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HP Confidential 2
It’s all about the “Channel Value
Proposition”
Before you start, for a moment become a reseller. Lean, hungry aggressive and looking for
your next sale to meet your quota and keep you moving forward and in the game..
Resellers like products that sell, that have market pull and that have positive margins, but
can’t usually make enough margin from them to survive. This is your opportunity…
If you can come up with a value proposition over and above the product sale that is
attractive to resellers then you will have designed a value proposition that is program and
likely will have a winner in your hands. Most resellers like solutions :o)
The challenge is that if you’re in the product business that’s quite a leap to make.
So what element are available to you over and above a great product that everyone wants
that you can potentially include in the channel value proposition for you program:
etc…..
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Things can that hurt the Channel Value
Proposition
Things that hurt the value proposition always exist so be being aware of them you will
have the chance to mitigate them Example of issues might be:
-You need to do lots of training for this product, it’s very complex to sell
-We do it all from HP
-You need to build infrastructure
-You will be one of 50,000 selling this
-The market is small or undefined
-The market confused and fragmented
-There is nothing but the product offering
-The product have a complex value proposition and long sales cycle with many
dependencies
-There are several better, more competitive offering
Note: All of the above can be overcome with the right value proposition. An example might
be: Who wouldn’t become a road sweeper for $1M per year and with guaranteed
employment for 3 years :o)
Resellers will attack what seem like impossible odds if the value proposition motivates
them to do it. Hence the value proposition is the most important component of a
program. So document it, test and communicate it to the wider program team
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Channel Partner Plan - Readiness
Elements
As part of preparing a Partner centric plan several element need to be address. SPO
provides the “Partner Readiness Framework” to facilitate. The framework is a series of
matrices that cover the following topics:
The most effective method to use and complete the “Partner readiness Framework” is to
ask a series of “questions” – the 10 questions that a “Channel-Ready” program must
address to be successful. Consider the following slide..
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
• Must have a strong value proposition for end customers regardless of route to market (whether
selling direct, indirect, or both)
• The offering should consider the “whole solution” not just components of technology. Complementary
services, products, processes, tools, capabilities, etc. should be developed to enable customers to
successfully deploy the solution.
−Refer to the book “Crossing the Chasm” for more on this topic.
If you can’t say who your perfect customer is then how would you
expect a partner…
It’s still easy, you just have to think it thru and write it down.
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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2. Is this offering compelling relative to
competition?
Discussion:
• Partners must decide what offerings to sell based on the choices and alternatives that an end
customer has.
• An HP offering could be of good value, but if customers have better choices (competitors or other
alternatives) partners will either not sell the HP offering or will not be successful selling the HP
offering
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3. What is the size of the total opportunity and
how much is the partner component?
Q1 Q2 Q3 Q4 TOTAL
Market size $ $ $ $ $
HP share % % % % %
HP Revenue
Direct
% of total
Indirect
% of total
Size is very important, especially when trying to work out which one to pick.
SPO usually pick the biggest because it usually offers the best return for our
investments.
But be careful, because we’ll also ask you for a forecast :o)
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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B/U and Segment: “What do you want the partner to do?”
Engagement – Partner should be able • WW and Region SPO, CSG-SMB, and B/U interlocked launch
to engage with HP resources to sell and and demand gen plans
implement the solution • Marketing communications collateral
• Sales training (webinars; powerpoints; interactive on-line
training; instructor-led; translations considered)
• Value proposition to partner and for end customer
Investment– HP desires partners to • WW and Region SPO, CSG-SMB, and B/U interlocked launch
make significant investments to and demand gen plans
develop a line of business to sell and • Marketing communications collateral
implement the solution • Sales training (webinars; powerpoints; interactive on-line
training; instructor-led; translations considered)
• Value proposition to partner and for end customer
• Certifications; demo equipment; ISV training & partnership;
business case ROI; sales cycle; HP technical sales support; etc
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B/U and Segment: “What do you want the partner to do?”
•The more we ask the partner to do, the more important the
need for a value proposition to the partner for how his efforts
will produce an acceptable ROI
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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5. What is the value proposition to partners?
• Potential partner investments • Potential partner returns
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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6. Is the partner value proposition compelling
vs competition?
Discussion:
• Partners will be evaluating HP’s offering with other options available
−Other options
• Other vendors
• Different solution approaches
−Evaluation criteria includes:
• Technical
−ROI to end customer
−Quality
−Vendor support over the lifecycle of the project
• Channel programs
−Profitability
−Availability
−Ease of doing business
Most partners have multiple relationships and are more than happy to
attempt to play one vendor of against another…
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7. What do target partners look like?
Discussion:
• Partner profile characteristics
−Geographic
• Region
• Cross-region
• International
−Capabilities
• Certifications
• Size
• Authorizations
−Segment focus
• SMB vs. Enterprise vs. Public Sector vs. SOHO
Document what you’re looking for, if you can’t then “Houston we have a
problem”
And if your perfect partner need to have 4000 PhDs on staff then you’re in
trouble !
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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8. How many partners do we need, and how
will we recruit them?
ILLUSTRATION
Q1 Q2 Q3 Q4 TOTAL
Market size $1,000 $1,030 $1,061 $1,093 $4,184
HP share goals 2% 12% 22% 32% 17%
HP Revenue $20 $124 $233 $350 $727
Direct $1 $5 $12 $21 $38
% of total 3% 4% 5% 6% 5%
Indirect $19 $119 $222 $329 $688
% of total 97% 96% 95% 94% 95%
• Must quantify assumptions of yield per partner, number of partners who are engaged and active, and number of
partners who we expect we need to “touch” in order to net to the required number of active partners
• Must ensure resources are available for effective recruiting:
− Collateral publication/mailing
− Call center Remember that forecast we talked about….
− Feet on street
− Roadshows
− Webinars Forecast /partner thru-put = # partners
− Advertising
− Public relations
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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9. What do we need to do to enable partners
to be successful?
• Training
− Partner personnel
• Sales
• Pre-sales
• Administration
• Systems
− Order management and logistics
− Benefits payments
− Sales compensation
• Tools
• Communications
− Web information
− Printed and electronic collateral
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Training considerations: Partner Training Development Standards (we need standards
to communicate SPO Business Requirements to groups producing training for partners)
Dimensions
• Relevant Target Audiences
− Call center sales; field sales; technical pre-sales; See following pages
Trainers
− SPO Sales (selling the partner on the program)
• Course Architecture
− Duration and modularization of courses When is legal review required?
− Legal constraints and guidelines 20 minute modules in easy to drill-down
just-in-time-to find hierarchy
• Maintenance
− Delivery and translation funding agreement Ensure there is budget to maintain,
especially for translations and
Interactive applications
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Training considerations: Partner Training Development Standards (we need standards
to communicate SPO Business Requirements to groups producing training for partners)
Low PowerPoint
PowerPoint with Instructor notes
• Leveragable for both simple
relative complexity
Pre-recorded Presentations
on Demand with WW Interactive Web
High Subject Matter Experts Based Training
with translations
and budget for
ongoing
maintenance
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Effective Partner Programs: 10 questions that a “Channel-Ready”
program must address to be successful
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10. What else will we need in order to execute
in the regions?
• Launch coordination • Other partners (Microsoft & Intel; other ISV’s; other
• Demand generation HW or Svc vendors)
− Air cover − Contracts and relationships w/ HP
− Partner agreements
• Training
− Co-funding
− SPO resources
• PBM’s and Specialists - Selling the value prop • Other resources
to partners − Funding
• SPO call centers − Headcount
• Pre-sales support • Relative priority
− Other resources − Agreement on relative priority
• Technical support
• Systems and processes
− Order management and logistics
− Benefits payments
− Sales compensation
• Tools
• Communications
− Internal, Analyst Relations; Press Relations;
All of the stuff we’ve talked about now
External to partner has to be mapped into the regional
• Sales compensation and policies execution model and priorities…
− Does the offering contribute to retiring quota for a
business unit?
− Is there a new quota that will be applied? That said, if you’ve worked with WW
− SPIFF’s? SPO then there shouldn’t be any
− Rules of engagement and escalation processes regional surprised, not aleast from
• Partner contracts and addenda regional SPO…
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Channel Partner Plan - Readiness Elements
Sample SPO Partner
Operations
Readiness Matrix
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Channel Partner Plan – Readiness Elements
Sample SPO Partner
Regional Plan continued
Readiness Matrix
HP Confidential 32
Quick Comment
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improve the quality and content of this training:
2. Did the training meet your needs in terms of “information” and content
1…10 - where 1 is did not meet your needs
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overall quality and content of this training:
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