When you buy a book from Amazon, you will get a recommendation to buy another book. This recommendation is based on data analytics of Win Rate and customer buying behavior. Internet of Competition (IoC) model brings same closed loop learning mechanism to B2B business and can be considered as one of the biggest disruptions in B2B business during the upcoming years. Customer buying behavior will continue to change rapidly and the speed of learning becomes a major competitive advantage for all B2B companies.
Internet of Competition
Continuous improvement of win rate
Why do we need closed loop in sales process? Continuous improvement is a well-known metaphor for sales effectiveness, but implementation in B2B sales has not been done due to the lack of a structured approach. Now this structure IoC stack is established, and, consequently, B2B companies (from self-employed to large corporates) as well as related service providers (=consultants) and technology vendors (CRM) can adapt it in daily business. Closed loop is a strategic and long standing competitive advantage for B2B companies.
Levels of IoC Stack
Quality meets sales
Enabled by rapid development of Artificial Intelligence (AI) and Business Intelligence (BI) tools, Internet of Competition can be seen as a glue between quality and sales methods. Especially focus on Win Rate and usage of Lean Six Sigma methods to institutionalise data driven sales optimisation bring the best outcome with substantial potential for growth. Instead of being opposite forces, they start to complement each other, providing thus additional value to customer and a growth platform for companies.
IoC growth ratio
The discovery of IoC growth ratio between Win Rate (WR) and Compound Annual Growth Rate (CAGR) provides a possibility to calculate the monetary benefit of IoC in a universal manner. Companies with low WR (1-20%) as a starting point have potential to multiply their revenue, but even companies who have 70-90% WR as a starting point can gain 2%-point CAGR with relatively small WR improvement. (Note: Even 2% improvement is substantial for any company)
Based on findings from 200 companies and >65 000 analyzed sales cases, it can be estimated that companies who implement the IoC model can easily improve their Win Rate by 3–6 %-points, and many even by 20–30 %-points. Estimate the impact to your own company using sales calculator.
Hundreds of different IoC applications are expected to raise in next few years, all answering the key questions:
How do I win a sales case?
How do I stand out from competition?
How do I learn from lost sales cases?
How do I eliminate my weaknesses?
These applications range from sales process optimisation and portfolio competitiveness, to improving Win Rate via well targeted corrective and preventive measures on pricing, strategy, quality, brand, security, sustainability and other buying criteria.
Related Research and Publications
Leijala A., Kauppila O. & Hänninen K, 2021, Jatkuva oppiminen pk-yritysten myynnin ja kansainvälisen kasvun vauhdittajana, ROBINS-kokoomateos "Älykkäällä myynnillä kansainväliseen kasvuun", pages 203-217. Download
Leijala A. & Kauppila O., 2021, Dualities in data driven B2B sales and sales management, Global Sales Science Institute (GSSI) publications.PresentationDownload
Leijala A., 2020, Disruption in B2B sales, Internet of Competition (IoC) model changes the way we sell, Global Sales Science Institute (GSSI) publications. Download
Leijala A., 2019, Ultra Lean Sales: The revolution of business growth, ISBN: 9789528017813.
Improving efficiency of small business's sales via data, analytics and process development, ongoing doctoral research at Industrial Engineering and Management, Oulu University, Finland.
Antti Leijala, author of Internet of Competition (IoC) model, is a recognised speaker, trainer, consultant, and author. He has over 20 years of experience in global business and has personally helped over 150 companies to improve their business and sales performance. His passion is to help B2B companies improve sales process efficiency, especially measured by Win Rate. Read more about Antti’s background from his LinkedIn-profile and send an invite request to start personal dialogue.