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Partner of the Future: 10 Transformations IT Partners Must Make in the Digital Transformation
Accelerating Digital Transformation in Latin America:
November 22, 2016
The AgendaThe successful partner of 2020 will look entirelydifferent from the successful partner of 2016,". Thispresentation lays out a framework of 10transformations that IT Partners have to address inthe years ahead to be successful — or, in effect, tobe a "partner of the future
Partner of the Future: 10 Transformations IT Partners Must Make in the Digital Transformation
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
Source: IDC, 2016
2nd Platform 3rd Platform
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
TECHNOLOGY
Past Future
Source: IDC Latin America Server and Software Tracker, 2016
2010
59%
Servers Spending
12%
Power & Cooling
29%
Mgmt & Administration
$3.9B
0.68OPEX/CAPEX Ratio
2015
50%
Servers Spending
10%
Power & Cooling
40%
Mgmt & Administration
$3.8B
2019
42%
Servers Spending
9%
Power & Cooling
49%
Mgmt & Administration
$4.4B
1x
3x
2nd Platform 3rd Platform
Past Future
Source: IDC Latin America Cloud Services Tracker, 2015
4.1%
16.2%
60.7%
13.4%
5.6%5.4%
11.2%
55.1%
19.6%
8.7%
Not ConsideringCloud
Consolidation ofServer and Storage in
place
Virtualization:Consolidation + VM
management
Automation:Virtualization + VMManagement + self
provisioning
Cloud: Automatiom +pay per use + internet
acess
2014 2015
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
Market Forecast LA, MUSD Constant
IaaS PaaS SaaS
2014 2015 2016 2017
2nd Platform 3rd Platform
Past Future
Source: IDC Latin America and NEXSYS Survey, November 2016 n=39
Hardware, 29%
Software, 38%
IT Services, 32%
Cloud , 29%
Mobility Solutions ,
12%
Social Business Solutions , 6%
Big Data/Analytics , 11%
Traditional IT Solutions, 42%
Does your company offer….?
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
FOCUS Broad Specialized
Past Future
Source: IDC Latin America New Buyer in Technology 2016 (n = 354 in Latin America)
11.10%
8.20%
24.1%
28.10%
28.90%
31.20%
7.2%
16.5%
28.6%
26.3%
27.1%
25.5%
Social
Big Data/BI/Data Analytics
ERP consolidation /…
Cloud Computing
Mobility
IT Consolidation/Virtualization
Top IT Priorities 2016
2016 2015
Source: IDC Latin America IT Investment Trends 2015 & 2016
Regardless of the IT investment decisions, the most effective attributes or actions by a vendor/partner are:
Knowledge on Industry needs 51%
Ability to deliver timely, within budget 49%
Timely & proper response 42%
Technology Expertise 15%
Familiarity to LOB, w/former purchase 15%
Listens to concerns and looks for best solutions 11%
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
CUSTOMER IT Business and IT
Past Future
11.10%
8.20%
24.1%
28.10%
28.90%
31.20%
7.2%
16.5%
28.6%
26.3%
27.1%
25.5%
Social
Big Data/BI/Data Analytics
ERP consolidation /…
Cloud Computing
Mobility
IT Consolidation/Virtualization
Top IT Priorities 2016
2016 2015
Source: IDC Latin America New Buyer in Technology 2016 (n = 354 in Latin America)
IT Business and IT
Past Future
CFO , 21.90%
CIO , 37.50%CISO , 6.30%
CEO , 6.30%
COO , 3.10%
CMO , 9.40%
Other, 15.60%
Source: IDC Latin America and NEXSYS Survey, November 2016 n=39
New Buyers in technology: key or primary contact
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
SALES MOTION Deal Relationship
Past Future
SellTransaction
TransactionUse
IT Department - strategic for evaluation and decisions through the organization. LOBs play a larger role in decisions.
0% 10% 20% 30% 40% 50%
5. IT & LOB work together…
4. IT & LOB evaluate…
3. IT & LOB evaluate…
2. IT evaluates, makes…
1. IT evaluates &…
IT Role in the Buying Process
CISO/CIO COO CMO CHRO CFO
Source: IDC Latin America New Buyer in Technology 2016 (n = 354 in Latin America)
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
TIME HORIZON Short-term Long-term
Past Future
Macro Markets 2016* YoY Growth (%)
Project Oriented 7433,1 -14,8%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2014 2015 2016 2017 2018
LA Total Cloud Services Market, 2014 - 2018 MUSD Constant
Public Cloud Private Cloud Hybrid Cloud
2014 – 2018 CAGR 43.6%
2014 – 2018 CAGR 28.9%
2014 – 2018 CAGR 38.5%
Source: IDC Latin America Cloud Services Tracker, 2015
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
MARKETING Traditional Digital
Past Future
Marketing/communication method % TYPE CFO CHRO CMO COO CIO/
CISO
Specific conferences related to LOB 45% TRADITIONAL
Active in industry chambers or associations 29% TRADITIONAL
Subscribed to special magazines 40% TRADITIONAL
Forum or conferences on general business 16% TRADITIONAL
Using on-line business communities 19% DIGITAL
Reading magazines- business sections or specific
columns27% TRADITIONAL
Studying a post-graduate course 19% TRADITIONAL
At courses developed by the Company 21% TRADITIONAL
Self-taught person - looking for new lessons or
courses by him/her21%
DIGITAL & TRADITIONAL
Turns to Industry leaders- industry analysts,
researchers, consultants12% TRADITIONAL
Reading specialized publications for my industry or
area of interest14%
DIGITAL & TRADITIONAL
Trend to Specific Business Role
Trend to raise both, Business Role & Digital Skills
Trend to raise their Digital Skills
Propensity to build their
Digital skills !
Source: IDC Latin America New Buyer in Technology 2016 (n = 354 in Latin America)
Traditional Digital
Past Future
EFFECTIVE MKTG/COMM METHODS CFO CHRO CMO COO CIO
1. Free Trial 31% 39% 40% 44% 36%
2. Product Demo 65% 65% 68% 69% 76%
3. Written Case Study of other successful deployments 28% 21% 33% 29% 37%
4. Product reviews published on line or in written material 34% 24% 30% 29% 25%
5. Self-assessment tools - Interactive tools such as ROI calculators
34% 18% 33% 25% 29%
6. Digital Interaction – Search in Blogs, Website, on line videos
29% 28% 16% 25% 20%
7. On line Magazines 12% 15% 16% 13% 19%
8. Subscription to specific on line communities 14% 10% 5% 6% 5%
9. Posts in Social networks – Facebook, twitter, LinkedIn 16% 12% 11% 15% 18%
10. Live Testimonials at events by vendors 18% 18% 28% 19% 15%
11. Vendors content and websites – streaming, infographics 19% 20% 18% 23% 29%
12. Advertising – at airports, business events, large signals 6% 2% 7% 0% 11%
13. Advertising on magazines, newspapers 8% 4% 12% 2% 10%
14. Promotions at special stores 5% 4% 7% 2% 6%
15. Others (specify) 0% 1% 0% 0% 0%
Product Demos and Free Trialas most effective for most ofthe LOBs
Success stories and publishedreviews influence in decisionsas proof points to Supportdecisions.
Self-assessment tools workwell for CHRO & CMO
1
2
3
Priority
Source: IDC Latin America New Buyer in Technology 2016 (n = 354 in Latin America)
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
ACTIVITIES
ResalePro servicesServices
Past FutureServicesManaged servicesCreating IP
2014
Resale Revenue Ratios
2015
41% 53%
Hardware & Software Resale Revenue Ratios
H: 27% 12%S: 39% 58%
H: 35% 30%S: 21% 24%
H: 41% 45%S: 37% 37%
H: 54% 50%S: 25% 34%Solution
Provider
SI
Service Provider
ISV
2014 2015
Hardware44%
Software34%
Services22%
Hardware50%
Software27%
Services23%
IDC Infrastructure Channel Survey (2014 n=501; 2015 n=500)
ResalePro servicesServices
Past FutureServicesManaged servicesCreating IP
2014 2015
59% 47%
Non-Resale Revenue Ratios
Increased value through:
1. Created services growth
2. IP development
3. Recurring revenue models
4. Exiting low value services
Product Creation
18%
Managed Services
24%
Cloud Services
8%
Support Services
23%
Professional Services
27%
Product Creation
23%
Managed Services
21%Cloud
Services10%
Support Services
19%
Professional Services
27%
Source: IDC Infrastructure Channel Survey (2014 n=501; 2015 n=500)
ResalePro servicesServices
Past FutureServicesManaged servicesCreating IP
Cloud service provider ( a
provider of IT delivered as a service such as IaaS, PaaS and
SaaS) , 32%
Cloud Reseller (reseller/broker
of someone else's public
cloud services) , 36%
Cloud Consultant ,
18%
Cloud Builder (desing and
deploys private or public
infrastructure) , 14%
To response customer
demand, 25%
To improve our
profitability, 14%
To response to
competition, 10%
To increase or add recurring revenue, 19%
To increase our business growth rate,
26%
Because our major
software vendor has
moved in that direction, 6%
Why did your decide to start offering Cloud solutions? Which role(s) describe your Cloud services involvement today?
Source: IDC Latin America and NEXSYS Survey, November 2016 n=39
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
COMPETITION Traditional Non-traditional
Past Future
Digital Transformation Made in Latin AmericaProduct
ResaleServices
Source: IDC Channel Taxonomy, 2013
Hybrid product/
resale
Hybridproduct/services
Value-added resellers
Logistics-orientedpartners
Services-orientedpartners
Product-orientedpartners
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
ALLIANCESDo it Ourselves Partner Collaboration
Past Future
Source: IDC Latin America IoT Survey, October 2015
GOVERNMENT HEALTHCARE/PHARMA
RETAIL
FINANCE
MANUFACTURING
CONSTRUCTION/TRANSPORTATION/UTILITIES
PROFESSIONAL/BUSINESS SERVICES
OTHERS
What industrial internet company do you see as most likely to be the leader in the Internet of Things market?
Technology
Focus
Customer
Sales Motion
Time Horizon
Marketing
Activities
Competition
Alliances
Advantage
ADVANTAGE Comfortable Transient
Past Future
There is no such thing as SustainableCompetitive Advantage anymore
Only Transient Competitive Advantage.”
Comfortable Transient
Past Future
Market/customer demand, 12.50%
Vendor has best- in-class technology, 25.00%
Vendor has superior technical support,
15.60%
Vendor is easy to do business with, 21.90%
Vendor has a well-run partner program, 6.30%
Vendor has superior opportunities for services
revenue, 18.80%
Reasons to Choose Partnership with a Particular Vendor
Source: IDC Latin America and NEXSYS Survey, November 2016 n=39
Technology 2da Platform 3ra Platform
Focus Broad Specialized
Customer IT Business and IT
Sales Motion Deal Relationship
Time Horizon Short-term Long-Term
Marketing Traditional Digital
Activities ResalePro ServicesServices
ServicesManaged ServicesCreating IP
Competition Traditional Non-Traditional
Alliances Do it Ourselves Partner Collaboration
Advantage Comfortable Transient
Present Future
Partner of the Future
Partner of the Future: Creating Your Digital Pitch
Business Transformation Digital Transformation
1. CUSTOMER CONVERSATION
Business Process Automation & Transformation (Internal)
Innovation and Ecosystem (External)
2. CUSTOMERS KPIs Cost and Risk New Revenue Streams
3.TECHNOLOGY Applications Driven Digital Platform with Apps
4. DECISION MAKERS CFO and CIO COO, CFO, CMO, CIO and CEO
5. PARTNERS System Integrators (SIs)Digital Influencers (agencies, start-ups and digital SIs)
6. SALES MOTION Big Bang - Solution & ValueIterative - Use Cases & PoVCloud = Accelerator
7. COMPETITION Stack-players (Traditional) Born in the Cloud vendors
Vendors have less influence on the infrastructure channel than they did a year ago
Hardware as a ratio of resale revenue declined as software increased –resale & development partners most prominent.
Partners experience an increase in non-resale as a ratio of total revenue, and growing share value of created products and cloud services.
Product creation share increased for all partners but ISVs where created services grew.
More partners are engaged in cloud and growth across all cloud roles but
Key Take-a-Ways
Thank you
Alejandro Florean
Vice President Consulting
@alexflorean aflorean@mail.com
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