Nowadays, new market-distorting business models buzz around. The so-called ‘disruptive models’ have a significant impact on pricing, quality, competition and law and regulation. Everyone is aware of the news about Uber’s taxi services and Airbnb’s accommodation services. But, what is the role of disruption in the ERP world? Is your company ready to cope with disruption?

1. Disruption & new business models:
Change or Disappear!
Guus Krabbenborg
Business training, Partner coaching & Inspiration
E gk@qbsgroup.com
M +31 622 496 073

2. About Guus Krabbenborg
• Over 25 years experience in business applications
• Co-founder in 1994 of DBS Business Solutions, an international
Dynamics CRM partner with 120 employees
• In 1999 commercial director at Navision in The Netherlands
• Started TerDege in 2000, specialized in business training and coaching
for Dynamics partners around the globe
• Since 2005 Guus runs workshops for prospect companies searching for
new ERP and CRM solutions
• Today he is co-owner of both PMC and QBS Group
• Delivered R2R/CSS training to 150+ NAV/GP partners in 25+ countries
• Finally Guus writes blogs, delivers webinars and publishes books on
business success with ERP and CRM solutions

4. Disruption impact

6. Disruption in airlines

8. Online & anonymous
Self educating, self serving
“All In” solution
expectations (accelerated
time to value)
Limited appetite for risk
Looking for “simple”
Buyer 2.0
Our average attention span
has dropped to 8 seconds,
one second less than a
goldfish.

9. 86%
skip TV ads
91%
unsubscribe
from email
200M
on the
Do Not Call list
44%
of direct mail is
never opened
Today’s Prospect

10. Changing Buyer Behavior – HOW they buy
Current Marketing Void

11. Example of the Car Industry
In 2005 an average Opel customer visited the showroom 6,5 times
before buying a new car
Today this average is only 1,5!
So the buying process in almost completely done online!
Impact on the car industry:
• Dealers must shift from sales to service and maintenance
• Less expensive showrooms and less cars in the showrooms
• Ongoing investment in better websites
• Big investments in 3D projection of your new car (think model, color, etc.)
In 2014 in Europe 6.500 big car dealers closed their businesses (12%)
Is that a move from indirect to direct sales?!

12. The disrupter here is called ….

13. And the figures do talk…

14. So how good is your marketing today?

16. The new Buying behavior is causing ERP Disruption! – WHAT they buy
Important aspects of the ‘new buying behavior’
• Buyers are risk averse!
• Buyers prefer (micro-)vertical solutions
• Buyers look for complete solutions – not point solutions anymore
• IT has less influence on the decision-making process
• Subscription pricing becomes the standard
• Need for standardized solutions - customization is losing popularity
• Time-to-value becomes more important
• Simplicity is chosen over complexity

17. Traditional versus Modern offering
Traditional offering Modern offering
- High complexity - Less complex
- Customized solutions - Vertical OOTB solutions
- High risk for the buyer - Lower risk for the buyer
- Long lasting projects - Short Time to Market
- High costs based on CAPEX - OPEX based pricing
- Strong focus on function/feature - Focus on solving business pains
- ‘Stand-alone’ NAV - In O365, On Azure & With CRM

18. Customer benefits:
• First of all: much LOWER RISK!!
• (Much) faster delivery
• (Much) lower cost
• Benefit from helpdesk support
• Benefit from the MSFT innovation
• So (faster) delivery of upgrades!!

19. Microsoft Confidential – For Partner Use Only

21. • Traditional “services” business model under
pressure
• IP becoming both a strategic differentiator and
economic necessity
• Average deal size decreasing/subscription
increasing
• Demand has shifted to favor vertically-specific
solutions
• Prospects will find you before you find them:
higher volume of lower value “leads”
• Meaningful content creation becoming
increasingly critical
• Moving from tactical necessity to strategic growth
engine
• Increasingly difficult to differentiate on product
• Selling cycles contracting
• Solution Selling no longer as effective
• CoS has to come down

22. Want to be in business tomorrow?

24. Expectations
Risk
Engagement
Time and Budget
Flexibility
Consumption
Offerings
Project outcome

26. Levels of complexity

27. Example Xero

28. Is this covered in your current offering?

29. Simple & Transparent

31. Replace sales conversation?

32. Compare solutions – do it yourself!

34. Faveo365 (DE)

35. Give power to your customers…

36. Dynamics365 (DE)

37. Dynamics365 (DE) - services

40. What is the strongest characteristic of NAV?

41. But the weakest characteristic of NAV is… 

43. Less is more… no more complexity

45. Consult Design Implement Integrate Maintain Manage Adopt
Services
$
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46. Consult Design Implement Integrate Maintain Manage Adopt
Services
$
$
$
$
$
$

47. Consult Design Implement Integrate Maintain Manage Adopt
Services
$
$
$
$
$
$

49. ONE-to-ONE ONE-to-MANY

50. The same old thinking……

52. So where are you?

53. • What is your culture of experiments and making mistakes?
• Trying something new?
• What is your Yes, but - grade’?
• Available budgets for innovation
• Who’s responsible for innovation?
• Allowing yourself to dream…..
• And how long will your best people wait for all this?
So how innovative are you?

56. • Recurring revenue is key in today’s M&A markets!
• There is a growing valuation gap between project businesses and
subscription businesses
• This difference in valuation can easily be a factor 4 to 6!
• Do you know the impact on the value of your own company?
Your company valuation

58. So it’s really time to change!!

59. Waiting for the magic moment….?

60. Don’t miss the boat! Expand your market!
Microsoft Confidential 60
Threath Opportunity

61. How good are you in changing?
• Nice booklet called ‘Who moved my cheese?’
• It’s all about how people deal with changes
• So how do YOU deal with change?
• Are you waiting for your cheese to return?
• Or are you willing to go after the
new cheese?
• And what about the rest of
your company??
TIP: buy some books for your LT!

62. 1) Learn to sell (more of) the Microsoft stack
2) Learn to master the new sales motion
• Lower your Customer acquisition cost
• Marketing does the “heavy lifting”
• New/other Sales methodology
• New/other sales profiles or sales people?
3) Learn to market and sell standard/standardized solutions
Top-3 transformation challenges

63. 63

66. 66

68. “Projects”
Time
Results
“Products”
“Start-up”
Funding
Employees
& Customers
M
a
r
k
e
t
i
n
g
How to start a product business?

69. • Customizations is an art ;-) Better without customizations
• Standard answer: Yes Able to say ‘No’ and reframe
• Traditional view “Born in the cloud”
• Yes, but…. Yes we can!
• Looking for complexity Just do it!
• Business based on 1:1 services Productized 1:many services
• “Find, Win and Forget” Continuous engagement
Project vs Product people

71. Two types of repeatability….
We all know repeatable software:
- add on’s or components on top of Dynamics NAV
- with a specific vertical or horizontal focus
- they help partners to move from 1-to-1 towards 1-to-many
But what about repeatable services?

72. Example 1:Many support

73. 1:Many end-user training

74. Customer comfort…

75. Customers support each other

78. New Disruption tool: Dynamics 365

79. Dynamics365 impacts - some thoughts…
• The number of Dynamics competitors
• AppSource – the international dimension
• What is your differentiation?
• Selling over CSP – even more competitors…
• Offering ERP, but also CRM and Office
• Split in license and services revenue
• The future of the stand alone solutions?
• What if you jump in from the start?
• What if you wait? Or don’t jump in at all?

82. So you better meet the new customer requirements…
Much better partner websites!!
Business conversations with your sales
A more professional delivery process
Low(er) risk!!
Subscription pricing
Faster delivery (‘next-next-finish’)
Micro-verticalization
Looking for end-to-end solutions
Interested in buying Successful Projects!

85. Your possible next steps…
• Watch the 40 min QBS Talks recording - see slide 65
• Attend the QBS Talks edition of September 29th on
‘Sales competencies in a Cloud First world’
• Attend one of my sessions at DIRECTIONS EMEA
• Attend the 1-day Dynamics365 Business workshop for
UK partners at TVP on Tuesday November 22nd, 2016
• Or …… just wait for the Magic moment?