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Advantech’s Channel Strategy & Business Program

Stefanie ChangManager, Advantech Global Business Operation

December 6, 2019

Transformation of Advantech Channel Management

Channel Positioning Classification

Global Channel Management Policy

Regional Channel Management HQ

Worldwide unified channel classification structure, conducting auditing

& certification mechanism.

Establish disciplined, legislative and systematic channel policy applying for global channel management.

Empower & Authorization to regional cross-sector channel management HQ and align to global policy with solid execution.

Channel Management 2.0

Key Initiatives of Channel Management 2.0

Channel Positioning, Authorization and Pricing Strategy

Channel Mindshare Objectives and Business Programs

Channel Performance Assessment, Auditing and Re-position

Advantech Worldwide Channel Positioning Classification

GBO v.201912

Dealer Dealer, VAR

PCPPremier Channel

Partner(PCP)

Alliance Premier Channel

Partner (APCP)

CP

Master Fulfillment

CP (MFCP)

Online CP

(ONCP)

Focus CP (FCP)

Authorized CP (ACP)

Regular

Gold

Sliver

Regular

Gold

Sliver

ONCP are

online/eCommerce partners,

dedicate to develop the business through

eCommerce platform only. The threshold

of contract quota is $100K.

MFCP <China special> operating in

box-moving volume distribution,

require safety stock to serve as the

fulfillment partner to customers (general

accounts/ key accounts/ channel partners/…)

depending on business scenarios.

ACP/G,S,R are channel partners

with no obvious sector focus and serving

the general distribution to industrial customers. Three

classes by Regular($100K), Silver($300K),

Gold($500K) taking required product

training from Advantech.

FCP/G,S,R are product focused or design-in focused partners (phase-1);

or DFSI/SRP developer (phase-2). Shall

take the mandatory technical certification from Advantech. Define by 3-

classe: Regular ($100K), Silver ($300K), Gold

($500K). Require 40% quota of focus sales and

KPIs of focus business.

PCP are the channels performing

sustainable volume revenue(>$1M or >$3M in big region) and reach

required technical and

organizational capabilities.

Dealer is the tier-N indirect customers, shall be referred to a

specific CP/PCP for fulfillment service but still be engaged with Advantech

for development plan and sales support.

APCP are selective PCPs who

presenting close engagement and alignment

with Advantech; will collaborate with

strategic co-investment activities

and business alliance programs.

Advantech Channel Partner Development withMindshare Objectives & Pricing Strategy

CP

ONCP

•Revenue growth w/ Profit generation

•eCommerce Biz with digital tools & program

•Component business promotion

MFCP

•Revenue growth

•Volume disty master region distribution

• Safety Stock and Fulfillment Service

ACP

•Revenue growth, Territory/Coverage expansion

•Dealerships network development

•Advantech branding awareness & promotion

FCP

•Revenue growth, Targeted Sector KA development

• Focused product promotion (Phase I)

•Domain Focus SI/SRP (Phase II) Resources Injection

PCP

PCP• Strategic Business Breakthrough•Resources of Technical & Organization •Conditional Exclusivity (sector/territory)

APCP• Strategic alliance•Co-investment• Joint venture: CCJV, JVCP


CP

ONCP




MFCP

•Revenue growth



ACP




FCP




PCP



Mindshare Objectives of Strategic / Focused Business Collaboration

Biz

Gro

win

g w

ith

Min

dsh

are

Mindshare


CP

ONCP




MFCP

•Revenue growth



ACP




FCP




PCP



Mindshare Objectives of Strategic / Focused Business Collaboration

Biz

Gro

win

g w

ith

Min

dsh

are

Mindshare

Pri

cin

g St

rate

gy b

y P

osi

tio

n L

eve

l

Pricing Strategy by Strategic / Focused Business Development PlanPricing

Global Practices of Mindshare Business Program

Territorial Expansion JVCP

Dealer Program or Leads

Generation & Fulfillment

Organization Co-Investment

(dedicated force)

WISE-PaaS VAR & DFSI CCJV

Device Promotion &

Stock Program

eCommerce Platform & Franchise

eStore

Vietnam,

Turkey,

LATAM

Philippine,

India

Ukraine,

ASEAN,

S.Africa

ASEAN,

ME&A,

Russia

Japan,

Europe

Dubai,

Singapore,

Malaysia

Resources Injection to

Focus Sector Biz project

Russia,

India

Global Practices of Mindshare Business Program

Territorial Expansion JVCP

Dealer Program or Leads

Generation & Fulfillment

Organization Co-Investment

(dedicated force)

WISE-PaaS VAR & DFSI CCJV

Device Promotion &

Stock Program

eCommerce Platform & Franchise

eStore

Vietnam,

Turkey,

LATAM

Philippine,

India

Ukraine,

ASEAN,

S.Africa

ASEAN,

ME&A,

Russia

Japan,

Europe

Dubai,

Singapore,

Malaysia

Resources Injection to

Focus Sector Biz project

Russia,

India

……

……

……

Regional Cross-sectorChannel Management HQ

Channel Management 2.0 Operation Structure

Sector BDM

SBG SectorEIoT SIoT IIoT

AOnline/IoTMart

Sector-Lead CSF organizationSector Business Development

Special Resources empowermentAccount/Project Co-Development

Special Resources empowermentBusiness Strategy Collaboration

Channel Sales Force

DirectCSF

RBUCSF

Sector-Lead Regional Channel Strategy Business Plan & Marketing Plan with Channel

Sales Activity & Marketing Promotion Partnership & Mindshare Development

Channel Support & Service

Channel Marketing Support & Program Technical Support, Training & Certification

Sales Operation Support (inside sales)

Common Sector General Channel

Defined Region by General Selling revenue Development Defined CP with General Distribution Sales

Channel ProgramChannel Positioning & Pricing Strategy

Mindshare Program & Conflict ManagementChannel Management Platform & System

Channel Auditing Channel Authorization & Contract Review

Channel Performance Assessment (CPA) Incentive/Rebate/JMF Review

Price Administration

Region RLP & Price Grade Management Channel System Price Review Gatekeeper

Global Channel Strategy & Policy

Corp. Channel Classification PolicySector Price Authorization PolicyPerformance Assessment PolicyGeneral Management Policy Strategic Alliance ProgramGlobal Conflict Management

Corporate Global Business Operation

Channel Performance Assessment Criteria

QualificationBaseline

Basic Quota Achievement

Channel Contract Completion & Validation

Business Plan and Marketing Plan Submission

Collaboration Performance

Quota Achievement of total Revenue

Quota/KPI Achievement on Focused Area

Deliverables of Co-Branding Event & Marketing KPIs

Organization Resources for Advantech Team

Completion of Technical Training & Certification

Performance/Deliverables of Channel Program

Alignment & Compliance

Business Engagement and Strategy Alignment with Advantech

Accordance with Advantech Channel Management Policy

Partnering for Success

EngagementStickiness

Creation

Collaborative contributions to create new value together

Co-involvement of business development with resource supports

Mindshare

Mutual commitment to business breakthrough with strategic objectives

Grow trust and connection with long term partnership

Co-Creating the Futureof the IoT World

Co-Creating the Futureof the IoT World

advantech’s channel strategy · india ukraine, asean, s.africa asean, me&a, russia japan,...

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