2001 Partner Acquisition Plan   Cleaned
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2001 Partner Acquisition Plan Cleaned

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This is a presentation I created several years ago. The specific purpose was to explain the changes to our Indirect channel strategy. Most of the stuff discussed outdated, but I wanted to show how ...

This is a presentation I created several years ago. The specific purpose was to explain the changes to our Indirect channel strategy. Most of the stuff discussed outdated, but I wanted to show how you can queue people into a them - just with the use of something memorable [clue: check out the songs mentioned on the transition slides].

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2001 Partner Acquisition Plan Cleaned Presentation Transcript

  • 1. 2001 Partner Acquisition Plan “ Times they are a changin’ ” - Bob Dylan Distributor Acquisition Team August.30.2000
  • 2. Meeting Objectives
    • Review a new partner acquisition strategy and framework
    • Obtain management approval to proceed with the development of a detailed implementation plan
  • 3. Meeting Agenda
    • Current Situation Overview
    • The Paradigm Shift
      • Technology Adoption Lifecycle
      • New Partner Program Framework
      • New Landscape
    • Conclusions
      • 2001 Product Landscape
    • Action Plan
      • Key Recommendations
      • Deliverables and Timeline
      • Critical Dependencies
  • 4. 2000 Situation Overview
    • Majority of existing partner base originated as interconnect VARs
    • All partners are considered ubiquitous (“all VARs/Resellers are considered equal”) and non-specific. Acquisition strategy based upon ability of prospect to sell products (data or voice).
    • Agreements established and acquisition programs in-development with key distributors ([COMPANY] North Supply) and 2-Tier manufacturers (Polycom, Sony). Other engagements (Cisco, Microsoft, Lucent) have not proved successful.
    • [COMPANY] selling “products through the channel” versus “components of a total solution delivered by the partner to the end customer”
    • No framework or decision criteria exists for driving partner acquisition
    • Organization lacks sufficient understanding of profile of [COMPANY] partner base and that of channel players/dynamics
    • Acquisition value proposition used in market messaging is based on “features/benefits” of Partner’s Program membership
  • 5. Current [COMPANY] Indirect Channel Landscape Partners Data VAR Voice VAR Regional National Manufacturer Distributor Online Models Retail Agents Affinity Professional Services Lead Referral
  • 6. Product Landscape
    • Voice Products
      • Switched Voice
      • Business Flex/All Calls All Day
      • Real Solutions (Large/Small)
      • Voice VPN
      • Distance Free Voice
      • Hospitality/Pay Phone
      • Local Resale
      • International
    • Data Products
      • Dedicated IP
      • Frame Relay
      • DSL/Broadband
      • Private Line
      • ATM
      • Internet VPN
      • ISDN/SDS
      • Web Hosting (Large/Small)
      • Managed Security
      • MNS ([COMPANY] ENS)
      • eBusiness Applications
      • Fixed Wireless
      • ION
  • 7. Current Partner Acquisition Voice & Data Programs Acquisition New or Transitioned Partners Partners are ubiquitous and non-targeted Acquisition is driven by the need for market share and gain more productive partners
  • 8. Objectives
    • Define an architectural framework from which successful partner models can be created
    • Define desirable partner models for [COMPANY] Indirect Channels
    • Define criteria set for use in partner identification
    • Match product solution sets to appropriate partner model
    • Define deliverables and timelines
  • 9. The Shift “ Changes in latitude, changes in attitude” - Jimmy Buffet
  • 10. The Paradigm Shift Voice & Data Programs Acquisition Partners Current View...Partners are ubiquitous and non-targeted Acquisition is driven by the need for market share and gain more productive partners Partner Acquisition Map to Partner Models Match Product Solution Future View...Partners are defined as being unique and by the solutions they sell Acquisition driven by end user needs, product solutions and partner business models End Users have Business Problems move to
  • 11. End User Technology Adoption Lifecycle
    • The technology adoption lifecycle was created to give technology companies a view of HOW end-users acquire technology and WHY these individuals are different
    "The Chasm" Laggards Late Majority Early Majority Early Adopters Innovators
  • 12. Marketplace Overlay
    • Where do [COMPANY]’s products and services fit within the Technology Adoption Lifecycle?
    "The Chasm" Laggards Late Majority Early Majority Early Adopters Innovators Audio Conferencing Dedicated IP Hosting (colo and dedicated) DSL ION Collaborative Services ASP Video Conferencing Frame Relay ISDN Local Access Long Distance X.25 Dialup Internet
  • 13. Marketplace Overlay Converged Networks Voice + Data + Video ION, ASP, EBA Collaborative Services Separate Networks Voice & Data & Video IP, Frame Relay DSL, Private Line Single Network Voice OR Data OR Video Leased Lines Voice/Long Distance "The Chasm" Laggards Late Majority Early Majority Early Adopters Innovators
  • 14. Partner Business Model Overlay Converged Networks Voice + Data + Video ION, ASP, EBA Collaborative Services Separate Networks Voice & Data & Video IP, Frame Relay DSL, Private Line Single Network Voice OR Data OR Video Leased Lines Voice/Long Distance "The Chasm" Laggards Late Majority Early Majority Early Adopters Innovators Custom Services High Margin Custom Offering Consultants Integrated Services Medium Margin Standardization VARs/SIs Commodity Products Low Margin “ Shrink-wrapped” Retail/Self Service
  • 15. The Great Name Game Web Integrator Web Developer Consultant Infrastructure Consultant ISV E-Business Solution Provider Business Process Consultant ISP Application Service Provider Software Developer Web Innovator E-Business Engineering Specialist Internet Service Integrator Network/Systems Integrator “ VARs” Don’t Call Themselves VARs Network Service Providers
  • 16. The Partner Landscape
    • Consultants
      • Utilize technical expertise to enable new or emerging technologies
      • Focus on services and relationships
      • IT Consultants, ASP
    • VARs
      • Provide solutions to specific vertical industry or technology
      • Lead with product sale and pad margins with services (installation, setup, maintenance, etc.)
      • SMB Solution Provider, F500 Solution Provider, Vertical VAR, ASP, ISV
    • Integrators
      • Leverage expertise in a specific technology
      • Usually lead with services, but may provide products as part of a complete solution
      • Network Solution Provider, Systems Integrator, Web Integrator
    • Retail
      • Sell products, not solutions (broad range of technology)
      • Typically low margin opportunities for proven technology
      • Staples, Office Depot, bizbuyer.com
  • 17. Partner Fit Converged Networks Voice + Data + Video ION, ASP, EBA Collaborative Services Separate Networks Voice & Data & Video IP, Frame Relay DSL, Private Line Single Network Voice OR Data OR Video Leased Lines Voice/Long Distance "The Chasm" Laggards Late Majority Early Majority Early Adopters Innovators Consultants Integrators VARs Retail
  • 18. Current [COMPANY] Indirect Channel Landscape Partners Data VAR Voice VAR Regional National Manufacturer Distributor Online Models Retail Agents Affinity Professional Services Lead Referral
  • 19. New [COMPANY] Indirect Channel Landscape Partners Online Models Retail Agents Affinity Professional Services Lead Referral Non-Selling Selling Tiered
  • 20. New [COMPANY] Partner Framework Non-Selling Selling Tiered Lead Referral Agent Manufacturers Distributors Regional & National Internet Lead Referral Partners Lead Referral Agent CLP Online Partners
  • 21. Preliminary Partner Model Components
  • 22. Preliminary Partner Model Functions
  • 23. Conclusion “ The Long and Winding Road…” -Paul McCartney/John Lennon
  • 24. 2001 Targeted Growth Product Landscape ION Frame Relay IP DSL Product Description 2001 Revenue Target Provides network capacity and dynamic bandwidth allocation to integrate voice, data and e-business applications throughout any enterprise An efficient communications service using fast packet switching technology to provide reliable delivery over virtual circuits Dedicated IP access which allows traffic to be connected directly through to the long distance carrier with online sharing, bypassing the LEC Converts standard phone lines from a single analog circuit into multiple, high-speed digital circuits, which simultaneously carry voice, video, and data traffic. Revenue targets are an integral component of any acquisition strategy $M $M $M $M
  • 25. ION Partner Landscape
    • New technology
    • Early life cycle
    • High service content
    • Solution/service product
    • Target Markets
    • Large Business
      • Head quarter locations
      • Large Branches
      • Small branches/retail
      • Telecommuters
    • Small Business
      • Desktop businesses
      • Networkers
      • Connected enterprises
    Non-Selling Partner Selling Partner Tiered Partner Implements, hosts or maintains customized solutions consultative approach to selling for end-user applications system/network design and engineering expertise lead generator analytical/research oriented tech savvy/ focus on Fortune 500 companies customer base typically lacks internal IT department National or Regional reseller of equipment or services customizes solutions for hardware, software or communications services sells, provisions, installs, and maintains CPE able to design and install LAN/WAN located in or service ION cities equipment manufacturer or channel distributor willing to bundle with [COMPANY] ION solution consultative approach to selling of end-user applications mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors substantial back office infrastructure; able to support on-line order entry
  • 26. Frame Relay Partner Landscape Non-Selling Partner Selling Partner Tiered Partner
    • Mature product
    • Late majority lifecycle
    • Medium margin
    • Operational excellence
    • Target Markets
    • Mid to large businesses with
    • multiple locations
    • Businesses which need company
    • wide secure connectivity
    • to mission critical, productivity
    • enhancing applications
    Implements, hosts or maintains customized solutions consultative approach to selling for end-user applications system/network design and engineering expertise lead generator customer base typically lacks internal IT department National or Regional reseller of equipment or services(routers, network management, Managed services) customizes solutions that require a high level of security sells, provisions, installs, and maintains CPE able to design and install LAN/WAN multi-regional presence partner company consists of sales and technical resources equipment manufacturer or equipment manufacturer or channel distributor willing to bundle with [COMPANY] Frame services consultative approach to selling of end-user applications mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors substantial back office infrastructure; able to support on-line order entry
  • 27. DSL Partner Landscape Non-Selling Partner Selling Partner Tiered Partner Accepted technology Early majority lifecycle Medium to Low margin Target Markets Small business and telecommuters Businesses that currently have dial up internet access and want to have high-speed dedicated service at a price point below dedicated T1 Businesses who do not require SLAs for dedicated internet access Implements, hosts or maintains customized solutions consultative approach to selling for end-user applications system/network design and engineering expertise lead generator customer base typically lacks internal IT department reseller of equipment or services (routers, modems, servers, workstations) resellers of web hosting, e-commerce, ASP services) sells, provisions, installs, and maintains CPE able to design and install LAN/WAN network equipment manufacturer or channel distributor consultative approach to selling of end-user applications mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors substantial back office infrastructure; able to support on-line order entry
  • 28. IP Partner Landscape Non-Selling Partner Selling Partner Tiered Partner
    • Mature product
    • Early adopters to late majority
    • Medium margin
    • Target Markets
    • Business requirement for
    • “ standardized” data
    • communication
    • Small to medium sized
    • business up to T1
    • Large sized businesses to
    • mulit-megabit
    Implements, hosts or maintains customized solutions consultative approach to selling for end-user applications system/network design and engineering expertise lead generator customer base typically lacks internal IT department reseller of equipment or services (routers, network management, internet applications, servers) customizes solutions for hardware, software or communications services sells, provisions, installs, and maintains CPE able to design and install LAN/WAN and internet technologies network equipment manufacturer or channel distributor internet application developer consultative approach to selling of end-user applications mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors substantial back office infrastructure; able to support on-line order entry
  • 29. The Paradigm Shift Partner Acquisition Map to Partner Models Match Product Solution Future View...Partners are defined as being unique and by the solutions they sell Acquisition driven by end user needs, product solutions and partner business models End Users have Business Problems Map [COMPANY] products and solutions... matched to appropriate partner... based upon their business model... which is determined by their end user relationships.
  • 30. The Focal Point Product Fit (Lifecycle and Solution) Business Model Profile End User Purchasing Habits The Ideal Partner
  • 31. Action Plan “ Taking Care of Business” - Bachman Turner Overdrive
  • 32. Key Recommendations
    • Implement proposed acquisition strategy and framework and develop detailed partner acquisition implementation plan
    • Develop acquisition criteria set(s) and compile target acquisition list(s)
    • Define and implement end-user market research to identify trends and changes in buying patterns/models and user requirements
    • Define and implement indirect channel market research to identify trends and changes in the VAR/Reseller community
    • Develop partner cost-of-acquisition model(s)
    • Incorporate relevant conclusions/recommendations from Partner Productivity analysis into Acquisition Implementation Plan
    • Leverage SEG2K program to facilitate targeting of prospective partners based on end-user needs
  • 33. Deliverables and Timeline Finalize 2001 revenue forecast rollout and offering (s) Partner Acquisition Implementation Plan Compile Partner acquisition target list Develop Partner acquisition criteria breakdown and demographics 9-30-00 9-30-00 9-30-00 11-15-00 11-15-00 11-15-00 TBD TBD TBD 9-15-00 10-30-00 TBD ION Frame Relay DSL IP Services 10-30-00 11-15-00 11-15-00 11-15-00
  • 34. Critical Dependencies
    • ION
      • End user demand generation programs developed to support Partner acquisition
      • Firm product offering and roll-out schedule
      • Sales organization resourced to support acquisition efforts
      • Resources available within database marketing to compile target lists
      • Process exists for new Partner lead tracking and management
      • Partner acquisition directly impacted by geographic rollout schedule and product functionality
      • Availability of DSL access to enable demonstration of ION capabilities
    • Commitment of sufficient resources to define, execute and maintain process for partner profiling and indirect channel and end user market research
    • Support from Finance to develop/maintain cost-of-acquisition model(s)
  • 35. Appendix “ If I could save time in a bottle…” - Jim Croce
  • 36.
    • Corporate Solution Provider
      • National or regional reseller organization that sell to Fortune 500 organizations. These organizations are usually national and have existing long term relationships with their end customers, Tends to be volume purchaser of product with full integration capabilities. Companies like Vanstar, Entex, CompuCom, MicroAge, CompUSA/Corporate Sales, Inacom, etc.
    • Vertical VAR
      • Resellers who sell or consult with customers in specific market segments such as medical, education, government, financial. Tec.
    Industry Definitions
  • 37. Industry Definitions
    • Aggregator
      • Term used to describe large reseller organizations offering franchises to smaller resellers and distributing first-tier products to these organizations under favorable terms by “aggregating’ their many smaller orders. Examples include MicroAge, Computerland and Inacom. Term is being used less frequently today, as the reseller agreements have changed to a “cost-plus” model (similar to distribution), rather than the royalty agreements typical of franchisers. Another factor: As the aggregators become more distributor-like, the leading distributors are competing for aggregation business with dedicated divisions. Many former aggregators are being referred to as Tiered resellers today, along with the leading national distributors.
    • Tiered Reseller
      • Term previously used to describe the largest, most influential national distributors such as Ingram Micro, Merisel, Tech Data, and MicroAge. They play in all product and technology areas and offer one-stop shopping to a broad range of resellers.
  • 38.
    • Systems Integrator
      • Combination of professional services and expertise in hardware, software and communications technologies. SIs maintain full financial and performance responsibilities for the entire project from design to post-implementation stages. Examples: IBM Global Services, Hewlett Packard, Andersen Consulting, EDS, AT&T, Ernst & Young, Digital, Unisys Integrate, Deloitte & Touche, AmeriData, Booz Allen & Hamilton, Memorex Telex, Alltell, Loral.
      • Other organizations often refer to as System Integrators are those companies who integrate components into system solutions and sell under their own brand names, These companies are also referred to as 2nd or 3rd tier OEMs. Build Your Own (BYO) VARs, and System Builders. There are several business models for these types of resellers ranging from distributor like practices to the typical reseller profile encompassing software application development, system development and integration.
    Industry Definitions
  • 39.
    • Total Solutions Provider
      • Non-retail organization which take title of products from a vendor or distributor, add tangible value which is accounted for in the purchase price, then resell the turnkey/custom solutions which include hardware and software to end-users.
    • Enterprise Partner
      • Working directly with IT departments and CIOs of Fortune 1000 companies, these solution providers deal with large corporations. Research proves these are not only large solution provider companies, $25 million and above, but small organizations with sales of less than $1 million as well.
    • Solution Providers who sell into Small and Medium Businesses
      • These companies specialize in customizing solutions, servicing and supporting end user customers who categorize themselves as small (10 to 100 employees) and medium size businesses(100 to 999 employees).
    Industry Definitions
  • 40.
    • Internet Solution Providers
      • Traditional VAR or integrator that specializes in internet/intranet solutions. These organizations must derive at least 40% of their total hardware, software and services revenue from web based solutions. Primary customers are entry-level e-business solutions to Small and Medium businesses.
    • ASP
      • An Application Service Provider manages and delivers application capabilities to multiple entities from a data center across a wide area network. Rather than sell solutions to customers, ASPs implement, host and maintain solutions for a fixed monthly fee.
    • Web Integrators
      • Organizations that define themselves as full-service e-business partner for their clients. Their expertise is technology implementation, strategy consulting and creative web marketing and branding. Web Integrators limit their involvement in hardware integration and reselling. They also tend to focus on larger sized, better-branded clients
    Industry Definitions
  • 41. Industry Definitions
    • IT Consultant
      • Offers consulting services for information technology, but usually does not sell hardware or software. Often overlooked by manufacturers of product when recruiting partners due to the non-product sales business model. However, this type of reseller is extremely influential in recommending and specifying specific technologies, products and brands.
    • ISV (Independent Software Vendor)
      • Refers to companies who develop and provide software applications and services often integrating software solutions from other vendors
  • 42. Innovators - Technology Enthusiasts
    • Primary Motivation:
      • Learn about new technologies for their own sake
    • Key Characteristics:
      • Strong aptitude for technical information
      • Like to alpha test new products
      • Can ignore the missing elements
      • Do whatever they can to help
    • Challenges:
      • Want unrestricted access to top technical people
      • Want no- profit pricing (preferably free)
  • 43. Early Adopters - The Visionaries
    • Primary Motivation:
      • Gain dramatic competitive advantage via revolutionary breakthrough
    • Key Characteristics:
      • Great imaginations for strategic applications
      • Attracted by high- risk, high- reward propositions
      • Will commit to supply the missing elements
      • Perceive order- of- magnitude gains — so not price- sensitive
    • Challenges:
      • Want rapid time- to- market
      • Demand high degree of customization and support
  • 44. Early Majority - Pragmatists
    • Primary Motivation:
      • Gain sustainable productivity improvements via evolutionary change
    • Key Characteristics:
      • Astute managers of mission- critical applications
      • Understand real- world issues and tradeoffs
      • Focus on proven applications
      • Like to go with the market leader
    • Challenges:
      • Insist on good references from trusted colleagues
      • Want to see the solution in production at the reference site
  • 45. Late Majority - Conservatives
    • Primary Motivation:
      • Just stay even with the competition.
    • Key Characteristics:
      • Better with people than technology
      • Risk averse
      • Price- sensitive
      • Highly reliant on a single, trusted advisor
    • Challenges:
      • Need completely pre- assembled solutions
      • Would benefit from value- added services but do not
      • want to pay for them
  • 46. Laggards - Skeptics
    • Primary Motivation:
      • Maintain status quo.
    • Key Characteristics:
      • Good at debunking marketing hype
      • Disbelieve productivity- improvement arguments
      • Like taking a contraire position
      • Seek to block purchases of new technology
    • Challenges:
      • Not a customer
      • Can be formidable opposition to early adoption