haga clic para modificar el estilo de título del patrón bruce stuart president channelcorp...

Haga clic para modificar el estilo de título del patrón

Bruce StuartPresident ChannelCorp Management

Bruce Stuart


Channelcorp2013…transition, transform and grow.

Bruce Stuart

Haga clic para modificar el estilo de título del patrónHaga clic para modificar el estilo de título del patrón

14 - 16 November 2012 | Cancun, Mexico

Bruce R. Stuart, PresidentGlobal management consulting firm-www.channelcorp.com

Specializes in business model transitions and increasing the profitability and value of resellers and solution providers

Assists IT vendors improve the quality of their channels

Past 5 years – focused on the role of reseller CEOs in building the value of their businesses by transforming classically oriented product-centric businesses into vertically oriented service-centric and cloud centric businesses

Insights have helped many reseller CEOs around the world increase the profitability and long term value of their organizations

500 articles/13 books/40 countries3

Haga clic para modificar el estilo de título del patrónModule structure.

Module 1 Is it structural or transitory?

Module 2 What is your game plan?

Module 3 What are your strategic options?

Module 4 What really has to happen?


Modulo 1



Module 1

1.1 Transitions on three dimensions

1.2 Cash on cash investments

1.3 Cash flow/profit impact

1.4 The third dimension – business model transition

1.5 Module summary

Is it structural or transitory?

Haga clic para modificar el estilo de título del patrónModule 1Is it structural or transitory?

1.1 Transitions on three dimensions

existingclients

newclients

newmarkets

classic focustransition focus

transformation focus

installedbase

new categoriesof technologies

newtechnologies

existingtechnologies


1.2 Cash on cash investments

existingaccounts

15¢/$ 60¢/$30¢/$

30¢/$ 120¢/$60¢/$

240¢/$120¢/$60¢/$

newaccounts

newmarkets

existingproducts

newproducts

newtechnologies


1.3 Cash flow/profit impact

existingaccounts

+ profit+ CF

ø profit– CF

+ profitø CF

+ profitø CF

– profit– CF

ø profit– CF

– profit– CF

– profit– CF

ø profit– CF

newaccounts

newmarkets

existingproducts

newproducts

newtechnologies


1.4 The third dimension – business model transition

transformationCentric(R/t)

transitionCentric(T/r)

classic centric(T)



1.5 module summary-so what

Module 1Is it structural or transitory?

What is really going on is deeper than the current economic situation-the move to new markets and a recurring revenue model is a structural change

Transitions and transformations are being forced by the market, the technology and vendors’ strategies…not doing anything may be a slow liquidation strategy for a partner

So what…because of the valuations

-transition focused resellers-2 to 3 times the value of the classic

-transformation focused resellers-2 to 4 times the value of the classic


Modulo 2



Module 2

2.1 Defensive strategy

2.2 Offensive strategy

2.3 Success models

2.4 module summary

What is your game plan?



2.1 Defensive strategy

Module 2What is your game plan?

90% report engagement

50%+making it up as they go

35% have no business road map or partial business road map for their “non classical” investments and strategy

Lost sale analysis-are you losing deals because you don’t have a legitimate offering in a relevant hot cluster?

We are seeing incumbent solution providers not being considered because their clients don’t know or believe they have the capability

Systematic erosion of the base has a negative impact on the value of your business

Do you need to make Mid Market, BYOD, applications, recurring revenue model/hot cluster investments to continue to be CONSIDERED by both existing and new clients?

Are these “non classic investments” the new “table stakes” in your markets?



2.2 Offensive strategy


Good news:

50% making it up35% no plan67% no one dedicated to marketing 50% technically insolvent40% financially challenged

Growth centric transitional and transformational resellers are using vertically oriented hot cluster,Mid Market, BYOD, video and applications capabilities to generate new business from new clients and new business from existing clients-50% growth

No CONSIDERATION, no proposal, no sale

Clear movement to offensive business plan with appropriate investment in infrastructure and skills, properly executed

Game plan-defend and expand the installed base

For these organizations the move to non classical investments, a recurring revenue model and the exploitation of hot clusters is a growth story



2.3 Success models


What really has to happen…what has been happening inside the success models?

Organizational structures-specialized vs generalist

Marketing capabilities-more prospects

Sales capabilities-focus on customer acquisition cost, comp plans

Technical capabilities-set plays vs huge custom assignments

Financial capabilities-more smaller vs fewer bigger

Cash flow impacts-bigger AR portfolio, leasing as option



2.4 module summary


It is really tough to change the spots on a leopard.

What do you want to do, or what are you doing?

How do non classical or hot cluster investments fit in with your overall investment strategy?

Lost sale analysis tells the “truth”

Defensive strategy maintains or slows the reduction in business value, but unlikely to drive growth

Offensive strategy presents a chance to build business value


Modulo 3



Module 3

3.1 The options

3.2 Born classic partner-stay

3.3 Born classic partner-complement

3.4 Born classic partner-transform

3.5 Born vertical-stay vertical

What are your strategic options?

3.6 Born vertical-complement

3.7 Do nothing

3.8 module summary



3.1 The options

Module 3What are your strategic options?

It is really tough to change the spots on a leopard.

Adaptation precludes adaptability

Corporate heritage

Business skills of senior management

Characteristics of service/support/training/consulting business

Sales and marketing talent base of the organization

Financial strength of the organization

Characteristics of installed base

Net new opportunities in the market-density of opportunities



3.2 Born classic partner…stay classic partner


Purposive strategy to continue to expand historic business

In 12-24 months BYOD, cloud, hot cluster, apps will likely be the new normal

Slow liquidation strategy unless you are the best or least expensive product centric reseller in your market

Could be successful if appropriate ecosystems or partner to partner alliances built

Must garner increased share of potentially diminishing market(non vertical market)

Worry about client retention and reductions in “consideration rate” for new opportunities if “non classic” and hot cluster capability becomes table stakes in the market



3.3 Born classic…complement with transition strategy


Numerous business building options existOption depends on what your business is good atThis is not a risk free strategy!The devil is in the compensation

Inline with market trends-could produce a winning strategy based on a historically classic partner business model

Starts as a defensive client retention strategy that can provide the basis for a strategic transition to an offensive client acquisition strategy…it begins with increased consideration

Grow new business from your existing business-look for NEW BUSINESSES not new business in your base-then move out

Spin out your mid market, vertical or cloud business and grow it separate from the core-viable option

Acquire a company that has already transitioned



3.4 Born classic partner…full transformation strategy


This strategy allows an “all the wood behind the arrow” approach

Could be a good fit for owners with an “all in” personality and style of business

You may leave some people behind with this strategy

Dramatic business model transition executed over 24-36 month period-ROIC/valuation driven-NEEDS MARKET DENSITY

Plan to de-emphasize classic product centric business over time to align all resources behind mid market, BYOD, apps, video, vertical and recurring revenue future

Capital to build out/acquire new vertical businesses could come from the sale or milking of historic business

At the extreme this strategy may require partner to partner selling alliances to service classic product requests from existing and new clients



3.5 Born transformed …stay transformed


Purpose built startups created by well financed tech savvy serial entrepreneurs and backed by strong vendor or distributor relationships with will be tough for incumbents to beat

Green fields recurring revenue startup has benefit of no incumbent cost structure, organization structure or “unsuitable” personnel

Pure startup- no customers- require 24X to 36X monthly burn rate

Two versions-free standing or corporate division

Excellent way to create something of value for next generation (family), or equity opportunity for long term employees without diluting ownership of the “mother ship”

Opportunity for “50 something” owners to re invent business in the next five years that will increase the value of the business on resale-part of a retirement exit strategy



3.6 Born transformed…complement with classic


This strategy needs a broad range of capabilities that could dilute the required focus

Provides full coverage for clients regardless of how the client wishes to acquire their solutions

Likely realistic end game for all born transformed businesses

Product could come from partner to partner or third party independent alliances, intra company alliances or out of inventory

Problem of mixing business models is created again-problematic for the sales force compensation model especially



3.7 Do nothing


Do an operations review around willingness and ability to be profitable in vertical before you decide not to do anything

Always hungry never starving existence unlikely to improve going forward

No decision is a decision

Slow, maybe fast, liquidation strategy depending on how fast your customers are lost to the competitive vertical offerings of others in your market

May be a good time to get out to minimize your maximum loss


Modulo 4



Module 4

4. Action plan

What really has to happen?



Action plan

Module 4What really has to happen?

Take a good hard look at your existing business

Go to school on your base

Can you afford to do nothing-LOST SALE ANALYSIS

Does it look like you may need to transition or transform your business model?

What are the key drivers of the investment decisions you need to make?

Which option or collection of options are likely to be the most successful given the current state of your company and your aspirations for it?

What do you require from Avaya to make the changes?

haga clic para modificar el estilo de título del patrón bruce stuart president channelcorp...

Documents

haga clic para modificar

patrn module structure

mexico module

module summary

patrn channelcorp

bruce stuart slide

structural change transitions

business model transitions