Abstract
The aim of this paper is to analyze the medical device salesforce software according to its strengths and weaknesses and to assess it as regards to both sales approach and organizational structure. The medical device salesforce has significant process inefficiencies and current salesforce issues include unstructured sales approaches and haphazard customer information management necessary to properly equip the sales team, all directly impacting efficiency and sales growth. These inefficiencies are analyzed by specifically looking at problems faced by Medical Device Companies with a view of drawing observations and probable solutions. The salesforce inefficiencies faced by these medical device companies are driving these companies towards CRM and the new sales judgment oriented approach rather than the process-focused approach (Adamson, Dixon & Toman, 2013). This paper proceeds to review this proposed CRM solution, the new outcomes approach, and assesses its impact on the current unstructured salesforce organization. The goal of this is to increase awareness, and influence the medical device company culture within its sales department and management. This will subsequently improve device company sales performance and provide efficient and reliable solutions for unmet clinical needs within the medical device industry.
Introduction: Brief Summary of what this paper is to be about.
The medical device sales industry is a unique industry. It is an industry that is constantly evolving in tandem with the medical environment and business climate changes. The current sales and sales management methods are inconsistent and inefficient as they do not maximize sales representatives’ time and skills which therefore results in reduced sales.
There are several problems that manifest in Medical Device Companies in terms of sales as indicated earlier. For starters, most of these companies lack the contact management system that will streamline their sales and marketing efforts that should ideally lead to sales. Specifically, the salesforce lacks reliable, consistent communication between multiple department processes. The lack of communication technology in the salesforce challenges representatives and management to report, visualize, analyze, and utilize their sales data to motivate their team and grow their business. Another problem the unstructured organizational salesforce design includes is sales persons that lack the necessary resources, product knowledge, and industry knowledge in its entirety. All these problems lead to sales busts and have the potential to decrease the confidence of the buyer, decreasing sales success.
These are the problems that have ensured that a solution needs to be proposed, one that will help in solving the issues raised above. Pursuant to this solution, it is important to note that the medical device sales industry plans to incorporate an Information Systems (IS) solution to address their unstructured salesforce concerns and inefficiencies as well as improve their competitive advantage. Specifically, the CRM is touted as a product that will manage customer leads and contacts, track deals through the pipeline, manage employee work tasks, and analyze performance.
There is a transitioning thought-process for sales and sales management from a structured task-oriented approach to a creative, outcomes-based approach. Despite this change, the structured CRM is still seen as a valuable tool. With a centralized and organized approach, the salesforce can have a reliable, efficient tracking system that will ultimately aid in day-to-day and long-term success.
Unfortunately, many individuals perceive CRM as merely a technology for improving customer service which may affect results and lead to failure when implemented. CRM initiatives must be seen as a strategy for significant improvement in services by solidifying satisfaction, loyalty and advocacy through information and communication technology.
Sales is a unique industry. For years, sales leaders have focused on process discipline with scorecards, qualification criteria, and activity metrics. Recently, there have been drastic changes in sales performance; companies reporting longer sales cycle times, lower conversion rates, less reliable forecasts, and compressed margins (Adamson, Dixon & Toman, 2013). These changes are evident in the medical device industry and due to these changes; the players in the industry are evaluating their sales management structures.
Sales approaches are categorized in two methods:
1) a process-focused approach, and
2) a judgment-oriented, creative approach.
The first includes process orientation, clear lines of authority, and close governance through formal rules (Adamson, Dixon & Toman, 2013). It emphasizes individual performance, encourages competitive environments, and monitors reps through near-term metrics (cycle times and close rates) (Adamson, Dixon & Toman, 2013). The second approach is more novel as it focuses less on process compliance but more on outcomes. It strives for flexible selling with sales reps’ creativity and insight, acknowledging effective sales approaches vary from deal to deal (Adamson, Dixon & Toman, 2013). Two key components to insight include determining customer needs that have not been met and determining the correct decision makers.
The new sales approach encourages (Adamson, Dixon & Toman, 2013):
Emphasis on judgment
Managerial focus on guidance and support rather than inspection
Managers serving as coaches rather than enforcers
Work-force self-managing
Focus on collaboration rather than competition
Group judged on long-term outcomes rather than short-term compliance with protocols
Management focus on customer behaviors instead of focus on checklists.
This change in approach is due partially to today’s environment. Today’s empowered and enlightened customers challenge vendors to offer a greater depth of knowledge and solutions. Competing for a customer’s attention now requires deeper teaching skills and an ability to reveal important business information the customer might have overlooked. The best sales reps can link insights that arise to the solutions that their company offers (Adamson, Dixon & Toman, 2013). The creative and judgment oriented sales approach is the most successful with a foundation of proper structure.
Zimmer Biomet is a worldwide leader in musculoskeletal healthcare and provides effective and creative solutions to support orthopedic surgeons and clinicians to restore mobility. Zimmer Biomet is a leading supplier of orthopedic devices with over 100,000 products. One Zimmer Biomet medical device distributor, ZBR, has a salesforce consisting of 50 sales representatives and 5 management employees. The ZBR sales team is focused on sales performance and growth, primarily focusing on customers and service; however, they collaborate routinely with multiple departments (marketing, business development, inventory, medical education). The sales representative is tasked to call on new customers (sales calls, scheduling educational meetings, developing relationships), retain current customers and support existing business (maintaining relationships, preoperative planning, surgery scheduling - SMS, contract management, staff education, surgeon education, case coverage, inventory management – IBM Cognos, billing follow-up), and grow existing business (sell new products to existing surgeons and hospitals).
Determining efficient sales methods and structured solutions for the medical device salesforce is essential because the medical device industry is an important component of the healthcare system. The medical technology industry is becoming a flagship of the whole health sector, manufacturing devices facilitating prevention, diagnosis and follow-up.
The USA is currently the largest producer and consumer of medical devices as it contributes to 50% of the world market. The global market is on the rise due to higher life expectancy in developed countries, and new markets in developing countries. The industry is also known for high quality Research and Development and its cooperation with end users – leading to continuous innovation (Maresova, Pehaker, Selamat & Kuca, 2015). Ideally, an efficient salesforce of any medical device organization will contribute to a positive healthcare cycle.
Above: medical device company website resources offered to medical professionals and patients, promoting empowered, knowledgeable customers.
Above: Salesforce.com website highlights CRM utilization by medical device companies.
Problem Statement: The nature of the problem to be addressed is that the current medical device salesforce is a decentralized and unorganized process. This lack of structure decreases both reliability and customer confidence in both the sales representative and the company itself. The current inconsistent sales methods, lack of sales structure, and dissatisfied employees are significant concerns that are impacting ZBR. These Problems are properly highlighted in Table I below, as well as measures that will determine if the proposed CRM solution is effective.
Sales reps use spreadsheets to keep track of customer conversations whereby each interaction and customer insight becomes a line item. With multiple customers, this type of organizational system becomes tedious and complications grow exponentially as customer base grows (Base). At ZBR, there is no centralized spot to manage the sales processes.
As seen in Table I (above), there are many problems facing the medical device sales team and sales management team. While there are various thought processes regarding best practices for sales and sales management, the proposed solution of CRM for the medical device salesforce presented in this paper addresses these problems by providing a centralized spot to manage the sales process and encouraging focus on outcomes.
The measures that would determine efficacy of the CRM proposed solution include multiple automated checklists and systematic approaches. In addition to the automated systematic implementations, a monthly survey would be done at the start and end of each month. The survey would request feedback on measures in salesforce categories listed above (Table I), as well as the CRM contribution to success of personnel goals, management goals, marketing goals, training goals, and certification goals. The feedback surveys would also address the pre and post implementation critiques. A thorough review of feedback collected from these measures provide sufficient detail to evaluate and determine if the proposed CRM solution addresses the medical device industry salesforce problem of unstructured, haphazard sales approach and decentralized sales processes.
Proposed Solution: How will an information system be used to address the problem described earlier?
Today, the Zimmer Biomet Salesforce is challenged to provide a more personalized and effective service without raising costs. With salesforce, sales reps have a central place to manage sales-related activities. Additionally, managers have real-time visibility into team activities, and opportunities.
Managers are more aware of details and can manage the situation in a more constructive manner and additionally can forecast with confidence and precision.
In order to implement innovative technologies in practice, it is important to be cost conscious and effective as well as to know and follow the new guidelines in healthcare (Maresova, Pehaker, Selamat & Kuca, 2015).
Just like technology has come a long way, computers have excelled at computation since 1939. However, today they are simple processors (Brynjolfsson & Hitt, 2000).
What are the hardware and software requirements?
In terms of general hardware, it is certain that laptops, desktops, smartphones, or tablets would be required. Another requirement is that the hardware for the provision of internet will also be required such as wireless routers and internet dongles. The Primary software platform would be facilitated through SMS surgery scheduling (barcoding, scanning, iPhone), salesforce.com complementary, open API partners, Z -IBM cognos, and B-FAST.
In terms of software there are certain minimum requirements that should be met as listed below;
Browsers such as Google chrome, Mozilla Firefox, Microsoft Internet Explorer versions 9/10/11 and Apple Safari versions 5.x/6.x/7.x/.
If using windows then the windows version must be windows 7, XP or later versions.
If using Mac than the system must be operating on Mac OS x or any other later version.
The system used must be able to connect to the internet through a proxy server. There must therefore be a platform enabling automatic proxy detection, manual proxy or NTLM proxy authentication.
As pertains the salesforce CRM visuals, there should be Adobe Flash player Plugin installed. This can be version 9.0.115 or later.
What organizational change would be involved? Does it mean changing the work of some people or parts of the organization?
A more structured approach: Here, specific data entry reports would be required within 10 minutes each day as in the case in google. In reading about the new thought process for sales management, CRM seems like it may hinder the transition. To prevent the proper evolution and help transition a sales organization, CRM could be implemented as a tool. However, management would not focus on the formal tracking processes but rather they can alter CRM as required and provide guidance and coaching to their teams. The tool would provide support for the sales and sales management environments, but the focus would be on the big picture, outcomes.
Lack of communication/ distrust with upper management. CRM. Suspicion, productivity, of sales reps on their customers, relationship – secret sauce.
Solutions engineer, phase one implementation, or buy install implement, business platform, opportunity forecasting: - the system is developed for one to three months. The enterprise costs $125 per user per month or $1500/user/year and comes with API (Applications programming interface) connect systems – push in, pull out, dashboard, metrics (examples, videos, case studies) and workflow automation HIPPA compliance.
Work would be done by a certified salesforce partner. Attend meetings, web demo. Minimum 12-month agreement. 10k, 10-15 k, 1-2x for implementation. Customization, APT connecting, training enablement
Suggestions offered to transition salesforce style to the outcomes based approach:
Creating demand early in sales funnel – promotes pipeline building, not velocity
Despite process/ structure not always being bad, mangers give reps more latitude – in prioritization, qualification, and pursuit
Manager support, not direct
Reps accountable for outcomes rather than performing specific activities
Encourage innovation and sense of business ownership – reps measured on profitable growth of their book of business
Give considerable discretion regarding activities while guiding reps through and holding them accountable for specific milestones on the way to a sale.
Reps are most likely to succeed when they feel supported rather than directed.
Sales leaders must rethink how they manage and what they measure (Adamson, Dixon & Toman, 2013). Instead of a checklist, managers must focus on customer behaviors, especially any signals that the customer would be responsive to a new insight about its business. Such signals include: acknowledging that the status quo isn’t working, conceding other suppliers’ solutions are less viable, providing information typically not made available to other suppliers, and revising purchasing requirements and specifications in a way that reflects the supplier’s advantages. This shift in focus gives reps greater latitude to use their judgment about the most-effective ways to drive a sale. measure (Adamson, Dixon & Toman, 2013)
Concern: Employee dissatisfaction. Three categories: 1) Corporate governance, 2) leadership, 3) planning & execution will be addressed. Recommendations: 1) review of performance appraisal system; alternative performance appraisal system; and job enrichment. 2) Developing good work cultures; communication effectiveness and creating great leaders. 3) Strategic manpower planning; and SOP training and evaluation. (Ali, Wilson & Yazmin, 2015)
What are the process changes?
Tighter business processes will need to be adopted once the CRM software is set into motion. Salesforce will require that certain processes are changed in order to effectively implement the solution. For starters ZBR and the CRM company will clearly define expected business processes (Table I) so as to identify and incorporate the features, reports and customizations required for the CRM to be effective.
In this instance, the data entry aspect will change and it at this point that critical sales related information is obtained. This data collection process will be streamlined and cleaned up so as to get only the necessary information required.
Excel sheets and Predefined forms shall be created and manual entry shall be incorporated into digital entries.
Expectations of representatives will change and will require more documenting and processing, yet from the customization of the CRM analytics, there will be consistent focus on outcomes at each level of the sales process.
How will it work?
Loading Data/ Incorporating Existing Data:
At product launch the first step is to add users into the system, accounts, and data imported from any pre-existing set of data or converted from the earlier used manual data into digital data fed into the system.
The CRM once it is fed data as indicated above, will group the data and scientifically process this data as against the already preinstalled benchmarks. After the analysis is complete, a report is generated indicating analysis of sales performance. This report will therefore lay bare the facts pertaining to the sales processes and will guide future strategic decisions as to what actions to take next.
Starting with clean data (Data Integration) will enable seamless use of the system as is stressed by IT experts. Therefore, it is imperative that data is analyzed and rid of all unnecessary clutter before it is input into the CRM salesforce.com.
Training Users:
The users are then trained and once the system is up and running. Sales forecasts, contact management and reporting are modules that will be easily available to the sales team and management.
Additional Customer Support:
In the event that there are any technical issues with the new CRM system, ZBR will purchase the premiere enhanced support (direct line) customer support line from salesforce.com.
How will it impact the problem described above?
In terms of sales and the challenges highlighted, the CRM will provide a database of Clients information, sales information, marketing information, medical education information, etc. in a centralized, easily accessible location. This centralized resource will raise the probable chances of sales success as the information required to properly educate, present, and persuade a customer is at the fingertips of the sales team. The task oriented focus will have been tackled and the creative judgment focus is easier to implement.
Pertaining to management, the CRM salesforce.com will provide sales data and metrics analysis as requested during the CRM customization process. This will therefore better inform management as to which direction to steer the medical device company in terms of sales efforts, and allow more focus on guidance rather than direction. This CRM feedback and solution will address many salesforce problems as described in the Table I.
Justification: Why is this solution appropriate for solving this problem?
Worldwide, the medical device market is expected to grow (Maresova, Pehaker, Selamat & Kuca, 2015). A properly functioning salesforce and management team will contribute to company success and maintain its competitive advantage. The competitive advantage arises as the company will be better informed, through the utilization of CRM, as to what strategic decisions to take to ensure that sales margins are high and that the company at the end of the financial year is recording a profit.
There is significant evidence on how investments in information technology are linked to higher productivity and organizational transformation (Brynjolfsson & Hitt, 2000). This article argues the value of IT is in its ability to enable complementary organizational investments such as business processes and work practices; and second, these investments, in turn lead to productivity increases by reducing costs and by enabling firms to increase output quality in the form of new products or in improvements in intangible aspects of existing products like convenience, timeliness, quality, and variety (Brynjolfsson & Hitt, 2000).
In the case of the ZBR distributorship, it is anticipated that the implementation of a CRM will enable more efficient operations, resulting in increased sales success, and thus increased company profit. In embracing the CRM, ZBR medical device company will benefit from accurate data and results and will therefore operate from a platform of knowledge. This knowledge will grant the company the necessary competitive advantage that it requires to be ahead of the competition in the medical device industry.
Discussion/Conclusions:
Limitations in the proposed solution:
There are certain limitations that the salesforce.com may encounter in its integration with ZBR medical device company. This limitation may be user generated limitations. These limitations may arise where the process of entering customer information initially is complex.
One of the best benefits of CRM software is the enhanced capability to study historical data and make accurate forecasts using this data. Though the snapshotting capabilities on Salesforce.com allows this, there is one downside which is that the data must be planned out and set well in advance. Sales managers must have the foresight to predict the information they need before they actually need it! Furthermore, the schedule of these snapshots cannot be changed once they’ve been set. This is indeed a limitation that can be found or expected in this proposed solution.
Alternatives that were considered:
As an alternative to CRM we considered Base CRM as the software solution that can be used. This CRM was launched in 2009 and we were attracted by its brave claim that it’s the only CRM that “Your Sales team will actually use”. The best features of this CRM was call tracking and recording and the impressive and easy to understand sales analytics. This Software also has a mobile application that makes its use that much easier.
We however found that this software is basically android based and therefore it limits its use to only those that have the android software. We also found that compared to salesforce CRM, this alternative offered led substantive analysis than the salesforce which may lead to reports that do not offer any substantial information as would be required by the medical devices company’s management
Expected long-term impact:
With the continued use of sales force the long-term impact will be that due to the sales data and information received by the website, the sales management make continuous informed decisions as to the strategic direction that the Sales team should take in terms of sales. With this I expect that the sales volumes will increase and also that the marketing efforts shall also be done in accordance with the information obtained from salesforce.
The sales efforts of this medical devices company shall be streamlined and specifically targeted meaning that sales shall be done efficiently. This shall minimize waste of resources both human and capital in sales efforts that won’t normally yield results. In short therefore I expect a heavier reliance on salesforce by the medical device company in order to make high sales.
Possible future enhancements that might be considered: I would expect that CRM becomes the standard and the norm going forward and that every company will realize its importance. This is because of its expected future results. However one of the future enhancements to salesforce that might be considered after the cloud based enhancements may include;
A further development on mobile applications and presence whereby salesforce shall continue developing with the continuous development of mobile technology. As 3D touch has been introduced in the market and shall possibly be the future of Mobile, I expect that salesforce shall adopt this functionality into its applications for a more user defined experience.
Summary:
In conclusion, the benefits that can be accrued from salesforce are indeed immense as has been seen in this case study. Its impact on the sales teams as described cannot be neglected and for companies that want to experience a higher sales volume and to have a highly streamlines Sales department, then this CRM is inevitable. The advantages that accrue in using the CRM as discussed will mean that going forward Salesforce will be adopted by many companies. This shift is necessitated by the need of accurate sales information which ensures that anyone with this information has a strategic advantage over other companies. Therefore, salesforce is indeed a step in the right direction for companies that need a fresh approach in their sales strategies.
Citations:
Adamson, B., Dixon, M., & Toman, N. (2013, November). Dismantling the Sales Machine, Harvard Business Review. Retrieved January 25, 2016.
Ali, N., Wilson, P., & Yazmin, I. (2015). Symptoms Versus Problems (SVP) Analysis on Job Dissatisfaction and Managing Employee Turnover: A Case Study in Malaysia. International Journal of Economics, Commerce and Management, III (4). Retrieved January 26, 2016, from hit://ijecm.co.uk/.
Brynjolfsson, E., & Hitt, L. M. (2000). Beyond Computation: Information Technology, Organizational Transformation and Business Performance. The Journal of Economic Perspectives, 14(4), 23-48. Retrieved January 26, 2016, from http://www.jstor.org.ezproxy.lvc.edu:2048/stable/2647074
Maresova, P., Penhaker, M., Selamat, A., & Kuca, K. (2015). The potential of medical device industry in technological and economical context. There Clin Risk Manag., 11, 1505-1514.
Theodorou, M., Georgiou, M., Nikolentzos, A., & Bellali, T. (2015). Reconsidering Planning and Management of Medical Devices Procurement in Public Health Services in Cyprus. Global Journal of Health Science, 7(6), 205-214. http://dx.doi.org/10.5539/gjhs.v7n6p205
