Download - Monetizing Open Source Software
Partnering To Capitalize On The
Open Source Opportunity
Presented by CyberOptic GroupApril 20, 2010
IntroductionAdding New Revenue Streams Through Partnerships
Business Challenge
Small businesses have essentially the EXACT same functional needs as large enterprises but have significantly less resources with which to provide that function.
As a result, many small businesses are forced to "piece together“ systems from multiple vendors causing needless hours to be spent rekeying data from one system to the next, critical company information to be stored on individual PC's, or even worse, on pieces of paper, where the data is not available to others in the organization and cannot be accessed in real time.
These disparate systems not increase support costs and effect customer and employee satisfaction, but they also inhibit productivity due to the time and resources needed to compile simple but accurate management reports or simply close the books every month.
Opportunity Overview
Open source software is unique in that it is free to download and use for any purpose, permission is given to freely redistribute copies, and users/developers have unrestricted access to the source code with the freedom to modify and adapt the software for any purpose.
Today, numerous enterprise-class open source applications exist for any business that has the technical abilities to successfully implement, the knowledge to use, the experience to train other users, and the infrastructure and skill set to manage and support the users and application environment.
This creates a tremendous opportunity for business advisors, technology consultants, and computer hardware resellers, to earn significant revenue by providing the professional services needed to fully implement these enterprise applications in small to mid-sized businesses that don’t have the necessary skills internally!
Introduction To CyOp
CUSTOMERS
IBM RESELLER/PARTNER
CYOP
OPEN SOURCE BUSINESS
APPLICATIONS
LOTUS FOUNDATIONS
Library of ready-to-use open source
applications that work instantly on Lotus
Foundations
Small US-Based Businesses (typically less than
250 employees) With Limited IT Staff
CYOP SMARTSTARTSOLUTIONS
Resells IBM SMB Solutions, Lotus Foundations &
CyOp Services. Offers FREE Process Assessment
Provides Professional Services To Qualify & Define
Project (PDW); Implements, Configures, Customizes,
& Supports Open Source Application Deployments
Secure, Autonomic, Cost-Effective, Easy-to-Manage.
Provides Calendaring, Emails, Contacts, Productivity
Tools, Network Security, Remote Access, File & Print
Sharing, Backup & Disaster Recovery for Small Businesses
Market OpportunityProfessional Services To Complement Open Source
Software
Enterprise-Class Open Source
AND MORE…
OpenbravoERP
Enterprise Resource Planning
SugarCRM
Customer Relationship Mgmt
Kayako Helpdesk
Service/Support Management
OrangeHRM
Human Resource Management
Business Process & Workflow Management (BPM)
Business Intelligence & Reporting
Electronic Data Interchange (EDI)
Enterprise Content Management (ECM)
E-Learning & Course Management
Open Source Enterprise App’s
What It Takes To Be Successful
ENTERPRISE PROJECT IMPLEMENTATION ROADMAP
Management methodology
Project Implementation Roadmap
• Detailed Requirements Definition
• Functional Design
• Data-Migration strategy
• Interfaces Definition and Design
• Initial Configuration and Customizations
• Technical Designs
• Development of Interfaces, Data-Migration Programs and Non-Standard Functionalities
• Unit Testing
• Definition of Initial Steps, Planning, Control, Validation and Project Completion• Project Progress Monitoring, Team Coordination, Change Management,• Risk Management and Scope Modifications (Identification, Monitoring, Evaluation, and Mitigation)
•Staffing & Detailed Planning
• Installation of Test Envmnt.
•Kick-off Meeting
•Basic Training
• Integrated Testing
• Data Migration
• End-User Training
• Go Live
• Adjustments
• Support
• Troubleshooting
Go live &
Adjustments
Project
PreparationProject Definition
Iterative
Prototyping
Final
Preparation
Project management
1 2 3 4 5
Notes About The Roadmap
The roadmap is valid irrespective of the enterprise application being implemented and whether the application is open source, proprietary, on-premises, or delivered through a SaaS model. The customer (or someone he pays) will still need to perform most, if not all, of these steps.
The roadmap represents the set of services CyOp provides around each business application. Not all of the steps need to be done by CyOp, but they all need to be done by SOMEBODY to have a successful implementation.
For a variety of reasons, most businesses, and especially small businesses, are unable to perform these steps without assistance, which is what creates the market opportunity & demand.
As a CyOp Partner, you DON’T need to understand the roadmap!
CyOp handles these issues – YOU just need to recognize that there’s
a HUGE difference between a customer installing enterprise software
versus actually implementing it in the organization.
Customer Value Proposition
CyOp bridges the gap between open source and SaaS by leveraging enterprise-class open source software to build for our customers an application that they will OWN. Because the application is owned by the customer with full access to the source code, there is no vendor lock-in. The customer can NOT be forced into having to upgrade hardware or software versions and the application can never be made obsolete since there is a large community of open source programmers that can ensure ongoing development and support.
Once we build the application, There are numerous options as to how the application is supported. For clients with adequate IT staff & facilities, CyOp can implement the application as an on-premises solution. For customers that lack adequate facilities or IT staff, CyOp can implement and support the solution from one of its state-of-the-art data centers, from an IBM Managed Hosting Facility, or from the data center of the customer's choice.
CyOp provides enterprise class infrastructure, applications, training, service and support –
All at small business prices!
Why Partner With Cyop?Top Five Benefits To Participating in the CyOp Partner Program
Partner Value Proposition #1
Broaden your range of services and your customer set, add significant new revenue streams, and have new ways to approach existing and potential customers. Enable your hardware and/or other professional services to be competitive in deals that were previously cost-prohibitive.
MORE SERVICE OFFERINGS, MORE
SALES & MORE REVENUE!
Partner Value Proposition #2
Maintain Account Control and ensure customer satisfaction. If you don’t provide the customer what he needs, he will get it from someone – possibly a provider that will attempt to erode your other business. By engaging CyOp, your customer’s needs will be effectively met and you can be assured CyOp will not attempt to displace your existing business.
SERVICE YOUR CUSTOMERS &
MAINTAIN ACCOUNT CONTROL!
Partner Value Proposition #3
There is little to NO competition for many of these applications in smaller businesses since most “competitors” can’t scale down to businesses with less than 100 employees - which is 98% of the market! It’s easy to get to the decision maker, rarely if ever is there a required bid process or board approval needed.
HUGE MARKET WITH LITTLE
COMPETITION!
Partner Value Proposition #4
Even at a fraction of the implementation costs of proprietary systems, there is still large value and profit in CyOp’s services which we share with our Partners. As a CyOp Partner, when you refer an opportunity, you have full control over customer pricing and your profit. We will never quote your client directly without your prior knowledge and approval.
SIGNIFICANT REVENUES WITH
YOU IN CONTROL YOUR PROFITS!
Partner Value Proposition #5
Because CyOp specializes in driving revenue back to the customer’s bottom line, once we complete a project, it is very common for the customer to engage us for ongoing development and support, which provides recurring revenue for the Partner.
RECURRING REVENUE POTENTIAL!
The CyOp ProcessHow CyOp Engages With Customers & Partners
How To Identify Opportunities
You DON’T need to be a software expert to earn money by
identifying opportunities to refer to CyOp!
Here’s are TEN easy signs to look for in a prospect:
1. Running multiple systems and databases that don’t talk to each other or
performing tasks off of the enterprise system (i.e. QuickBooks & Excel, etc.)
2. On a legacy proprietary system with discontinued development/support and/or
anxious to get out of continuous upgrade cycle to keep current support
3. Lots of time spent re-keying data
4. Excessive time needed to compile simple but accurate management reports or
close books at end of month
5. High volume of email or paper forms containing data that should be in some
enterprise system
6. Lack of management reporting on statuses of workflows
7. Desire to extend function & life of existing systems to better integrate with
other systems and business processes
8. Need to better manage & communicate with customers, vendors & partners
9. Need to facilitate the management & reporting of employees & contractors
10. Business growth being inhibited by existing system or process limitations
CyOp Engagement Process
Referral
• Partner registers opportunity by phone, email, or lead form.
• CyOp contacts Partner to discuss strategy (if needed)
Qualification
• CyOp engages with prospect to qualify opportunity and present value proposition.
• CyOp performs a FREE Business Process Assessment to gain an understanding of customer environment, objectives & requirements and determine the best set of tools to propose to the customer.
PDW
• CyOp conducts “Project Definition Workshop (PDW)” which essentially covers the first two phases of the project roadmap and is needed to determine exact costs of the project. The PDW is a billable engagement and the deliverables include a Functional Design, Gap Analysis, Data Migration Plan, and Systems Interface Design.
Project
• Based on results of PDW, CyOp will prepare a detailed proposal with DISCOUNTED PARTNER PRICING. Partner determines ultimate price to Customer and CyOp & Partner decide on best way to present proposal to Customer.
• Revenue received over and above Partner pricing are remitted to Partner as Commissions
Customer SuccessesHere’s What CyOp Does For It’s Customers
Success Story - ERP
COMPANY PROFILE: 5-Person Skin Care Products Manufacturer (StartUp)
ISSUES: Unable to continue to run business on QuickBooks & Excel and
manage products in multiple warehouses, some of which was perishable with
expiration dates. Needed to be able to manage multiple distributors with
multiple price levels.
SOLUTION: Open Source ERP Implementation
COST: $25,000
RESULTS: Company for the first time could view actual and accurate costing
and inventory values and was able to locate over $20,000 in valued un-received
inventory and identify several products where cost of manufacturing exceeded
distributor sales price, prompting a planned price increase. System enabled
multiple price lists with multiple price list versions, provide real-time inventory
valuations on a per-warehouse basis, and enable them to better manage
perishable inventory.
SKIN-CARE PRODUCTS MANUFACTURER
Success Story - CRM
COMPANY PROFILE: 400-Person Food Products Manufacturer
ISSUES: The company had NO CRM system and all sales reps were working
on disparate PC-based systems with most on Outlook, others using personal
copies of Act or Goldmine. No information was being retained in company
system, no sales forecasting was possible, and information retrieval was
nearly impossible. Wanted a system that could be expanded company-wide
but had limited available budget.
SOLUTION: Open Source CRM Implementation
COST: $8,995
RESULTS: Sales Reps migrated to enterprise system where they had access
to pre-defined email templates, standard & current company documents, and
the tools to better perform their job. What used to be “Sales Rep Data” is now
company data and Executives have insight into sales activity and forecasts.
The system can be easily expanded company-wide with no licensing costs.
FOOD PRODUCTS MANUFACTURER
Success Story – ERP & EDI
COMPANY PROFILE: 80-Person Concrete Products Manufacturer
ISSUES: Was a division of a larger company that was being divested and had
90-days to move off of parent company’s AS/400 based JD Edwards system.
Previous system had been highly customized with large amounts of historical
data requiring migration.
SOLUTION: Open Source ERP & EDI Implementation
COST: $80,000 Initial Project - $150,000+ To Date
RESULTS: Was able to migrate customer to new system in “record” time while
streamlining processes to eliminate need for approximately $60,000 in data
collection devices, reducing shipment times, reducing order times, and
providing customers with better levels of service. Customer is so happy with
results, they continue to use CyOp for ongoing developments & improvements
to the system and, to date, have spent over $150,000 with CyOp.
CONCRETE PRODUCTS MANUFACTURER
Getting Started With CyOp
To enroll as a CyOp Partner and begin earning
substantial revenues By referring CyOp’s open
source consulting & development services, please
call us today at:
(800) 376-9704
Or, complete our Partner Application at:
JOIN THE CYOP PARTNER PROGRAM &
START EARNING MONEY TODAY!
http://www.cyop.net/partner/cyop_partner_application.php
Closing & References
WE LOOK FORWARD TO WORKING WITH YOU!!!
For More Information regarding CyberOptic Groupor the points made in this presentation, please contact
your CyOp Representative
Or visit CyOp on the web at:http://www.cyop.net
(800) 376-9704
You may download a copy of this presentation at:http://www.cyop.net/partner/presentation_052010.pdf