The Core of Innovation
Pushing the Boundaries of Technology
In recent years, no segment of the tech industry has experienced a faster pace of technological advancement than semiconductors. The rapid adoption of AI and LLMs, and the corresponding demand for a next generation of chips and solutions to take advantage of these trends is forcing change on the traditional semiconductor commercial model. Thus, there are many specific challenges that face the industry, and Alexander Group has experience addressing each with industry leading insights and best practices.
Common challenges for the Semiconductor industry include:
- Product Offerings Move Beyond Hardware: Semiconductor companies are both broadening their product and increasing the volume and depth of their partnerships to include software and solutions. Customers are also demanding more flexible contracting and pricing models such as ELA’s and usage-based billing. These changes have put stress on both the direct and indirect selling motions. Sellers who have been successful in the previous commercial model may not have the ability to communicate the right value messages and companies need to evaluate the talent and headcount levels of their direct sales team. For indirect routes to market, these new more complex sales motions may require different partners and companies need to reevaluate their channel programs to make sure they have the right capability.
- More Routes to Market and More Buyers: Semiconductor do not just need to sell to OEM/ODMs; other strategic customers such as NSP and Hyperscalers have emerged as large consumers of chips. These customers need unique sales coverage and value messages to maximize revenue growth. Additionally, the route that products take to market has grown more complex, with SI, ISV and CSPs requiring influence in the value chain.
- Wave of Innovation Forcing a Reevaluation of Commercial Models: As innovation has changed the growth equation for many semiconductor companies, commercial model efficiency is being reevaluated. Sales motions can vary (i.e., Design Wins, Sell With, Sell To/Through, Influence) and identifying/tracking the right metrics can be challenging. Companies need to evaluate the metrics that accurately reflect influence on revenue growth, reward performance and hold individuals accountable.
How We Help
- Routes to market and coverage design: Identify the different paths and steps in the commercial value chain to design a coverage model that aligns the right resource to maximize chip consumption. Detail the Rules of Engagement between internal resources to ensure efficient account coverage and eliminate duplication of sales efforts. Develop end-to-end process to design, maintain and administer sales territories that create individual accountability.
- Job architecture: Define job families for consistent execution of the commercial model. Document the measurable and demonstrable skills needed for success and advancement in each role. Define the talent development process and define career progression within the organization to minimize unwanted talent attrition.
- Sales compensation: Identify the commercial roles that should participate in the incentive compensation program. Set the right balance of current revenue generation and future growth (e.g., design wins) which is not guaranteed and challenging to quantify. Design the right framework and governance on quota setting to drive seller achievement and align to growth expectations.
Technology Insights
Participate in Our Research
Open Opportunities Briefing Offers- Digital Insights Study Digital means changing how companies engage with customers and enable their commercial teams. Determining where and when your customers interact with your products and solutions can impact your organization’s digital maturity and where to guide your investments.
- Marketing Insights Study Over 150 marketing executives were interviewed to determine the marketing initiatives being prioritized to maximize customer lifetime value. From marketing roles and resource allocation to marketing mix, channels and spend, get the latest insights on where marketing leaders are investing to advance their organization’s marketing maturity.
- Revenue Operations Survey Over 200 executives in sales and revenue operations were surveyed across Business Services, Financial Services, Manufacturing and Distribution, MedTech, Health and Wellness, Media and Technology to determine the leading practices of world-class revenue operations organizations.
- Sales Compensation Hot Topics Survey Over 350 sales compensation leaders across seven industries provided insights on key sales comp topics including costs, quota planning and attainment, profitability, AI’s impact on comp, global comp practices, marketing comp practices and client/deliver services comp practices.
- XaaS Research: Revenue Models and Productivity Explore industry trends, insights and frameworks from top revenue leaders on expansion growth and ILAER models, and recommendations for increasing sales performance and revenue growth in a XaaS environment. How does your firm compare?
Upcoming Technology Events
-
B2B Marketing: Marketing, Product & Digital Strategies for Growth
Virtual Roundtable -
Revenue Operations Symposium
Virtual -
Women Revenue Leaders Forum
St. Regis Hotel, Chicago, IL -
Marketing Symposium
New York, NY -
Marketing Symposium
London, UK -
Sales Compensation Symposium
Virtual -
Sales Compensation Symposium
San Francisco, CA -
Sales Compensation Symposium
Minneapolis, MN -
Sales Compensation Symposium
New York, NY -
Executive Forum
The Breakers | Palm Beach, Florida
Join our Technology Community
Alexander Group’s community enables leading executives to share insights and takeaways for immediate use. Participants engage with sales leaders in interactive discussions while gaining knowledge on best practices, pitfalls and challenges.
Practice Leadership
Research & Benchmarks
Get access to the latest go-to-market research and benchmarks to leverage growth drivers for valuation improvement