Channel 102 Developing Successful Partner Programs WW SPO

Agenda - It’s all about the “Channel Value Proposition” - Things can that hurt

It’s all about the “Channel Value Proposition” Before you start, for a moment become

Things can that hurt the Channel Value Proposition Things that hurt the value proposition

Channel Partner Plan - Readiness Elements As part of preparing a Partner centric plan

Effective Partner Programs: 10 questions that a “Channel-Ready” program must address to be successful

1. What is the offering and value proposition to be sold to end customers?

2. Is this offering compelling relative to competition? Discussion: • Partners must decide what

3. What is the size of the total opportunity and how much is the

B/U and Segment: “What do you want the partner to do? ” DESIRED PARTNER

B/U and Segment: “What do you want the partner to do? ” • The

5. What is the value proposition to partners? • Potential partner investments • −Training

6. Is the partner value proposition compelling vs competition? Discussion: • Partners will be

8. How many partners do we need, and how will we recruit them? •

9. What do we need to do to enable partners to be successful? •

Training considerations: Partner Training Development Standards (we need standards to communicate SPO Business Requirements

10. What else will we need in order to execute in the regions? •

Channel Partner Plan - Readiness Elements Sample SPO Partner Readiness Matrix Operations Key Elements

Channel Partner Plan – Readiness Elements Sample SPO Partner Readiness Matrix Regional Plan Key

Channel Partner Plan – Readiness Elements Sample SPO Partner Readiness Matrix Regional Plan continued

Quick Comment If you could take a moment to fill in the questions below

Slides: 34

Download presentation

“Channel 102”: Developing Successful Partner Programs WW SPO Partner Development & Programs team Mike Wardley © 2004 Hewlett-Packard Development Company, L. P. The information contained herein is subject to change without notice

Agenda - It’s all about the “Channel Value Proposition” - Things can that hurt the “Channel Value Proposition” - Channel Partner Plan - Readiness Elements - The 10 questions that a “Channel-Ready” program must address to be successful 1. What is the offering and value proposition to be sold to end customers? 2. Is this offering compelling relative to competition? 3. What is the size of the total opportunity and how much is the partner component? 4. What do we want partners to do? 5. What is the value proposition to partners? 6. Is the partner value proposition compelling vs competition? 7. What do target partners look like? 8. How many partners do we need, and how will we recruit them? 9. What do we need to do to enable partners to be successful? 10. What else will we need in order to execute in the regions? HP Confidential 2

It’s all about the “Channel Value Proposition” Before you start, for a moment become a reseller. Lean, hungry aggressive and looking for your next sale to meet your quota and keep you moving forward and in the game. . Resellers like products that sell, that have market pull and that have positive margins, but can’t usually make enough margin from them to survive. This is your opportunity… If you can come up with a value proposition over and above the product sale that is attractive to resellers then you will have designed a value proposition that is program and likely will have a winner in your hands. Most resellers like solutions : o) The challenge is that if you’re in the product business that’s quite a leap to make. So what element are available to you over and above a great product that everyone wants that you can potentially include in the channel value proposition for you program: -Services -Annuities - Upgrades - Cross sell - Up-Sell - Repeat orders - Follow-on - Competitive attack - Account control - Consulting - New business opportunity etc…. . HP Confidential 3

Things can that hurt the Channel Value Proposition Things that hurt the value proposition always exist so be being aware of them you will have the chance to mitigate them Example of issues might be: -You need to do lots of training for this product, it’s very complex to sell -We do it all from HP -You need to build infrastructure -You will be one of 50, 000 selling this -The market is small or undefined -The market confused and fragmented -There is nothing but the product offering -The product have a complex value proposition and long sales cycle with many dependencies -There are several better, more competitive offering Note: All of the above can be overcome with the right value proposition. An example might be: Who wouldn’t become a road sweeper for $1 M per year and with guaranteed employment for 3 years : o) Resellers will attack what seem like impossible odds if the value proposition motivates them to do it. Hence the value proposition is the most important component of a program. So document it, test and communicate it to the wider program team HP Confidential 4

Channel Partner Plan - Readiness Elements As part of preparing a Partner centric plan several element need to be address. SPO provides the “Partner Readiness Framework” to facilitate. The framework is a series of matrices that cover the following topics: • Executive Summary / Program Description • HP Financials • Channel Value Proposition • Competition • Marketing • Sales • Services • Competency Requirements • Operations • Regional Plan The most effective method to use and complete the “Partner readiness Framework” is to ask a series of “questions” – the 10 questions that a “Channel-Ready” program must address to be successful. Consider the following slide. . HP Confidential 5

Effective Partner Programs: 10 questions that a “Channel-Ready” program must address to be successful 1. What is the offering and value proposition to be sold to end customers? 2. Is this offering compelling relative to competition? 3. What is the size of the total opportunity and how much is the partner component? 4. What do we want partners to do? 5. What is the value proposition to partners? 6. Is the partner value proposition compelling vs competition? 7. What do target partners look like? 8. How many partners do we need, and how will we recruit them? 9. What do we need to do to enable partners to be successful? 10. What else will we need in order to execute in the regions? Does it all seem a little to easy? More to follow : o) HP Confidential 6

1. What is the offering and value proposition to be sold to end customers? Discussion: • Must be able to define the target customers • Must have a strong value proposition for end customers regardless of route to market (whether selling direct, indirect, or both) • Partners place high value on the technical components of a solution or offering −According to CMP Research and CRN, they most highly value ROI to their customer • The offering should consider the “whole solution” not just components of technology. Complementary services, products, processes, tools, capabilities, etc. should be developed to enable customers to successfully deploy the solution. −Refer to the book “Crossing the Chasm” for more on this topic. If you can’t say who your perfect customer is then how would you expect a partner… It’s still easy, you just have to think it thru and write it down. HP Confidential 7

2. Is this offering compelling relative to competition? Discussion: • Partners must decide what offerings to sell based on the choices and alternatives that an end customer has. • An HP offering could be of good value, but if customers have better choices (competitors or other alternatives) partners will either not sell the HP offering or will not be successful selling the HP offering Be honest, you must be honest about the competitive situation, it may not change what you do, but if you’re honest you have a much better chance of building an offer that is compelling, remember the best product does not always win ! HP Confidential 9

3. What is the size of the total opportunity and how much is the partner component? • An assessment similar to this must be completed Size is very important, especially when trying to work out which one to pick. SPO usually pick the biggest because it usually offers the best return for our investments. But be careful, because we’ll also ask you for a forecast : o) HP Confidential 11

B/U and Segment: “What do you want the partner to do? ” DESIRED PARTNER ACTION Conversant – Partner should be able to talk about the offering POTENTIAL REQUIRED ELEMENTS • WW and Region SPO, CSG-SMB, and B/U interlocked launch and demand gen plans • Marketing communications collateral that can be easily absorbed and communicated to customers. Engagement – Partner should be able to engage with HP resources to sell and implement the solution • WW and Region SPO, CSG-SMB, and B/U interlocked launch and demand gen plans • Marketing communications collateral • Sales training (webinars; powerpoints; interactive on-line training; instructor-led; translations considered) • Value proposition to partner and for end customer Investment– HP desires partners to make significant investments to develop a line of business to sell and implement the solution • WW and Region SPO, CSG-SMB, and B/U interlocked launch and demand gen plans • Marketing communications collateral • Sales training (webinars; powerpoints; interactive on-line training; instructor-led; translations considered) • Value proposition to partner and for end customer • Certifications; demo equipment; ISV training & partnership; business case ROI; sales cycle; HP technical sales support; etc HP Confidential 13

B/U and Segment: “What do you want the partner to do? ” • The more we ask the partner to do, the more important the need for a value proposition to the partner for how his efforts will produce an acceptable ROI • Conversant: Small bet • Engagement : Big bet • Investment: Betting the business ! • SPO can not “make up” a value proposition for a complex solution – it must be incorporated into the development of the solution HP Confidential 14

5. What is the value proposition to partners? • Potential partner investments • −Training & certification • Cost of courses and certifications • Opportunity cost – time away and lost billing hours −Working capital • Inventory • Receivables (potentially increases due longer sales cycles and acceptance conditions) −Demo equipment −Demand generation • Collateral • Advertising • Outbound call center −T’s and C’s • Returns • Potential partner returns −Reselling margins • HP Products • HP services • 3 rd party products and services −Financing margins • Lease margin −Partner service margins • Profit on complementary services that the partner can wrap around the offering (consulting; installation; training; support; etc. ) −Back-end vendor benefits • HP MDF and rebates • Other vendor MDF and rebates Potential partner risks −Partner’s reputation and customer trust the total customer experience of the partner’s customer HP Confidential 16

6. Is the partner value proposition compelling vs competition? Discussion: • Partners will be evaluating HP’s offering with other options available −Other options • Other vendors • Different solution approaches −Evaluation criteria includes: • Technical −ROI to end customer −Quality −Vendor support over the lifecycle of the project • Channel programs −Profitability −Availability −Ease of doing business Most partners have multiple relationships and are more than happy to attempt to play one vendor of against another… Know your competitors and document you partner value proposition ! HP Confidential 18

7. What do target partners look like? Discussion: • Partner profile characteristics −Geographic • Region • Cross-region • International −Capabilities • Certifications • Size • Authorizations −Segment focus • SMB vs. Enterprise vs. Public Sector vs. SOHO Document what you’re looking for, if you can’t then “Houston we have a problem” And if your perfect partner need to have 4000 Ph. Ds on staff then you’re in trouble ! HP Confidential 20

8. How many partners do we need, and how will we recruit them? • Must quantify assumptions of yield per partner, number of partners who are engaged and active, and number of partners who we expect we need to “touch” in order to net to the required number of active partners • Must ensure resources are available for effective recruiting: − Collateral publication/mailing − Call center Remember that forecast we talked about…. − Feet on street − Roadshows Forecast /partner thru-put = # partners − Webinars − Advertising − Public relations HP Confidential 22

9. What do we need to do to enable partners to be successful? • Training − Partner personnel • Sales • Pre-sales • Administration • Systems − Order management and logistics − Benefits payments − Sales compensation • Tools • Communications − Web information − Printed and electronic collateral And if to enable partners we have to have an HP VP attend sales calls with them, then give it up, and deploy you plan B ! HP Confidential 24

Training considerations: Partner Training Development Standards (we need standards to communicate SPO Business Requirements to groups producing training for partners) Dimensions • • • Relevant Target Audiences − Call center sales; field sales; technical pre-sales; Trainers − SPO Sales (selling the partner on the program) See following pages Objectives and competencies − Sales– delivering the customer value prop − Pre-sales skills – sizing and proposing − Selling partners on the Partner Value Proposition See following pages Media and Translations − ILT; Webinar; Powerpoint; Interactive Web-based training; POD − Ongoing maintenance funding including updating courses with translations See following pages Course Architecture − Duration and modularization of courses − Legal constraints and guidelines When is legal review required? 20 minute modules in easy to drill-down just-in-time-to find hierarchy Maintenance − Delivery and translation funding agreement Ensure there is budget to maintain, especially for translations and Interactive applications HP Confidential 25

Training considerations: Partner Training Development Standards (we need standards to communicate SPO Business Requirements to groups producing training for partners) TARGET AUDIENCES (proposed) These roles should be considered when defining training requirements for solutions and offerings to be sold through the channel • Partner call center inside sales • Partner field sales • Partner Technical pre-sales Volume Products Value Products & Solutions Transactional selling & customer value prop Solution selling and customer value prop A significant # of partners do not speak English ! • Partner Trainers and HP Trainers Class Guides and Instructor Guides Demo equipment • SPO Sales HP Confidential • Identifying targeted partners • Selling the partner on the value proposition to make the investment 26

Training considerations: Partner Training Development Standards (we need standards to communicate SPO Business Requirements to groups producing training for partners) MEDIA STANDARDS (proposed) Desired Partner Action AWARENESS Low COMPETENCE INVESTMENT Power. Point with Instructor notes Audience size or relative complexity Power. Point with Instructor notes No partner-specific training – leverage Marcom collateral High • Leveragable for both simple ILT and Webinar/Presentation on Demand Pre-recorded Presentations on Demand with WW Subject Matter Experts HP Confidential • Leveragable for both simple ILT and Webinar/Presentation on Demand ILT – Student and Instructor guides Interactive Web Based Training with translations and budget for ongoing maintenance 27

10. What else will we need in order to execute in the regions? • Launch coordination • Demand generation − Air cover • Training − SPO resources • PBM’s and Specialists - Selling the value prop to partners • SPO call centers • Pre-sales support − Other resources • Technical support • Systems and processes − Order management and logistics − Benefits payments − Sales compensation • Tools • Communications − Internal, Analyst Relations; Press Relations; External to partner • Sales compensation and policies − Does the offering contribute to retiring quota for a business unit? − Is there a new quota that will be applied? − SPIFF’s? − Rules of engagement and escalation processes • • Other partners (Microsoft & Intel; other ISV’s; other HW or Svc vendors) − Contracts and relationships w/ HP − Partner agreements − Co-funding • Other resources − Funding − Headcount • Relative priority − Agreement on relative priority Partner contracts and addenda HP Confidential All of the stuff we’ve talked about now has to be mapped into the regional execution model and priorities… That said, if you’ve worked with WW SPO then there shouldn’t be any regional surprised, not aleast from regional SPO… 29

Channel Partner Plan - Readiness Elements Sample SPO Partner Readiness Matrix Operations Key Elements Sales Ops Distribution Logistics Description Owner / Contributors Target Date Status Comments What will be required of Sales Operations? • Order management • Escalation • Reporting requirements • Contracts • Exhibits • Financial Options (Purchase, Lease, HPFS alternatives) • Terms & Conditions (Returns, Payment, Price Protection, etc) • Account planning w/partner (PBM) What are the D/L specifics? • Enterprise and/or Commercial Channel • Physical product flow to and/or through partners? • HP Factory Services • Distributor Services • Channel Partner Services • Other Partner Services (ISV, SI, etc) HP Confidential 30

Channel Partner Plan – Readiness Elements Sample SPO Partner Readiness Matrix Regional Plan Key Elements Regional Roll out Plans Description Owner / Contributors Target Date Status Comments Recommended Plan Contents • Regional Launch Team (SPO, RBU, Training, Marketing, Services, HPFS, Executive Sponsor) • Launch Date (Specify if different than WW plan with reason) • Specific Regional Requirements for a successful program • Specific regional risks to the program success • Regional success indicators for the program (How will it be measured? ) • Regional Sales Targets • Integration plans for Partner. One (Partner Sales Targets and rewards, etc) • Channel partner identification and engagement process • Other partner identification and engagement process (ISVs, Sis, Other) • Channel Communications Plan (Pre-Launch briefing tours, Regional Portal, Other) • Training Plan (Channels, HP sales-telesales-PBMs, ISVs, SIs) HP Confidential 31

Channel Partner Plan – Readiness Elements Sample SPO Partner Readiness Matrix Regional Plan continued Key Elements Description Regional Roll out Plans • Announcement events plan • Demand Generation Plan (con’t) • Marketing Collateral • Sales Tools / Kits • Channel Program Reporting plan • Escalation process plan • Launch as Pilot considerations • Localization Requirements Owner / Contributors HP Confidential Target Date Status Comments 32

Quick Comment If you could take a moment to fill in the questions below and mail them to the presenter it will improve the quality and content of this training: 1. Did the training meet your expectations 1… 10 - where 1 is did not meet your expectation 2. Did the training meet your needs in terms of “information” and content 1… 10 - where 1 is did not meet your needs 3. Was the training useful to you in your current job or projects 1… 10 - where 1 is not useful 4. Was the time at the training, time well spent 1… 10 - where 1 is not well spent 5. Do you need more information or details about channels Yes/No 6. What comment or feedback would you like to provide that can be used to improve the overall quality and content of this training: ---------------------------------------------------------HP Confidential 33

HP Confidential 34