Many Japanese companies take a structured approach comprising three phases when researching, evaluating, and negotiating/procuring technology solutions to meet their business requirements.
In Phase 1 (Research/Solution Exploration), the company's innovation team identifies emerging technology trends in Japan and conducts preliminary research to assess their potential application within the company. Drawing on their business experience, the team matches the potential solutions with their high-level business problems.
While reviewing potential solutions, they maintain a general understanding of their needs and problem statements. We do care about the cost , but as they understand the Return Of Investment (ROI) and Total Cost of Ownership (TCO) case studies better, they gradually eases their concerns.
Moving to Phase 2, armed with ample case studies and a basic ROI framework, Japanese companies delve into detailed problem breakdowns. Typically, junior staff form an experimentation team to interview stakeholders and refine the requirements map. At this stage, companies often opt for a Proof of Concept (POC), with cost being of lesser concern. They may negotiate minimal fees with vendors for this phase.
In Phase 3, following the POC's validation of the solution, the team crafts a comprehensive investment plan, sparking intense cost negotiations. Objections from various departments surface during this stage, necessitating sales teams to adeptly address concerns from each stakeholder.
Given the common Japanese procurement model is to involve multiple decision-makers, alongside employing the MEDDICC selling framework, incorporating concepts from the Miller Heiman selling framework—such as EBI, TBI, and UBI—is advisable. (For more information on the Miller Heiman methodology, now owned by Korn Ferry, refer to their website: https://www.kornferry.com/about-us/our-story/miller-heiman-group)
Courtesy from our network consulting partner - Bluewoods Strategic Associates
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