Generate Opportunities with a Vertical Value Proposition

Guus Krabbenborg

AP043 Build My Skills Session

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

Microsoft Dynamics Partner Academy

Partner Developer/Architect

Partner Developer/Architect

Partner MarketingSpecialist

Partner MarketingSpecialist

Partner Sales

Specialist

Partner Sales

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Partner Project

Manager

Partner Project

Manager

Partner Application Consultant

Partner Application Consultant Partner

PresalesSpecialist

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Partner Partner SolutionSolutionAcademyAcademy

Partner Partner SolutionSolutionAcademyAcademy Partner Partner

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Microsoft DynamicsPartner Academy

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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

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

The IT Channel Company

• Merger between PMC and Conceptsales• 12 professionals • Ambitious to grow!• Extra delivery capacity• Roll out capabilities • Cloud experience!

Our new team….

IS THIS YOUR REGULAR COMPETITION?

OR MORE LIKE THIS?

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?

DEFINITIONSHORIZONTAL APPROACH

VERTICAL APPROACH

SOLUTIONRISKS

CUSTOMER SATISFACTION…

Important issues for prospects

Understand my business!

The right references

Solution that fit

Predictable implementation

Long term customer satisfaction

But with a horizontal approach… Business knowledge?

References?

The right solution?

Predictable implementation?

Long term customer satisfaction?

….. A LOW PRICE IS YOUR ONLY WEAPON!

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 !

BE CAREFUL WITH

CUSTOMIZATIONS!

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?

ONE-to-ONE ONE-to-MANY

The importance of verticalisationMicrosoft 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!

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

DELIVER WITHIN TIME,

BUDGET &QUALITY!

Advantages of a vertical approach for your company

Distinction from other Microsoft partnersSmaller marketing budget (and/or better utilization)

A natural position on the long- or shortlistLower 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!

Increased sale of services Utilization + 13%

Market penetration100% more new deals

Improved turnover and profit

Score ratio +32%Deal size + 26%

Reduction of sales cost

Sales cycle -/- 22%

Advantages of a vertical approach for Microsoft

Better spread of partners in the market

Less competition between Microsoft partnersCompetition on value in stead of price (= less discounts!)

Higher score rates for partners

Partners are more profitable

Result is: Microsoft makes more profit!

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?

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

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!

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!

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!

FORMER HORIZONTAL

PARTNER

VERTICAL

HORIZONTAL

Good selling!

Questions?

Thank you for your attention!

Guus Krabbenborg

Mobile +31 622 496 073

E-mail gk@partnermasterclass.com

www.partnermasterclass.com

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