The global economy is on the upswing in 2013, which means semiconductor companies have a great opportunity to reap the benefits. According to analyst firm IHS, revenue is expected to grow 6.4 percent this year after two straight years of decline. As a result, semiconductor professionals are asking themselves two questions: How can we take advantage of this growth, however brief it might be? And what happens if the economy takes a plunge again?
Semiconductor companies need a strategy that won’t leave any revenue on the table – whether the economy is up or down. This article will provide them with five steps to improve business performance, regardless of economic performance, including:
Improve sales efficiency and effectiveness: By streamlining some simple processes, your sales force will be able to spend more time talking with the customer. First, speed up the deal cycle by improving the closing process through automation and by providing an effective deal desk function. Second, improve the ease of doing business with the channel by extending processes to them directly, such as registrations, pricing, inventory, and point-of-sale data.
In one example, ON Semiconductor found that increased quoting discipline and automation reduced quote cycles by 50 percent and increased quote-to-order conversion rates by 11 percent in 12 months without eroding average selling price (ASP). For a multi-billion dollar company this is a significant impact.
About the author
Over the past eight years Chanan Greenberg has engaged with more than 50 semiconductor companies in the U.S., Europe, Japan and Korea to assist in their sales operations, price and margin improvement initiatives. He has authored several white papers on global price management and revenue management. Before joining Model N, Greenberg was founder and CEO of PriviaInc, where he worked for six years with top 20 government contractors, including Boeing and Lockheed to improve their business development and government bidding processes. Prior to that he served as CEO of Click Online, and spent seven years working with high tech OEM manufacturers, primarily focused on consumer products.