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Zinnov launches a first-of-its-kind ‘Partner Enablement Framework’ to help technology companies unlock their channel partners potential
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Zinnov launches a first-of-its-kind ‘Partner Enablement Framework’ to help technology companies unlock their channel partners potential

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Zinnov, a leading market expansion and globalization advisory firm, today announced the release of a first-of-its-kind ‘Partner Enablement Framework’ to help technology companies unlock their channel …

Zinnov, a leading market expansion and globalization advisory firm, today announced the release of a first-of-its-kind ‘Partner Enablement Framework’ to help technology companies unlock their channel partner potential. Highlighting the current landscape and opportunities that are present in the ecosystem, the released study also revealed that India currently hosts over 11,000 IT channel partners, excluding PC resellers and box pushers. While 65% of these partners focus on IT services/ managed services, 44% of the partners claim to have solution centric capabilities, while 37% of the current partner base is termed as resellers/ value added resellers.

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  • 1. Partner Enablement Framework March , 2014 Zinnov Propriety Framework This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from Zinnov
  • 2. Indian IT channel partner ecosystem is highly elaborate Total Unique IT Channel Partners In India ~31,000 Unique IT Channel Partners 1 (Excluding PC Vendors/ Box Pushers) ~11,00 0 OEM and Solution Partners Partner Network of Key Technology Companies in India >1,500 Partners (Non Box Pushers) 500 - 1,500 Partners (Non Box Pushers) ~44% 19 % IT Services, Managed Services and System Integrators ~65% 7% 9% Resellers and Value Added Resellers <500 Partners (Non Box Pushers) ~37% Distribute rs Note: 1Based on Zinnov’s analysis on sample set of 2200+ unique partners in top 10 cities* 1
  • 3. Evolution of this ecosystem demonstrates interesting patterns 38% of the aggregate channel revenue is derived from international markets Top 10 cities house only about 40% of total partner base in India Our Understanding 1 in 10 employees of channel partners are focused on driving sales motions BFSI, Manufacturing, High-tech, and Pharmaceuticals are top revenue generating verticals Microsoft, IBM & Oracle witness highest partner preference And Insights Note: Based on 140 in depth primary interactions with IT channel partners and Principal Vendors ERP, CRM, and Database are the top workloads. BI, Mobility and Cloud picking up strong momentum 2
  • 4. A number of opportunities are driving the ecosystem further Large Domestic IT Market Evolving Enterprise Needs Rapidly growing $32 Bn Domestic IT market, expected to >50% Indian CIOs highlight grow to $100 Cloud, Big Data and Mobility investments as top priorities in FY 14 Bn by 2020 A Reduced Dependence on Headcount Led Growth B D C Enormous Technology Ready SMB Base Non-linear growth through ~9.6 Mn technologically Solution & platform centric Models ready SMB base virtually unreachable by direct sales force of principal vendors 3
  • 5. However, a variety of challenges are slowing the channel growth Channel Partner View Principal Vendor View • Limited visibility on partner capabilities, capacities, resource utilization and needs • Most partners are focused on demand fulfilment and lack focus on new demand generation • • Partners are extremely risk averse and demonstrated limited intent to invest in market creation & skill enhancement Partners often complain about lower profitability despite lucrative incentive structures; expect principal vendors to do demand generation • Channel partners perceive Indian arms of Principal Vendors to lack empowerment and thereby stay non-committal • Principal Vendors poach high quality talent from the channel partners; high degree of conflicts with direct sales teams of principals • Lack investments in evangelizing newer opportunities, market creation and partner development/ credit line • Incentive & rebate structures extremely complex to find the most suitable deal in the market Connect GTM Investments Incentives 4
  • 6. Principal Vendors are looking to unlock the channel potential Principal Vendor Challenges Lost Channel Partner Challenges Opportunity 1 Limited visibility on total addressable market potential Zinnov’s Partner Enablement Framework Enables Principal Vendors to: 1. Map current partner profile by partner category 2 Significant overhead in channel investments 3 2. Estimate total addressable revenue and identify revenue gap Long term bets with “Not So Effective” partners 4 Haphazard channel roadmap and strategy 3. Conduct maturity assessment by partner category/stage and define up level mechanism 5
  • 7. Zinnov’s framework helps assess the revenue contribution & maturity of partners • Channel Partners (CP) categorized as Distributors, System Integrators, Solution Partners, Resellers are introduced into Zinnov’s framework Zinnov’s Partner Enablement Framework CPN CP3 CP5 CP4 Revenue Loss Evaluation CP2 CPN CP6 CP1 Partner Maturity Evaluation Assessed Channel Partners For Devising Interventions CP4 CP2 CP5 CP3 Chaotic Revenue Loss Evaluation Parameters • Best in class partner revenue • Total addressable revenue • Total realized revenue • Revenue upside potential CP6 CP1 Invested Proactiv e Reactive Partner Maturity Level Partner Maturity Evaluation Parameters • Management Commitment • Partner Capability • Customer Focus • Credit and Profit Potential • Work Environment • Process Standardization • Awards and Accolades 6
  • 8. Selection Parameters Management Focus Management Commitment & Growth Aspirations Management Bandwidth for Business Growth Cumulative Experience of Managemnet Team in Channel Business Revenue, Profit & Credit Potential Average India Revenue Growth in Last 3 Years Percentage Share of Revenue from Solution Selling in Last 3 Years Revenue Contribution from Domestic Market in Last 3 Years Average Profitability in Last 3 Years Share of Total Revenue from Top 20% Customers Share of Total Revenue which is not Repeatable Next Year Expected Revenue Growth in 2013-14 Credit Potential Capability Assessment History of Execution in India ISV Practice Focus (Compete Penetration) Total Number of Field Sales Resources Geographic Coverage Within India Total Investments for Non-Linear Growth in Last 3 Years Team Bandwidth for Capability Development Level of Domain Expertise on Cloud, Big Data & Mobility Solutions Average Ratio of Customer Acquisition to POCs for the Last 3 Years Customer Focus Total Number of Enterprise Customers in India Average Number of New Enterprise Customers Acquired in Last 3 Years Total Number of SMB Customers in India Average Number of New SMB Customers Acquired in Last 3 Years Case Studies of Marquee Customers Percentage of Customers with C-level Relationships Customer Engagement Model (Proactive or Reactive) Total Number of Customer Interactions on a Monthly Basis Average Customer Retention Rate on a Yearly Basis for Last 3 Years Business & Work Environment Team & Work Environment Average Resource Attrition in Last 3 Year Business Continuity Process Excellence Typical Ramp Up Period for Critical Projects (Full Scale Ramp Up) Documentation for Knowledge Transfer & Training Sensitivity to Customer Data & its Security Planned Effort & Cost Estimation Techniques Used Monthly Frequency of Customer Interactions (Existing) Clearly Defined Issue Escalation & Business Risk Identification Process Awards & Accolades Recognition in Global Markets Recognition in Domestic Market Indian Customer Testimonials Total Rating Weights Partner A Partner B Partner C Partner D Partner E 20% 30% 40% 30% 20% 20% 20% 15% 10% 10% 10% 5% 10% 25% 5% 15% 15% 10% 15% 15% 15% 10% 15% 10% 5% 5% 5% 15% 15% 15% 15% 15% 10% 25% 40% 35% 5% 25% 15% 20% 10% 20% 10% 5% 30% 30% 40% 100% 6.0 6 6 6 6.7 5 8 9 6 6 6 6 6 6.6 4 5 7 6 8 7 6 8 8.3 8 8 8 8 9 8 8 8 9 6.4 6 6 7 8.5 9 8 8 8 9 8 7.3 7 8 7 6.8 5.7 6 6 5 7.1 6 6 7 8 8 8 8 8 6.5 4 5 6 9 6 6 9 6 6.8 6 6 6 7 8 6 6 7 8 7.0 7 7 7 7.1 8 6 6 7 8 7 7.3 7 8 7 6.6 7.2 8 6 8 6.7 5 5 7 8 8 8 8 8 6.6 2 6 7 6 8 7 6 8 8.5 8 8 8 9 9 8 8 9 9 8.0 8 8 8 8.7 9 8 8 9 9 9 6.4 6 6 7 7.2 6.9 7 6 8 4.6 2 5 3 6 6 6 6 6 8.5 8 8 8 9 9 8 9 9 8.3 8 8 8 8 9 8 8 8 9 7.6 8 7 8 8.5 9 8 8 8 9 8 5.2 4 4 7 7.1 7.8 9 6 9 5.0 5 5 5 5 5 5 5 5 5.0 2 2 2 8 8 2 8 8 4.7 2 2 5 5 7 2 5 5 7 6.0 6 6 6 5.5 7 2 5 5 7 5 4.0 2 2 7 5.6 7
  • 9. Partner maturity is defined by key characteristics across phases Channel Partner Maturity Models Inputs Invested Management Commitment Proactive Reactive Partner Capability • • Customer Focus • Credit & Profit Potential Work Environment Process Standardization Awards & Accolades • • • Partner strategy is in complete chaos Will sell any ICT products with the sole objective of making ends meet Haven’t invested in growth and don’t have a desire to build capability • • • Partner strategy is to fulfil demand generated by principal vendor Adopt a hit and run approach and don’t want to invest in end customer relationships Ability to build solutions and value sell is minimal Behaviour is determined by incentive schemes and margins Have set of key accounts and have already made some investments in solutions • Focus is on ensuring that their top customers business challenges are addressed • Have strong leadership teams and good customers • Aspiration is to scale and grow business • Look at principals as a strategic principle that can help them rapidly scale Have their own brand presence in the market Limited capabilities to upsell and value sell • Partners are invested in principal vendors and have capabilities to build solutions and value sell • Chaotic • Have growth aspirations yet struggle with scale • Don’t have quality leadership Partner Maturity 8
  • 10. Zinnov’s framework helps identify specific partner interventions Channel Partner Mapping For Devising Interventions High Zone of Risk Zone of Value Zone of Coincidence Zone of Aspiration CPN CP4 CP5 Revenue Contribution CP2 Zone of Death CP6 Zone of Worry Zone of Tolerance Zone of Priority CP3 CP1 CP7 Optimal Revenue Low Chaotic Reactive Proactive Invested Partner Maturity Relevant interventions for channel partners can be derived after assessment for maturity and revenue contribution to the Principal Vendor 9
  • 11. Zinnov can help principal vendors up level their channel play Long Term Growth Build 2 Year Growth Plan Per Partner Business • Zinnov can work as a consulting partner to help put in place a 2 year business plan for each partner. This will be defined with the partner on behalf of the principal vendor Define Individual GTM Per Partner • Market Leadership Zinnov will analyse data for each partner and define a customized GTM that will ensure greater partner synergies Define Unique Services Catalogue • Business Acceleration Work with each partner to develop a unique services catalogue and define a capability development plan that principal vendors can accelerate 10
  • 12. 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore – 560095 Phone: +91-80-41127925/6 First Floor, Plot # 131, Sector - 44, Gurgaon – 122002 Phone: +91-124- 4420100 Thank You info@zinnov.com 3701 Patrick Henry Dr. Building 7 Santa Clara CA – 95054 Phone: +1-408-716-8432 www.zinnov.com 21, Waterway Ave, Suite 300 The Woodlands TX – 77380 Phone: +1-281-362-2773 Meilifang Tower 4, Entrance 4, 10/F #1003, 11 Beiyuan Shuangying Road, Chaoyang District, Beijing China 100012 @Zinnov Level 42, Suntec Tower Three 8 Temasek Boulevard Singapore 038988 Phone:+65 6829 2123