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Generate Opportunities with a Vertical Value Proposition

AP043 Build My Skills Session. Generate Opportunities with a Vertical Value Proposition. Guus Krabbenborg. Introducing Partner Master Class (Part of the UK kick-off, May 2011). Recognised Worldwide as the TOP PDC All personnel have built VAR/ISV Partners from scratch

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Generate Opportunities with a Vertical Value Proposition

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  1. AP043 Build My Skills Session Generate Opportunities with a Vertical Value Proposition GuusKrabbenborg

  2. Introducing Partner Master Class(Part of the UK kick-off, May 2011) • Recognised Worldwide as the TOP PDC • All personnel have built VAR/ISV Partners from scratch • Live and breath your business pains • Wide range of experience in all areas • Proven Success in multiple countries across Europe • Top Class Coaches

  3. Microsoft Dynamics Partner Academy Partner Marketing Specialist Partner Marketing Academy Partner Developer/Architect Partner Technology Academy Partner Sales Specialist Partner Sales Academy Microsoft Dynamics Partner Academy Partner Application Consultant Partner Solution Academy PDC Partner Presales Specialist Partner Presales Academy Partner Project Manager Partner Project Management Academy MARKETING ROLE LEADERSHIP ROLE CONSULTANT SALES ROLE DEVELOPER PRESALES ROLE PROJECT MANAGER CPLS

  4. Guus Krabbenborg • Guus has been active for over 25 years in the business application arena. He worked for Philips and Digital Equipment and was co-founder of DBS Business Solutions, a Microsoft CRM partner • After that Guus was commercial director at Navision The Netherlands and started his own company TerDege in 2000 • Since then he specializes in helping Dynamics partners by means of business training and coaching in 25+ countries around the world • He delivers workshops and coaching at companies looking for new ERP or CRM solutions • Guus also writes books, columns and a well-known newsletter for partners

  5. Our PDC experience • Partner Master Class was founded late 2007 • 2008 – 2012: focus on The Netherlands and Belgium. We’ve trained and coached over 100 Dynamics partners • 2009-2012: assisting other PDC’s like Finland, Sweden, The Baltic's and Switzerland on specific domains • 2011: start in the UK as successor of the initial UK PDC • 2012: won the contracts in Australia, APAC and Germany • 2012 and beyond: focus on further developing our international presence

  6. The IT Channel Company • Merger between PMC and Conceptsales • 12 professionals • Ambitious to grow! • Extra delivery capacity • Roll out capabilities • Cloud experience!

  7. Our new team….

  8. IS THIS YOUR REGULAR COMPETITION?

  9. OR MORE LIKE THIS?

  10. Relevant questions… • Are you delivering customizations or do you create Intellectual Property (= value)? • How many different versions of your solutions did you install in your customer base so far? • How much profit in your company is un-utilized? • And how satisfied are your customers anyway?

  11. DEFINITIONS HORIZONTAL APPROACH VERTICAL APPROACH SOLUTION RISKS CUSTOMER SATISFACTION…

  12. Important issues for prospects Understand my business! The right references Solution that fit Predictable implementation Long term customer satisfaction

  13. But with a horizontal approach… Business knowledge? References? The right solution? Predictable implementation? Long term customer satisfaction?

  14. ….. A LOW PRICE IS YOUR ONLY WEAPON!

  15. Customizations versus Standard • Customer focused vs vertical focused • Once vs Many • Expensive vs Low(er) costs • High project risks vs Proven solutions • Difficult to sell vs “Seeing is believing” • Documentation ? vs Documentation ! • Tested? vs Tested! • Long lasting projects vs Short projects • Knowledge helpdesk? vs Knowledge helpdesk! • Migration ? vs Migration !

  16. BE CAREFUL WITH CUSTOMIZATIONS!

  17. Are you selling projects or licences? • What is your vision on the business? • Are you a development or a sales organization? • So why not completely develop your own products? • What is your biggest vertical? • Do you make money on customizations?

  18. ONE-to-MANY ONE-to-ONE

  19. The importance of verticalisation Microsoft solutions are ‘horizontal’ (platform) Additional functionality is indispensable But there’s more than just the software! The partner channel has a high “me too” grade So you must choose  No choice is a choice as well!

  20. Advantages of a vertical approach  for your customers • You’re a better sparring partner (quality issue!) • Add on’s are directly available (time issue!) • A shorter implementation period(money issue!) • Continuity in knowledge and add on’s • Less vulnerable because of breadth of vertical knowledge • “Seeing is believing” • Lower project risks

  21. DELIVER WITHIN TIME, BUDGET & QUALITY!

  22. Advantages of a vertical approach  for your company • Distinction from other Microsoft partners • Smaller marketing budget(and/or better utilization) • A natural position on the long- or shortlist • Lower project risks(fixed price is easier?) • Efficient use of development capacity(1-to-many) • A shorter implementation period(= money!) • Higher fees for consultancy(due to vertical knowledge) • More profit!

  23. Reduction of sales cost Sales cycle -/- 22% Improved turnover and profit Score ratio +32% Deal size + 26% • Increased sale of services • Utilization + 13% • Market penetration • 100% more new deals

  24. Advantages of a vertical approach  for Microsoft • Better spread of partners in the market • Less competition between Microsoft partners • Competition on value in stead of price (= less discounts!) • Higher score rates for partners • Partners are more profitable • Result is: Microsoft makes more profit!

  25. Why go vertical NOW? Customers want a short Time to Value “There’s an app for that” The transition to the cloud! Why should you wait anyway?

  26. Meeting time… • Pick the right vertical • Software – make or buy? • Engage marketing employees!

  27. Pick the right vertical! Analyze markets and competition Macro verticals versus Micro verticals Ideal size of a vertical? Consider cross border? Cloud impact on going abroad  You can’t afford to make mistakes here!

  28. Select the right add on – make or buy? What are your qualities? (you may ask your customers…) Growing offer of strong add on’s Economies of scale - size matters! Time to market is important as well!

  29. Create a true marketing operation! Invest in marketing employee(s) (85/15%) Provide ‘Closed Loop Marketing’ Learn how to reject leads!  (vs sales targets!) Be creative in your communication Continuity in the choice of your vertical!

  30. VERTICAL FORMER HORIZONTALPARTNER HORIZONTAL

  31. Good selling! Questions? Thank you for your attention! Guus Krabbenborg Mobile +31 622 496 073 E-mail gk@partnermasterclass.com www.partnermasterclass.com

  32. Visit the Microsoft Showcase:See | Learn | Connect Exhibitors & Sponsors Services & Devices Infrastructure & Platforms Business Applications Immersion Experiences

  33. To score this session Your feedback isimportant to us Visit aka.ms/connect

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