Demo’ing ISV vs ERP: Key Differences and Best Practices
At Presales Leader, were experts at demoing Independent Software Vendor (ISV) and Enterprise Resource Planning (ERP) software. Our team knows it involves showcasing their features and functionality to potential users or decision-makers to illustrate value, ease of use, and adaptability. In this blog, we will discuss the similarities and differences between demoing ISV and ERP solutions.
Similarities:
Discovery: Abraham Lincoln once said, “If I had six hours to chop down a tree, I would spend the first four hours sharpening the axe.” What this quote conveys, as it relates to software demonstrations, is that demos are won through preparation. Discovery is vital in the sales process for both ISV and ERP demonstrations because it allows you to better understand why the client is looking at your product, what their main challenges, pain points, and needs are. An often-overlooked reason is that it allows you to build rapport with the prospect, gaining trust and a deeper understanding of their business.
The outcome of the discovery call(s) allows you to identify if this prospect is a good candidate for your product, and if so, tailor a demonstration specific to their pains to unlock value selling. If there is anything you take away from this blog, remember this: demos are won in preseason, demos are won through preparation, DEMOS ARE WON IN DISCOVERY!
Value: The first goal of a solution engineer is to demonstrate value to prospective customers. Assuming you’ve conducted proper discovery, whether it’s an ISV or ERP demo, your presentation should highlight and tie in key features and benefits that align with the needs learned during discovery. You want your prospects to walk away from the demo knowing the unique advantages of your product and how it translates into tangible benefits like cost savings, time savings, and the elimination of current business process pains. Performing “canned” demonstrations is a sure-fire way not to win a software opportunity.
As a solution engineer and/or account executive, we need to become trusted advisors for our prospects and clients. One way of doing this is by being good stewards, listening to their needs, and demonstrating value during the demo and throughout the sales cycle.
Stakeholder Involvement: Do you have the attention of the decision-maker? Common in ISV or ERP sales cycles is having a main point of contact that you will work with throughout the sales process. Typically, these individuals are friendly, accommodating, and open about almost anything you ask. Sometimes, they can feel like your internal champion or cheerleader. DO NOT FALL INTO THE TRAP THAT THEY HAVE AUTHORITY IN THE DECISION!
Early in the sales process, through an intro or discovery call, you should identify who the stakeholder(s) involved in the decision will be. Asking questions like, “Who will be involved in making this decision?” or, more bluntly, “Who’s signing the check when you make a decision?” can give you the insight you need. Once identified, focus your attention on finding out the challenges, needs, and pains of the stakeholder—again, see above why discovery is so critical.
Differences:
Scope/Functionality: The biggest difference between ISV and ERP is the scope and functionality within the system. ERPs are all-encompassing, single-source-of-truth solutions that aggregate many business process areas like financials, inventory, and sales/purchasing, to name a few. ISV solutions are purpose-built, point solutions that provide advanced functionality in a focused business area. Some examples include AP automation, payroll, and advanced analytics/BI. Due to this difference, the time spent on discovery and demonstrations varies because the ISV solution demo has a very narrow focus built to solve an industry-specific gap, whereas an ERP solution demo casts a wider net across multiple business areas and processes.
Integration: As mentioned earlier, businesses adopt ERP systems as their single source of truth because they leverage native modules that span across multiple business process areas. However, sometimes businesses need more functionality than what’s delivered in the ERP native modules, in which case they turn to ISVs. While not a primary focus when demonstrating ISV solutions, it’s important to mention how the ISV integrates or “bolts on” to the ERP. Some examples include native integrations or APIs, webhooks, and iPaaS solutions, to name a few.
Decision-Making Timeline: ERP versus ISV decision timelines vary greatly. ERP decisions are longer and more strategic as they affect the entire organization with larger investments in dollars and time. ISVs are targeted solutions that impact specific departments rather than the entire organization. Their demos are shorter and involve smaller investments. Typically, ISV demonstrations are part of a later phase in an ERP deployment but could be included in the initial sale of an ERP.
Whether you’re demonstrating ERP or ISV solutions, the process remains the same with Presales Leader: always conduct proper discovery, tailor demonstrations based on what you learned in discovery, and make sure you are speaking to the person with authority. Interested in learning more? Click below to discover how we transform presales into your competitive advantage.
