Sales Performance Management essay
The experience of large corporations, such as IBM, is very helpful in terms of the development of new and prospective products, like Afrezza, a new inhaled insulin medication. In this regard, the experience of IBM uncovers challenges the company may face, while introducing its product in the market and expanding its business and sales of the product internationally. The experience of IBM shows that the organization developing its new product and expanding business should focus on three major issues: organizational hierarchies, account assignments and sales crediting rules.
As the organization expands its business international or even if the organization is just growing due to the introduction of new product that expands its marketing opportunity, the organizational hierarchy grows more and more complex that sets new challenges in face of the organization as was the case of IBM. The organizational hierarchy grows more and more complex that forces the company to change its organizational structure and relations to make them more efficient. The introduction of the new product, Alfrezza, can raise the problem of the growing organizational hierarchy due to the growth of the company, in case of the marketing success of the new product. Therefore, the company should come prepared to possible changes. In this regard, the experience of IBM shows that employees should have the possibility to operate autonomously to increase the effectiveness of their performance and speed up the decision making process.
The growing complexity of the organizational hierarchy raises the problem of the accountability within the organization. As was the case of IBM, the growing organizational complexity has triggered the bureaucratization of the organization that has caused the deterioration of the organizational performance and the poor accountability of professionals working in the organization. The lack of accountability increases the risk of the lack of transparency and the overall deterioration of the organizational performance. The accountability is very important for the successful organizational development because the lack of accountability leads to irresponsible policies and decisions taken by professionals within the organization. In case of Afrezza, the new product may raise the problem of the deterioration of the accountability caused by the growing complexity of the organizational hierarchy. As a result, the company should come prepared to deal with possible changes and maintain the accountability. In this regard, the autonomy of units of the organization and its employees along with the regular monitoring and auditing of those units can help to keep their accountability high.
Furthermore, sales are crucial for the successful introduction of the new product and the fast market expansion. In this regard, the experience of IBM shows that the sales crediting rules can play the determinant part in the maintenance of the steady growth of the company’s sales. In this regard, the company introducing the new product, such as Afrezza, should maintain flexible sales crediting rules which allow adapting the price of the new product to the particular marketing environment. The flexibility of sales crediting rules contributes to the flexibility of prices of the new product.
In such a way, the experience of IBM turns out to be very helpful in terms of the revelation of strategic ways to the successful introduction of the new product, Alfrezza. In this regard, the company introducing Alfrezza should focus on then maintenance of transparency, in spite of the growing complexity of the organizational structure, and the price flexibility.
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