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.

1. Partner Enablement
Framework
March , 2014
Zinnov Propriety Framework
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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

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