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    Ascelepius Consulting: The Sales Force Dilemma: Analysis by Shobhana Chandra

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    Shobhana Chandra
    Based on the cost analysis provided, developing a direct sales team would be more cost effective than relying solely on resellers. While the upfront costs are similar, the direct sales team only needs to generate sales of ~Rs. 8.69 crores to break even, whereas the reseller model requires ~Rs. 11.17 crores. This makes the direct sales approach ~27% more efficient to reach the break-even point.

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    Ascelepius Consulting: The Sales Force Dilemma: Analysis by Shobhana Chandra

    Uploaded by

    Shobhana Chandra
    59 views11 pages
    Based on the cost analysis provided, developing a direct sales team would be more cost effective than relying solely on resellers. While the upfront costs are similar, the direct sales team only needs to generate sales of ~Rs. 8.69 crores to break even, whereas the reseller model requires ~Rs. 11.17 crores. This makes the direct sales approach ~27% more efficient to reach the break-even point.

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    Shobhana Analysis

    Original Title

    Ascelepius Consulting

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    Based on the cost analysis provided, developing a direct sales team would be more cost effective than relying solely on resellers. While the upfront costs are similar, the direct sales team only needs to generate sales of ~Rs. 8.69 crores to break even, whereas the reseller model requires ~Rs. 11.17 crores. This makes the direct sales approach ~27% more efficient to reach the break-even point.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    59 views11 pages

    Ascelepius Consulting: The Sales Force Dilemma: Analysis by Shobhana Chandra

    Uploaded by

    Shobhana Chandra
    Based on the cost analysis provided, developing a direct sales team would be more cost effective than relying solely on resellers. While the upfront costs are similar, the direct sales team only needs to generate sales of ~Rs. 8.69 crores to break even, whereas the reseller model requires ~Rs. 11.17 crores. This makes the direct sales approach ~27% more efficient to reach the break-even point.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Ascelepius Consulting: The

    Sales Force Dilemma


    Analysis by Shobhana Chandra
    The Company
    Founders
    Mr. Aravind Hiremath and Mr. Satyajeet Prasad: GE Healthcare Division
    Expertise: 1) diagnostic equipment
    2) Clinical Information Systems (CIS)
    3) Six Sigma
    4) Health Information Technology (IT) Solution delivery
    Mr. Vishal Ranjan: A. T. Kearney
    Expertise: 1) Business Process Restructuring
    2) business planning and strategy
    Product
    Niche Market:- HMIS (Health Management Information System)
    Company’s offering: comprehensive off-shelf software package for the
    healthcare sector.
    Augmented product:
    Management
    consulting (partnership)
    Made to order
    consultancy(one-stop solution)
    IT product
    Implementation and life cycle management

    Consumer expectation:
    Paperless solution, Streamline Process, Less complaints, Best software
    in least cost
    Consumer needs:
    Streamline workflow, Reduce pilferage, Efficiency in patient care
    Cost benefits
    Competitors
    • Software Giants: TCS, Wipro and Infosys pan India-Waterfall Model of
    software development, subsumed in others category with little focus.
    • Local Players: Akhil Systems-Delhi, Karishma, Softscript and 21st
    Century.
    • Value Proposition for Asclepius:-
    • Designed for the Healthcare industry
    • Installation within two weeks
    • Quality, Pricing, strong implementation, project Management and Return on Investment
    • Web enabled –reduction in capital expenditure by 10-15k per machine
    • Number of concurrent users based on licenses, User Identification can be created by an
    administrator within the client organization.
    • Off-shore client servicing and maintenance.
    The Market
    • Growth Rate of Healthcare Industry: 14%
    • Growth in Consumer spending: 15% year on year
    • Healthcare IT Market (2012): INR 4.6 bn Amount in INR Lakhs

    • Expected (2015): INR 9.8 bn 900 6295


    11470
    Single speciality
    Multi-Speciality

    5260 Nursing homes

    Healthcare Charity Hospitals


    Corporate Chains
    5465
    Industry 14330 Day care entre

    Public Private

    State and Central Govt. Hospitals


    Hospitals by Charitable orgn.
    - free of cost /subsidized services
    -free services /low cost depending on the income of patient
    -LIG in Rural and Urban areas

    Hospital by Coprorate Houses


    -Profit Motive
    -follow guidelines laid by the govt.
    Pricing
    • Price range: INR 2-50 lakhs
    • Depend on:
    • No. of Modules
    • Level of customization
    • Size of hospital
    • Complexity of processes
    • Implementation time frame
    • No of license and no. of hospital
    • Pricing decided centrally and divided by the number of licenses.
    • Experience of the Founders in consulting helped immensely.
    Buyer Behavior
    • Decision Maker: MD or CEO, (Doctor generally)
    • Gate Keeper- the secretary, the Administrative team and the IT
    departments
    • Evaluation by the committee of Top Management
    • Influencers- the lab, pharmacy, the specialty departments.
    • Specification prepared by independent consultants
    • Vendor evaluation by L1/T1

    Top down approach was desirable due to transparency in terms of


    evaluation of vendors.
    Benefits of Charak
    • Consultative selling
    • To reduce the loss of charges by incorporating inputs of all the
    department.
    • Bill generated at source
    • Track of credit history of the patient.
    • Track task assigned to a users helpful to identify bottlenecks
    • Track the profit and cost department wise
    Sales Structure

    Present Sales structure Highlights


    Mr. Vishal
    Ranjan
    • Resellers-Lead generators
    Sales
    • Depended on the internal sales
    Support (06) person for conversion
    Reseller
    • Short falls of present structure:
    • Not in a position to handle
    20 Resellers complicated query
    Reseller
    • Sales person closed the deals
    Reseller
    Q1 Evaluate the cost of developing a Direct
    sales team vis-a vis the reseller team.
    Direct Sales Channel Reseller as a Channel
    Sales Person Salesperson
    Recruitment 42,000 42,000
    Training 50000 50000
    Sales Overhead 400000 400000
    Salary 1000000 1000000
    Travel 48000 48000
    Mobile 24000 24000
    Total 1,564,000 1,564,000
    Incentive 173,778 670,286
    Total cost to company 1,737,778 2,234,286
    Break-even sales 8688888.889 11,171,429
    Quarterly sales 1086111.111 1396428.571

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