There was some good news today when the Institute for Supply Management reported that the purchasing managers index rose to its highest level since April 2006 - 55.9. This is yet another sign that we’re heading in the right direction, but we’re far from out of the woods. Many of the factors built into the Wall Street Journal article back in August are still with us, and so the path we’re on remains unclear - Sharp Rebound; Slow Growth; or Double-Dip.
Since the recession officially started two years ago, we’ve all been focused on the bottom line and cutting costs like crazy. The Bureau of Labor Statistics reported in December that Productivity in the non-farm business sector in Q3 of 2009 rose by 8.1%, the largest increase since the same quarter in 2003. Which means that businesses are doing a great job of getting the most out of their remaining workforce after multiple Reductions in Force.
However, as we move forward, we need to change our focus if we’re to do more than just survive.
Moving Focus to the Top Line
So the question is, while we’re on the path to recovery, how can we take advantage of the sales opportunities that arise and grow the top line? Traditionally, if we were to focus on increasing sales we’d have to invest ahead of the curve in sales resources - new or additional account, regional, country, or market coverage.
In this environment, the length of a sales cycle is not predictable and when the recovery will actually occur is unknown. This brings a great deal of “Balance Sheet Uncertainty” when companies do not have the resources to gamble.
Balance Sheet Uncertainty
So again, what do we do to get back into growth?
Enterprise Software - Take Your Product and Business Online
Fortunately, for Enterprise Software companies, there is an option - move your software and sales process online. I do not mean for you to rewrite your software and business model overnight, but to install your software as-is on the Xuropa Platform. You can then delivery your product for demonstrations, evaluations, training, or even in a post-sales Software-as-a-Service (SaaS) model.
In this manner, you are able to lower your cost of sales while focusing on growing your top line revenues.
Revenue Growth with Xuropa
Once your software is installed on the Xuropa Platform, you’ll be able to employ it to solve a large number of sales challenges. And your business will be able to participate in the benefits of the SaaS model without having to re-invent your company.
For more information on how we can grow your revenues, contact us at sales[at]xuropa[dot]com.
Posted under business, industry
This post was written by James Colgan on January 4, 2010
Happy new year, James! Yes, the signs have been encouraging worldwide as well as in North America. At the roots level for electronics, the spring furloughs and then summer recalls at TSMC was first convincing evidence for me of ‘green shoots’. The 15% raise that everyone got at TSMC on January 1 caps that …
I’ve been concerned that any job growth in the US will not happen until at least 2Q, 2010 due to end-of-year cuts in December and 1Q, 2010 (a lot of firms end their fiscal years then). Today’s ADP report may indicate that firms have, indeed in the US, overfired with only half the drop of recent months (i.e., not many people left to cut).
A lot of firms have retrenched but still have projects targeted for the recovery. In EDA, that means getting ready to help the electronics industry in their next projects, after those. With leaner teams, I hope to see a lowering of the hardware/software wall that will take advantage of new developments that emerged just as the great recession hit. The business model will need to move away from the classic enterprise software approach used by the Big Three, electronics is not the same size as the market served by SAP, CA, etc. That means more interactive online meetings before any face-to-face. Thanks for providing this platform, James!
All the best for 2010!