Structure Organization And Function Of The Human Body Biology Essay

Structure Organization And Function Of The Human Body Biology Essay Cell are the structural and functional units of all living organisms. Some organisms, such as bacteria, are unicellular, consisting of a single cell. Other organisms, such as humans, are multicellular, or have many cells-an estimated 100,000,000,000,000 cells! Each cell is an amazing world unto itself: it can take in nutrients, convert these nutrients into energy, carry out specialized functions, and reproduce as necessary. Even more amazing is that each cell stores its own set of instructions for carrying out each of these activities. Prokaryotic Cells organisms that are lack of nuclear membrane, the membrane that surrounds the nucleus of a cell. Bacteria are the best known and most studied form of prokaryotic organisms, although the recent discovery of a second group of prokaryotes, called archaea, has provided evidence of a third cellular domain of life and new insights into the origin of life itself. prokaryotes are unicellular organisms that do not develop or differentiate into multicellular forms. are capable of inhabiting almost every place on the earth, from the deep ocean, to the edges of hot springs, to just about every surface of our bodies. Prokaryotes are distinguished from eukaryotes on the basis of nuclear organization, specifically their lack of a nuclear membrane. Prokaryotes also lack any of the intracellular organelles and structures that are characteristic of eukaryotic cells. Most of the functions of organelles, such as mitochondria, chloroplasts, and the Golgi apparatus, are taken over by the prokaryotic plasma membrane. Prokaryotic cells have three architectural regions: appendages called flagella and pili-proteins attached to the cell surface; a cell envelope consisting of a capsule, a cell wall, and a plasma membrane; and a cytoplasmic region that contains the cell genome (DNA) and ribosomes and various sorts of inclusions. Eukaryotes include fungi, animals, and plants as well as some unicellular organisms. Eukaryotic cells are about 10 times the size of a prokaryote and can be as much as 1000 times greater in volume. The major and extremely significant difference between prokaryotes and eukaryotes is that eukaryotic cells contain membrane-bound compartments in which specific metabolic activities take place. Most important among these is the presence of a nucleus, a membrane-delineated compartment that houses the eukaryotic cells DNA. It is this nucleus that gives the eukaryote-literally, true nucleus-its name. Cell Structures: The Basics The Plasma Membrane-A Cells Protective Coat The outer lining of a eukaryotic cell is called the plasma membrane. This membrane serves to separate and protect a cell from its surrounding environment and is made mostly from a double layer of proteins and lipids, fat-like molecules. Embedded within this membrane are a variety of other molecules that act as channels and pumps, moving different molecules into and out of the cell. A form of plasma membrane is also found in prokaryotes, but in this organism it is usually referred to as the cell membrane. The Cytoskeleton-A Cells Scaffold The cytoskeleton is an important, complex, and dynamic cell component. It acts to organize and maintain the cells shape; anchors organelles in place; helps during endocytosis, the uptake of external materials by a cell; and moves parts of the cell in processes of growth and motility. There are a great number of proteins associated with the cytoskeleton, each controlling a cells structure by directing, bundling, and aligning filaments. The Cytoplasm-A Cells Inner Space Inside the cell there is a large fluid-filled space called the cytoplasm, sometimes called the cytosol. In prokaryotes, this space is relatively free of compartments. In eukaryotes, the cytosol is the soup within which all of the cells organelles reside. It is also the home of the cytoskeleton. The cytosol contains dissolved nutrients, helps break down waste products, and moves material around the cell through a process called cytoplasmic streaming. The nucleus often flows with the cytoplasm changing its shape as it moves. The cytoplasm also contains many salts and is an excellent conductor of electricity, creating the perfect environment for the mechanics of the cell. The function of the cytoplasm, and the organelles which reside in it, are critical for a cells survival. Genetic Material Two different kinds of genetic material exist: deoxyribonucleic acid (DNA) and ribonucleic acid (RNA). Most organisms are made of DNA, but a few viruses have RNA as their genetic material. The biological information contained in an organism is encoded in its DNA or RNA sequence. Prokaryotic genetic material is organized in a simple circular structure that rests in the cytoplasm. Eukaryotic genetic material is more complex and is divided into discrete units called genes. Human genetic material is made up of two distinct components: the nuclear genome and the mitochondrial genome. The nuclear genome is divided into 24 linear DNA molecules, each contained in a different chromosome. The mitochondrial genome is a circular DNA molecule separate from the nuclear DNA. Although the mitochondrial genome is very small, it codes for some very important proteins. Organelles The human body contains many different organs, such as the heart, lung, and kidney, with each organ performing a different function. Cells also have a set of little organs, called organelles, that are adapted and/or specialized for carrying out one or more vital functions. Organelles are found only in eukaryotes and are always surrounded by a protective membrane. It is important to know some basic facts about the following organelles. The Nucleus-A Cells Center The nucleus is the most conspicuous organelle found in a eukaryotic cell. It houses the cells chromosomes and is the place where almost all DNA replication and RNA synthesis occur. The nucleus is spheroid in shape and separated from the cytoplasm by a membrane called the nuclear envelope. The nuclear envelope isolates and protects a cells DNA from various molecules that could accidentally damage its structure or interfere with its processing. During processing, DNA is transcribed, or synthesized, into a special RNA, called mRNA. This mRNA is then transported out of the nucleus, where it is translated into a specific protein molecule. In prokaryotes, DNA processing takes place in the cytoplasm. The Ribosome-The Protein Production Machine Ribosomes are found in both prokaryotes and eukaryotes. The ribosome is a large complex composed of many molecules, including RNAs and proteins, and is responsible for processing the genetic instructions carried by an mRNA. The process of converting an mRNAs genetic code into the exact sequence of amino acids that make up a protein is called translation. Protein synthesis is extremely important to all cells, and therefore a large number of ribosomes-sometimes hundreds or even thousands-can be found throughout a cell. Ribosomes float freely in the cytoplasm or sometimes bind to another organelle called the endoplasmic reticulum. Ribosomes are composed of one large and one small subunit, each having a different function during protein synthesis. 2. Describe and distinguish between the cell and tissue organizations and systems. Tissues are the collection of similar cells that group together to perform a specialized function. The four primary tissue types in the human body: epithelial tissue, connective tissue, muscle tissue and nerve tissue. Epithelial Tissue The cells are pack tightly together and form continuous sheets that serve as linings in different parts of the body.   It serves as membranes lining organs and helping to keep the bodys organs separate, in place and protected.   Some examples of epithelial tissue are the outer layer of the skin, the inside of the mouth and stomach, and the tissue surrounding the bodys organs. Connective Tissue There are many types of connective tissue in the body.   It adds support and structure to the body.   Most types of connective tissue contain fibrous strands of the protein collagen that add strength to connective tissue.   Some examples of connective tissue include the inner layers of skin, tendons, ligaments, cartilage, bone and fat tissue.   In addition to these more recognizable forms of connective tissue, blood is also considered a form of connective tissue. Muscle Tissue Muscle tissue is a specialized tissue that can contract.   Muscle tissue contains the specialized proteins actin and myosin that slide past one another and allow movement.   Examples of muscle tissue are contained in the muscles throughout your body. Nerve Tissue Nerve tissue contains two types of cells: neurons and glial cells.   Nerve tissue has the ability to generate and conduct electrical signals in the body.   These electrical messages are managed by nerve tissue in the brain and transmitted down the spinal cord to the body.

Heavy Metal Poisoning :: essays research papers fc

Heavy Metal Poisoning Heavy metal poisoning is the toxic accumulation of heavy metals in the soft tissues of the body. Heavy metals are chemical elements that have a specific gravity at least five times that of water. The heavy metals most often implicated in human poisoning are lead, mercury, arsenic, and cadmium. Some heavy metals, such as zinc, copper, chromium, iron, and manganese, are required by the body in small amounts, but these same elements can be toxic in larger quantities. Heavy metals may enter the body in food, water, or air, or by absorption through the skin. Once in the body, they compete with and displace essential minerals such as zinc, copper, magnesium, and calcium, and interfere with organ system functions. People may come into contact with heavy metals in industrial work, pharmaceutical manufacturing, and agriculture. Its even possible that children can be poisoned as a result of playing in contaminated soil.   Ã‚  Ã‚  Ã‚  Ã‚  Heavy metal poisoning may be detected using blood and urine tests, hair and tissue analysis, or x rays. In childhood, blood lead levels above 80  µg/dL generally indicate lead poisoning, however, significantly lower levels (>30  µg/dL) can cause mental retardation and other cognitive and behavioral problems in affected children. The Centers for Disease Control and Prevention considers a blood lead level of 10  µg/dL or higher in children a cause for concern. In adults, symptoms of lead poisoning are usually seen when blood lead levels exceed 80  µg/dL for a number of weeks. Another important factor is that blood levels containing mercury should not exceed 3.6  µg/dL, while urine levels should not exceed 15  µg/dL. Symptoms of mercury poisoning may be seen when mercury levels exceed 20  µg/dL in blood and 60  µg/dL in urine. An interesting way to test for the amount of mercury in someones system, is to test hair a follicle, and record the levels of mercury in order to gauge the severity of chronic mercury exposure. Furthermore, arsenic is rapidly cleared from the blood. Blood arsenic levels may not be very useful in diagnosis. Arsenic in the urine (measured in a 24-hour collection following 48 hours without eating seafood) may exceed 50  µg/dL in people with arsenic poisoning. If acute arsenic poisoning is suspected, an x ray may reveal ingested arsenic in the abdomen. It is visible because the arsenic appears solid on an x-ray. Arsenic may also be detected in the hair and nails for months following exposure.

Dispositional Optimism Essay -- Psychology, Behaviorism

Behaviorism is an essential part of our daily lives since it reflects how we learn and deal with varying circumstances. Schacter, Gilbert and Wegner (2011) states that behaviorism restricts psychologists to focus purely on observable behavior; it rejects the emphasis of the conscious and unconscious mind (p. 16). Ivan Pavlov, who was a Russian physiologist, discovered this concept when he researched the role that saliva played on digestion. In his experiment, he gave the dogs’ meat powder to see how they would salivate to it. After a while, he noticed that the dogs’ salivated even before he gave them food; if the dogs’ saw the white lab coat, put in the harness, hear the sound of a buzzer, or the ringing of a bell. He then concluded that these dogs’ were learning from the environment, which at first, they thought was an annoyance, leading Pavlov to the classical conditioning process - which says that we learn through pairings and association ( Ryan, G. (2013) Lectures on Learning. Personal Collection of G. Ryan, Suffolk County Community College, Brentwood NY). Another advocate of behaviorism was John B. Watson, who wanted to demonstrate that even sophisticated behaviors such as emotion are subject to classical conditioning. Watson conducted a study known as â€Å"Little Albert,† where he taught the infant to fear the white rat, which was originally a neutral stimulus. Every time the rat appeared, he would bang two metal pipes together to scare the infant. Consequently, it resulted to â€Å"Little Albert† to fear similar objects to the rat- known as stimulus generalization, and in this case, it was a broad selection of animals. However, according to the authors Schacter, Gilbert, and Wegner (2011) classical conditioning stu... ...the end, you are the only one who can truly put you in the dark. Moreover, you, yourself, are the one who can take you out of your darkness. References Brodhagen, A., Wise, D. (2008). Optimism as a Mediator Between the Experience of Child Abuse, Other Traumatic Events, and Distress. Journal Of Family Violence, 23(6), 403-411 Brunk, L., Hirsch, J. K., LaLonde, S. M., Morris, A. P., and Wolford, K., 2007 (2007). Dispositional Optimism as a Moderator of the Relationship Between Negative Life Events and Suicide Ideation and Attempts. Cognitive Therapy & Research, 31(4), 533- 546. Ryan, G. (2013) Lectures on Learning. Personal Collection of G. Ryan, Suffolk County Community College, Brentwood NY Schacter, D. L., Gilbert, D.T., and Wegner, D.M., (2011). Learning (p. 16 and 177). Psychology (Second Edition). New York, N.Y: Worth Publishers.

Swing vs Steady

Swing vs Steady a)Swing: Sales: 5000 Price per unit: $10 Variable Cost per unit: $2. 5 Fixed Cost: $35000 Current Profit: $ 2500 New Price per additional unit: 0 New Contribution Margin = New Price per unit – Variable cost per unit =$8. 5-$2. 5 =$6 New Sales unit @40% additional sales= 5000*40%= 2000 Additional profit @40% additional Sales = Additional Sales* New Contribution Margin =2000*6 =$12000 New Sales unit @20% additional sales= 5000*20%= 1000 Additional profit @20% additional Sales = Additional Sales* New Contribution Margin =1000*6 =$6000 Steady: Sales: 5000 Price per unit: $10 Variable Cost per unit: $5. Fixed Cost: $35000 Current Profit: $ 2500 New Price per additional unit: $8. 5 New Contribution Margin = New Price per unit – Variable cost per unit =$8. 5-$5. 5 =$3 New Sales unit @40% additional sales= 5000*40%= 2000 Additional profit @40% additional Sales = Additional Sales* New Contribution Margin =2000*3 =$6000 New Sales unit @20% additional sales= 5000*2 0%= 1000 Additional profit @20% additional Sales = Additional Sales* New Contribution Margin =1000*3 =$3000 Both the companies should enter the market as they are realizing additional profits by charging a lower price for the new market. )Swing : ? P =-1. 5 CM= Price- Variable Cost= $10-$2. 5 =$7. 5 % Break-even sales change= -? P/(CM + ? P) = 1. 5/(7. 5-1. 5) = 25% % Break-even sales change in units =5000*25% =1250 Total Break-even sales=5000+1250= 6250 Change in Profit for 40% increase in sales= (Sales change in units- Break-even sales change) * New contribution Margin =(2000-1250)*6 =750*6 =$ 4500 Steady: ? P =-1. 5 CM= Price- Variable Cost= $10-$5. 5 =$4. 5 New CM= New Price – Variable Cost= 8. 5-5. 5= 3 % Break-even sales change= -? P/(CM + ? P) = 1. 5/(4. 5-1. 5) = 50% % Break-even sales change in units =5000*50% =2500Total Break-even sales=5000+2500= 7500 Change in Profit for 40% increase in sales= (Sales change in units- Break-even sales change) * New contribution Mar gin =(2000-2500)*3 =-750*6 =- $1500 The answers differ from the answers in part a because in part a segmentation pricing is used whereas here the price is reduced for the entire product line. The change in the contribution margin for all the products is responsible for the change in profitability. c) Swing is better positioned to take advantage of this opportunity because with a 40% increase in sales at a price of$ 8. per unit, it incurs additional profits of $4500; whereas Steady incurs losses of $1500. If the companies share the market both the companies will have additional sales lower than the break-even sales resulting income lower than their current income. In such a case Steady will suffer far more losses. Low variable costs and hence lower contribution margins of Swing make the company more profitable in comparison to Steady for the sales of additional units. Since the market cannot be segmented, I would advise Swing to reduce its price and enter the market to acquire 40% ad ditional sales.Steady should overlook the new market and continue selling to the current market without changing its price. d) Break even sales change that would change the profits by the same amount as a reduction in price. Initial Contribution Margin= 10-5. 5=4. 5 Reactive breakeven = ? P/Initial CM =-1. 5/4. 5=- 33. 33% Thus a sales reduction of 33. 33% percent at initial price of $10 is equivalent to losses brought about by a price reduction of 1. 5. Steady’s management believes that a price of $10 after Swings reduction to $8. 5 would have brought about 60% reduction in Steady’s sales. Since 33. 33%

“Danger room” – Creative Writing

I woke up to the sound of drips on my bedroom roof, i couldn't wait to gewt out of the dump for 3 days. I packed the night before, i didn't i hade so many clothes! I found a some silk sleepsuit, which i recived for chrismas off my antie with the mole on her face, it's a welsh name and i cant say it with out pouring out 1 ton of spit. Mum was feeding the baby as i went down stairs, she was just about to drop him around my nana's, While we went away. Dad has allready out there, we entered a doogy compertion and we didn't read in the terms and contaions that you may not all get on the same flight. I was so excited, I felt like a child on the night before christmas. I couldn't wait to get onto the plane. We got in the car, droped little sam to my nans nad speeded down the motorway to the airport. When we got to the airport, the told us that we hade been upgraded to first class seats. My mum thought it was because she looked like Cathren Zeta Jones, while the way the rude, drolly dollie, looked at her like she was Pat buthcher. The only thing that came into my head was â€Å"if looks could kill† We got into our seats, they hade covbers over them, they were as smooth as slik. The runway was like a ribbon of moonlight. We blased of into the air. The stars looked so close now. After an awful film and luke warm food we lanned into New york air port. we breased through cosstums and we were soon in a Yellow cab to our hotel. The neon lights we shinning bright. I could help buty notices but there was a Mc Donald on every cornor. I was going to be happy here. I couldn't wait till the next day. The atmospher felt so nice. The next day I leaped into the arms of living. We went for breakfast. I hade a stack of pancakes. they were soacked in surup. My mum hade a cheese tostie, she expected a small one., but when it came it came New york style! There must of been about 10 types of cheese! We set of toward where my uncle worked. I haden't seen him unsince i was a baby. On the way there we saw a Televison show being filmed. The hosts hair was an exclamation mark. His jacket was reflecting sun light. If i stayed next to him, i would have court a tan! Bang! I heard a really load bang. I was so scared, you hear so many bad things about New york. All of a suddend a helecopter came shoting down from the bright sky. The letters FBI were on the bottom. Everyone was scared. Then on a big T.V. screen a man appeared and said â€Å"Stay calm, your on tv, you all just made fools of you self!† they yanky voice said. They was a grate sigh of releaf. We thought to our self, this must happen all the time in the big appel. Went into this shopping centre, they called it a mall i think. The floor was so clean you could see your reflection in it. We went into a glass lift to the 22d floor. All the shops had ended. They was just offices now. From shinny floor to gray carpet. We were looking for room 11b. Someome walked passed and ask at â€Å"Do need any help† the half naked women said in a high tone. We asked her where room 11b was. She told us. Went down a really lond corriodr. It didn't end, it was like in a cartton when they keep repeatina the background. Finaaly we came a croos a door. It said 11q on the frount. We went in and looked around. It seemed to be a abbanded, It was all messeed up. There was a second door we opened it. â€Å"Hello† my mum said. I was getting scared by now. This room was empty too. Exexpt they there was a painting. On the painting there was an envolpe. The name on it was mine. I didn't know what to think. I opened , and took outr the sheet of paper. It said † Hide†¦hide†¦hide † press the hook. By this time we thought it was one my uncles bad tricks. All of sudden we heard foot steps going down the corridor. My looked out and a bullilet was shot at her. It only just missed her. She ran back in. The foot steps were getting loader and loader. We thought † what should we do? † Then we rembared about the note. press the hook. We couldn't see the hook. Foot steps were geting so close. Mum threw the painting of the wall and noticed there was a hook. She pushed the hook into the wall like the note said. All of a suuden the floor opened bwlow us. With a swish we fell in a room,and the door closed. We didn't know what just happened. We thought it was all a dream. The room was dark, there were coboids all around. There were a wall of tv screens. With a flick of a switch, the TV came on. It was my uncle. † welcome to the danger room, i hate to tell you this but you are being hunted. Why? I dont know. You should be safe her. No one can get in, no one can get out unless you press the red button. After i get of the tv screens you will be able to see all round the offices in my work place. Rember†¦ you can reflect the danger back to the enime. Bye for now.† Me and mum looked at each and other and wondered what the hell he was on about. We knew somting bad was happeing. We looked at the tv screens. There were 3 men in the room we hade just entered. They were all wearing black. One was tall and hade a mole on has face. One was short and fat. The other guy reminded me of someone but didn't know who.

Cognitive-Behavioral Therapy essay

Cognitive-Behavioral Therapy essay Cognitive-Behavioral Therapy essay Cognitive-Behavioral Therapy essayThe statement â€Å"A person’s thoughts greatly influence the way that person feels and the way that person behaves† is true because the way of thinking determines the behavior of people and their feeling (Patten 334). For example, an optimist will feel good because he/she thinks positively and so he/she will behave. On the contrary, a pessimist with the negative mode of thinking, will feel bad and tend to negative behavior patterns.A person’s feelings greatly influence the way that person thinks and the way that person behaves. This statement may be true for people, who rely on their intuition and feelings (Tursi Cochran 392). They are highly emotional to the extent that emotions determine their behavior and feelings.A person’s behavior greatly influences the way that person feels and the way that person thinks. This statement may be true, if a person have difficulties with forecasting consequences of his/her actions and acts first before thinking carefully.Mrs. Tell’s inner resources include her concerns of her motherhood since she manifests care in regard to her baby. External resources include the support from the part of her parents, who are actually the only source of financial support for her and her family.The Tell family faces financial difficulties. Disputes within the family are another issue. The family also suffers from health problems of Mrs. Tell and drug abuse problems which her husband used to experience.As the helper I would provide counseling services for the Tell family to prevent disputes and help them to develop positive interpersonal relations. I would pay a particular attention to Mrs. Tell and her mental health issues.Mrs. Tell’s mother needs the assistance, who suffers from disability. Mrs. Tell’s children also need support, care and attention. Mr. Tell may also need support to cope with his drug abuse problems.

Salesoft Analysis Essays

Salesoft Analysis Essays Salesoft Analysis Paper Salesoft Analysis Paper Case 15 SaleSoft, Inc. (A) Synopsis Greg Miller and Bill Tanner, Executive Vice President and CFO, founded SaleSoft in July 1993 with the objective of marketing PROCEED, a Comprehensive Sales Automation System (CSAS). While PROCEED had received very favorable responses from prospects, converting interest to actual sales was taking a long time with only five PROCEED systems having been sold to-date. In September 1995, with limited funds and the need to show performance before seeking additional venture capital, Gregory Miller, the president and CEO of SaleSoft, and William Tanner, the executive vice president and CFO, now need to decide the future course of action for their company. They are faced with the question of whether or not to introduce a Trojan Horse[1] product. This product can be developed, with some work, using the existing modules of PROCEEDs Sales System that have already been developed. Trojan Horse (TH) could potentially distract SaleSoft from its primary objective of becoming a leader in the high end of the Sales Automation (SA) software industry. In addition, there is a risk that it might cannibalize sales from the PROCEED product that SaleSoft is currently marketing. Finally, TH can potentially prevent SaleSoft from forming relationships with consultants whose support is critical to the success of PROCEED. Yet, TH might offer an easy way for SaleSoft to get into new customer accounts, gain quick sales, and generate much needed revenues. The situation is complicated by the fact that current PROCEED customers are expecting SaleSoft to deliver the complete PROCEED solution as soon as possible. Should Sale5oft complete the development of the PROCEED product and continue trying to sell PROCEED to select customers? or, should the firm make an all out effort to launch TH to a much larger customer base? This note was prepared by Professor Das Narayandas with the assistance of Research Associate Sara Frug for the sole purpose of aiding classroom instructors in the use of SaleSoft, Inc. A), HBS case No. 596-112. It provides analysis and questions that are intended to present alternative approaches to deepening students comprehension of business issues and energizing classroom discussion. Copyright @ 1998 by the President and Fellows of Harvard College. Used with permission. Positioning This case can be used to illustrate the challenges faced by suppliers with limited resources that operate in markets with long buying cycles. It can also be used to link buyer behavior, product design (bundling), and pricing issues. The case is best taught in a business marketing, entrepreneurial marketing, or a high technology marketing course. It can also be used very effectively towards the end of a basic marketing strategy course. At HBS, this case is taught as the transition between the Understanding the Customer and Managing the Value Proposition modules in the second-year Business Marketing elective, and on the last day of the Business Marketing Module in the Strategic Marketing Management program for senior marketing executives. Objectives The teaching of this case involves the following objectives: 1. Linking product policy and pricing issues with the customer acquisition and retention process. More specifically, Understanding the role of a Trojan Horse product in developing a customer migration path that facilitates customer acquisition and enhances their retention. Quantifying a products benefits or value to a customer, and integrating this value with other strategic and tactical issues to set price. 2. Understanding the complexity of a decision making unit (DMU) and the associated decision making process (DMP) in the purchase of complex, technological products. More specifically: Understanding the decision making process (DMP), its stages, time frame, and the people (the DMU composition) involved. Understanding the link between a customers DMP (or buying cycle) and a vendors selling cycle. 3. Understanding sales and marketing issues faced by a start-up operating in an embryonic market by comparing/contrasting approaches required to sell products of varying complexity. 4. Exploring the role of a vendors organizational structure in defining its ability to implement marketing strategy. 5. Understanding the role of automation in linking sales, marketing, and service functions in a firm. Recommended Readings Major Sales: Who Really Does the Buying? – HBR-82305 Automation to Boost Sales Marketing – HBR 89105 Teaching Questions 1. What is your plan? Do you plan to continue with PROCEED or will you introduce the TH product? Provide support for your plan. 2. What is the buying cycle for PROCEED? Who are the people involved in the purchase of a CSAS solution? What is the role of consultants? 3. What is SaleSoft’s current approach to selling PROCEED? 4. Quantity the benefits of CSAS to a customer using the information given in Exhibit 7. 5. What value does TH provide a customer? How is this different form the customer value delivered by PROCEED? 6. What is a Trojan Horse? How does it facilitate customer acquisition and retention? 7. How will you price TH? 8. How do you think SaleSoft’s organization structure will affect its ability to sell PROCEED or TH? Details of the Discussion Flow What is your plan? Do you plan to continue with PROCEED, or will you introduce the TH product? The various comments supporting going ahead with TH or PROCEED are as follows: PROCEED vs. TH Continue with PROCEEDSell Trojan Horse |We have spent too much time on PROCEED to walk away from it now. |PROCEED has only generated interest | |Tanner – We will lose our first mover advantage in the CSAS market if we |Selling TH is very much like selling CMS and there are so many | |divert our attention to TH. |success stories in the CMS market. Customers don’t need to be | | |educated on the benefits of TH. Most Sales VPs will grab it at | | |any price. |TH will prevent SaleSoft from partnering with consultants who are very |The cost involved and the time required to develop the TH product | |important to the firm. |are not very high. We can afford to do it. | |SaleSoft has committed to current customers that remaining modules of PROCEED |Tanner – We don’t need consultants to sell TH. | |will be read by June 1998. | | |Twenty Prospects for PROCEED want to see completed product before making any |Tanner – It’s a much bigger and broader market than the PROCEED | |purchase commitments. market. | |Miller knows what he is doing. He has shown that he can make it work – he was|TH is an easy way to get into customer accounts, gain quick sales,| |successful in bringing order to chaos in the MRP area. |generate much needed revenues (pg. 1). | |The competition is going to heat up very quickly in the TH market – Microsoft |Industry experts think it is unlikely that one vendor will be able| |and Lotus are planning to enter. All the CSAS competitors are small and like |to do it all (pg. ) | |SaleSoft – this is an easier battle for SaleSoft. | | |We dont have the skills to mass market products – we dont know how to sell |Customers are very skeptical about CSAS and the ability of CSAS | |TH. |vendors to survive in the long-run (pg. 2). | |Creating awareness for TH is very expensive – half a million dollars over the |It is easier to quantify the benefits of TH, and it needs no | |n ext six to eight months. customization (pg. 9). | |We just need to convert 6 of the 20 prospects to hit $5. 7 million in sales**. |TH is easy to sell – only the sales VP needs to get on-board. | |Given that there are just five players in CSAS and we are better than the |There are too many players involved in the purchase of PROCEED | |others, (using Exhibit 3) this is not difficult. |(pg. 9). | |(** $2,400/seat * average of 400 seats per prospect |TH needs only 1/3rd the time taken for selling PROCEED (pg. 9) | |* 6 = 5. 6 million) | | | |Tanner – We will not relinquish the PROCEED market if we go after | | |TH (pg. 10) | Once some of these issues for and against have been brought up, the instructor can push the discussion to the next theme in the following manner: â€Å"It looks like both sides have legitimate reasons to support their action plan. Those who are against PROCEED seem to be disturbed by the lack of sales in the last eighteen months. They also believe that TH will not have the same problems as PROCEED. Those who support it believe that more PROCEED sales are just around the corner and that selling TH is no different from selling PROCEED in terms of difficulty. In either case, it seems that understanding the purchase process for the PROCEED product will help us understand why some people think that PROCEED is the wrong product for SaleSoft and others think it is the right product. Let’s understand the CSAS buying cycle as given on case page 4. † What is the buying cycle for PROCEED? The buying cycle begins when the senior management realize that a CSAS might solve existing sales, marketing, and service problems. The case doesn’t provide any details about how long this stage takes. It is useful to ask the students what the catalyst is for this stage to happen. Typical responses here focus on the top management’s frustration with the inefficiencies that exist with current systems and their inability to control and improves sales, marketing, and service processes. Once top anagement have seen that they are able to bring order to the manufacturing, inventory, and materials handling functions, like Miller (pg. 7) they think that automation might provide answers to managing sales, marketing, and service issues. Some students might counter these comments by pointing out that automating sales and marketing functions is very different from MR P systems (see pg. 2 on the general belief that there was no standardized approach to sales order cycle). Next, the subsequent stages of the CSAS buying cycle can be captured in the following manner. In addition to text on pg. , there is a lot of information in Exhibits 4 and 5 on the issues raised by different members of the DMU, their concerns, and the benefits they seek from CSAS solutions. Using these three sources of information, the instructor needs to push the students to answer the following questions for each stage: What is this stage in the buying cycle all about? Who are the people involved in that stage? What are their roles? What do they want at this stage? Are they positive or negative about the CSAS product? (This format is what the students would have read in the assigned reading â€Å"Major Sales: Who Really Does the Buying? by Tom Bonoma. ). I have found that there is wide variance in the student analysis on who is involved in each stage and what are their motivat ions. Rather than trying to clarify these issues, I take them as they come. There is a lot of energy at this point and it doesn’t help to challenge students on their views. Invariably, this job is well done by other students who will object to comments with which they disagree. It is important that the instructor captures the following points: 1. Consultants get involved very quickly in the cycle and get more powerful over time. 2. Senior management plays a bigger role in the beginning and in the end. However, in the middle stages they have a limited role to play. 3. Line managers are involved more in the intermediate stages that involve systems design. 4. Users might only be involved towards the end. This is not clearly spelled out in the case and students will debate this issue. Some will insist that users will be involved throughout. Others will quote the case and suggest that it is only with the pilot test that users get involved in the process. [2] Below, is an example of a table that came out of a class discussion in my Business Marketing Class. SaleSoft Buying Cycle Stage Involvement Activity Timeframe (months) Need IdentificationCEO, CFO, VP Sales,Realization by senior 21-30 VP Marketing, VPmanagement that CSAS might Servicesolve existing problems Need ClarificationVP Sales, VP Mktg. , VPEvaluation of potential to 3-4 Service, VP MIS, SAautomate existing processes and Consultantsspecification of the order in which functions are to be automated Need Definition andVP MIS, IS Managers,Evaluation of how different 2-3 SpecificationSales, Managers,functions to be automated are Marketing Managers,related and how data is to be SA Consultantscollected, stored, and analyzed Evaluation ofCEO, CFO, VP MIS, SADecision on which system (h/w 6-8 Software/hardwareConsultantss/w) to purchase, short-listing of And vendorvendors Alternatives Pilot Testing andSales Reps, SalesCustomization of CSAS and pilot3-4 CustomizationManagers, MIS dept. ,testing SA consultant, CSAS vendor Rollout 4-6 An important point for the instructor to point out here is that it is common for the DMU composition to change as we go from one stage to another. On a side board, the instructor can also separately capture the orientation of each DMU member towards CSAS. DMU |Orientation |Under- |Interest in |Reasons | |Member |to CSAS |standing of |Implementing | | | | |CSAS |CSAS | | |CEO |+/- |Low |+/- |+Would like more control and higher sales marketing | | | | | |efficiency | | | | | | | | | | | |- Has other things to think about | | | | | | | |CFO |+ |Low |+/- |same as above | |VP Marketing |+/- |Low |+/- |+Wants more control | | | | | | -Fears that other will have access to data. Erodes power | | | | | | | |VP Sales |+/- |Low |+/- |same as above | | | | | | | |VP Service |+/- |Low |+/- |same as above | | | | | | | |Sales Reps |-/+ |Low |-/+ |-Worried about sharing customer information- if everyone | | | | | |knows everything about my customer, what is my role? | | | | | |+This will make me more efficient | |Consultant | | | |+This is my livelihood | What is the SaleSoft’s selling cycle for PROCEED? Students will be quick to point out that SaleSoft enters into the picture at the end of Stage 4 of a customer’s buying cycle, and that too only if it happens to be selected as a CSAS vendor. One way to run this part of the discussion is to draw a ladder on the board, with one vertical line for the customer’s buying cycle for PROCEED and the other for SaleSoft’s selling cycle, and build the rungs as links between the two vertical lines. In this case, the process highlights the fact that SaleSoft does not have an approach that maps onto the customer’s selling cycle. This is a very big learning point for students and is worth the drama. I usually turn to the student who is giving me this information with a total look of bewilderment and disbelief saying something to the effect of â€Å"Is this firm out of its mind? Doesn’t it understand the process of selling? To the above figure, the instructor can then add the following information that highlights the role of consultants. The instructor can also use the point out how intermediaries can become powerful in buyer-seller transactions by getting in between the two sides very early in the process and keeping the two sides apart after that. An example that the instructor can use here is the important of getting the product specified in a customer’s RFQ (request for quotation). In many high-tech business this is considered to be more than half the battle won. [3] In cases where a competitor’s product was specified, vendors should realize that there is a good chance that they have already lost the sale. [4] At the point, the instructor can say something like, â€Å"Well, clearly the selling approach is not right. What about the economics of a CSAS purchase? Does SaleSoft have a good story to tell the customer? How much value does a customer get from PROCEED? † What are the benefits of CSAS? Case Exhibit 1 fleshes out the benefits of CSAS. Case Exhibit 7 provides more numbers that students can use to calculate these benefits. There are three sources of benefits detailed out in Exhibit 7: sales cycle reduction, startup time reduction for new employees, and employee turnover reduction. For Company A (a financial services firm), this translates into $7. 5 million in additional sales. Selling time reduction x ($ sales/ year) Additional Sales due to Sales cycle reduction= Avg. selling time = 6 x $120m = $6 million / year 120 Additional Sales due to reduction in start-up time for a new sales rep = Days reduced in startup x ($ sales / rep / year) x Days to startup x (# of new reaps) # days to startup Workdays / year =14 x$120m x 60 x 24 = $1. 1 million / year 60 120 300 Additional sales due to reduction in sales rep turnover (% reduction) x (current turnover) x ($ sales / rep) x Days to startup Workdays / year = 0. 1 x 24 x ($1m) x 60 = $480,000 / year The total additional sales for Company A from using CSAS are = $7. 6 million w/o PROCEEDwith PROCEED Sales Costs (at 30$ of sales)$127. 6 million$127. 6 million S elling Costs (at 30$ of sales)$38. 28 million$36 million * + commissions on $7. 6 million = 36 + . 1 x 7. 6 = $36. 76 million Difference38. 28 – 36. 76 = $1. 52 million *-$120 million x . 30 = $36 million. Using PROCEED, cost of sales remains the same as it would be if sales volume were $120 million w / o PROCEED. We can also get to this number by working directly from the savings. If we assume that selling costs don’t change, then the company saves 30 percent (row 3 of Exhibit 7) of the additional sales in costs less commissions of 10 percent. Thus, the firm gets $7. 6 x . 20 = $1. 52 million in the first year after implementing PROCEED. The Costs of implementing CSAS for Company A are: Initial Costs = H/w + PROCEED license fee + start up + Implementation training costs + annual costs of internal resources = $1. 5 m + $600k + $200k + $180k + $150k = $2. 63 million Thus, the pay back time for the CSAS investment is around 1 ? years. For Company B, the results are even more dramatic and the pay back period is less than a year. For company B that is in computer h/w, the analysis is as follows: Selling time reduction x ($ sales / year) Additional Sales due to Sales cycle reduction = Avg. selling time = 15 x $350m = $29. 16 million / year 180 Additional Sales due to reduction in start-up time for a new sales rep = Days reduced in startup x($ sales / rep / year) x Days to startup x (# new reaps) # days to startup Workdays / year = 20 x $350 x 90 x 88 = $8. 2 million / year 90 250 300 Additional sales due to reduction in sales rep turnover = (% reduction) x (current turnover) x ($ sales / rep) x Days to startup Workdays / year = 0. 15 x 88 x ($1. 4m) x 90 300 The total additional sales for Company B from using CSAS are = $42. 9 million w/o PROCEEDwith PROCEED Sales$392. 9 million$392. 9 million Selling Costs (at 35% of sales)$137. 5 million$122. 5 million + commissions on $42. 9 million = 122. 5 + . 04 x 42. 9 = $124. 2 million Difference137. 5 – 124. 2 = $13. 3 million We also get this by working directly from the savings: if we assume that selling costs don’t change, then the company saves 35 percent (row 3 of Exhibit 7) of the additional sales in costs less commissions of 4 percent. Thus, the firm gets $13. 3 million in the first year after implementing PROCEED. The Costs of implementing CSAS for Company B are: Initial Costs = H/w + PROCEED license fee + start up + Implementaiton training costs + annual costs of internal resources = $3. 6 m + $1. 44m + $450K + $430k + $350k = $6. 27 million Thus, the pay back time for the CSAS investment is less than half a year (. 47 years). Using the above information, the instructor can draw a stacked column of the benefits and call it the â€Å"value column† or the â€Å"value line. † Executives are very likely to get in at this point with their own versions of bars, pies, stars, and other ways in which their firms represent customer value At this point, the instructor can push the class by saying something like, I think that SaleSoft has a good selling story. Not only is the firm going to get additional sales, it will have reduced sales rep turnover and higher sales rep morale. In addition, the investment pays for itself in less than 6 months for Company B. The economics and other benefits that we spoke about should make this an easy sell, shouldnt it? There will be a skeptic who is primed to get into this discussion now (and there will always be one, dont worry) saying that the value line is just a part of the selling story. Using Exhibit 5 (Typical Concerns Regarding CSAS Solutions) that provides a breakdown of specific concerns about the benefits of CSAS for each member of the DMU, this student will bring up everal issues highlighting the following: 1. The value of PROCEED needs to be sold at every level of the organization. Not every person in the DMU cares about the sources of benefits as defined by the value line. 2. The CEO and CFO need to be convinced that the system will work and that SaleSoft will not go out of business leaving them with no support. Further, there will be arguments that the three sources of benefits are very hard to measure and unrealistic. 3. The VP MIS needs to be convinced that the operation of the system will be as promised. 4. The Sales managers and VP Sales need to be assured that their salespeople will use the system well. . The Sales Reps need to be reassured that the system will benefit them. This sets the stage for the instructor to say something like, So creating these value lines is not the end. We also need to take this value line and convert it into a legitimate selling story that our sales reps can take to their customers. At this point, the instructor can mention to the students that this is a potental area where things can break-down between marketing and sales. Marketing develops value propositions with all these benefits quantified. However, when they then toss it over to Sales to take it to their customers, Sales find it very difficult to manage. The next thing you know, there is a breakdown in the initiative. I reiterate the fact that it is here the most large companies are facing problems in implementing their new strategic marketing initiatives. Marketing is so consumed by figuring out the process of where and how they create customer value that sometimes they don’t pay attention to what they need to do to help Sales develop a strategy to extract the value that they have created. Next, the instructor can move the discussion along by shifting the focus from PROCEED to TH. How does TH compare to PROCEED? Selling TH is different from PROCEED in several ways. First, unlike PROCEED, TH is focused only on sales. This signficiantly reduces the number of people involved in the buying cycle as well as the need to build consensus between the traditionally diverse sales, marketing, and services departments of customer firms. TH delivers enormous value to Sales VPs of firms that are involved in selling big-ticket items with long, and complex selling cycles. These Sales VPs find it difficult to provide their firms with accurate forecasts, which in turn affects the firm’s ability to plan operations and resources. Thus, TH might be an easier sell than PROCEED. Looking at the value line created for PROCEED, students will point out that all the benefits listed for PROCEED are also applicable to TH. Compared to PROCEED, TH needs minimal customization (customizing the program requires only small alterations such as changing the number and names of segments in the opportunity pipeline). Some students will point out that TH might not really by a TH for PROCEED, since it appears to be addressed to a market segment that is not the same as the PROCEED product. Not all PROCEED prospects would necessarily want to start their automation efforts with TH. Also, not all TH users might be interested in the complete PROCEED product. This is the point where the instructor needs to run a discussion on what is the role of TH, how does one design a TH product, and what is the link between TH and the customer acquisition and retention process. What is a Trojan Horse? How does it facilitate customer acquisition and retention? TH is a good solution in situations where the complete product is very expensive and involves a high level of risk for customers. In these cases, customers might not be willing to make the investments in the vendor. As is the case with PROCEED, vendors are able to generate interest in the product but are not able to convert this interest into actual sales. In these situations, if there is an opportunity to unbundle the complete product into distinct products that can be sold and used independently, and it is also possible for the customer to add modules over time without risking any loss in past investments, then TH can be a very effective tool for the vendor. TH provides with an opportunity to penetrate a customer account faster and more economically. A good TH product will also facilitate and ensure future sales of other products to the customer. For the customer, TH offers an opportunity to reduce the risk and the investments involved. The customer is able to use the TH product and experience the benefits fro that product before making any further investments. It also gives the customer a chance to assess the capabilities of the vendor to support and serve them over time. TH also provides the vendor with an opportunity to make some money relatively quickly. Vendors can use TH to create a barrier to entry for competitors by increasing the switching costs to the customer. Designing the TH product involves the integration of product bundling/unbundling issues with pricing issues. In designing a TH product, the vendor should be careful not to design a TH that becomes an end in itself such that customers do not see the need to buy the full product. How much of the functionality of the full product should be incorporated in the TH product? What should the price of the TH product be compared to the full product? How should the vendor manage the migration of customers from the TH product to other products? Exhibit 1 provides a set of PowerPoint slides that I use to discuss these issues in greater detail. Based on what we have discussed, how will you price TH? Based on customer value, one could potentially make the case that TH should be priced at the same level as PROCEED, i. e. , $2,400 per user. This is base on the fact that the value line for TH is the same as that of PROCEED. Some students will point out that this price is difficult to justify given that SaleSoft is having trouble selling PROCEED at $2,400. Other students will suggest that if SaleSoft were to go after prospects that had never seen PROCEED or used a CMS product, then it is possible for SaleSoft to price TH at $2,400 or even higher. Using competition as a basis, given that TH is closer to a CMS product, students are likely to suggest a price anywhere from $200 to $400. Finally, in the case, Miller has suggested a price of $1,000, and Tanner has suggested a price of $400 per user. Students that suggest a low price will point to the fact that SaleSoft has to minimize customer resistance and reduce marketing and sales costs. At a price of $400 per user to below, they will suggest that TH will sell like hot cakes. They will quote Tanner who says, â€Å"at this price, our salesforce will have to just go out and pick up these orders. † Those that suggest a price closer to $1,000 per user will argue that at a lower price, SaleSoft is leaving money on the table. Given the enormous benefits TH provides customers, these students, like Miller, will want to charge a higher price to extract a reasonable value for themselves. It is also possible to do the following break even calculations to determine the price of TH. TH Cost = Development cost + Init. Marketing cost + ongoing marketing costs = $200,000 + $500,000 + $200 / user At $1,000 (as per Miller), SaleSoft would need = 700,000 = 875 users to break even 1000 200 And at $400 (as per Tanner), SaleSoft would need = 700,000 = 3500 users to break even 400 200 Using the results of this analysis and information from Exhibit 7 that suggests that SaleSoft can expect to get 200 users per prospect, one can conclude that SaleSoft needs 875 / 200 = 5 customers at $1000/seat and 3,700 / 200 = 18 customers at $400 per user to break even. The instructor can then ask the students how many prospects they think SaleSoft is likely to be able to get in the next 9 to 12 months. This is also the ideal spot for the instructor to draw the attention of students to Exhibit 8. â€Å"What do you think of the way this firm has been organized? Do you think the organization has been set up to sell PROCEED? Would it need to be changed if TH were introduced? How do you think SaleSoft’s organization structure will affect its ability to sell PROCEED or TH? A look at Exhibit 8 suggests that a plurality of employees comprise the development department, with the next largest number of individuals working in support services. Both the sales and the marketing departments are small, with only five and four members, respectively. It is interesting to point out that Miller seems to recognize this when he points out that SaleSoft has neither the resources to have separate sales forces for the two products nor the will in the sales department to sell PROCEED if TH is available. Students will look at all this information and suggest that this firm is still organized to develop products- not to sell them. They will suggest that Miller completely re-organize the firm and build up selling capability very quickly. The instructor can push students on this point by asking the following question, â€Å"If you are an entrepreneur in a high tech industry and have been developing products for a while, when will you change the organization? How will you change it? It is very easy to say that Miller should do it. However, students have to understand that this is a non-trivial issue. The instructor can highlight that the transaction from being product development oriented to becoming marketing/sales oriented is a very tough one and is usually the place where many high tech startup firms falter. In these businesses, the need to innovate continuously and develop new product only complicates issues further. What Happened? As the case points out, Miller and Tanner were looking for an additional $2 million of venture capital. Late in 1995, they decided to use the TH proposal as their trump card to get more investments from the venture capitalist (VCs. ). As a condition to giving more money, the VCs demanded that SaleSoft put the PROCEED project on the back burner and push ahead with the TH product. SaleSoft made a big announcement that it had now positioned itself as an â€Å"Opportunity and Pipeline Management† company. The VCs did not allow the organizational structure to be changed in any manner since they saw this as major and unnecessary expense. As a result, when asked to sell the TH product, the firm’s sales reps took the standalone TH product to the same set of prospects to whom they had been trying to sell PROCEED. Two things happened as a consequences. First, competitors that were trying to sell CSAS to these prospects immediately seized upon this chance. They started telling the prospects that if they wanted a sales forecasting and opportunity pipeline manager, then possibly TH was a good bet. However, if they were looking for a complete CSAS solution (which these prospects were) then TH wouldn’t cut it. Further, with SaleSoft calling itself the pipeline manager, it was more or less clear that SaleSoft had pulled out of the CSAS marketplace. The other thing that happened was that these prospects had moved so far down the buying cycle that they were not willing to go back and put everything on hold and shift their attention to buying TH. Add to this the competitive reaction and there is little doubt about what happened. TH sales did not take off quickly and Miller and Tanner had to back to the rawing board to think of how they were going to manage the whole process. Teaching Process One way to manage the wealth of information in the case is to break up the discussion into several times. Theme 1: As the case revolves around a bi nary decision, the best way to begin the discussion is with a comparison of PROCEED and TH. There is usually an even split in class with support for both products. The instructor can lead the class to the next theme by pointing out that people who support TH appear to suggest that SaleSoft will not be successful if it continues to sell PROCEED, and those who support PROCEED appear to suggest that SaleSoft is on the verge of getting a major break in PROCEED sales. Clearly, it is the interpretation of the current PROCEED sales that is at the heart of their analysis of both sides. Theme 2: Here, the instructor needs to walk the class through details of the different stages in the CSAS purchase process (or buying cycle). It is important that the instructor needs to push the discussion on who is involved in each stage, their needs, and what they are looking for in that stage of the buying cycle. Having done that, the instructor then can ask the class to map SaleSoft’s selling cycle onto the customer’s buying cycle. It becomes evident that SaleSoft enters the picture very late in the game and is at the mercy of consults. Once this issue has been identified, the instructor can transition the class to the next theme by asking the following question, â€Å"Okay, we have found that SaleSoft is very late in getting into the game. That is clearly not good, but let’s live with that for the moment. At least, do they have a good selling story to tell? Does PROCEED deliver value to a customer? † Theme 3: The third theme is all about understanding and quantifying the benefits of PROCEED to the customer and revolves around the numbers in Exhibit 7 of the case. The instructor can build a column, (or, a line) of benefits to a customer. With the customer value line developed, the instructor can get details on costs to a customer of buying PROCEED. The instructor can then summarized by saying something like â€Å"With these kind of numbers and a pay back period of less than a year, customers should be lining up at SaleSoft’s door to buy the product. But that’s not what is happening. What’s wrong with our analysis? † This leads to the idea that it is not enough to come up with these value lines, it is also important for the firm to figure out how it is going to sell these benefits to the customer. Will a customer see this value? Are there other factors that were not considered? Theme 4: Next, the instructor can move the discussion to the other side and ask how students see TH solving all these problems. The associated decision that needs to be addressed is about how to price the TH product. The instructor should then ask the students if they think that the TH product should be sold to PROCEED prospects. Most of the students will say that the TH product has to be sold to a different set of customers and that it is good for those customers who don’t want to buy PROCEED today but might be prospective customers for PROCEED in the long-run. The instructor should capture this issue on the board since it will be very useful to go back to in the summary. The instructor can also choose to use this time to do a short lecture on the role of TH: how does TH help manage customers better over time? When is it useful to think about a TH product? What factors should be considered in the design of a good TH product? etc. Linked to the pricing decision of the TH product is the issue of whether SaleSoft has the capability to sell this product. This leads to the next theme in the case discussion. Theme 5: The instructor can then bring the attention of the class to the organization chart in case Exhibit 8. The instructor can initiate this part of the discussion by asking a question like, â€Å"What do you think about this organization? What is it designed to do? The discussion then revolves around the issue of whether one should organize proactively, or reactively in developing markets. How should a start-up firm that is still focused on product development develop an organization that will take care of market development? SaleSoft’s organizational structure, not atypical for a start-up firm, might make it difficult for the firm to be successful in a mass marketing strategy. Theme 6-7: Here the instructutor can tell the class what happened and ask them how they would respond to SaleSoft’s decision to market the TH product. It is important to get the customer and competitor’s veiwpoint here. Finally, the instructor can do a short 5-10 minute lecture that summarizes the learning from this case discussion. Some Additional Thoughts For the last three years, I have visited the Sales and Marketing Automation Conference that is held in Boston every year. It is amazing to see the turnover of firms in this business. More than half the firms seem to be new ones. Interestingly, the people in the booths seem familiar. They just have changed jobs and work for new firm every time I see them. During one visit with Professor Ben Sharpiro, we asked several vendors to tell us more about their product, and who were their main competitors. The most common answers were (a) we are the only ones who have truly integrated sales and marketing automation software in the business, and (b) we really don’t think we have any competitoin. In the last twenty minutes of the class, I tell students that SaleSoft decided to launch TH and that it did not change its organization very much. I then ask them to tell me what they thought would happen. Students very quickly get to the point that SaleSoft must have gone back to its PROCEED prospects with this new product. Next, I ask them how this customer would react. Most say that there will be a signficant customer resistance to this move by SaleSoft. However, there are some who think that these prospects have not bought because they have doubts about CSAS. I take these comments as they come and then ask students to tell me how competitors would react to this move by SaleSoft. There are a few students who come up with the point that the competition can do best by acknowledging that the TH product is good but something that the customer really doesn’t want, and also that SaleSoft would be unlikely to deliver a CSAS product to the customer in the long-run. After this discussion, I run a short 10 minute lecture on the role of TH in helping vendors manage customers more effectively and link product line management (bundling) issues with pricing (value extraction)- especially when the products are expensive, complex, and require major changes on the customer’s part, and customers are risk averse. Managing the product line across customer life cycles and providing customers with a clear-cut migration path that reduces their risks and maximizes value to them will always ensure that vendors retain customers. TH also can be very effective in providing vendors with resources in the beginning that will help them survive and support themselves in the market development stages. Exhibit 1 of this teaching note is a PowerPoint slide presentation that I use to discuss the role of TH in managing customers and managing the firm. Issues to Manage There are a few issues that the instructor will need to watch out for. First, it is possible that some students raise the issue that cost of converting the existing modules of PROCEED’s Sales System appears to be too high. That it is difficult to understand how SaleSoft did not anticipate this when developing the system. This is an issue that cannot be answered satisfactorily using information in the case. The instructor can manage this issue by directing the students to the information on the page where Miller clearly explains why this happened. Second, some students try to take the easy way out and suggest that Miller should sell SaleSoft to a large software firm that is seeking to enter this market. The instructor can address this by saying, â€Å"What would Miller think of your idea? Miller says he brought order to chaos in manufacturing and is going to do the same in selling, marketing, and service. How are you going to make him walk away from what he sees as a tremendous opportunity? Students quickly understand the passion that the entrepreneur has in his baby. I also ask students whether this is the time to sell the firm. Given the current situation, would Miller be able to get a good price for the firm, or would he be better off getting some more sales before trying to sell the company. The term Trojan Horse is used to refer to an object or action used to gain easy entry into areas that might otherwise be difficult to access. The Trojan War is the subject of Homers Iliad and is thought to reflect a ten- year siege of Troy by the Greeks circa 1200 b. c. The fall of Troy is recounted in Virgils Aeneid: according to Virgil, the Trojans, having held out against the Greeks for 10 years, were tricked into hauling inside their city walls a large wooden horse (the so-called Trojan Horse) left as gift for the Trojans by the Greeks. The belly of the wooden horse was full of Greek soldiers who, once inside, opened the city gates at night and thus let in their compatriots to sack Troy. There is an interesting question here about how one would select the sample for the pilot test: should the test sample constitute people who will be most comfortable with the product, or should it be done with a group of people who are very skeptical about it? Should the test site be one of the more important markets for the customer, or should it be done in one of the secondary markets where there is less at stake for the customer? I had the opportunity to sit in on a couple of pilot test design sessions and found that th ese were issues on which the parties involved had a lot of trouble coming to any sort of agreement. The vendor and product champion (on the customer side) wanted to have a sample of favorably disposed users in a high profile office of the customer. They felt that this would given them a higher chance of success. The customer’s senior management wanted to pilot test using skeptics in a low profile market. I usually take a minute to bring this issue to the attention of the students. Given the time constraint, I usually don’t get into a long distance on this issue. * I have had executives come back to me after class with their versions of ladders and how they just realized what was missing in their own sales approach. [1] In my own personal experience, I have found that vendors that do a win / loss analysis of orders, very often find a dramatic difference in the probability of winning a bid when the specifications have been designed to favor a competitor’s product as compared to when the specifications are more favorable to their own product