specialization research
TRANSCRIPT
Amazon Consulting 2011 1
How Special are
Specializations?
Does the Value Warrant
the Investment?
Webinar
October 19, 2011
Amazon Consulting 2011 2
Panelists
Jamie Mendez
Director, IBM
PartnerWorld
Laurie Evans
Director, Global
Partner Programs
Amazon Consulting 2011 3
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
Amazon Consulting 2011 4
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
Amazon Consulting 2011 5
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
Amazon Consulting 2011 6
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
Amazon Consulting 2011 7
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
Amazon Consulting 2011 8
Discussion
When are specializations an important
element in a channel strategy or program?
Amazon Consulting 2011 9
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
Amazon Consulting 2011 10
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%
Amazon Consulting 2011 11
Vendors Want Competency: Partners Profitability
Other Solution
Provider Objectives
More marketing support
& visibility – 30%
More channel program
benefits - 23%
Amazon Consulting 2011 12
Discussion
How do you measure value to the
end-user, partner and vendor with a
specialization program?
Who’s most important?
Amazon Consulting 2011 13
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”
Amazon Consulting 2011 14
Partners Want Incremental Revenue & Profit –
In the First Year
ROI Metrics Time to ROI
Amazon Consulting 2011 15
Discussion
How do you get partners to invest?
Is specializations only for the large
solution provider?
Amazon Consulting 2011 16
Technology Solutions Skills Most ImportantWaning focus on customer segments or verticals
(small, mid-market, enterp.)
Amazon Consulting 2011 17
Many Vertical Specializations: Limited SP Interest
Amazon Consulting 2011 18
Discussion
What kind of skills are we trying to
cultivate most?
Amazon Consulting 2011 19
Top Three Benefits Remain Consistent
Current Benefits Future Benefits
Amazon Consulting 2011 20
Misaligned Program Expectations
Amazon Consulting 2011 21
Discussion
How are the programs best
structured to drive value for both
vendor and solution provider?
Amazon Consulting 2011 22
Discussion
What are the pitfalls of launching and
managing a specialization program?
Amazon Consulting 2011 23
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?
Amazon Consulting 2011 24
Join Us Next Month:
Managing Specializations
Through Automation
Thursday, November 17, 2011
9:00 am PST