developed microsoft accelerated selling methodology (cloud...

Partner’sGoals +

Strategies = Their Vision & Outcome

Microsoft’s Goals +

Strategies = Our Vision & Outcome

Overlap the Outcomes and Create a

Set of Durable Vision Statement Actionsthat guide the ongoing business value to working together

Vision Alignment

Founder – Chief Engagement Officer, Neural Impact Inc. 8 Years management consulting to global Microsoft

community 25 year sales professional (CA, Pivotal CRM, PeopleSoft, SAP) Developed Microsoft Accelerated Selling Methodology (Cloud

SureStep) Developed Microsoft Industry Acceleration Content >100s 1:1 partner workshops Developed and delivered global SMB PSE CAA & PTU

Workshops

Interpreting the Partner Profile Assessment

Understanding the Economic Model

Building Partner-Led Offers

Partner Planning Whiteboard

Next Steps….

Our Focus….

Changing Buyer Behavior Partner Marketing & Messaging Assessment

Adjusting the Sales Motion

Buyer 2.0

Industry Partner Win Rates

20%

50%

80%1-3 Industries (teach)

>3 Industries (service)

1 Industry (disrupt)

IP Staircase

Labeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

Office 365

Complexity/Cost/Revenue Potential

Diffe

rent

iatio

n/Cu

stom

er V

alue

/Usa

ge

POTENTIAL ISV PARTNERING

Partner Engagement Process

Partner Assessment1

Identify focus and

growth priorities

2 P&L Impact3 Joint solutioning

exercise4 Business planning5

Existing Revenue StreamsGross Revenue

($)Gross Margin (%)

Professional Services, Project Based (one-time) $5,324,000 35.0%Reselling - Microsoft Software (one-time) $665,500 15.0%Managed Services - Contracted Support (recurring) $133,100 45.0%n/a $0 0.0%n/a $0 0.0%n/a $0 0.0%n/a $0 0.0%

sub totals/averages $6,122,600 33.0%New Revenue StreamsReselling - Microsoft Subscriptions (recurring) $300,000 20.0%Own IP Licenses - Cloud Subscriptions (recurring) $200,000 70.0%Managed Services - Contracted Support (recurring) $100,000 45.0%

sub totals/averages $600,000 40.8%

Total Revenue $6,722,600 33.7%COGS $4,454,480

Operating Expenses $Sales $450,000Marketing $350,000R&D $150,000G&A $690,000

Total Operating Expenses $1,640,000

EBITDA ($) $628,120EBITDA (%) 9.3%

TomorrowBased on your Business Plan, what do you expect your revenue composition and margin structure to look like in 3 year's time?

Workshop Objectives…Primary Challenges…

ExerciseExercise

Top 3 Objectives

SI Partner Profile - Customer Acquisition Capability

SI Partner Profile - Solution Maturity

Partner SegmentationLow Solution Maturity/Low Customer AcquisitionNew to MPL, high potentialLow customer adds, low industry focus

Low Solution Maturity /High Customer AcquisitionEarly movers/BITC, high growthLow customer adds, low revenue (cloud)

High Solution Maturity/Low Customer AcquisitionLarge transactions, slow growthLow customer adds, high revenue (OP)

High Solution Maturity/High Customer AcquisitionEstablished partners, limited influenceHigh customer adds, high revenue

Team Creation: Organize into teams of four (maximum) based on partner focus: ISV, SI, MSP, LSP, DistyCreate a team nameAdjust the Partner Assessment to reflect the realities of your local market and “typical” partner profiles.

ExerciseTeam Exercise

Partner Profile Assessment Adjustment

Solutions

Outsourcing

Advisory

Commodities

Differentiated

Competitiveposition

Undifferentiated

Market Pricing Premium

Relevant to

Needs ofcustomer

Irrelevant to

The Experience Economy – Pine & Gilmore (2011)

Partner Value Delivery/Differentiation

SI Partner Profile

Starting P&L

Revenue Stream Options

Will margins on existing revenue streams decline?What new revenue streams will they develop?What are their new cloud offerings?What margins will the new offerings command?How much will need to be invested in sales, marketing & R&D?What should an MPL look like after three years?Revenue?Gross margin?Solution mix?G&A?

Considerations….

Adjust existing Revenue Streams and Gross Margin % to reflect local realities Adjust Operating Expenses to align with existing partner profiles Discuss & debate changes that drive an improved P&L in three years time.What NEW cloud services are required?Teams have 30 minutes to complete the task. One team from each partner profile will have the opportunity to present their recommendations. Volunteer early.

ExerciseTeam Exercise

Partner P&L Transition

One team from each profile reviews:End state partner P&LCore assumptionsAnticipated challenges & risks5 – 7 minutes/team

ExerciseTeam Exercise

P&L Model Reviews

Cloud Business Model Transition

Source is JB Wood, Technology Services Industry Association

Want More….

Lunch

On-Premise Differentiation(logical)

Cloud Differentiation(emotional)

IP Staircase

Labeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

Office 365

Complexity/Cost/Revenue Potential

Diffe

rent

iatio

n/Cu

stom

er V

alue

/Usa

ge

POTENTIAL ISV PARTNERING

Partner Progression – Labelled Bundle

IT Support

IT Consulting

Office 365, SharePoint Online, EMS, Delve

Financial Impact – Labelled Bundle

39.7%

23.5%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Managed Services

(Contracted Support)

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling

Partner Progression – Packaged Extension

Unlimited Support Services for Cost-Effective IT Management

Connectors to outside databases, and Industry-specific Dashboards

Office 365, Power BI, Azure

Financial Impact – Packaged Extension

Managed Services

(Contracted Support)

Partner Own IP Subscriptions

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling40.6%

24.3%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Partner Progression – Functional Solution

CRM Online Sales Methodology to Ensure Timely Lead Transfer and Disposition

Standardized, Cloud-Based Content Repository and Workflows to Automatically Tailor RFP and Proposal Content

Office 365, CRMOL, SP Online

Financial Impact – Functional Solution

44.1%

27.6%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Managed Services

(Contracted Support)

Partner Own IP

Subscriptions

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling

Partner Progression – Vertical Solution

Training videos and support

Re-useable code “library” derived from past projects, Nintex workflows, AI bot

Office 365, Power BI, Yammer

Financial Impact – Vertical Solution

48.6%

31.6%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Managed Services

(Contracted Support)

Partner Own IP

Subscriptions

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling

Place each of your managed partners into one of the five IP staircase steps.

ExerciseIP Staircase Segmentation

ExternalIndustry Drivers

(Why)

Business Challenge

($/Risk=Why)

Operational Limitation

(How)

New Capability(How)

Solution Elements &

Service Offering (What)

Labelled Bundle – Select a Focus

IT Support

IT Consulting

Office 365, SharePoint Online, EMS, Delve

Packaged Extension – Select a Focus

Unlimited Support Services for Cost-Effective IT Management

Connectors to outside databases, and Industry-specific Dashboards

Office 365, Power BI, Azure

Teams develop a new partner-led cloud offer.30 minutes to complete

ExerciseTeam Exercise

Offer Development

What ‘landed’ today?

Take AwaysExercise

Key Learning Elements

Interpreting the Partner Profile Assessment

Understanding the Economic Model

Building Partner-Led Offers

Partner Planning Whiteboard

Next Steps….

Our Focus….

Changing Buyer Behavior Partner Marketing & Messaging Assessment

Adjusting the Sales Motion

Marketing Assessment

Buyer 2.0

Get Found Convert NurtureTriage

Industry FocusThought Leadership

SEO, SEM, Social

Digital EngagementCalls-to-Action

High Value Offers

Deliver ValueEngagement

Communications

Build RelevanceRemain in Conscience

CRM/Automation

Four Marketing Disciplines….

Tribal Engagement

Content needs to be specific & relevant to the individual

Persona Engagement

Greater productivity

Improve customer satisfaction

Better visibility

Scalable

Manageable

Reliable

Powerful

Easy to use

Dynamic

Business software

World leader

Market leader

Best-in-class

Best-of breed

Cost effective

End-to-end solution

Increase revenues

Reduce costs

Competitive advantage

Mission critical

Award winning

Value add

Best

Unique

Great

Innovative

Exclusive

Business solutions

Collaboration

Language Engagement

Emotional Engagement

Emotional Engagement

70% of the population is primarily visualMoving pictures evoke emotions.25% of brain activity is involved in visual processing70% of the body’s sense receptors are in the eyes

Visual Engagement

What is the cloud? Where is the cloud? Are we in the cloud now? These are all questions you've probably heard or even asked yourself. The term "cloud computing" is everywhere.In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of on your computer's hard drive. The cloud is just a metaphor for the Internet. It goes back to the days of flowcharts and presentations that would depict the gigantic server-farm infrastructure of the Internet as nothing but a puffy, white cumulonimbus cloud, accepting connections and doling out information as it floats.What cloud computing is not about is your hard drive. When you store data on or run programs from the hard drive, that's called local storage and computing. Everything you need is physically close to you, which means accessing your data is fast and easy for that one computer or others on the local network. Working off your hard drive is how the computer industry functioned for decades; some would argue it's still superior to cloud computing, for reasons I'll explain shortly.The cloud is also not about having a dedicated network attached storage (NAS) hardware or server in residence. Storing data on a home or office network does not count as utilizing the cloud. (However, some NAS will let you remotely access things over the Internet.

Simplicity

Digital Engagement Gap:Review the website of your most industry-focused managed partner. Identify evidence of tribal, persona and emotional engagement.Tribal EngagementPersona EngagementLanguage EngagementEmotional EngagementVisual EngagementSimplicity

ExerciseWorkbook Exercise

Digital Engagement Gap

http://www.trymaya.com/

Technical Web Audit

Emotional Website Audit

www.neuralimpact.ca/mini-audit

Strategic Tipping Point

Qualify Develop Solution Proof Close

EmotionalDiscovery

BDMWhiteboard

BVAWorkshop

SolutionDemo

Proposal Presentation

STP

StrategicTippingPoint STP

Opportunity Profiling

Current Sales Motion (20% Win Rat)e

STP

Repeatable Scale (Simple)

Prescriptive Industry Workload (Teach)

Complex Focus (Disrupt)

STP STP

24 X 78

e-motion

.

.

Interactivity drives engagement - PowerPoints?Extends interaction timeEngages the limbic/emotional brain

Picture superiority effect10% recall after 1 week (auditory delivery)65% to 70% recall with visual image88% of executive prefer dialogue to PP (Forrester)Reading & listening creates confusionVisual channel > auditory channel

Progressive DisclosureSurprise = NoveltyBrains are drawn to Novelty (survival mechanism)Stimulates: attention, emotion, reward circuits (embeds memory)

Why Whiteboard

SI Partner Profile

Customer Acquisition Capability

Solu

tion

Mat

urity

FY18 Partner Business Plan TemplateContoso Systems Inc.

Apps and InfrastructurePractice/Solution Practice building blocks

Cloud Infrastructure and Management

Hybrid NetworkingHybrid StorageHigh Performance ComputingData Center TransformationWindows Server Apps on AzureExtending Azure withAzure StackDevelopment and Test + DevOpsSAP on AzureRed Hat on AzureHybrid Infrastructure Security and ManagementBackup, Archive, and DR

Application Innovation

DevOpsCustomer Facing – Digital MarketingCustomer Facing – MobileCustomer Facing –Transactional Apps/eCommerceCustomer Facing – Gaming

Customer Facing – Media

App Modernization and Integration

Modern Workplace

Practice/Solution Practice building blocks

Collaboration

Modern Collaboration and Effective Teamwork

Employee Engagement and Empowerment

First Line Workers

Modern Desktop

Modern Desktop Deployment

Modern Desktop Managed Services

Security and Compliance

Enterprise-level Identity protection

Control and protect information

Regulatory compliance

Proactive attack detection and prevention

Cloud VoiceMeetings with PSTN dial-in

Cloud PBX enablement

Business ApplicationsPractice/Solution Practice building blocks

Customer Engagement

Customer Service

Field Service

Project Service Automation

Sales

Operations

Talent Management

Retail

Finance and Operations

Business Apps

Finance and Operations

Sales

Marketing

Data and AIPractice/Solution Practice building blocks

Data Platform and Analytics

Data Platform Modernization and Mission Critical Applications

Oracle Migration to SQL/Azure

Data Warehousing and Big Data

Business Analytics and AI

Modern Business Intelligence

IoT PaaS Solutions

IoT SaaS Solutions

Practices/Solutions and Building Blocks

Industry/Horizontal Solutions

Build-With Plan Solution Areas Practices

Modern Workplace

Business Applications

Apps & Infra

Data & AI

Collaboration

Modern Desktop

Security and compliance

Cloud Voice

Customer Engagement

Operations

Business Apps

Cloud Infrastructure and Management

Application Innovation

Data Platform & Analytics

KEY SOLUTIONS/ PLAYS INVESTMENTS

Modern Collaboration & Effective Teamwork: Records Management (existing)Modern Desktop Managed Service (existing)Security & Compliance: Regulatory Compliance: Compliance & Security Suite for Manufacturing (new)

1. Partner Gives: $135,0002. CIF: $5,0003. MDF: $12,000

N/A

Hybrid Storage: (existing)Data Center Transformation: (existing)Extending Azure with Azure Stack: (existing)

1. Partner Gives: CSA Resource FTE2. CIF: $03. MDF: $15,000

Oracle Migration to SQL/Azure (existing)IoT PaaS Solutions: IoT Remote Monitoring & IoT Predictive Maintenance: Silent Witness Remote Monitoring (new)

1. Partner Gives: $100,0002. CIF: $50003. MDF: $15,000

Joint Priorities and Big BetsPriority / Big Bet Description Expected Outcome &

Business Impact Key Milestones Timeline (Month/Quarter)

Investments & Resources Needed

4 new customer adds in FY18 with average deals size of $125K services and $10K MRR.

Beta release to foundation customer 11/17GA release 01/18Food & Beverage version GA in FY19

Partner: Dedicated product manager (contract)PTS to confirm architecture.

Partner: $1M marketing budget$145K website budgetMSFT: PMA to confirm/support industry messaging.

2 new customer adds in FY18 with average deals size of $100K services and $12K MRR.

Beta release to foundation customer 11/17GA release 02/18

Partner : IoT specialist FTEMSFT: Advanced Analytics TSP to validate architecture.

Review your Partner Profiling Assessment Identify current solution & practice portfolio Brainstorm new “safe” and “stretch” cloud practices Determine joint investments & impact metricsBrainstorm recommended marketing, sales and resource investments.45 minutes to prepare….One team from each partner profile delivers a planning whiteboards to the leadership team30 minutes to facilitate

ExerciseTeam Exercise

Partner Planning WB

mark@neuralimpact.ca

ExerciseTeam Exercise

Partner Planning WB

Change Is Hard

Document next steps/action plan and target completion dates.

ExerciseExercise

Action Plan

What ‘landed’ today?

Take AwaysExercise

Key Learning Elements