developed microsoft accelerated selling methodology (cloud...
TRANSCRIPT
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
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
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
Document next steps/action plan and target completion dates.
ExerciseExercise
Action Plan
What ‘landed’ today?
Take AwaysExercise
Key Learning Elements