As per Zyme, existing systems and approaches are stopping them from getting real time channel intelligence and accelerating sales. And business leaders are showing great enthusiasm to gain track as well as control of channels and become more data driven towards it. To Know More:-http://www.zyme.com/channel-data-management

1. Zyme UK Channel Data Management Barometer Report | Page 1
CHANNEL DATA
MANAGEMENT
BAROMETER 2017
RESEARCH REPORT
April 2017

2. In 2016, Accenture1
reported that growth in the consumer electronics industry had slowed
down. In 2017, for many consumer electronics companies, the pressure is on to boost sales.
With a heavy reliance on indirect sales channels, manufacturers are one step removed from
the customer data needed to create a successful marketing strategy. In 2015, the Channel
Data Management Barometer highlighted an increasing awareness amongst consumer
electronics companies of the possibilities around data-driven growth through the channel.
This year, the study which includes both the UK and Nordics, looks at how issues around
inventory and incentives are bringing channel data management into sharper focus and
how companies see the discipline, and their processes, evolving.
Some of the key stats from the research are as follows:
Channel context and challenges
74% see indirect sales as a proportion of total sales
increasing over the next 2 years
The top priorities for channel management in the next
12 months are to accelerate channel sales (60%),
improve reporting compliance (54%) and improve ROI
from channel programmes (53%)
Only 1 in 4 is extremely satisfied that their organisation’s
current approach to channel data management (CDM)
can keep pace with the demands of the business
70% say channel performance understanding is held
back by the accuracy of their data
Only 19% of companies are very confident they have a
360-degree view on inventory at all times
42% say their tolerance alerts about inventory levels are
based on inaccurate data
Less than half of companies are confident they have
accurate, real-time data to identify new sales
opportunities quickly (42%), reallocate marketing funds
(43%), accurately measure current demand (45%), drive
profitable relationships with channel partners (47%) or
provide accurate sales pipeline reports (49%)
80% think they have lost commercial opportunities
because of limitations in their ability to collect and
analyse channel data and 43% say they have shared
data with the Board that they are not completely
confident in
Executive summary
Inventory issues are undermining
channel confidence
Zyme Channel Data Management Barometer 2017 Research Report 2
1
https://www.accenture.com/us-en/insight-ignite-growth-consumer-technology
Sample breakdown by turnover
Between
£80 - £249 million
Between
£250 - £500 million
Over
£500 million
42%
42%
16%
SWEDEN
20%
DENMARK
17%
FINLAND
3%
NORWAY
8%
UK
52%
Sample breakdown by country

3. Incentive inefficiencies and inaccuracies
In 93% of organisations incentive payments are treated
as a cost of doing business rather than an investment to
carefully manage for longer term return. Yet, 75% say
there is increasing pressure to prove ROI on
partner incentives
The biggest concerns about channel incentives and
rebates are the increasing operational / administrative
costs of partner incentive programmes (54%), long
incentive payment cycles impacting relationships with
channel partners (49%) and the complexity and
administrative burden of partner incentive
programmes (45%)
On average the channel is operating at around half-full
efficiency (53% on a scale of 0-100%) once ongoing
rebate and incentive issues are considered
In the last 12 months, 61% of organisations have had to
cap financial rewards for the channel because of
previous over-payments made in error
Moving forwards
The biggest barriers to improving channel data
management processes are lack of senior management
/ Board buy-in (51%), lack of budget to invest in channel
data management solutions (46%) and lack of analytics
skills (43%)
83% see that effective channel data management would
give them a greater sense of control over their business
In the next 2 years, the majority think channel data
management will become a Board level role (76%), use
of dedicated, specialist channel data management
solutions will be standard (66%), businesses will share
channel data with their partners so their partners can
better run their businesses (65%), partner advisory
boards to include representatives from all the partner
community will be created (63%) and channel results
will be shown in company annual reports (62%)
Research methodology
166 respondents in large consumer electronics companies
with responsibility for / visibility of the management of data
collected through the channel completed an interview in
February / March 2017. 86 interviews were conducted in the
UK, 80 in the Nordics. All businesses had 30%+ sales
through the channel to qualify and had a minimum turnover
of £80 million. Research was conducted by Insight
Avenue, an independent market research consultancy based
in the UK.
Consumer electronics companies are focused on
accelerating channel sales but are hindered by limited
inventory visibility, inconsistent processes and inaccurate
data. Businesses typically treat channel incentives as a
cost rather than an investment, yet look for ROI on
partner programmes. Businesses are keen to forge closer
relationships with their partners and see data sharing as a
critical route to greater transparency and trust. The next
two years look pivotal as channel data management
(CDM) grows in strategic importance in the business and
a route to sustainable growth in channel sales, benefitting
the industry overall.
Partner relationships and trust
52% say they have to trust channel partners to provide
accurate data because they can’t manage the data
in-house
96% consider the sharing of near real-time channel
data to be important in improving relationships / trust in
their partner networks (43% say very important, 53%
quite important)
78% want to understand more about their channel
partners and channel marketing expenditure
Mechanisms currently in place within organisations to
encourage partner success vary widely - 61% have an
agreed common vocabulary, 57% have a documented
channel incentive strategy, 43% have partner input in
the design of incentive programmes and 34% have a
mechanism to measure partner satisfaction
Zyme Channel Data Management Barometer 2017 Research Report
Indirect /
channel
Direct
56%
44%
Indirect sales as a proportion of overall sales
3

4. Zyme UK Channel Data Management Barometer Report | Page 4
The channel is becoming more important to
consumer electronics businesses. From a
commercial standpoint, three-quarters (74%)
see indirect sales as a proportion of their total
sales increasing over the next two years
[Figure 1]. This figure stands at 76% for the UK
(compared to 55% in 2015) and 71% for the
Nordics. With just over half of current sales
coming via the channel on average, channel
sales look set to become more significant
than direct sales for businesses as we
approach 2020.
Against this backdrop, there are many channel
management priorities vying for attention over the coming
year [Figure 2]. Top of the list is accelerating channel sales
(60%), as it was for UK businesses in 2015. This objective
can encompass driving more revenue through the channel,
decreasing deal cycle times as well as attracting new
channel partners. Following this, businesses are looking to
improve reporting compliance (54%) and to improve ROI
from channel partners (53%). With a greater reliance on
indirect sales and more compliance data and processes
residing with channel partners, being audit-ready is more
challenging and high on the agenda, particularly in UK
companies (60%).
Slick CDM processes are central to achieving these
objectives. Currently, only one in five companies would
describe their organisation’s capability to collect and
analyse channel data as advanced or sophisticated (21%).
Most would describe it as adequate (56%), with 22%
considering it to be basic. Furthermore, only one in four
businesses is extremely satisfied that their organisation’s
current approach to CDM can keep pace with the
demands of the business. There is clearly work to do in
bringing processes and technologies to the standard
needed to effectively accelerate channel sales and meet
other channel management objectives.
Zyme Channel Data Management Barometer 2017 Research Report
Staying the same
Decreasing
74%
24%
2%
Channel context and challenges
All UK Nordics
60%
62%
58%
54%
60%
46%
53%
51%
55%
45%
49%
40%
41%
41%
41%
40%
38%
43%
30%
31%
29%
UK: 76%
Nordic: 71%
Increasing
Figure 2: Priorities for channel management in
the next 12 months
Figure 1: Change in channel sales as % of total
sales in the next two years
4
ACCELERATE CHANNEL SALES
IMPROVE REPORTING COMPLIANCE
IMPROVE CHANNEL PARTNER SATISFACTION
ELIMINATE CHANNEL INEFFICIENCIES
REDUCING RISK/ FINANCIAL EXPOSURE
IMPROVE ROI FROM OUR
CHANNEL PROGRAMMES
GETTING TIMELY, HIGH QUALITY
DATA FROM CHANNEL PARTNERS

5. Only one in five companies (19%) is very confident they have a
360-degree view on inventory at all times, with more than half
describing themselves as not particularly or not at all confident in
this area [Figure 3]. This problem is likely to be compounded as
partner networks further multiply and fragment. In addition, 42%
of consumer electronics businesses say their tolerance alerts
about inventory levels are based on inaccurate data.
The flow of accurate data is the very foundation of effective channel
management enabling businesses to share real-time product
information, optimise inventory and avoid inventory discrepancies and
write-offs. Currently, 70% see their channel performance
understanding being held back by the accuracy of their data. In the
UK, this figure stands at 78%, up from 66% in 2015. Fewer than half
of companies are confident they have accurate, real-time data from
partners to achieve channel fundamentals. [Figure 4] shows a lack of
confidence in being able to identify new sales opportunities quickly
(42%), reallocate marketing funds (43%), accurately measure
current demand (45%), drive profitable relationships with channel
partners (47%), provide accurate sales pipeline reports (49%) among
other things.
A lack of accurate, real-time channel data can have significant
consequences for businesses. 43% say they have shared data with
the Board they are not completely confident in. This may strengthen
the argument for more investment in CDM but also suggests
businesses need to ramp up the strategic credibility of the function.
80% of organisations think they have lost commercial opportunities
because of limitations in their ability to collect and analyse channel
data. Missing sales in such a competitive sector is likely to be a
considerable wake up call for businesses that until now have been
reluctant to invest in CDM.
Zyme Channel Data Management Barometer 2017 Research Report
Figure 3: Confidence in having a
360-degree view on inventory at all times
Figure 4: Confidence in real-time, accurate data
from partners to achieve objectives
Inventory issues and channel confidence
Channel inventories can present either a significant opportunity or a major risk for manufacturers
depending on how well they are managed. The research suggests that inventory issues, starting with
visibility around inventory, are an area of vulnerability for businesses wanting to get the most out of
their channel.
Very
confident
Quite
confident
Not at all
confident
47%
19%
30%
4%
Not particular
confident
UK: 55%
Nordic: 48%
Not confident
5
MANAGE INVENTORY FLOW / RISK
% extermely / quite confident
All UK Nordics
64%
69%
60%
51%
51%
50%
50%
49%
51%
49%
49%
49%
47%
41%
54%
47%
44%
50%
45%
38%
51%
42%
40%
45%
42%
43%
44%
RECOGNISE AND MOTIVATE HIGH
PERFORMING CHANNEL PARTNERS
ACCURATELY MEASURE SALES
COMMISSION / PARTNER INCENTIVES
PROVIDE ACCURATE SALES
PIPELINE REPORTS
DELIVER INSIGHT TO BUSINESS
USERS IN NEAR REAL-TIME
DRIVE LONG TERM PROFITABLE
RELATIONSHIPS WITH YOUR
CHANNEL PARTNERS
ACCURATELY MEASURE
CURRENT DEMAND
IDENTIFY NEW SALES
OPPORTUNITIES QUICKLY
RE-ALLOCATE MARKETING
FUNDS WHERE THEY WILL BOOST
SALES THE MOST

6. Incentives are crucial given the importance of
the indirect channel and incentive payments can
represent a significant proportion of marketing
expenditure for consumer electronics
businesses. There are some interesting
contradictions in how incentives are currently
managed. For 93% of organisations, incentives
are treated as a cost of doing business rather
than an investment to carefully manage for
longer term return [Figure 5]. With improving the
ROI of channel programmes a priority for the
next 12 months [Figure 2], three quarters of
businesses (75%) say there is increasing
pressure to prove ROI on partner incentives.
Yet, businesses treat channel programmes and
partner incentives as a cost.
Against this backdrop, there are many channel specific
concerns around channel incentives and rebates are
shown in [Figure 6]. The biggest concern is the operational
and administrative cost of partner incentive programmes
(54%) which is closely related to the complexity and
administrative burden of such programmes (45%). In
addition, there are problems around long incentive
payment cycles impacting relationships with channel
partners (49%), issues around incentive overspend (39%)
and incorrect payments to channel partners (37%).
Incorrect payments may not be the most pressing concern,
but 61% of organisations have had to cap financial rewards
for the channel in the last 12 months alone because of
previous over-payments made in error. This may
undermine partner trust and relationships if the situation
continues unchecked.
As with issues relating to inventory, problems with
incentives and rebates will intensify as partner networks
expand and become more complex. Businesses estimate,
considering ongoing rebate and incentive issues, their
channel is operating at around 50% efficiency suggesting
there is significant scope for efficiency gains.
Increasing operational / adminstrative costs
of partner incentive programmes
Long incentive payment cycles impacting
relationships with channel partners
Complexity and administrative burden of
partner incentive programmes
Incentive overspend on partner programmes
due to data collection / recording issues
Incorrect payments being paid to channel partners
Decentralisation of incentives resulting in
duplicate programmes / incentive spend
Difficulties proving that rebates have been
issued in error due to inaccurate data
Zyme Channel Data Management Barometer 2017 Research ReportIncentive inefficiencies and inaccuracies
Figure 6: Biggest concerns about channel
incentives and rebates
Figure 5: Extent to which incentives treated as a
cost of doing business rather than an investment
54%
49%
45%
39%
37%
35%
18%
Not
particularly
To some
extent
To a great
extent
Not at all
45%
48%
3%4%
6

7. Much customer knowledge and data is in the
hands of many different channel partners and
mutually beneficial relationships are dependent
on the flow of accurate data between partners
and manufacturers. For half of consumer
electronics manufacturers (52%) there is a
complete reliance on (or trust in) channel
partners to provide accurate data because
they simply are not able to manage this data
in-house.
There is consensus that the sharing of near real-time
channel data is important in improving relationships and
trust in partner networks [Figure 7] and with 78% wanting
to understand more about their channel partners and
channel marketing expenditure, there is clear enthusiasm
for data-driven insight at a partner level.
Currently, 88% admit that their channel data collection and
analysis processes vary widely depending on the partner.
The 80/20 rule may well apply in channel relationships with
resources and attention placed on the top 20% of
channel partners, although for many companies this
inconsistency highlights a wider problem with channel
visibility and efficiency.
Consumer electronics companies are taking some steps to
encourage partner success. This is typically more common
amongst UK companies than those in the Nordics.
Specifically, 61% have an agreed common vocabulary with
partners, whereby agreed terminologies can help reduce
miscommunication and increase operational efficiency.
57% have a documented indirect channel incentive
strategy in place and 43% use partner input when creating
and designing their incentive programmes. One in three is
measuring partner satisfaction. The use of mechanisms is
indicative of the level of commitment to sustainable
relationships with partners. This is likely to increase along
with the propagation of best practice through the long tail
of the channel as manufacturers further embed data-driven
insight practices.
AGREED COMMON VOCABULARY WITH PARTNERS
A DOCUMENTED INDIRECT CHANNEL INCENTIVE STRATEGY
PARTNER INPUT INTO CREATING AND DESIGNING INCENTIVE PROGRAMMES
MECHANISM TO MEASURE PARTNER SATISFACTION
Zyme Channel Data Management Barometer 2017 Research ReportPartner relationships and trust
Figure 8: Mechanisms in place to encourage
partner success
Figure 7: Importance of sharing near real-time
data in improving relationships / trust in their
partner networks
All UK Nordics
45343 %
Very important
UK: 41%
Nordics: 45%
Quite important
Not particularly
important
7
65%
60%
43%
56%
53%
43%
61%
57%
43%
37%
31%
34%

8. Businesses are currently struggling with
accessing and using channel data on many
fronts. They find it difficult to understand the
effectiveness of specific campaigns (87%), to
forecast risks as the data collected does not
enable them to predict sudden demand (82%),
to respond to wider consumer trends (76%), to
plan future campaigns effectively (72%) and to
identify higher performing partners based on
channel data (69%).
Being able to do these things more effectively would go
some way to proving ROI on channel data management.
Yet, barriers to CDM persist in many businesses. [Figure 9]
shows the key barriers to improving CDM processes. Lack
of senior management / Board buy-in is an issue in 51% of
companies and particularly affects those in the Nordics.
For UK companies, the bigger issues are a lack of budget
to invest in CDM solutions (51%) and a lack of analytics
skills (50%). These barriers are creating a vicious cycle -
without management buy-in, investment in technology and
skills is difficult to secure and without some level of
investment and demonstration of ROI, continued
investment becomes more challenging. Businesses that
are serious about driving more sales through the channel
and improving their relationships with channel partners are
taking a longer-term view on CDM and the research
suggest within two years, many businesses see CDM
evolving to become a more strategic business function.
Over this timeframe, three-quarters expect to see CDM
becoming a Board level role (76%) and 62% predict that
channel results will be shown in company annual reports
as standard. Two-thirds consider that the use of specialist
CDM solutions will become standard and that the sharing of data
will be a two-way process so partners can better run their
businesses too. Effective data management is key to sustained
channel success - 83% of businesses see this giving a greater
sense of control over their business. Control in businesses, that have
two or more channel tiers removing them from the end customers, is
no doubt very welcome.
Zyme Channel Data Management Barometer 2017 Research ReportMoving forwards
Figure 9: Barriers to
improving CDM processes
Figure 10: Standardised practices within two years for CDM
8
All UK Nordics
LACK OF SENIOR MANAGEMENT / BOARD BUY-IN
LACK OF BUDGET TO INVEST IN CHANNEL
DATA MANAGEMENT SOLUTIONS
LACK OF TIME
LACK OF KNOWLEDGE OF WHERE TO START
LACK OF ANALYTICS SKILLS
LEGACY DATA MANAGEMENT
PROCESS AND SYSTEMS
51%
47%
56%
46%
51%
40%
43%
50%
36%
40%
42%
39%
32%
33%
31%
30%
33%
26%
All UK Nordics
CHANNEL DATA MANAGEMENT WILL
BECOME A BOARD LEVEL ROLE
USE OF DEDICATED, SPECIALIST CHANNEL
DATA MANAGEMENT (CDM) SOLUTIONS
CREATION OF PARTNER ADVISORY BOARDS TO
INCLUDE REPRESENTATIVES FROM ALL OF OUR
PARTNER COMMUNITY
SHARE CHANNEL DATA WITH OUR PARTNERS SO
OUR PARTNERS CAN BETTER RUN THEIR BUSINESS
76%
73%
79%
66%
67%
65%
65%
67%
63%
63%
70%
55%
CHANNEL RESULTS WILL BE SHOWN IN
COMPANY ANNUAL REPORTS
USING CHANNEL DATA FOR TRENDS AND
PREDICTIONS WILL BECOME A CRITICAL
BUSINESS DIFFERENTIATOR
INVENTORY LEVELS WILL BE OPTIMISED
BECAUSE OF ACCURATE AND PREDICTIVE
CHANNEL DATA
62%
67%
56%
59%
56%
59%
59%
59%
53%
% expecting to be standard within 2 years

9. With a growing reliance on the channel to drive
revenue, consumer electronics businesses
recognise the value of channel data
management in giving them greater visibility and
control over their extended enterprise.
Businesses recognise that current systems and
approaches are holding them back from gaining real-time
channel intelligence and accelerating sales. They highlight
problems around incentive programmes and inventory
which are symptomatic of a reactive function on the
strategic back foot.
There is, however, evident enthusiasm to gain control and
become more data-driven in channel management. Data
doesn’t so much replace trust with partners, but enhances
trust through greater transparency and a sense of mutual
benefit. The sharing economy holds as much potential in
channel relationships as it does in the wider consumer
landscape and extends beyond fluffy, feel good sentiment
to operationally efficient and financially attractive
outcomes throughout the channel.
As the channel continues to grow in significance, the next
two years represent a tipping point for channel
management. In this timespan, many expect CDM to grow
in strategic stature – from an operational and
administrative burden, to something that drives value and
revenue, warranting a place at the Board table and in
annual reports.
Zyme Channel Data Management Barometer 2017 Research ReportConclusion 9