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© 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice “Channel 102”: Developing Successful.

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Presentation on theme: "© 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice “Channel 102”: Developing Successful."— Presentation transcript:

1 © 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice “Channel 102”: Developing Successful Partner Programs WW SPO Partner Development & Programs team Mike Wardley

2 HP Confidential2 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?

3 HP Confidential3 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- Cross sell- Up-Sell- Consulting -Annuities - Repeat orders- Follow-on- New business opportunity - Upgrades- Competitive attack- Account control etc…..

4 HP Confidential4 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 $1M 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

5 HP Confidential5 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.. Channel Partner Plan - Readiness Elements

6 HP Confidential6 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)

7 HP Confidential7 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.

8 HP Confidential8 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?

9 HP Confidential9 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 !

10 HP Confidential10 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?

11 HP Confidential11 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)

12 HP Confidential12 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?

13 HP Confidential13 B/U and Segment: “What do you want the partner to do?” DESIRED PARTNER ACTIONPOTENTIAL REQUIRED ELEMENTS Conversant – Partner should be able to talk about the offering Engagement – Partner should be able to engage with HP resources to sell and implement the solution 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 that can be easily absorbed and communicated to customers. 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 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

14 HP Confidential14 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

15 HP Confidential15 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?

16 HP Confidential16 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

17 HP Confidential17 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?

18 HP Confidential18 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 !

19 HP Confidential19 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?

20 HP Confidential20 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 PhDs on staff then you’re in trouble !

21 HP Confidential21 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?

22 HP Confidential22 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 −Feet on street −Roadshows −Webinars −Advertising −Public relations Remember that forecast we talked about…. Forecast /partner thru-put = # partners

23 HP Confidential23 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?

24 HP Confidential24 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 !

25 HP Confidential25 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) Objectives and competencies −Sales– delivering the customer value prop −Pre-sales skills – sizing and proposing −Selling partners on the Partner Value Proposition Media and Translations −ILT; Webinar; Powerpoint; Interactive Web-based training; POD −Ongoing maintenance funding including updating courses with translations Course Architecture −Duration and modularization of courses −Legal constraints and guidelines Maintenance −Delivery and translation funding agreement See following pages When is legal review required? 20 minute modules in easy to drill-down just-in-time-to find hierarchy Ensure there is budget to maintain, especially for translations and Interactive applications

26 HP Confidential26 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 Partner Trainers and HP Trainers SPO Sales Volume Products Value Products & Solutions Transactional selling & customer value prop Solution selling and customer value prop Class Guides and Instructor Guides Demo equipment Identifying targeted partners Selling the partner on the value proposition to make the investment Transactional selling & customer value prop Solution selling and customer value prop A significant # of partners do not speak English !

27 HP Confidential27 Training considerations: Partner Training Development Standards (we need standards to communicate SPO Business Requirements to groups producing training for partners) MEDIA STANDARDS (proposed) AWARENESSCOMPETENCEINVESTMENT No partner-specific training – leverage Marcom collateral PowerPoint PowerPoint with Instructor notes 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 Desired Partner Action Audience size or relative complexity Low High Pre-recorded Presentations on Demand with WW Subject Matter Experts PowerPoint with Instructor notes Leveragable for both simple ILT and Webinar/Presentation on Demand

28 HP Confidential28 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?

29 HP Confidential 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 Partner contracts and addenda 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 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…

30 HP Confidential30 Channel Partner Plan - Readiness Elements Operations Key ElementsDescription Owner / Contributors Target DateStatusComments Sales Ops 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) Distribution Logistics 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) Sample SPO Partner Readiness Matrix

31 HP Confidential31 Channel Partner Plan – Readiness Elements Regional Plan Key ElementsDescription Owner / Contributors Target DateStatusComments Regional Roll out Plans 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 PartnerOne (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) Sample SPO Partner Readiness Matrix

32 HP Confidential32 Channel Partner Plan – Readiness Elements Regional Plan continued Key ElementsDescription Owner / Contributors Target DateStatusComments Regional Roll out Plans (con’t) Announcement events plan Demand Generation Plan Marketing Collateral Sales Tools / Kits Channel Program Reporting plan Escalation process plan Launch as Pilot considerations Localization Requirements Sample SPO Partner Readiness Matrix

33 HP Confidential33 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:

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