specialization research

Amazon Consulting 2011 1

How Special are

Specializations?

Does the Value Warrant

the Investment?

Webinar

October 19, 2011


Panelists

Jamie Mendez

Director, IBM

PartnerWorld

Laurie Evans

Director, Global

Partner Programs


Respondents’ Profiles

Solution Providers

Annual revenues <$5m (44%):

25% over $50m

50% are regionally focused

VAR and SI are two leading

business models (58%)

Large organizations: 40%

>$5b and 33% >$1-5 b

More heavily software

focused - 55% infrastructure

software & 33% applications

Vendors N-34N- 391


Polling Question

What is your biggest challenge in managing

your specialization program today?

1. Building & maintaining content

2. Getting the right partners to invest

3. Fostering strong field teaming and engagement

4. Providing adequate marketing support

5. Demonstrating overall ROI

5. Don’t know – don’t have a program today


Definitions

Specializations

(verticals, solutions or functions)

Certification & Accreditation

(products)

Core Product Training

(sales & technical)

FOCUS:

Apply skills

Build customer

satisfaction &

references

Focus vertically

FOCUS:

Build skills

Apply horizontally


The IBM PartnerWorld Program recognizes and rewards Business

Partners for their market success

Proven marketplace

success

Demonstrating IBM

skills

Introduction to the IBM

portfolio

Premier

Advanced

Member

Specialties

Specialized skills

Unique benefits

Business Partners are

recognized for their

achievements with

consistent criteria across

the program

PartnerWorld rewards

Business Partners for

building high value skills

Business Partners earn

incremental benefits

including a unique mark


What Are VMware Specializations?

Specializations (Based on Market Segments)

IV DV BC

• Delivers unique sales, marketing and product benefits

specific to VMware solutions

• Required to achieve partner membership levels

?

Competencies (Based on Solutions)

AcademicU.S.

Federal ?

• Delivers unique sales, marketing benefits to focused markets

• Required to gain access to restricted SKUs in certain markets

Healthcare


Discussion

When are specializations an important

element in a channel strategy or program?


When Are Specializations Important?

Trigger Result

1. Portfolio grows very broad Partners can choose their focus

2. Channel conflict grows Partner need better differentiation and

ways to establish customer value

3. Vendor needs to expand

marketshare or enter new

markets/verticals

Use specialized partner skills to foster

partner-led selling

4. Vendor needs to foster field

sales teaming with direct sales

Partners establish credibility and

mindshare with vendor sales teams

5. Vendor needs to scale services

delivery

Partner gets enablement and IP from

vendor services teams, either pre or

post-sale


Vendors Seek End-user Value then Partner

Differentiation

“You just can't do

everything, or be all to

everyone. You have to be

picky and strategic.”Solution provider respondent

% of partners

specialized Response

<10% 46%

11-20% 25%

21 – 35% 11%

36 – 50% 4%

>50% 14%


Vendors Want Competency: Partners Profitability

Other Solution

Provider Objectives

More marketing support

& visibility – 30%

More channel program

benefits - 23%


Discussion

How do you measure value to the

end-user, partner and vendor with a

specialization program?

Who’s most important?


Time and Expense are Barriers for All:

Staffing a Bigger Issue for Larger Partners

“Usually, the

barrier is, that it

doesn’t mean

anything to the

client”

“We’re too small to

have dedicated

person for every

single product”


Partners Want Incremental Revenue & Profit –

In the First Year

ROI Metrics Time to ROI


Discussion

How do you get partners to invest?

Is specializations only for the large

solution provider?


Technology Solutions Skills Most ImportantWaning focus on customer segments or verticals

(small, mid-market, enterp.)


Many Vertical Specializations: Limited SP Interest


Discussion

What kind of skills are we trying to

cultivate most?


Top Three Benefits Remain Consistent

Current Benefits Future Benefits


Misaligned Program Expectations


Discussion

How are the programs best

structured to drive value for both

vendor and solution provider?


Discussion

What are the pitfalls of launching and

managing a specialization program?


Vendor Call to Action

Assess Your Need for Specialization

Why would you create specializations? Are you experiencing growing pains or partner conflict?

Define an Effective Program

Do specializations scale your services delivery?Are industry specializations significant in your business?

Determine the Real Value Proposition

Will it increase the partners’ profitability?Is the value chain (end-user, partner, vendor) clearly defined?

Evaluate Your Partners’ Specializations

Do you have enough partners specialized? Too many? What is the capacity for specialization?

Drive Internal Alignment & Resourcing

Are you aligned with product marketing and the field?Will field behavior match corporate focus?


Join Us Next Month:

Managing Specializations

Through Automation

Thursday, November 17, 2011

9:00 am PST

Amazon Consulting 2011

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