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Similaire à TSW BP 2015 Speaker - Swanson - 20150506 - Partner Segmentation and Strategy
Similaire à TSW BP 2015 Speaker - Swanson - 20150506 - Partner Segmentation and Strategy (20)
TSW BP 2015 Speaker - Swanson - 20150506 - Partner Segmentation and Strategy
- 1. Partner Segmentation and Management Channel Services Strategies David Swanson | Riverbed Technologies
- 2. Channel Services Enablement: Not complicated Inside View But it is hard Outside View 2
- 3. Agenda • Why Riverbed is enabling partner services. • Riverbed’s channel services strategy • Riverbed’s service partner enablement roadmap 3
- 4. Evolution of Channel Services Maturity 4 Undefined Opportunistic Outsourcing Programmatic Enablement Embedded Vendor Focused Partner Focused Partners
- 5. Conditions For Change at Riverbed: Addressing Channel Service Needs 5
- 6. Gain Relevance from Profitability: Align with Partner Growth & Margin 6 • Service partners are requiring a minimum of 1:1 or greater - service to product ratios for new GTM solutions • In some cases, partners are selling product at $0 profit to win services business Multi- Technology Vendor Avgs
- 7. Increase Relevance with the Partners Through Greater Mindshare • Relevance with a consolidated service message across consulting, training, support, managed services • Mindshare with Services – Increased in field sales – Introduced • Solution Architects • Consultants • Project Managers 7 Your Product
- 8. 8 National U.S. Service Provider “We will sell product at 0% margin to gain the services business. If I could get out of being a hardware provider, I would.” – VP of Sales • $700m+ 2014 revenues – 11% average product margin – 33% average service margin • Greater incentives for services Company Profile
- 9. 9 National U.S. Service Provider “If I’m not able to attach my services and expand the opportunity, I’m not able to create the type of profitability I want.” – CEO & President • $2b+ 2014 revenues • Riverbed revenue profile: – 60-70% part of a solution – 30% single stack solution – 5% resell (least preferable) Company Profile
- 10. • Why Riverbed is enabling partner services. • Riverbed’s channel services strategy • Riverbed’s service partner enablement roadmap Agenda 10
- 11. Riverbed’s Channel Services Goal Increase Riverbed’s relevance with our partners by broadening their total addressable market and margin potential with a full range of lifecycle services and enablement programs. 11
- 12. Accomplishing the Goal Work cross-functionally within Riverbed and partner organizations to deliver partner service programs that enable gross profit growth and build services capabilities related to Riverbed products. 12 Note: You can never do to much cross-functional collaboration!
- 13. Organizational Service Evolution: Internal to External Focus 13 Services integrated in the Channel Services integrated in the Channel Service Enablement Methodology Leverage Riverbed PS IP and SMEs Service Enablement Methodology Leverage Riverbed PS IP and SMEs Service Integration into Channel Programs Certification and Enablement Service Integration into Channel Programs Certification and Enablement Consolidated Service Message Across All Service Lines Consolidated Service Message Across All Service Lines Dedicated Services Channel Personnel Strategy, Alignment & Execution Dedicated Services Channel Personnel Strategy, Alignment & Execution Services apart from the Channel Services apart from the Channel Riverbed Professional Services Consulting Services Delivery Riverbed Professional Services Consulting Services Delivery Riverbed Channel Product Sales Enablement Riverbed Channel Product Sales Enablement
- 14. Riverbed Professional Services Channel Enablement Support Strategy 14 •“Partner Ready” Service Products •Enablement collateral •Partner Services Product Roadmap Partner Svcs Product Mgmt. •“Partner Ready” Service Products •Enablement collateral •Partner Services Product Roadmap Partner Svcs Product Mgmt. •Shadow opportunities •“Lifeline” Assistance services •Cooperative Services Engagements Partner Svcs Program Delivery •Shadow opportunities •“Lifeline” Assistance services •Cooperative Services Engagements Partner Svcs Program Delivery Svcs Partner Marketing •PS Partner Marketing Support •Collateral Aligned w/ RVBD Branding Svcs Partner Marketing •PS Partner Marketing Support •Collateral Aligned w/ RVBD Branding Riverbed Svcs & Field Sales •Comp Plan Alignment •Rules of Engagement •Segmentation Strategy Riverbed Svcs & Field Sales •Comp Plan Alignment •Rules of Engagement •Segmentation Strategy
- 15. Riverbed Channel Services Program Requirements 15
- 16. Partner segmentation: Riverbed’s Partner’s Services Business Partner Type Delivers Services for Riverbed PS Delivers Riverbed’s Packaged Services Delivers Partner’s Riverbed Services Delivers Riverbed- Embedded Solutions National VAR Regional VAR Managed Service OEM Outsource Boutique Service Distribution 16 Not a target market Possibly a target market Target market
- 17. Dedicated channel services enablement 17 • At product-centric companies, incubate the services enablement function and transition it to the channel. • Keep it simple • Spend time on executive alignment • Measure partners success
- 18. • Why Riverbed is enabling partner services. • Riverbed’s channel services strategy • Riverbed’s service partner enablement roadmap Agenda 18
- 19. Riverbed’s Partner Services Roadmap 19 Enroll and certify partner in reseller program Enroll and certify partner in reseller program Assess partners services business & technology alignment Assess partners services business & technology alignment Enroll and certify as a services partner Enroll and certify as a services partner Certify for services delivery Certify for services delivery Invest in Riverbed- embedded solutions Invest in Riverbed- embedded solutions Chanel reseller partner program Services enablement added to the reseller program
- 20. Riverbed’s Reseller Program: Multi-Level Sales & Product Certification • Business Requirements – Business alignment & commitment – Certified competencies – Sales forecasting – Geographical coverage – Marketing demand generation • Technical Requirements – Demo/POC competencies – Competencies • Technical Sales • Technical Solutions 20
- 21. Partner Services Business Alignment • Understand business case for partners Riverbed aligned services: 1. Riverbed product service solutions 2. Integration with existing partner solutions 3. Impact on roadmap services solutions • Addressed in partner business plan 1. Revenue and margin plans 2. Target markets and strategies 3. Capabilities 4. Theoretical opportunities 5. Customer needs 21
- 22. Riverbed Service Partner Program: Authorized Consulting Partner • Communicate complete service vision • Outline participation benefits • Measure Riverbed services business – Ensure they are reaching financial targets – Participation will dwindle if partners aren’t financially successful • Make available Riverbed IP, enablement systems and SMEs – Access to Riverbed PS SMEs • Shadowing • Enablement Engagements – Service delivery kits • Detail certification requirements 22
- 23. Service Delivery Kits: Riverbed Services Materials for Sales & Delivery 23 Sales Brochure Sales Proposal Sales Training Sales Sheet Site Survey Checklist Project Plan Delivery Run-Book Deliverable Report
- 24. Riverbed Services Consultant Certification • Additive to base Riverbed certifications • Resources – Instructor & on-demand training – Hands-on experience – Engagement shadowing – Certified on solutions • Benefits – Partner & Consultant differentiation – Expedited skills development 24
- 25. Riverbed-embedded solutions • Cooperative development – Inject Riverbed expertise into partners’ solution development lifecycle – Support with lifecycle development methodology • Benefits: – Decrease time to market – Ensure optimal Riverbed product support and use – Lifecycle approach to evolve solution 25
- 26. Custom Lifecycle Solution Development Methodology 26 • Beta clients • Sales enablement • Launch • Refresh • Respond • Manage •Requirements •Development • Business drivers • Strategy Position & Plan Define & Develop Implement Operate & Optimize
- 27. Services Enablement Summary Rules of engagement and segmentation model Integrated services and products Enablement systems Partner Relevance Incremental Revenues Improved Margins Partner Capability Partner Business Model Portfolio vs. Specialist Riverbed Performance Partner Program Riverbed Readiness Services & Channel Team Content & Materials
- 28. Contact Information David Swanson Director, Global PS Channel Enablement dswanson@riverbed.com (913) 461-3283 28
Notes de l'éditeur
- As Riverbed has gone down the services enablement path, some things I’ve learned were more obvious to me than others having come from a background that was very services focused in a technology company. For this presentation, I plan on going a little deeper into the things that weren’t so obvious as well as making sure to discuss the things that did seem to be more “obvious”. First, the things that I found to be “obvious" We know this isn’t a complicated thing, but its hard. You need a cross functional approach across the leadership of all of the business lines. Partners, segmenting, etc. You have to have visibility across many lines of business to know all of the factors that should go into it. Need to look at partner segmentation, product segmentation, etc. Tell us who your focus partners are and then prioritize What people don’t like is that it requires regular cross functional certification. No way of measuring their partners It’s not complicated, but it is hard. The good news is that no one has to say anything more credible than I have to say… I have no silver bullet… ;) Attach rate, connect rate, Our first phase is: POC As many of you there are a lot of discussions about converged services plays. Integrating services. We believe the channel must have a consolidation view across the service lines. Good tips You can never spend too much time getting executives Keep it simple Bi-lateral metrics or performance indicators (hey mr. partner, we want you to report back on how much services you are doing. If they aren’t making $$$, they aren’t going to do it).
- Opportunistic – Right Place, Right Time Riverbed is at a stage in it’s corporate evolution where their business is emerging from being primarily driven from one product to being a multi product company with a solution message rather than a technology around a core product. This has resulted in Riverbed needing to change the way we address partner’s service needs. Where before, Riverbed’s core product was the industry leader and partners would naturally include it in their opportunities and solutions – with additional competitive pressures, we have competition in the WAN optimization space as well as a need to grow partners view of Riverbed as a portfolio solution.
- Riverbed had reasons that benefited Riverbed as well as our channel partners. Vendor needs: Riverbed’s channel organization handled partner service enablement with the same people that were also responsible for onboarding partners, developing business plans and ensuring partners were technically capable of handling the sales needs for Riverbed’s products. When a partner wanted to develop services around Riverbed products, they did so either on their own with assistance from Riverbed’s pre-sales technical account managers or Riverbed’s channel managers would engage who they knew in the PS organization. Remove distractions: This could have been anyone within the PS organization from consultants, sales personnel, managers, business leaders, etc. Since there was no clear owner of the activity, each of these persona's would tend to assist at the level they could. These activities distracted them from their primary business activity – which many times directly affected their ability to be successful in their primary roles. As an example, if it was a consulting sales manager, by engaging in this business development activity, it detracted from their client facing sales opportunities needs. If it was a consultant, they’d be able to speak from their own experiences, but they may know about other business development activities that were going on nor would they always be available since they would also be billing on client engagements. Standardize messaging: Without a clear enablement strategy, different channel owners present inconsistent details around channel enablement. The materials they provided would be custom, based on the channel personnel that were involved in producing or assisting the partner with creating it. Within the PS organization, it wasn’t clear where the lines were between assisting, competing with or cooperatively working with channel partners on service needs. Partners speak use different terms and have different business needs than what may be obvious to someone who doesn’t have experience with addressing channel partner needs. This caused confusion as sometimes non channel personnel would work with our partners and assume they were be helpful while they were actually doing harm to the situation. Case Study: One example is when a channel partner manager pulled one of our consultants in to work to discuss a service offering that Riverbed offers. It was very similar to one the partner offered and it led the partner to believe we were trying to compete with them and resulted in an unnecessary escalation – when our message could have been more along the lines of “Here’s something that Riverbed does, and we can compliment what you are doing or fully enable your organization to deliver Riverbed’s service – depending on which better aligns with your business model Retain current partners: If partners don’t feel that you are aligned with your with their business model, you’ll lose their mind share and ultimately them representing you in their clients needs or considering your products to include in their solutions. Case Study: In one example, one of Riverbed’s Global Service Provider partners Riverbed’s business had shrunk 25% over a two year period As we dug into why that was happening, we found that three competitors were in the SP directly competing for Riverbed’s business. Since Riverbed didn’t have a proactive lifecycle service enablement strategy, the Riverbed components of their solution were being ticked off by these competitors and without direct intervention, the partners Riverbed business would have decreased at a much faster rate Partner Needs: Very few of Riverbed’s partners are interested in merely reselling Riverbed products. Resell only opportunities represents a small percentage of overall business our partners want to be engaged in. Our partners are more interested in product sales when they are attached to services that allow them to deliver both one time and annuity service offerings which are aligned with the opportunity. Align business models: As I mentioned, our partners business models include services that are directly tied to the products that they resell. They’ve already or are considering building service offerings around data center and cloud consolidation, managed services, assessment services, etc. If Riverbed doesn’t align to enable partners to address the Riverbed components of those services, some other partner will. Case Study: In the global service provider example I mentioned earlier, the product the competition has that was chipping away at our share of the solution’s business didn’t meet their needs as well as Riverbed’s products did, but the SP saw significant value in the amount of enablement activities and IP the other vendor provided to enable their solution Grow their business: Two of the areas our partners are considering as they focus on growing their business are new product lines and growing the ones they already have. Riverbed has an abundance of partners today and needs to enable those partners to meet their partner growth targets (or we will lose relevance with that partner) Case Study: Increase gross profits and increase relevance Increasing gross profits and relevance are directly tied to a key partner strategy – building mindshare among partner employs <Click to next slide> ----- Meeting Notes (5/6/15 09:05) ----- Focus on Relevance at the end of the slide
- Increase Gross Profits: Riverbed’s partners tend to target a minimum of 25% GP for their service offerings, average > 30% and some have GP for some services > 40%. Margins for the products they sell are significantly less. I know of partners, one in particular I’ll talk about on the next slide, that will sell product at 0% margin to win the service business. Their margins for commodity products like printers, servers, computers, etc. will typically be < 5% while they average 11% GP on their products and see 20% as a top end GP for product re-sell. Service to product ratio: Aligned with increasing services profits many of our service providers will not bring a solution to market that has < 1:1 product to service ratio. Case Study: In one example, one of our global SPs see’s 1:1 as a very low end target and actually targets 3 to 5 to 1 service to product margins. Mindshare: Once you’ve proven that ability to align to their business model and growth targets, that’s when you will be able to increase your relevance within the partner organization and find new avenues to grow mindshare within the organization Not only will you be able to increase your relevance among the partners sales teams by showing them more ways to grow their business But you’ll also access additional parts of the organizations who will become aware of your products and be able to recommend them or identify opportunities when they are doing their job functions like consultants, project managers, solutions architects, etc. To add a little more color on the our partners frames of mind, <click>
- Mindshare: Once you’ve proven that ability to align to their business model and growth targets, that’s when you will be able to increase your relevance within the partner organization and find new avenues to grow mindshare within the organization Not only will you be able to increase your relevance among the partners sales teams by showing them more ways to grow their business But you’ll also access additional parts of the organizations who will become aware of your products and be able to recommend them or identify opportunities when they are doing their job functions like consultants, project managers, solutions architects, etc. To add a little more color on the our partners frames of mind, <click>
- In addition, this partner incents their reps at a higher rate for service sales
- You can never do too much to
- None -> 1 Person -> Many Persons SA, CAM, Sales Delivery, project management, resource, practice lead Pros, cons of each Practice leads – over loaded To scale, must move to team that understands the product of PS
- Riverbed’s Packaged Services could include Consulting, Support or Managed Services OEM: Use vendor products to support their products and solutions Managed Service: Build services around vendor products and sell multiple times VAR: Resell product & value add services Boutique: Service only, no product resale Outsource: Build custom services for clients
- Benefits to PS P&L to move to sales P&L. May not apply everyone Incubating the service channel function in the PS organization allows the PS organization to be closely aligned with the PS team while working directly with the channel. The channel doesn’t have the services insight that’s necessary to effectively identify and enable service partners. In addition, the partner organization will not have the skills and methodologies to help enable the service partner build competent delivery resources around company products. The services organization has all that! Riverbed’s partners aren’t just service partners – our goal is to enable solution partners that have service and product capabilities that lead to solutions. Across the partner segmetns, technical alliances. Telstra and IBM Steelfustion Ben wells – telstra – what’s going on with SteelFusion.
- Riverbed is at a stage in it’s corporate evolution where their business is emerging from being primarily driven from one product to being a multi product company with a solution message rather than a technology around a core product. This has resulted in Riverbed needing to change the way we address partner’s service needs. Where before, Riverbed’s core product was the industry leader and partners would naturally include it in their opportunities and solutions – with additional competitive pressures, we have competition in the WAN optimization space as well as a need to grow partners view of Riverbed as a portfolio solution.
- Enroll and certify in partner program enablement
- Driving productivity for our partners