As channel incentives programs offered by product manufacturers to channel partners get increasingly more complex, it has become even more challenging than before to drive partner participation, influence partner behavior, and measure data-backed ROI of the programs. View these slides from a webinar featuring SiriusDecisions, Western Digital and Zyme to learn about the current state of channel incentives programs, and how leading companies are aligning their incentives programs to drive greater channel sales while reducing their channel investment. Zyme offers zymeIncentives - one of the most comprehensive, data-driven incentives solution in the industry – for leading technology manufacturing companies to seamlessly manage their incentives programs. Some of the key competitive advantages offered by zymeIncentives to manufacturers are: User-defined Innovative program definitions Leverage Zyme’s proprietary TruePay engine Comprehensive portfolio of capabilities to manage various incentives programs End to end visibility

1. Effectively Managing Channel
Incentives to Drive Partner
Behavior and Program ROI

2. 2www.zyme.com
Safe Harbor Statement
© Zyme Solutions Inc. 2017
The content of this presentation is for information purposes only and
any unreleased product capabilities or services that are referenced in
this or other presentations or public statements may not be delivered or
available on time or at all. Any purchasing decision should be made
based upon capabilities and services that are currently available.

3. 3www.zyme.com
Agenda
© Zyme Solutions Inc. 2017
Evolution of Channel Incentives Programs
Angela Leech, Research Director – Channel Marketing Services, SiriusDecisions
zymeIncentives – End to End Incentives Management Solution
Deepanjan Chattopadhyay, Associate Director – Solutions, Zyme
Managing Incentives Effectively at Western Digital
Colleen Crowley, Sr. Director – Credit, Collections and Rebates, Western Digital

4. Angela Leech
Research Director
@AngelaLeech
The Evolution of Channel
Incentive Programs
Angela Leech
Research Director
@AngelaLeech

5. SiriusPerspective:
5 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Channel Incentives in the Rearview Mirror
Past performance is not an indicator of future growth – suppliers must look beyond
sales rewards and develop incentives that drive future performance.

6. 6 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Incentive Challenges
5
14
17
18
19
24
24
27
33
INCENTIVES ONLY FOCUS ON SALES PERFORMANCE
INCENTIVES NOT TARGETED TO PARTNER ROLES
NO ALIGNMENT TO CHANNEL GOALS
INCENTIVES NOT MOTIVATING THE RIGHT PARTNERS
INCENTIVES NOT MONITORED AND MEASURED CORRECTLY
NO INCENTIVE ROI MEASUREMENT
INCENTIVE NOT INFLUENCING THE RIGHT BEHAVIOR
INCENTIVES NOT DRIVING GROWTH
POOR PARTNER PARTICIPATION
Biggest Incentive Challenges today

7. 7 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Incentive Offerings and Goals
0%
15%
44%
27%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
ALL MOST SOME FEW NONE
How many of your incentive programs meet
your incentive goals
40
21
6
7
1 TO 3 4 TO 6 7 TO 10 MORE THAN 10
Number of Annual Incentives

8. SiriusPerspective:
8 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
The Expanding Universe of Incentives
As channel incentives programs evolve, the ideal mix of programs will expand to
include leading-indicator incentives as well as persona-level programs.
Accrued marketing
funds earned through
revenue attainment
Co-Op
Funds
Revenue/
Performance
Achievement
Market
Development
Funds (MDF)
SPIFs
Sales performance
incentive funds
earned by reaching
specific sales goals
MDF
C
Points-Based
Rewards123
Launch
Funds
Deal
Registration
Onboarding
Velocity
Lead
Reporting
Managed
Business
Objectives
Reward for completing
onboarding within the
desired timeframe
R
MBO
Certification/
Specialization
Achievement
Discretionary funds
used to seed new
market opportunities
Monetary rebates
earned upon reaching
specific goals or
targets
Reward for reaching
predefined revenue or
performance
objectives
Reward for registering
opportunities, deals,
sales accepted leads
Cumulative rewards
earned through
specific behaviors or
activities
Discretionary funds to
launch partnerships,
drive
awareness/demand for
offerings
Reward for partners
reaching certification/
specialization goals
Reward for closed-
loop lead reporting
and adherence to
SLAs
Reward for
achievement of
specific supplier-
defined objectives
Rebates

9. SiriusPerspective:
9 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
The Expanding Universe of Incentives
As channel incentive programs evolve, the ideal mix of programs will expand to
include leading-indicator incentives as well as persona-level programs.
Accrued marketing
funds earned through
revenue attainment
Co-Op
Funds
Revenue/
Performance
Achievement
Market
Development
Funds (MDF)
SPIFs
Sales performance
incentive funds
earned by reaching
specific sales goals
MDF
C
Points-Based
Rewards123
Launch
Funds
Deal
Registration
Onboarding
Velocity
Lead
Reporting
Managed
Business
Objectives
Reward for completing
onboarding within the
desired timeframe
R
MBO
Certification/
Specialization
Achievement
Discretionary funds
used to seed new
market opportunities
Monetary rebates
earned upon reaching
specific goals or
targets
Reward for reaching
predefined revenue or
performance
objectives
Reward for registering
opportunities, deals,
sales accepted leads
Cumulative rewards
earned through
specific behaviors or
activities
Discretionary funds to
launch partnerships,
drive
awareness/demand for
offerings
Reward for partners
reaching certification/
specialization goals
Reward for closed-
loop lead reporting
and adherence to
SLAs
Reward for
achievement of
specific supplier-
defined objectives
Rebates
Incentives Types

10. SiriusPerspective:
10 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
The Expanding Universe of Incentives
As channel incentives programs evolve, the ideal mix of programs will expand to
include leading-indicator incentives as well as persona-level programs.
Accrued marketing
funds earned through
revenue attainment
Co-Op
Funds
Revenue/
Performance
Achievement
Market
Development
Funds (MDF)
SPIFs
Sales performance
incentive funds
earned by reaching
specific sales goals
MDF
C
Points-Based
Rewards123
Launch
Funds
Deal
Registration
Onboarding
Velocity
Lead
Reporting
Managed
Business
Objectives
Reward for completing
onboarding within the
desired timeframe
R
MBO
Certification/
Specialization
Achievement
Discretionary funds
used to seed new
market opportunities
Monetary rebates
earned upon reaching
specific goals or
targets
Reward for reaching
predefined revenue or
performance
objectives
Reward for registering
opportunities, deals,
sales accepted leads
Cumulative rewards
earned through
specific behaviors or
activities
Discretionary funds to
launch partnerships,
drive
awareness/demand for
offerings
Reward for partners
reaching certification/
specialization goals
Reward for closed-
loop lead reporting
and adherence to
SLAs
Reward for
achievement of
specific supplier-
defined objectives
Rebates
Incentives Programs

11. SiriusPerspective:
11 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
• Adoption rates are low
• Overspending, cumulative
rebates/margin/fraud
• Little or no governance
• Siloed programs, little connection to
overarching goals
• Hard to prove ROI – lack of
measurement
• Influencing wrong behaviors
The Problems With Incentives Continue
The current misuse of incentives is undermining the ability for b-to-b suppliers to
achieve objectives and revenue growth.

12. Introducing the SiriusDecisions
Channel Incentives Selection Model
A four-step approach to effective partner incentives selection

13. 13 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
• Recognize and reward partner contribution and performance
• Enhance partner experience
• Strengthen partner relationships and increase loyalty
• Establish and maintain partner mindshare
• Drive desired partner behavior
Why Channel Partner Incentives Are Important

14. 14 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Incentive Selection Model Inputs
What growth
goal are you are
trying to achieve?
Growth
G
Type
What partner
types are you
trying to
influence?
T
Persona
What partner
personas would
you like to target?
P
Behavior
What behavior
would you like
to see?
B

15. 15 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Step One: Alignment to Growth Strategies
T
G
P
B
The SiriusDecisions
Channel Incentive
Selection Model
Acquisition
Buyers
Markets
Offerings
Productivity

16. 16 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Step Two: Alignment to Partner Types
T
G
P
B
The SiriusDecisions
Channel Incentive
Selection Model
Referral
Partner
Service
Provider
MTSISIOEM/
ISV
Reseller/
Dealer
Volume
Reseller
Services
Only
Solution
Provider
MSP
Electronic
ResellerDistributor

17. 17 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Step Three: Alignment to Partner Persona
Engineering
or Technical
Leadership
TECH
LEAD
Owner,
CEO, CFO
or
President
EXEC
MGMT
0
VP, or
Director of
Sales
SALES
MGMT
Sales Rep/
Individual
SALES
REP
VP, Director
or
Marketing
Manager
MKTG LEAD
Consulting
or Services
Director
PROF SVCS
T
G
P
B
The SiriusDecisions
Channel Incentive
Selection Model

18. 18 © 2017 SiriusDecisions. All Rights Reserved@siriusdecisions
Step Four: Desired Behavior Outcome
FINANCIAL
GOALS
PARTNER
CAPABILITY
DEMAND
CREATION
T
G
P
B
The SiriusDecisions
Channel Incentive
Selection Model

19. zymeIncentivesSM
End to End Incentives Management

20. 20www.zyme.com
Channel Partner Incentive Management – Challenges
Driving partner participation
Tracking program effectiveness
Aligning with business goals
© Zyme Solutions Inc. 2017
• Complex channel structures
• Alignment to channel goals
• Complex program requirements
• Go beyond sales performance

21. 21www.zyme.com
Channel Partner Incentive Management – Challenges
Driving partner participation
Tracking program effectiveness
Aligning with business goals
© Zyme Solutions Inc. 2017
• Targeting wrong partners
• Unclear partner eligibility
• Complex claim management
• Long payment cycles

22. 22www.zyme.com
Channel Partner Incentive Management – Challenges
Driving partner participation
Tracking program effectiveness
Aligning with business goals
© Zyme Solutions Inc. 2017
• Calculate partner payouts accurately
• Incentive ROI measurement
• Siloed processes
• Match actual sales to payouts
• Track changes in partner activity

23. 23www.zyme.com
Channel Partner Incentive Management – Market Expectations
OEMs
• Single pane view of all programs and payouts
• Automated, accurate partner payout calculations
• Flexible, configurable calculation engine
• Performance and activity-based programs
• Claim validation and management workflows
• Partner payout workflows and disbursals
• Easy integration, especially with OEM’s CRM
• Measure program ROI
Partners
• Unified, cohesive, simplified user experience
• Accurate calculations
• Emails and notifications
• Short payment cycles
• Integrated into OEM’s PRM
• Dispute resolution workflows
• Flexible payment options
• Multi-currency and multi-language support
© Zyme Solutions Inc. 2017

24. 24www.zyme.com
zymeIncentives – Even Better with CCI
Combining Zyme’s decision-grade channel data and enterprise-
grade incentives management solution with CCI’s highly
configurable MDF/Co-op solution results in the most powerful and
comprehensive incentives management solution in the industry.
© Zyme Solutions Inc. 2017

25. 25www.zyme.com
Expanded Program Coverage
Product
Based
Programs
Special
Pricing
Programs
Sales Quota
Attainment
Deal
Registrations
Volume
Discounts
Ship & Debit
Programs
Performance
Based
Incentives
© Zyme Solutions Inc. 2017
SPIFFs
Co-op
Programs
Referral
Programs
Activity Based
Incentives
Trade-in
Programs
Discretionary
MDF
Marketing
Campaigns

26. 26www.zyme.com
Expanded Solution Coverage
© Zyme Solutions Inc. 2017
zymeIncentives
Program Design
Program Requests &
Approvals
Program Communication
Program Setup
Claim Management
& Approvals
Payout Calculation
& Approvals
Payments Processing &
Disbursement
ROI and Performance Reporting

27. 27www.zyme.com
zymeIncentives – Aligning Incentive Programs with Business Needs
© Zyme Solutions Inc. 2017
zymeIncentives
Sales Growth
Partner Competencies
Reseller Coverage
New Customers
Grow Geographies
Marketing Campaigns
Inventory Optimization
Deal Activity
Lead Generation
Product Bundles
Sunset Products
Grow Margins
Grow Services
Brand Awareness
Partner Certifications
Customer Education
Partner Recruitment
Partner Loyalty
Product Launch
Develop Pipeline
Predictable Sales
A flexible, configurable, end-to-end solution to define, track and manage global partner incentives
v vAligning with Business Goals Driving Partner Participation Tracking Program Effectiveness

28. 28www.zyme.com
zymeIncentives – Enabling Higher Partner Participation
© Zyme Solutions Inc. 2017
Driving
Partner
Participation
Clear
Program
Objectives
Targeted
Partner
Groups
Automated
Claim
Processing
Fast &
Accurate
Payments
Dispute
Resolution
v vAligning with business goals Driving Partner Participation Tracking Program Effectiveness

29. 29www.zyme.com
Tracking Program Effectiveness
© Zyme Solutions Inc. 2017
Claim Management
Program Studio
Accurate Payment Calculations
Payment Approvals
Partner Payment Disbursement
OEMs
Dispute Resolution
Claim Submission
Claim Approvals
Partners
zymeIncentives
Reports and Dashboards
Master Data
Channel Sales
Partner Claims
Partner Data
Measuring Program Effectiveness
• Program goal achievement
• Program payouts
• Program optimization
• Partner sales trends and content
• Partner engagement
• Partner participation
• Partner dispute trends
• Partner satisfaction
• MDF usage trends
• Partner marketing activity
• Partner deal activity
• Partner geo coverage
….and much more!
HIGHQUALITYCHANNELDATA
v vAligning with business goals Driving Partner Participation Tracking Program Effectiveness

30. 30www.zyme.com
zymeIncentives – Enabling Single Pane of Glass View
© Zyme Solutions Inc. 2017
Salesforce Microsoft Dynamics 365
zymeIncentives is now integrated with your favorite CRMs

31. 31www.zyme.com
Why zymeIncentives?
© Zyme Solutions Inc. 2015
Broad Program Coverage
Track Program ROI
Automated Claims ManagementFlexible Solution
Global Payments Processing
Increased Partner Satisfaction
zymeIncentives

32. 8/10/2017©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential.
Effectively Managing Channel Incentives

33. Western Digital: Storage and Memory Products
33©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential.
Client
Devices
Client
Solutions
Data Center Devices
& Solutions

34. • Original problem statement
• Calculation accuracy, Processing time, Rebate accruals & analytics
• zymeIncentives (powered by TruePay engine) launched with HGST subsidiary in
2015
• 12 month implementation project
• Staged roll out covering data transfers, fields & formats, definitions and program launches
• On-site Zyme support for critical phases
• 150 direct Distributors; thousands of channel partners
• Mature customer incentive programs
• Claimless programs with minimal disputes
Western Digital: Zyme relationship
8/10/2017 34©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential.
Sales-based rebates Special pricing Step-function payout
Target-based rebates Price Mask Lump sum payout
Price Protection Tier II incentives Customer deductions

35. • Key Learning: Streamline beforehand where possible
• Business process and org alignment
– Copy exactly of legacy processes facilitated the launch, but extended stabilization period
– Program simplification and standardization eventually lead to faster set up and refresh times
• Technical efficiency: Data Feeds
– Eventual alignment of refresh dates around payout periods helped to avoid weekend work for Zyme
• Key Partnership: Zyme’s Operational support team
• Engaged & responsive Operations team has been critical to continuous improvement
• Unforeseen Benefit: Data aggregation for agile reporting
• Aggregation of data from multiple WD tools into a coherent, compatible format provided quick wins for
reporting enhancements
– ASP tracking
– Advanced analytics for accruals
• And we’ve just begun scratching the surface of potential benefits…
HGST Key Learnings and Observations
8/10/2017 35©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential.

36. 368/10/2017©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential.

37. 37www.zyme.com
Upcoming Zyme Events
© Zyme Solutions Inc. 2017
November 6 – 9, San Francisco
Booth # 1819
For future webinars and other Zyme events:
http://www.zyme.com/about/events

38. 38www.zyme.com
Questions
© Zyme Solutions Inc. 2017
inquiry@zyme.com