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bChannels
Structures of Channels




  FOCUS. PEOPLE. COMPETENCY
The Market Triangle –
    few big companies + lots of little companies




                                                                                          Optimum IT
         Corporate
         Resellers




                                                                                          business split*
                                                                         Corporate, 20%
                              Pull
                                          Corporate
                                                      500 employees
Vendor




                                           Large                                Large, 20%    SME, 60%


                                          Business
         Resellers &




                                                           100 employees
           Retail




                       Push                                                                  * Source Gartner/IDC


                                     Small/Medium (SME)

                                                                      1 employee



                                          FOCUS. PEOPLE. COMPETENCY
Many Routes to Market
Different end-customers buy in different ways


                                       Vendor

                            Sales In


                           Distributors


              Sales Out                      Sales Out
                                System’s
                               Integrators


                                        Catalog/
         Corporate   Local Resellers                        Retail
                                        Mail Order
         Resellers      (2-Tier)                            Chains
                                         & eTail




         Corporate            SME                    SOHO       Consumer
           500+              10-500                   1-9           1
                End users by size of company (number of employees)
                             FOCUS. PEOPLE. COMPETENCY
Measuring Sales
Why ‘Sales Out’ is so important




          Sales “in”                     Sales “out”                        “True” sales
                           Distributor                                                       End
Vendor                      Distributor                        Reseller
                              Distributor                      [No Stock]                  Customer
                                 Stock



           Measuring
             sales to                         Measuring
           distributors                     ‘sales out’ is a
         just measures                        very good
           how much                          indication of
         you are filling                    real customer
               their                          purchases
           warehouse




                                   FOCUS. PEOPLE. COMPETENCY
Program Tiers
What’s the best mix of partners?




          20% Partners
          80% Revenue
                                             5% Partners
                                            50% Revenue

     45% Partners
     45% Revenue                           15% Partners
                                           30% Revenue


80% Partners
20% Revenue                                30% Partners
                                           15% Revenue


                                           50% Partners
                                           5% Revenue




                         FOCUS. PEOPLE. COMPETENCY.
The Terrible Tiers
or how many vendors think about their channel




               You buy a lot.
 So you must be pushing our products.
        We’re not clear about that.
We’ll spend a lot of time with you anyway.




     Sorry, no humans available.
                                                     Managed
 You must interact with us through our
                                              ”
               website.


                                                  Remote Touch

     We have no idea who you are.
      You must not be important.


                                                   Unmanaged



                                      FOCUS. PEOPLE. COMPETENCY
The ‘sweet spot’
Which bChannels can find and help you exploit

Value ($/€/£)

  Difficult to
  significantly grow
  existing managed
  accounts



                        Biggest Growth
                        opportunity




                                                                Growing low-
                                                                value accounts
                                                                yields low
                                                                revenues



                  Top                    Top
                                                                                        Reseller Size
  Biggest         100                    500                                     Smallest


       Managed            High value                             Low value
       Accounts           unmanaged                              Accounts
                          Accounts
                                               FOCUS. PEOPLE. COMPETENCY
Partner programs have to be balanced
It’s not all about what the vendor wants



         The partner program must balance measurable requirements
                          with measurable benefits.



                       Invest                     Reward


           Sales                                            Financial
           Skills                                            Access
          Service                                          Recognition




        The Partner Program must provide a return on investment for
                      both the partner and the vendor.

                           FOCUS. PEOPLE. COMPETENCY.
Core Partner Program Methodology



                 Analyse,               Identify
                 classify                  +                       Build
                                                                 effective
                and target
                 partners               Manage                 partner value
                                                               propositions



                Measure                                     Communicate
                  +                                             +
                Reward                                        Engage             Create
                                                                               awareness
                              Deliver             Deliver                       and leads


                                                                         !
                             program          communication
                             benefits         to the channel

   Establish
   program
 requirements




                                Channel Partners


                                FOCUS. PEOPLE. COMPETENCY
FOCUS. PEOPLE. COMPETENCY

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bChannels structure of indirect channels

  • 1. bChannels Structures of Channels FOCUS. PEOPLE. COMPETENCY
  • 2. The Market Triangle – few big companies + lots of little companies Optimum IT Corporate Resellers business split* Corporate, 20% Pull Corporate 500 employees Vendor Large Large, 20% SME, 60% Business Resellers & 100 employees Retail Push * Source Gartner/IDC Small/Medium (SME) 1 employee FOCUS. PEOPLE. COMPETENCY
  • 3. Many Routes to Market Different end-customers buy in different ways Vendor Sales In Distributors Sales Out Sales Out System’s Integrators Catalog/ Corporate Local Resellers Retail Mail Order Resellers (2-Tier) Chains & eTail Corporate SME SOHO Consumer 500+ 10-500 1-9 1 End users by size of company (number of employees) FOCUS. PEOPLE. COMPETENCY
  • 4. Measuring Sales Why ‘Sales Out’ is so important Sales “in” Sales “out” “True” sales Distributor End Vendor Distributor Reseller Distributor [No Stock] Customer Stock Measuring sales to Measuring distributors ‘sales out’ is a just measures very good how much indication of you are filling real customer their purchases warehouse FOCUS. PEOPLE. COMPETENCY
  • 5. Program Tiers What’s the best mix of partners? 20% Partners 80% Revenue 5% Partners 50% Revenue 45% Partners 45% Revenue 15% Partners 30% Revenue 80% Partners 20% Revenue 30% Partners 15% Revenue 50% Partners 5% Revenue FOCUS. PEOPLE. COMPETENCY.
  • 6. The Terrible Tiers or how many vendors think about their channel You buy a lot. So you must be pushing our products. We’re not clear about that. We’ll spend a lot of time with you anyway. Sorry, no humans available. Managed You must interact with us through our ” website. Remote Touch We have no idea who you are. You must not be important. Unmanaged FOCUS. PEOPLE. COMPETENCY
  • 7. The ‘sweet spot’ Which bChannels can find and help you exploit Value ($/€/£) Difficult to significantly grow existing managed accounts Biggest Growth opportunity Growing low- value accounts yields low revenues Top Top Reseller Size Biggest 100 500 Smallest Managed High value Low value Accounts unmanaged Accounts Accounts FOCUS. PEOPLE. COMPETENCY
  • 8. Partner programs have to be balanced It’s not all about what the vendor wants The partner program must balance measurable requirements with measurable benefits. Invest Reward Sales Financial Skills Access Service Recognition The Partner Program must provide a return on investment for both the partner and the vendor. FOCUS. PEOPLE. COMPETENCY.
  • 9. Core Partner Program Methodology Analyse, Identify classify + Build effective and target partners Manage partner value propositions Measure Communicate + + Reward Engage Create awareness Deliver Deliver and leads ! program communication benefits to the channel Establish program requirements Channel Partners FOCUS. PEOPLE. COMPETENCY