competitors, a company can position its product or service to address those gaps and capture market share.
  • Assessing Competitive Threats: This may include competitors launching new products, changing their pricing strategies or implementing aggressive marketing campaigns. By understanding the competitive landscape, a company can anticipate and respond proactively while adapting its positioning strategy accordingly.
  • Differentiation: Competitive analysis helps in identifying the unique selling propositions (USPs) of competitors and their positioning strategies. By offering unique features, benefits, or pricing strategies that are distinct from competitors, a company can create a competitive edge and attract customers who are seeking something different or better.
  • Refining Positioning Strategy: By monitoring competitors’ actions, customer feedback and market dynamics, a company can make informed decisions about adjusting its positioning strategy to stay relevant and effective.

Proven marketing strategy firms know exactly how to position products and services like yours in a competitive market. As margins become tighter and the economy more uncertain, getting the best value for what your business offers is paramount.

The invite-only BluWave-grade network of service providers are expertly vetted for these exact situations. We only connect you to those with a proven track record and who also have multiple recommendations by the world’s leading PE firms.

No matter what your business’s need, we’ll connect you with tailor-made resources in less than 24 hours.

When you’re ready to launch or refine your positioning framework template, contact our research and operations team to start your project.

Start Your Product Positioning Project

Industrial Pricing: Strategies for Manufacturing Businesses

April 14, 2023 Brad Gerick

Manufacturing pricing strategies are top of mind for businesses in this transitionary economy. Industrial pricing has becoming more competitive than ever as margins shrink and supply chain problems persist.

“BluWave is seeing an increased number of resources allocated to competitive pricing analysis from our private equity clients and their portfolio companies,” BluWave co-head of operations Keenan Kolinsky says. “Specifically in the manufacturing and industrial spaces, companies are running into much higher costs for production materials, which is putting a dent in their margins.”

Start Your Project
Man welds at the factory with a protective helmet on. It's pretty dark. The only light comes from the sparks he's creating while welding.

READ MORE: Strategic Sourcing and Procurement: Commercial Due Diligence

When private companies, public companies, and private equity firms and their portfolio companies contact BluWave for help with industrial pricing, it’s because they’re presented with two difficult options.

1. Increase the Price of Manufactured Goods

This may increase margins, but it also means passing costs along to customers.

They end up paying more for the same products, some of which arrive later due to supply chain and sourcing challenges.

2. Keep Prices the Same

In this scenario, customers continue paying the same price for products. The problem? Margins get thinner and thinner as material and production costs continue to rise due to inflation and demand.

There is, however, a best-case scenario that takes both of these choices under consideration when it comes to industrial pricing.

READ MORE: How To Raise Prices Strategically with Sales Team Buy-In

Manufacturing Pricing Strategies

The expertly vetted service providers in the Business Builders’ Network know industrial pricing strategies for companies like yours inside and out.

“Specialized pricing resources allow companies to stay up to date with their pricing models so they keep margins healthy while maintaining strong relationships with their key customers,” Kolinsky says.

Here are some of the strategies they might employ for your business or portco when you work together.

Understand Your Costs

This includes both your variable costs (those that change with production) and your fixed costs (those that do not).

Variable costs are costs that change depending on the quantity of goods or services produced. For example, the cost of raw materials, labor and packaging are all variable costs.

Fixed costs are costs that do not change regardless of the quantity of goods or services produced. For example, the cost of rent, insurance and equipment are all fixed costs.

Start Your Manufacturing Pricing Project

Understand Your Target Market

Conduct thorough research to understand your customers’ needs, preferences and willingness to pay.

This can be done through surveys, interviews and focus groups. It is important to understand what your customers are looking for in a product or service, and how much they are willing to pay for it.

Create Value-Based Pricing

Focus on the value your product or service brings to customers rather than just the cost of production.

This means understanding the benefits that your product or service offers to customers and pricing accordingly. For example, if your product or service saves customers time or money, you can price it higher than a competitor’s product or service that does not offer the same benefits.

Conduct Competitive Analysis

Research your competitors’ pricing strategies to ensure your prices are competitive in the market.

This includes looking at the prices of similar products or services offered by other companies. It is important to be aware of your competitors’ pricing strategies so that you can price your product or service competitively.

Consider Pricing Tiers

Offer different pricing tiers with varying features or levels of service to cater to different customer segments.

This allows you to reach a wider range of customers and maximize your profits. For example, you could offer a basic tier with limited features and a higher tier with more features at a higher price.

READ MORE: How To Analyze Sales Data

Test and Iterate

Continuously test and adjust your pricing strategy based on customer feedback, market trends and business goals.

This is an important part of pricing strategy because the market is constantly changing. By testing and iterating, you can ensure that your pricing strategy is always up-to-date and effective.

Align Pricing with Customer Value

Understand the value your customers perceive in your product or service and price accordingly.

This means understanding what your customers are willing to pay for the benefits that your product or service offers. For example, if your product or service is unique or offers a significant benefit to customers, you can price it higher than a competitor’s product or service that does not offer the same benefits.

Start Your Pricing Project Today

Segment Your Customers

Tailor your pricing strategy to different customer segments based on their needs, behaviors, and willingness to pay.

This allows you to reach a wider range of customers and maximize your profits. For example, you could offer a discount to customers who purchase in bulk or who sign up for a subscription.

Data analytics tools – especially AI-driven ones – can make this a much more efficient and accurate process.

LISTEN TO THE PODCAST:
SVB Bank Crisis: How Private Equity Will Reframe Crisis into Opportunity

Communicate Value Effectively

Clearly communicate the unique value propositions of your product or service to customers through marketing and sales efforts.

This means highlighting the benefits of your product or service and explaining why it is worth the price. For example, you could create marketing materials that focus on the features and benefits of your product or service, or you could offer free trials or demos to let customers experience the value of your product or service for themselves.

Implement Pricing Discipline

Ensure consistent pricing practices across all channels and avoid unnecessary discounts or price concessions.

This means setting clear pricing policies and procedures and ensuring that all employees are aware of them. It is also important to avoid giving away discounts or price concessions unless it is absolutely necessary.

Regularly Review and Update Pricing

Regularly review and update your pricing strategy to align with market changes, customer feedback and business objectives.

This is an important part of pricing strategy because the market is constantly changing. By regularly reviewing and updating your pricing strategy, you can ensure that it is always up-to-date and effective.

Start Your Manufacturing Pricing Project

You can get connected with a data-driven pricing resource in less than a single business day.

Set up a scoping call with our research and operations team, and they’ll introduce you to a short list of best-fit service providers to help you capture margins and continue to drive volume.

Employee Management Softwares: 13 Reasons To Use Them

April 13, 2023 Brad Gerick

Employee management softwares – or human capital management systems – are a suite of applications that helps businesses automate and streamline their HR processes, from recruitment to payroll.

Here are some reasons why you should use them.

Start Your Project
Team

READ MORE: Hire an Interim CHRO

HCM Systems Benefits

  1. Streamlined automation. Embrace efficiency with modern employee management software that automates labor-intensive tasks such as payroll processing, benefits administration and performance reviews, saving time and resources while improving accuracy.
  2. Seamless communication. Foster collaboration and engagement with robust communication channels offered by employee management software, including instant messaging, email and video conferencing, enabling smooth communication between employees and managers.
  3. Efficient performance tracking. Stay on top of employee performance with comprehensive tracking features, including goal setting, performance reviews and feedback mechanisms, allowing managers to objectively evaluate performance and provide targeted support.
  4. Effortless time-off management. Simplify time-off management with user-friendly features such as leave requests, approvals and tracking, ensuring employees take the necessary time off while preventing staffing issues.
  5. Streamlined onboarding. Expedite the onboarding process with employee management software that provides tools such as employee profiles, training materials and onboarding checklists, helping new hires quickly adapt to their roles.
  6. Effective benefits administration. Simplify benefits administration with features such as benefit enrollment, eligibility tracking and claims processing, ensuring employees have access to the benefits they need without administrative hassle.
  7. Regulatory compliance made easy. Ensure compliance with labor laws and regulations with employee management software that offers features such as time tracking, payroll processing and leave management, minimizing the risk of fines and penalties.
  8. Data-driven decision making. Empower informed decision making with employee management software that provides reporting, analytics and forecasting tools, enabling data-driven insights for optimizing operations.
  9. Improved employee satisfaction. Boost employee satisfaction and engagement with features such as surveys, feedback and recognition offered by employee management software, resulting in a more motivated and productive workforce.
  10. Enhanced talent management. Attract and retain top talent with user-friendly interfaces, mobile apps and social media integration offered by employee management software, ensuring a skilled and engaged workforce.
  11. Efficient time tracking. Effectively manage employee hours, attendance, and overtime with accurate time tracking features, improving workforce management and payroll accuracy.
  12. Streamlined employee relations. Foster a positive work environment with employee management software that offers features for tracking and managing employee relations, such as conflict resolution, performance improvement plans and employee feedback.
  13. Reduced litigation risk. Mitigate litigation risks with employee management software that ensures compliance with labor laws, manages employee records and documentation and provides a clear audit trail of employee interactions, reducing legal exposure and protecting the business from potential lawsuits.

READ MORE: Due Diligence: What is Technical Debt?

Start Your Employee Management Project

Choosing Employee Management Softwares

  • Features: The first step is to identify the features that are important to your company. Do you need a software that can handle payroll, benefits, recruiting and performance management? Or do you need a more specialized solution?
  • Scalability: As your company grows, you will need a software that can scale with you. Make sure to choose a program that can accommodate your future needs.
  • Ease of use: Employee management software can be complex, so it is important to choose a software that is easy to use. Look for one with a user-friendly interface and that is customizable to your company’s needs.
  • Security: Employee management software can contain sensitive data, so it is important to choose a system that is secure. Make sure to choose a software that has been certified by a reputable security organization.
  • Cost: Employee management software can be expensive, so it is important have your budget in mind. Make sure to compare prices and features before making a decision.
  • Situational Capabilities: You may need a software than can cater to your specific situation. For example, perhaps they need experience with unionized businesses. Be up front about that as you send out your RFPs and make your evaluations.

READ MORE: The Interim CHRO Interview

Best HCM Systems

The “best” option is going to depend on your company, industry and exact situation. While we can’t choose one “best”  software for you, here are some of the more popular cloud-based HCM systems (in no particular order) and a brief overview of each:

  • Workday is a human capital management software suite that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
  • SAP SuccessFactors is another HCM system suite that offers a wide range of features for managing employees, including recruiting, onboarding, performance management and compensation.
  • Oracle HCM Cloud is a suite that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
  • PeopleFluent is a software that offers a wide range of features for managing employees, including recruiting, onboarding, performance management and compensation.
  • Ultimate Software is a cloud-based HCM that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
  • Monday.com is a little different than the others in that its more commonly used for project management than tracking employee data. (Though you can use it for that, too.) It has a user-friendly interface and can be customized to your company’s needs. It’s also a cost-effective solution for businesses that need a cloud-based HCM system.

Are you ready to upgrade your HCM system, or perhaps implement one for the first time?

Private and public companies as well as private equity firms and their portfolio companies can all reap the benefits of choosing the right employee management softwares.

Fortunately, you’re not in this alone. The Business Builders’ Network is full of experts who have helped companies like yours with industry specific-decisions about their human capital management software.

If you’re ready to take the next step and want an exact-fit third party to accompany you through the process, from start to finish, contact our research and operations team.

We already know the best possible partners for your niche-specific needs, and we’ll connect you in less than 24 hours after our initial scoping call.

Start Your Employee Management Project

Platform Modernization: App, Software Upgrade – IT Strategy

April 13, 2023 Brad Gerick

Platform modernization is the process of updating the infrastructure, architecture and features of existing platforms to bring them up to current standards. This makes the platform more efficient, secure and valuable.

Outdated platforms can be a major business liability, leading to performance issues, security vulnerabilities and compliance problems. Fixing this can help save money on operating costs and improve customer experience.

Start Your Project

App modernization can be a complex and time-consuming process, but it is essential for businesses that want to remain competitive. There are a number of different approaches, all depending on your specific needs and your business’s industry.

If you are evaluating your application modernization strategy, it is important to carefully consider your needs and goals. These should be formulated with time, costs and the impact it will have on your business in mind.

An experienced outside resource may be just what you need do make sure your applications modernization is done right, and we already know the perfect fit for your business. In the meantime, here’s a little more about the benefits of the process, and the steps that go into it.

READ MORE: The Power of AI, Data Analytics in IT Due Diligence

READ MORE: Technical Recruiter (IT): Find the Right Candidate Fast

The Need for Modernization

Platform modernization is essential to improving the customer experience. As expectations continue to rise, a modern platform allows for customization and a better overall experience. Here are some of data platform modernization trends and benefits.

Download the ‘AI Journey’ White Paper

Platform Modernization Benefits

This crucial IT strategy step provides many benefits:

  1. Enhanced Scalability and Sustainability: Modern platforms are designed with scalability and sustainability in mind, enabling them to handle increased user base and data load without incurring exorbitant maintenance costs. This feature makes them appealing to potential acquirers seeking platforms that can support their plans to grow.
  2. Enhanced Security: Cybersecurity is especially important to companies these days because it protects against potentially catastrophic disruptions caused by cyberattacks. Modern platforms are more secure compared to older platforms. State-of-the-art security technologies and best practices are employed to safeguard against unauthorized access, data theft and destruction.
  3. Cost Optimization: Known for their cost-effectiveness, modern platforms are designed to operate efficiently and utilize resources judiciously. This translates into reduced operating costs, which can be a significant advantage for potential buyers.
  4. Enhanced User Experience: Prioritizing UX, modern platforms leverage cutting-edge technologies and user-centric designs to offer a superior experience compared to older platforms.
  5. Innovation Potential: Modern platforms are synonymous with innovation, leveraging open standards and technologies to facilitate seamless integration of new features and functionalities.

READ MORE: IT Due Diligence for M&As

Access More Technology Resources

Software Modernization Process

  1. Assess your current platform. The first step is to assess your current platform and identify its strengths and weaknesses. This will help you to determine where improvements should be made as well as to prioritize them.
  2. Develop a modernization plan. Once you have a good understanding of your current platform, you can develop a modernization plan. This should include goals, the steps you need to take and the resources you’ll need.
  3. Migrate your data and applications. The next step is to migrate your data and applications to the new platform. This can be complex and time-consuming, so it is important to plan and execute carefully.
  4. Test and deploy the new platform. As you get closer to a larger rollout, you need to test the new platform to make sure everything functions as expected. Deploying to production is a safe way to do this while monitoring performance.
  5. Train employees on the new platform. Before clients or customers get their hands on the modernized platform, make sure your employees know it inside-out, upside-down. Not only do you want to make sure they can use it effectively, but they should also be able to help the end user with any issues. Training can be done through classroom instruction, online training or in an on-the-job setting. Whichever route you go, make sure it’s hands-on.
    Even for apps or software that are for internal use only, you want to make sure key leaders understand how it functions before performing a wider rollout.
  6. Support and maintain the new platform. Once the new platform is live, you need to maintain it. This includes providing support to users, fixing bugs and making security updates. True platform modernization is a never-ending process in today’s business environment.
Start Your IT Strategy Project

When going through this process, consider starting small. Don’t try to modernize your entire platform all at once. This will help you to build momentum and learn from your mistakes.

Related to that, you should also use a phased approach to reduce the risk of disruption and make the process more manageable.

Lastly, get buy-in from stakeholders before you begin to ensure everyone is on the same page.

Whatever your approach, be prepared for change and be willing to adapt.

Download the ‘AI Journey’ White Paper

READ MORE: What is a Product Vision Roadmap?

Whether you’re a private or public company ready to upgrade an existing system, or a private equity firm looking to boost a portfolio company’s value, we’re here to help.

The BluWave-grade service providers in the Business Builders’ Network have extensive experience with platform modernization, no matter what your industry.

They understand the importance of upgrading not only with speed, but also quality, with the end user in mind all the time.

Our research and operations team will connect you with two or three best-fit options for your exact situation within a single business day. Reach out today to get your platform modernization project started ASAP with an experienced team of experts to guide you.

Start Your IT Strategy Project

Why Hire an Interim CEO?

April 13, 2023 Brad Gerick

What is an Interim CEO?

An interim CEO is someone who leads a company on a temporary basis during a time of instability.

The interim is hired to provide stability and direction during the transition.

As the most important role in just about any organization, this is a seat that can’t afford to be left open. An experienced, talented individual will be able to come in and have an impact from day one while a long-term solution is identified.

Get Connected

“Every company needs a strong leader – someone to steer the ship and tie all of the business functions together,” says Hannah Welsh, Independent Consultant Manager at BluWave. “Having an Interim CEO alleviates pressure and allows a company to be selective in choosing the right CEO for the company long term.”

Let’s talk in more detail about when and why a company might hire a temporary chief executive, and the benefits of doing so.

CASE STUDY: On Short Notice, Interim CEO Turns Around Construction PortCo

Why Hire an Interim CEO?

There are many reasons why a company might hire an interim CEO. They depend on company size, industry, current challenges, future goals and more.

Whatever the situation, though, this temporary executive’s goal is to be the glue that keeps everything together.

  • Unexpected resignation: In this situation, an interim is used as a “stopgap.” The company gets them in the seat as soon as possible – usually within days – while it figures out a long-term solution.
  • Fill a short-term gap: On rare occasions, the full-time CEO will take a leave of absence for an emergency or for personal reasons.
  • Turnaround: If a company is struggling financially or operationally, an interim CEO can be brought in to help turn the company around. This often happens when PE firms aren’t satisfied with a portco’s performance, or when key stakeholders or shareholders don’t like the way their private or publicly owned company is performing.
  • Merger or acquisition: If a company is merging with or acquiring another company, it helps to have someone in charge who has been through that process before.
  • Post-close: There are times when a PE firm purchases a founder-owned business and needs a new executive in the corner office once papers are signed and the company has changed hands.

These are some of the more common situations in which an interim CEO is sought.

“You can bring in someone who has been there and done that multiple times before and knows what best-in-class looks like,” BluWave Co-Head of Research & Operations Scott Bellinger says. “You can rent an A player instead of hiring a C player.”

Hire an Interim CEO

Interim CEO on Standby

Sometimes private equity firms aren’t sure if they’re going to need an interim CEO, but they want to have one on standby just in case.

Perhaps the current CEO is running out of steam, or has come up against an unfamiliar situation. Despite their best efforts, they may get tired of the slog and leave the seat vacant on short notice. Or you may have to make the difficult decision to pull the plug to before things get worse.

In this situation, it’s nice to know you an interim CEO on standby who can step in on extremely short notice. Welsh and the R&O team at BluWave are prepared for this exact situation.

If you’re not sure whether you’ll need a new temporary chief executive, but you want to have the security of knowing there’s a perfect fit waiting in the wings, contact our team to fill us in on the situation. If and when you come up against this situation, you’ll be connected with an experienced, industry-specific option in less than 24 hours.

CASE STUDY: Interim CEO Hired for Glass Manufacturing Company

Benefits of Hiring an Interim CEO

What makes a good interim CEO? There’s no one trait that can answer that question, but there are some that transcend particular situations and are applicable for almost any assignment.

Experience and Expertise

Interim CEOs typically have extensive experience in senior leadership roles. This allows them to get a lay of the land as soon as they start a project, and make difficult but important decisions accordingly.

They shouldn’t just have general executive experience, though. They must also be familiar with the organization’s particular industry, the unique challenges it presents and how to solve them.

Preexisting relationships in that industry can also go a long way to solving key operational challenges.

Resource: Specialized Executive Recruiters

Objectivity and Neutrality

When things are going wrong at a company and you’re not quite sure why, it’s a huge benefit to get a fresh set of eyes on the situation.

Not only is this interim chief executive officer coming in after the challenges have already arisen – viz a viz they’re not responsible for them – they also won’t be around (in most cases) more than a year maximum.

That gives them the freedom to do what’s best for the company while injecting as little bias as possible during their tenure.

Do you need an interim CFO, too?

Ability to Make Tough Decisions

That same built-in objectivity with which a temporary executive is equipped allows them to roll up their sleeves and affect change in a way that would be more difficult for someone with a stronger connection to the business.

This may mean optimizing human capital, refining product or service offerings, reevaluating partnerships or a number of many other challenging choices.

Bring Stability

No matter the impetus for bringing on a short-term CEO, employees and customers will be comforted by seeing a steady hand at the helm.

An effective communicator can be an especially calming force in these situations, providing a vision for the way forward.

Hire an Interim CEO

How Long is an Interim CEO Assignment?

There are exceptions, but most companies that come to BluWave for help hiring an interim CEO are looking for someone who can be in the seat for around 9 months.

Many short-term CEO stints fall within the 6–18-month range, but others can just as easily turn into a permanent hire.

How To Hire an Interim CEO

Hiring the right interim CEO can be an arduous task, especially since time is of the essence. Companies can’t afford to be without a chief executive for an extended period of time.

Word-of-mouth recommendations can also be helpful, but even a group of individuals have limited networks. You might overlook a great candidate by relying on just a few people’s suggestions.

You could also look within the company, but in most cases, that’s less than ideal. You miss out on the opportunity to get an outsider’s perspective on the challenges the company is facing. That same person may also be a part of the problem, giving power to an individual who will only make things worse.

The best option is to consult with a business builders’ network of highly vetted, niche-specific, exact-fit options that are ready to hit the ground running.

When you work with BluWave, for example, we connect you with two or three candidates who are tailored to your particular situation in less than a single business day.

These are PE-grade individuals who have proven success in turnarounds and high-pressure situations. You won’t waste time scouring through generalized, unfamiliar recommendations.

“As you find yourself in an urgent situation, we can provide solutions really quickly,” Bellinger says. “A lot of times, the people we’re recommending could be the full-time CEO as well. It saves you time and money from going to an executive search firm. We’re way faster, and we get you someone with long-term potential.”

READ MORE: Interim CEO Job Description: Skills, Services

If your portco or private or public company needs an experienced interim executive to help an underperforming business, connect with our research and operations team today.

Before we even get on the initial scoping call, we already know the resource you need. We’ll get in touch with the most qualified individuals on standby in our BluWave-grade network and connect you with them as soon as you’re available.

“Our extensive network allows us to connect with PE-grade CEOs looking to support other businesses,” says Welsh, who speaks with these executives on a daily basis. “We meet, vet, and reference reputable CEOs before our clients even need them, so they are prepared to start as soon as possible.”

Start Your Project

Also See:
Hire an Interim CFO
Hire an Interim CHRO

How To Analyze Sales Data: Tools, Examples, KPIs

April 11, 2023 Brad Gerick

What is Sales Data?

Knowing how to analyze sales data is a valuable skill that can be used to improve sales results. By tracking and analyzing sales data – concrete information about how your products or services are selling – you can identify trends, patterns and opportunities that can help you close more deals and increase revenue.

For example, you might see that your sales cycle is longer for certain types of customers. This could be because you need to do more research on them or because they are more difficult to close. Once you know this, you can take steps to improve your process for these types of customers.

Having this information is a great way to increase sales effectiveness and training. The more actionable data your team has, the better set up for success they’ll be.

Start Your Sales Data Project

An experienced third party that specializes in sales effectiveness and training within your specific industry can be a great resource for these situations.

To help you get a better understanding of your situation, let’s talk about the importance of analyzing sales data, how to do it and what steps you can take to improve your business’s process. Whether you’re at a private equity firm, a portfolio company, or a private or public company, you’ll benefit from being equipped with this overview.

READ MORE: Sales Process Workflow: Stages, Examples for Businesses

Specialized recruiting firm

Types of Sales Data

There are many different types of sales data that you can track. Here some of the most common statistics:

  • Leads: Potential customers who have shown interest in your product or service.
  • Opportunities: Sales prospects that have progressed beyond the lead stage and are being actively pursued.
  • Deals: Closed sales that have been won.
  • Revenue: Total amount of money generated from sales.
  • Customer satisfaction: Degree to which customers are satisfied with your product or service.
  • Sales cycle length: Amount of time it takes from the first contact with a lead to closing the sale.
  • Average deal size: Average dollar amount of each sale.
  • Sales team productivity: Efficiency and effectiveness of the sales team in generating revenue.
  • Sales team turnover: Rate at which sales team members leave the organization and need to be replaced.

READ MORE: Why Hire an Interim CFO?

How to Track Sales Data

Two common ways to track sales data are Customer Relationship Management systems and spreadsheet. The most important thing is to choose a method that works for you and your team.

As your company grows – or aspires to grow – a powerful CRM such as Salesforce or Hubspot will be a must. If you’re reading this article, you probably already have a CRM in place.

These platforms provide comprehensive tools for managing sales data, including tracking leads, opportunities, deals and customer interactions. You can easily input, store and retrieve data in a centralized location, making it convenient to extract meaningful insights.

A spreadsheet is probably only a good option for companies that are just starting out and have small sales teams. Microsoft Excel or Google Sheets offer basic functionality for organizing and analyzing sales data.

They allow you to create custom columns and rows to input sales data, and you can use formulas and formatting options to calculate totals, averages and other key metrics. While spreadsheets may lack the advanced features of a CRM, they can be a cost-effective solution for businesses with limited resources.

Regardless of the method you choose, it’s essential to establish a consistent and structured approach. This includes defining clear data entry processes, setting up regular data updates and implementing data quality checks.

It’s also important to define and track relevant sales metrics that align with your business goals, such as those mentioned in the previous section.

Start Your Project

How to Analyze Sales Data

Analyzing sales data is a crucial step in understanding the performance of your business and identifying areas for improvement. One effective approach is to utilize various visualization tools such as charts, graphs and tables to represent your data in a visually appealing and easy-to-understand manner.

For instance, you could create a line chart to track the monthly trend of leads generated, allowing you to quickly identify patterns. If you notice a decline in the number of leads over time, you can take proactive measures to address the issue. For instance, you could revamp your marketing strategies, optimize your website for better lead capture or invest in targeted advertising campaigns to boost lead generation.

In addition to visualizing data, statistical analysis can provide valuable insights into sales performance. For example, you could conduct regression analysis to identify the key drivers of sales, such as the impact of pricing, discounts or promotions on sales volume.

By analyzing the statistical significance of these factors, you can make data-driven decisions.

It’s also important to compare sales data across different time periods, geographical regions or customer segments to identify any variations or patterns. Sales may be down from Q4 to Q1, for example, but up year-over-year.

If Q4 is traditionally your strongest quarter, there may be no need for concern. In fact, it’s probably worth celebrating the increase from the same period in the previous year.

Getting more granular, if you notice that sales tend to dip during certain months, you can strategize accordingly, such as by offering special promotions during those periods.

This information and more can help you tailor your sales strategies to better meet the needs and preferences of different customer segments or regions.

READ MORE: Sales Pipeline Funnel: Methodology, Process for Businesses

How to Use Sales Data to Make Decisions

Once you’ve analyzed your sales data, you can use it to make decisions about your strategy. For instance, if you observe that a specific product or service is underperforming, you may consider discontinuing it or revising your marketing approach.

On the other hand, if you identify a product or service that is performing exceptionally well, you may want to allocate more resources towards its promotion or expansion.

You can also use sales data to make decisions about your sales team. By analyzing individual sales performance data, you may identify trends or patterns that highlight areas for improvement.

For example, if a particular salesperson consistently struggles with closing deals, you may consider providing them with additional training or coaching to enhance their skills. Alternatively, you may identify high-performing sales team members and recognize their achievements to motivate the rest of the team.

Connect with World-Class Resources

How to Share Sales Data with Your Team

Sales data is not just for you. It’s also important to share your data with your sales team so that they can use it to improve their performance.

There are various ways to do this. For instance, you can create a shared spreadsheet or database that is accessible to all team members, allowing them to view and analyze data in real-time. This promotes transparency and fosters collaboration, as team members can collectively track progress, identify opportunities and take appropriate actions.

Another option is to send out regular reports that summarize key sales metrics and performance indicators (KPIs, or OKRs) to your team. These reports can be delivered via email, shared on a team communication platform or posted on a shared drive for easy access.

In addition, holding regular sales meetings or performance reviews where sales data is discussed and analyzed can provide opportunities for team members to provide input, share insights and collectively brainstorm improvement strategies.

It’s essential that the sales data shared with your team is presented in a clear and understandable manner, with relevant context and insights provided. This can help team members interpret the data correctly and use it to make informed decisions, set realistic goals and take actions that can positively impact performance.

READ MORE: How To Raise Prices Strategically with Sales Team Buy-In

Using sales data to improve your results is a continuous process. Perhaps this level of detail is new to your business, or maybe you’re unsure how to scale your existing strategy.

You might even be trying all these things and still not seeing the progress you expect.

It might be time to bring in an expertly vetted service provider that knows your industry inside-out and can equip your sales team and its leaders to reach the next level.

Whether you’re selling physical products, software, services or anything else that’s core to your business, the BluWave-grade sales effectiveness firms and consultants are on standby to help.

We maintain a close relationship with each and everyone one of the resources that make up our invite-only network, which means we know the best match for you before you ever contact our research and operations team.

Contact us today to lay out the challenges you’re facing to properly leverage sales data and we’ll connect you to two of three niche-specific matches in less than 24 hours.

Schedule Your Scoping Call

Automating Accounts Payable: Benefits of the Best Software

April 10, 2023 Brad Gerick

What is AP Automation Software?

Accounts payable (AP) automation software is a multifunctional tool that assists businesses in optimizing and automating their accounts payable operations. This can involve activities such as processing invoices, matching purchase orders, and reconciling payments. AP automation software has the potential to reduce risk, increase precision, and save time and money for businesses.

AP automation software typically comes equipped with the following functionalities:

  • Invoice processing: The software can automatically acquire invoices from vendors, extract critical data, and direct them for approval.
  • PO matching: The software can match invoices with purchase orders to verify accuracy and ensure that the appropriate products or services were received.
  • Payment reconciliation: The software can cross-check payments against invoices to confirm timely payment and accurate payment amounts.

AP automation software is an advantageous tool for businesses of all sizes. By employing this software, businesses can enhance their accounts payable processes, reduce risks, save time and money, and improve accuracy.

Start Your Accounting Project
Technology Diligence

Benefits and Features

AP automation can provide a number of benefits for businesses, including increased efficiency, reduced costs, and improved accuracy.

Save Time

AP automation software can streamline accounts payable procedures such as invoice processing, PO matching, and payment reconciliation, freeing up time for other tasks like negotiating vendor discounts.

Save Money

By minimizing expenses and removing the need for manual data entry and processing, AP automation software can help businesses save money.

Improve Accuracy

With AP automation software, businesses can ensure prompt invoice payments and accurate vendor payments, thanks to decreased likelihood of human errors.

Reduce Risk

AP automation software generates an easily traceable record of all transactions, which helps to safeguard businesses from fraud and financial losses.

CASE STUDY: Accounting Specialist in a Hurry for a PortCo

Choosing an AP Automation Tool

Choosing the right AP automation software for your business depends on your specific needs. Experienced third parties who have helped businesses implement these exact systems are an excellent resource.

Start Your Project

Some factors to consider include:

  • The size of your business: The size of your business will affect the type of AP automation software you need. Larger businesses may need a more sophisticated solution, while smaller businesses may be able to get away with a simpler solution.
  • The volume of invoices you process: The volume of invoices you process will also affect the type of AP automation software you need. If you process a large number of invoices, you will need a solution that can handle the volume.
  • Your budget: AP automation software can range in price from a few hundred dollars to tens of thousands of dollars. It is important to set a budget before you start shopping for a solution.
  • Integrations: Some AP automation software solutions offer integrations with other business systems, such as ERP systems and accounting software. If you have other business systems in place, you will want to make sure that the AP automation solution you choose can integrate with them.

If you’re not sure how to make this evaluation, it might be a good time to bring in an experienced third party.

READ MORE: Tech Stacks of Companies: How To Choose

Best Accounts Payable Software

While there isn’t one “best” software solution, here are some of the more popular ones:

  • NetSuite: NetSuite is a cloud-based ERP solution that includes a number of features for AP automation.
  • DocuPeak: Docupeak is a web-based AP automation solution that offers a number of features, including invoice processing, PO matching, and payment reconciliation.: DocuPeak is a web-based AP automation solution that offers a number of features, including invoice processing, PO matching, and payment reconciliation.
  • Tipalti: Tipalti is a cloud-based AP automation solution that offers a number of features, including invoice processing, PO matching, and payment reconciliation.

A BluWave-grade expert from our expertly vetted network can help you choose among these and other top providers, saving your time and money.

READ MORE: Outsourced Bookkeeping Services: Third-Party Accounting Help

Matching your specific organization’s needs to the right accounts payable automation software can be time-consuming. The risks of choosing the wrong providers for such an important task are too high to leave to chance.

The Business Builders’ Network is full of proven third parties who have helped countless PE firms, portfolio companies and private and public businesses choose the right partner for this exact situation.

Our research and operations team knows the exact-fit, industry-tailored service provider for your specific situation before you even contact us.

Set up a scoping call today, and you’ll be introduced to of the best options on the market within a single business day.

Start Your Project

Private Equity Market Analysis: Growth Strategy for Businesses

April 4, 2023 Brad Gerick

Private equity market analysis is crucial to inform business decisions about essential activities such as marketing strategies and product development. It involves gathering and analyzing data about a specific market, including its size, potential and competition.

Before any acquisition, BluWave’s co-head of research and operations, Scott Bellinger, emphasizes the importance of this exercise.

“No matter how strong a target company’s product or service is, if the market is shrinking, then it doesn’t matter,” he says. “First and foremost you want to make sure you get the market right and make sure it’s stable and growing and you’re able to find a target within a strong product or service in a strong market.”

With that in mind, let’s take an even more detailed look at a market analysis.

Start Your Growth Strategy Project
digital marketing

What is Market Analysis?

Market analysis is the process of gathering and analyzing data about a specific market, including its size, potential and competition. The purpose of market analysis is to help businesses make informed decisions about marketing strategies, product development, and other business activities.

READ MORE: What is Commercial Due Diligence?

Bellinger identifies the following as the key, high-level components to investigate:

  1. Target Audience: Pinpointing the particular group of consumers or companies that the product or service is meant to cater to.
  2. Market Size (Volume): Determining the overall scale of the market, which includes the number of possible consumers and the total amount of revenue produced.
  3. Market Trends (Patterns): Examining patterns and shifts in the market, such as transformations in consumer behavior, emergent technologies, and evolving regulations.
  4. Total Adjustable Market: What is the maximum amount of potential clients or customers that exist? Knowing this helps businesses define the opportunity and effort for a new or existing venture.
  5. Competitive Landscape (Assessment): Identifying and evaluating the strengths and weaknesses of rivals, such as their products, pricing tactics, marketing approaches, and customer base.
  6. Market Segregation: Segmenting the market into smaller subgroups based on variables such as age, income, location or behavior.
  7. Voice of the Customer: Grasping the requirements and desires of customers and how they may be changing with time.
  8. Entry Obstacles: Recognizing potential impediments to entry for new competitors, such as high startup costs, regulatory challenges or established brand loyalty.
  9. Distribution Strategies: Analyzing the various channels by which the product or service can be distributed to customers, such as through online sales, retail stores, or collaborations with other businesses.
Connect with Growth Experts

Why is Market Analysis Important?

As Bellinger mentioned before, a business with a shrinking market doesn’t make for a strong acquisition opportunity.

“You could buy the best newspaper in the world, but if no one’s reading newspapers, it doesn’t matter,” he says. “The same goes for middle market companies.”

Conducting a market analysis is critical for businesses for several reasons:

  1. Spotting Opportunities: Through market analysis, businesses can identify fresh prospects for expansion, such as overlooked market segments or emerging trends that can be capitalized on.
  2. Competitive Edge: By analyzing the competition, businesses can gain a more comprehensive understanding of their strengths and weaknesses and devise tactics to differentiate themselves in the market.
  3. Formulating Marketing Tactics: Market analysis helps businesses formulate effective marketing tactics by identifying customer needs and desires, and understanding the most effective ways to reach and engage them.
  4. Risk Management: By understanding market trends and potential obstacles to entry, businesses can minimize risks and make well-informed decisions about product development and expansion.
  5. Decision Support: Market analysis provides businesses with valuable data and insights that can aid decision-making across the organization, from sales and marketing to product development and financial planning.

How to Conduct a Market Analysis

Conducting a comprehensive market analysis involves several steps:

  1. Clarify the Objective: Determine the specific objectives of the market analysis, such as discovering new market prospects or analyzing the competition.
  2. Gather Information: Collect data and information from various sources, such as customer surveys, market research reports, and competitor analysis.
  3. Evaluate Data: Evaluate the data to identify trends, patterns, and insights that can be used to make informed business decisions.
  4. Create Strategies: Utilize the insights obtained from the market analysis to devise effective marketing and business strategies that will aid the company in achieving its objectives.

READ MORE: Centralized Data Management: Business Intelligence & Analytics

Types of Market Analysis

There are several types of market analysis, each of which serves a specific purpose:

  1. Industry Analysis: Analyzes the overall industry trends, including market size, growth potential, and regulatory environment.
  2. Competitive Assessment: Evaluates the strengths and weaknesses of competitors, including their products, pricing strategies, marketing tactics, and customer base.
  3. Customer Evaluation: Analyzes the needs and preferences of customers, including demographic data, buying habits, and customer satisfaction.
  4. Market Segmentation: Divides the market into smaller sub-groups based on characteristics such as age, income, location, or behavior.
  5. Product Appraisal: Assesses the features, benefits, and pricing of the company’s products or services compared to competitors.
  6. Distribution Study: Examines the various ways in which the product or service can be distributed to customers, such as through online sales, retail stores or partnerships with other businesses.

Each type of market analysis provides a unique perspective on the market and can help businesses identify opportunities.

Get Market Analysis by Industry

Tools for Market Analysis

There are several tools and resources that businesses can use to conduct a market analysis, including:

  1. Market Research Reports: These reports provide in-depth analysis of specific industries, markets, and competitors, and can be purchased from market research firms.
  2. Surveys: Surveys can be used to collect data from customers and potential customers, including information about their needs, preferences and behaviors.
  3. Focus Groups: Focus groups are small groups of people who are brought together to discuss a particular topic, such as a new product or service.
  4. Online Analytics: Online analytics tools can be used to analyze website traffic and customer behavior, providing valuable insights into customer preferences and behaviors.
  5. Social Media Monitoring: Social media monitoring tools can be used to track mentions of the company or its products on social media, providing insights into customer sentiment and feedback.

READ MORE: What is Product Positioning? Framework, Strategy for Marketing

Market analysis is a critical tool for businesses to gain insights into their target market, but they might not always have the resources or relationships to do so.

That’s why bringing in a proven third-party resource that knows your industry inside-out can accelerate the process.

The invite-only BluWave-grade network of business builders is full of service providers who can help you with this exact challenge.

When you connect with our research and operations team, they scope the finest details of your need before connecting you with two or three exact-fit solutions.

In less than 24 hours after your initial call, you can speak with resources that have been hand-chosen just for you. After selecting the best fit, we’ll be by your side from day one until the engagement for your market study is complete.

Start Your Project Today

Strategic Sourcing and Procurement: What is It?

April 4, 2023 Brad Gerick

What is Sourcing Strategy and Procurement?

Strategic sourcing and procurement is a crucial process that aids businesses to balance revenue growth strategies, smart cost containment, sourcing and operations configuration.

“When the economy’s going down, people aren’t making as much money as before,” says Scott Bellinger, BluWave’s co-head of research and operations. “Even if they’re maintaining or increasing their sales, the cost is going up. Every dollar you can capture in a downturn is huge for business.”

Start Your Strategic Sourcing Project

The process entails a strategic outlook on possibilities and requires a well-executed implementation to achieve lower total cost and support revenue growth. In essence, the objective is to attain a balance between operational efficiency and financial performance.

“There are companies that are really trying to build out a platform that allows them to be a strategic sourcing provider to large manufacturers,” says one of our BluWave-grade service providers, Don Jenkins* of Supply Chain Management Co. “So they’re going to help them acquire components from around the world from suppliers. They’re going to administer those contracts. They’re going to handle the logistics of any regulatory issues that fall into that.”

CASE STUDY: More Than $14 Million Saved on Resin Procurement for Plastics Company

Strategic sourcing is an integral part of supply chain management that provides a systematic approach to assure timely delivery of goods and services and decrease the risk and costs involved in the supply chain.

Investing in supplier relationships is a key aspect of this process. Let’s look at it in more detail.

READ MORE: What is Commercial Due Diligence?

operational performance and improvement consultant

Examples of Strategic Sourcing

  • Outsourcing non-core products or services: A company could contract a vendor or supplier who can deliver products or services within the required time frame and without any delays or issues.

“I think where it gets more proprietary, a little more specialized, I think those areas are less likely to maybe outsourced,” Jenkins says. “Whereas when you look at kind of commodity products and commodity processes, that’s where the outsourcing’s probably more likely to happen.”

  • Creating partnerships with suppliers for key products: An organization might opt to centralize all purchases with a single vendor to avoid high delivery fees or fluctuating prices for goods.
  • Procuring commodities internationally: A business may identify a supplier or vendor who can provide multiple products or deliveries simultaneously from different regions around the world.
Start Your Project

Best Practices for Sourcing Optimization

  • Spend analysis: Analyzing the company’s spending patterns to identify areas where costs can be reduced.
  • Establishing clear criteria for supplier selection and evaluation: Businesses can use scorecards or other formats to select the suppliers that best meet the company’s needs.
  • Negotiating contracts: This step helps organizations achieve the best possible terms and conditions.
  • Developing strong relationships: Building long-term relationships ensures a stable and reliable supply of goods and services. Third-party resources with existing supplier relationships are a great way to accelerate this step.

“The businesses are going to want to have strong relationships with those suppliers,” Jenkins says. “They’re going to handle all the logistics-related issues, and they’re going to administer those contracts.”

  • Advanced analytics: Identify opportunities for cost savings and supplier performance improvement through data. With the explosive growth of AI tools, this is easier than ever..
  • Focusing on total cost of ownership: The initial purchase price should not be the only factor when evaluating suppliers.

READ MORE: How To Analyze Sales Data: Resources, Examples, KPIs

Supply Chain Management Benefits

  • Cost savings through economies of scale: By consolidating purchases and leveraging their purchasing power, companies can achieve cost savings through economies of scale.
  • Improved efficiency: Strategic sourcing can help improve the efficiency of the procurement process by reducing the time and resources required to identify and evaluate suppliers.

“There’s not a large variance in pricing that exists because of the nature of the commodity product,” Jenkins says. “So you have different areas of the world, potentially, where you can go to get that product, and the magic is just having someone that can organize it, find it, administer the contract, get the logistics set up.”

  • Access to expertise and technology: Organizations may access to expertise and technology that they may not have in-house. This can help improve the quality of products and services and reduce costs.
  • Improved supplier relationships and performance: Strategic sourcing involves building long-term relationships with suppliers. This can help improve supplier performance and reduce risk.
  • Reduced risk: By building strong relationships with suppliers and implementing a supplier relationship management program, companies can reduce the risks associated with their supply chain.
  • Increased agility: Businesses that correctly implement strategic sourcing can more quickly respond to changes in the market.
Start Your Strategic Sourcing Project

“It’s like ‘What pieces of what we do can we outsource, not have to have our full-time resources committed to this and still get the job done?'” Jenkins says of companies’ approach to strategic sourcing. “In what cases does it make sense to outsource a product or service or process as opposed to trying to do it yourself?”

CASE STUDY: Offshoring Experts Sought To Save Time, Lower PortCo’s Operation Costs

Steps for Implementing Procurement Management

Businesses are concerned with two types of procurement: indirect and direct.

Indirect procurement means cutting costs from anything that’s not core to the business product or service being done. Examples include company cars, postage, travel spend, telecom providers, and pens and pencils, to name a few.

Bellinger says expert third parties are highly motivated to help with this.

“The benefits would be that you can engage a firm that can take out costs of your business for non-core expenditures,” he says. “The beauty of it is these groups work off of a gain-share model, so they have an incentive to help you save money.”

Direct procurement, on the other than, is related to lowering COGS via things like components, manufacturers and resource suppliers.

“As your supplier base continues to raise prices, you want to engage direct procurement groups that can resource your suppliers on a lower cost profile,” Bellinger says.

  • Step 1: Assess your current procurement process: This involves analyzing your current procurement process to identify areas for improvement and opportunities for cost savings.
  • Step 2: Identify products or services to outsource: This involves identifying the products or services that can be outsourced to achieve cost savings and improve efficiency.
  • Step 3: Evaluate potential suppliers: This involves evaluating potential suppliers based on criteria such as cost, quality, reliability, and delivery time.
  • Step 4: Negotiate contracts and establish service level agreements: This involves negotiating contracts with suppliers to achieve the best possible terms and conditions, and establishing service level agreements to ensure that suppliers meet the company’s requirements.
  • Step 5: Monitor and evaluate supplier performance: This involves monitoring supplier performance to ensure that they are meeting the company’s requirements and taking corrective action if necessary.
Pricing Strategy Resources

Factors to Consider for Strategic Sourcing

  • Proprietary technologies and products: Organizations should assess whether outsourcing will compromise their proprietary technologies and products that give them a competitive edge.
  • Customer relationships: Firms should also consider the impact on their customer relationships, particularly if they have strong ties.
  • Commodity products and processes: Businesses may want to outsource commodity products and processes that do not provide a competitive advantage. This can help them reduce expenses and enhance productivity.
  • Cost savings: Enterprises must evaluate the possible cost savings that can be attained through outsourcing.
  • Supplier capabilities: Firms should assess the abilities of potential suppliers to ensure that they can meet the company’s requirements.
  • Risk management: Organizations must consider the risks associated with outsourcing and take measures to mitigate those risks.

“There are companies that have built up a network of supply sources and a network of transportation solutions to get a product from A to B,” Jenkins says. “If you’re a large manufacturer, and this happens to be a product that you don’t deal with every single day in large quantities, but every once in a while you need it, and when you need it, you need it badly, that is a pretty good candidate for an outsource relationship.”

READ MORE: How To Raise Prices Strategically with Sales Team Buy-In

The expertly vetted third-party resources in the Business Builders’ Network understand the importance of strategic sourcing to get the most out of your investment.

Tapping into industry-specific service providers who know not only your business, but also your competitors as well as you do can provide a significant advantage.

No matter what objectives your PE firm, portco, private or public company has, our research and operations team will assess your needs and provide a short list of best-fit solutions within a single business day.

Get Connected in Less Than 24 Hours

*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.

Offshoring Experts Sought To Save Time, Lower Portco’s Operation Costs

Service Area: Offshoring

Client Type: Lower-Middle Market Private Equity Firm

Service Provider Type: Business Process Outsourcing – Offshoring

Industry: Human Capital

Need
Business Process Outsourcing – Offshoring

PE firm sought offshore assistance with manual tasks to increase efficiency, lower costs and focus on higher order.

Challenge
Finding an offshore partner to free up resources

The PE firm sought an entity that could get them as close as possible to a turnkey finished product for several daily manual tasks performed by one of their human-capital focused portcos. Many of their work streams were labor-intensive, and the right offshoring partner would help them free up those resources to focus on higher order while lowering costs.

How BluWave Helped
The Business Builders’ Network

After the initial scoping call to understand the PE firm’s specific needs, we reached to a pair of exact-fit resources that we knew would be great matches for this project. The firm evaluated them both and engaged with a BluWave-grade service provider that has completed multiple successful projects for other PE firms.

Result
Lowered operation costs and freed up resources

We connected the private equity firm to a trusted, proven service provider that specializes in offshoring. They tapped into their network in high-growth emerging cities, allowing the firm to lower its operations costs and connect with tenured expertise in a less competitive environment. The manual processes were offshored allowing the PE firm to reinvest the time and money it saved its portco.

Tech Stacks of Companies: How To Choose

March 29, 2023 Brad Gerick

What is a Tech Stack?

A tech stack is a set of software tools and programming languages that serves as the foundation of any technology project, including websites, desktop software and apps.

It’s also the backbone of a project and can determine its performance, scalability and maintenance in the long run. Selecting the right one can help developers streamline their work, speed up the development process and provide a better user experience.

Get Help with Your Tech Stack

CASE STUDY: Transforming Big Data into Actionable Insights for Legal Services

software merger integration

Tech Stacks of Companies: Examples

  1. The LAMP Stack is a widely used open-source web development stack that is suitable for creating dynamic websites. It comprises Linux, Apache, MySQL, and PHP, where Linux is the operating system, Apache is the web server software, MySQL is the database management system and PHP is the programming language used to create dynamic web pages.
  2. MEAN Stack is a comprehensive JavaScript framework that is widely used to create dynamic web applications. It comprises MongoDB, Express.js, Angular and Node.js. MongoDB serves as the NoSQL database management system, Express.js is a web application framework used with Node.js, Angular is the front-end JavaScript framework that enables the creation of dynamic web pages and Node.js provides the back-end JavaScript runtime environment.
  3. Another JavaScript framework that is commonly used for creating web applications that support real-time updates is the MERN Stack. It comprises MongoDB, Express.js, React, and Node.js. MongoDB serves as the NoSQL database management system, Express.js is a web application framework used with Node.js, React is the front-end JavaScript library used for building user interfaces and Node.js provides the back-end JavaScript runtime environment.
  4. Ruby on Rails is a well-known web development framework that utilizes the Ruby programming language. It is a preferred choice for startups because of its user-friendly interface and straightforwardness. Ruby on Rails follows the Model-View-Controller (MVC) architectural pattern and emphasizes convention over configuration.
  5. The .NET Stack is a Microsoft technology stack that includes tools such as C#, ASP.NET, and Microsoft SQL Server. It is widely used for creating enterprise-level web applications. C# is an object-oriented programming language that helps develop Windows desktop applications and ASP.NET is a web application framework used for creating dynamic web pages.
  6. Django Stack is a Python web development framework that is widely used for creating scalable and secure web applications. Django follows the Model-View-Template (MVT) architectural pattern and incorporates an Object-Relational Mapping (ORM) layer that enables developers to interact with databases using Python code.
  7. The iOS Stack is a comprehensive stack of tools that includes Xcode, Swift, and Objective-C and is widely used for creating iOS mobile applications. Xcode is an integrated development environment (IDE) used to develop iOS apps, Swift is a programming language developed by Apple specifically for iOS app development and Objective-C was previously used to develop iOS apps before Swift was introduced.
  8. The Android Stack is another comprehensive stack of tools that includes Android Studio, Java, and Kotlin and is widely used for developing Android mobile applications. Android Studio is an IDE used to develop Android apps, Java is an object-oriented programming language that is used for building Android apps and Kotlin was introduced by Google as an alternative to Java for Android app development.
Service Providers with Tech Expertise

How To Choose the Right Tech Stack

Choosing the right tech stack is a critical decision for private equity firms. The right PE technology stack should be a cohesive system that enables fund managers to source deals, manage relationships with limited partners and portfolio companies, and close more deals.

A firm with the right technology solutions in place can work smarter and faster, deliver higher-margin services and ultimately increase profitability. For private equity firms, the technology stack should be viewed as an investment and a way to stay ahead of the competition.

READ MORE: The Power of AI, Data Analytics in IT Due Diligence

There are many factors that go into choosing the technology stack, but here are some of the more important ones:

  1. Out-of-the-box solutions: These are pre-built software solutions that can be used to solve common problems. They can save time and money by reducing the need for custom development. Examples include WordPress, Shopify and Salesforce.
  2. Integration with third-party solutions: This refers to the ability of a tech stack to work with other software solutions. It’s important to choose a tech stack that can easily integrate with other tools you may need in the future. Examples include Zapier, Segment and Twilio.
  3. Developer availability: This refers to the availability of developers who are skilled in a particular tech stack. It’s important to choose a tech stack that has a large pool of developers available so that you can find the right talent for your project.
  4. Documentation: This refers to the quality and quantity of documentation available for a particular tech stack. Good documentation can help developers get up to speed quickly and reduce the time needed for troubleshooting. Examples include React documentation and Django documentation.
  5. Easy to test: This refers to how easy it is to test code written in a particular tech stack. A good tech stack should have testing tools built-in or have easy-to-use testing frameworks available. Examples include Jest for React and Pytest for Python.

READ MORE: Data Warehouse Types: How To Choose the Right One

IT & Software Strategy Resources

If any of this sounds like unfamiliar territory (and even if it doesn’t), it may be a good reason to look for expert help.

There are experienced, proven service providers out there who know industry-specific tech stack requirements inside-out and can help your business make the best decisions every step of the way.

READ MORE: How To Extract Data from ERP Systems

Fortunately, you don’t have to waste time searching for them. Hundreds of PE firms and private and public companies tap into the Business Builders’ Network for this exact reason.

Not only will you be connected in less than one business day, but we’ll only provide the exact-fit resources that are experienced in your particular industry.

Contact out research and operations team to get started with your firm’s or company’s tech stack.

Start Your Project