Best practises to include in your
OpenERP implementation contracts
1
SANDRO BOTTA
Introduction
After 4 years working with partners, we
noticed some are performing much
better than others. This training
2
...
Publisher-Partner relationship
3
Publisher-Partner relationship
4
Roles Services
OpenERP Publisher
Marketing
Develop new versions Upgrade to new versions
M...
Standard split of revenues
5
40%
50%
60%
70%
80%
90%
100%
Partner OpenERP
0%
10%
20%
30%
40%
The revenue and related servi...
Strategic positioning
6
Winning strategies
7
1
•Analysis
2
•Custom Development
1
•Installation/Online pack
2
•Configuration
Implementation project...
Selling out-of-the-box
8
Package your offer
9
Implementation Phases ConfigTraining Total
CRM 1 400 500 900
Project Management 1 400 500 900
Sales &...
Selling projects
10
No free pre-sale services (1/3)
1
• Software Assessment
• Free pre-sale services
1
• Software Assessment
• Professional An...
No free pre-sale services (2/3)
1
• Software Assessment
2
• Professional Analysis
• Implementation
Why selling the analysi...
No free pre-sale services (3/3)
1
• Software Assessment
2
• Professional Analysis
How to sell the analysis?
• Argue profes...
Offer structure
14
Include OpenERP Enterprise in
your quote to protect your
customer’s project.
Have OpenERP solve
unexpec...
Gap Analysis – Implementation project
15
A gap analysis is highly recommended phase
Match OpenERP with the client’s needs
...
OpenERP Enterprise
16
What is OpenERP Enterprise?
17
Bug fixes Unlimited
Upgrades/Migrations Unlimited
The solution/protection to all unexpected...
OpenERP Enterprise – No Pain
18
“Avoid & Get rid of the pain ... Focus on value added
services instead”
The pain starts ea...
OpenERP Enterprise – A Commodity
19
You are not alone
OpenERP Enterprise is an insurance contract for you & your
customer....
Strategy for growth
20
Rule #1 : Sell to your customer base
21
A typical 50k€ project must bring you 20k€ every
year:
8k€ of maintenance (OpenERP...
22
A partner having 10 implementations of average
50k€ should get an annual revenue of 200k€ on
his install base!
This is ...
23
If you don’t upgrade your customers, they
will stick to old versions and you will notwill stick to old versions and you...
24
A new version should not be a constraint or cost to
migrate, it's an opportunity to propose new services to
your custom...
Rule #2: Subcontract to avoid bottlenecks
25
Problem Solution
No project manager OpenERP consulting
Don’t be slowed down b...
Additional resources
26
Get samples of brochures, presentation slides, comparison
with competitors, contracts, RFP templat...
THANK YOU
27
Happy Selling!
THANK YOU
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Best practices to include in your OpenERP implementation contracts. Sandro Botta, OpenERP

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Best practices to include in your OpenERP implementation contracts. Sandro Botta, OpenERP

  1. 1. Best practises to include in your OpenERP implementation contracts 1 SANDRO BOTTA
  2. 2. Introduction After 4 years working with partners, we noticed some are performing much better than others. This training 2 better than others. This training summarizes the key points to succeed in selling OpenERP.
  3. 3. Publisher-Partner relationship 3
  4. 4. Publisher-Partner relationship 4 Roles Services OpenERP Publisher Marketing Develop new versions Upgrade to new versions Maintain stable versions Unlimited bug fix on stable versionsMaintain stable versions Unlimited bug fix on stable versions OpenERP Partner Sales Customer implementation Custom development After-sale service Customer support
  5. 5. Standard split of revenues 5 40% 50% 60% 70% 80% 90% 100% Partner OpenERP 0% 10% 20% 30% 40% The revenue and related services are split 85%-15% between Partner and OpenERP. Traditional ERP publishers take 35% of the project revenue!
  6. 6. Strategic positioning 6
  7. 7. Winning strategies 7 1 •Analysis 2 •Custom Development 1 •Installation/Online pack 2 •Configuration Implementation project Service offer (man*days) Out-of-the-box Packaged offer 2 •Custom Development 3 •Configuration 4 • User training 5 •Support/Maintenance 2 •Configuration 3 •User training 4 • Support/Maintenance
  8. 8. Selling out-of-the-box 8
  9. 9. Package your offer 9 Implementation Phases ConfigTraining Total CRM 1 400 500 900 Project Management 1 400 500 900 Sales & Purchase 0 400 500 0 Accounting 0 800 500 0 Warehouse Management 0 800 500 0 Data Import Rate Number of CSV Files 4 400 1,600 Optional Customizations Documents: • 1 quote (table) • 1 offer description (slides) Minimal team: • 1 sales person (hunter) Optional Customizations Modification of screens (view designer) 2 400 800 Customization of a workflow 1 850 850 Report Designer 0 850 0 Deployment Deployment Option 1 OpenERP Online Pack of Users / Year 2 468 936 Deployment Option 2 Server + Installation 0 2,000 0 OpenERP Enterprise: 1-10 users 0 1,950 0 Total Project 5,986 € After-Sales Services Support Contract (hours) 20 120 2,400 • 1 sales person (hunter) • 1 functional expert to deliver the service Advantages: • Closing Sales cycle: 1 month • Quick Revenue • Easy project exit
  10. 10. Selling projects 10
  11. 11. No free pre-sale services (1/3) 1 • Software Assessment • Free pre-sale services 1 • Software Assessment • Professional Analysis OpenERP suggested approach Traditional sales approach 11 2 • Free pre-sale services 3 • Implementation 2 • Professional Analysis 3 • Implementation Free Billed but deducted from the implementation quote Billed
  12. 12. No free pre-sale services (2/3) 1 • Software Assessment 2 • Professional Analysis • Implementation Why selling the analysis? • It’s easier to quote light at first side to engage the customer rather than the project as a whole • If you succeed, you exclude competitors • It limits the risk of irrelevant project cost 12 3 • Implementation • It limits the risk of irrelevant project cost estimation • It builds up intimacy and trust with the customer, leading to higher implementation quotes When to sell the analysis? • Only once the customer is excited and convinced by the product • Even if he is still assessing competitors solutions
  13. 13. No free pre-sale services (3/3) 1 • Software Assessment 2 • Professional Analysis How to sell the analysis? • Argue professional analysis by consultants vs. sales pitch to assess the software • It allows to pay a small amount to start 13 3 • Implementation • It allows to pay a small amount to start working with the partner and evaluate it, it limits the risk for the customer • The analysis cost is fully deduced from the implementation cost
  14. 14. Offer structure 14 Include OpenERP Enterprise in your quote to protect your customer’s project. Have OpenERP solve unexpected product issuesunexpected product issues rather than wasting project time. If you don’t do it, your customer will ask you to fix bugs for free and OpenERP will not do it.
  15. 15. Gap Analysis – Implementation project 15 A gap analysis is highly recommended phase Match OpenERP with the client’s needs Convince the client on the feasability of the projectConvince the client on the feasability of the project Allow the customer to exit the project with limited investment – if the results do not reach expectations
  16. 16. OpenERP Enterprise 16
  17. 17. What is OpenERP Enterprise? 17 Bug fixes Unlimited Upgrades/Migrations Unlimited The solution/protection to all unexpected issues. Functional & technical support Limited hours Security alerts & patches Proactive Private modules Allowed White labeling Allowed
  18. 18. OpenERP Enterprise – No Pain 18 “Avoid & Get rid of the pain ... Focus on value added services instead” The pain starts early in the implementation processThe pain starts early in the implementation process Don’t waste time/money due to unexpected bugs during the implementation phase. Discuss your original quotation with your account manager. He will check if the pricing is relevant and support you selling it.
  19. 19. OpenERP Enterprise – A Commodity 19 You are not alone OpenERP Enterprise is an insurance contract for you & your customer. OpenERP Enterprise is a way to secure your customers in the long term.term. Benefit from selling new features through upgrades Don’t let them running old OpenERP versions on which you will not want to offer services anymore OpenERP Enterprise guarantees to have the publisher on your side.
  20. 20. Strategy for growth 20
  21. 21. Rule #1 : Sell to your customer base 21 A typical 50k€ project must bring you 20k€ every year: 8k€ of maintenance (OpenERP Enterprise) &8k€ of maintenance (OpenERP Enterprise) & support 6k€ proposing new features of new versions 6k€ of new developments (this depends a lot on the customer)
  22. 22. 22 A partner having 10 implementations of average 50k€ should get an annual revenue of 200k€ on his install base! This is a great way to grow. It works if you make your customers happy and continuously bring them new valuable features.
  23. 23. 23 If you don’t upgrade your customers, they will stick to old versions and you will notwill stick to old versions and you will not be able to sell them additional services. You will lose them after 2 years.
  24. 24. 24 A new version should not be a constraint or cost to migrate, it's an opportunity to propose new services to your customer base. Be sure you know how to benefit from a new version.
  25. 25. Rule #2: Subcontract to avoid bottlenecks 25 Problem Solution No project manager OpenERP consulting Don’t be slowed down by a lack of resources. We can help you deliver successfully. No project manager OpenERP consulting Need a functional expert OpenERP consulting Not enough developers OpenERP Offshore developers No time to train employees/customers Official training/webinar Wasting time on technical issues OpenERP Enterprise Need to migrate custom instance Custom module migration
  26. 26. Additional resources 26 Get samples of brochures, presentation slides, comparison with competitors, contracts, RFP templates, implementation methodology,… in your partner portal.
  27. 27. THANK YOU 27 Happy Selling! THANK YOU
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