How To Increase Your Bets With Juniper · Title: Global PowerPoint Template and Icon Library POT - zipped file Author: MarCom Subject: PowerPoint Resources Created Date: 3/11/2008

Copyright © 2008 Juniper Networks, Inc. Proprietary and Confidential www.juniper.net

How To Increase Your Bets With Juniper

Colleen Ang


AgendaUnderstanding the Return on Working Capital Model• Drivers of profitability• Impact on business

How can Juniper Increase your bets


Profitability

3


Mystery UnfoldsGross margin• Percentage of revenue retained after paying direct costs associated with

revenueCost structure• Cost of marketing, selling and administering the value to a customer

Inventory Days• Number of days worth of sales invested in holding stock

Days Sales Outstanding• Number of days credit given to customer

Days Payable Outstanding• Number of days credit given to partner by Vendor

Working Capital Days• How long it takes between paying the supplier and receiving cash from

the customerWorking Capital Turn• How many times in a year the Partner converts cash to cash

4


-Days

Purchases Outstanding

(DPO)

Working Capital

Gross Margin Cost Structure Inventory DaysDays Sales

Outstanding (DSO)

AP x 365Sales Sales Sales Sales Sales

Working Capital x 365

SalesWorking Capital

Days

+ -

Gross Profit SG&A Inventory x 365 AR x 365

Operating Income

XSales

Sales

Operating Margin Working Capital Turn

Working CapitalWorking Capital Invested Capital

Return on Working Capital

Working Capital Intensity

Operating IncomeInvested Capital

Return on Invested Capital

Operating Income

X

The Profit Model

The Profit Model

The Working Capital Model

The Working Capital Model

The Return Of The Return Of The Business To The Business To

The CompanyThe Company

ROWC Model


Gross Margin DriversImplies value customer is willing to pay• Differentiation• Technology adoption cycle

Key Influences• Product/ Service Mix• Margins

6


Impact of Revenue Mix

Revenue Mix

Gross Margin

Blended Gross Margin

Product 90.32% 10.00% 9.03%

Maintenance Services 6.45% 15.00% 0.97%

Professional Services 3.23% 30.00% 0.97%

100.00% 10.97%

Revenue Mix

Gross Margin


Product 85.71% 10.00% 8.57%



100.00% 11.57%

7


Impact of Margins

Revenue Mix

Gross Margin


Product 85.71% 10.00% 8.57%



100.00% 11.57%

Revenue Mix

Gross Margin


Product 85.71% 11.0% 9.43%



100.00% 12.80%

8


Geometric Growth Of Maintenance Services

Annuity RevenueStreams

HardwareSales

Other Benefits:• Deferred Revenue• Reducing SG&A• Link to customer

Sale

s

Time

9


Professional Services Large margin contributionComplexity in solutionsAdvancing in value chain

Integration into Customer Organization

Trusted AdvisorTransaction/ Supplier Solution Provider

10


Cost StructureCost to serveKey Influence• Increase Productivity of headcount• Lower costs

11


Key considerationsIncrease mix of “high value” products

• Develop a value proposition and differentiation around the products and services

Attach services, RenewImprove competency for sales team to sell

• Remove complexity in offeringsCompensation plans aligned with metrics and change requirementsVendor Impact

• Training & Enablement• Lead generation activities• Quality of products

12


ROWC – System Integrator

13

Copyright © 2008 Juniper Networks, Inc. Proprietary and Confidential www.juniper.net 14


Enterprise Solution Portfolio

Intrusion Prevention

Secure Access Integrated Security ApplicationOptimization

Data centreSolutions

Branch Routing

Central Office/Core Routing

--

Unified Access Control

Switching


Solution Campaigns

Network InfrastructureSecurity

Mitigating risk associated with technology deployment and/or adoption

Fast, Reliable and Secure Networking Solution for Enterprise connectivity from the LAN to the WAN

DataCentres

BranchOffice

Campus

IP NetworkConverged IP

Network

Private WAN or VPN

Mobile

16


Performance-Enabling Services & Support

Education ServicesImprove the productivity and self-sufficiency of your technical staff

Consulting ServicesAccelerate your network's value with expert assistance

Installation andConfiguration ServicesStart your high-performance, high-value network rapidly, confidentlyTechnical SupportProtect your high-performance business investment though operational assistance


Partner SupportEnhancing Productivity through

• Product training/ Certifications• Solution sales tools• Lead generation• Co-marketing engine• NFR special discount program• Virtual lab

18


IBM Global FinancingAssist with flow of products through the channels to customers

Flexibility to cope with business capacity• Offers payment and terms flexibility

Options• Channel Financing• Customer leasing program

19


Place your Bets on JuniperWe are placing ours on You!

20


Related SessionsIncrease Your Winning Streak with Performance-Enabling Services and Support• 1550-1630• Naples 803, Ground Level

Expanding Your Enterprise Footprint with Juniper Solutions• 1630 – 1710• Naples 801, Ground Level

21

Copyright © 2008 Juniper Networks, Inc. Proprietary and Confidential www.juniper.netCopyright © 2008 Juniper Networks, Inc. Proprietary and Confidential www.juniper.net 2222

http://www.juniper.net/


ROWC – Distributor

23


Achieve Operational Excellence

Acc

eler

ate

Tim

e to

Val

ue

Optimize Value to Evolve Network Infrastructure

Support Programs

Education & Certification

Support Programs

Support Programs

Implementation Services


Advanced ServicesJ-Assure

Education

Improves operational efficiencies Increases network performance by reducing service interruptions and improving network reliabilityEnsures risk managementEnsures that your network adapts to new business demandsLowers operational costs

Support Programs

Implementation Services


Consulting Services

Consulting Services

Industry with ongoing competitive pressure

New mkt requirements – quickness is key

Solution OptimizationExpertise is Key

Static Solution


Value Through DifferentiationD

iffer

entia

tion

Gross Margin

Fulfillment of commodities

Differentiated Processes

Differentiated People

Proprietary Intellectual Property

Monopoly

DIFFERENTIATION CONTINUUM

25


Impact of Working CapitalInventory Days• Time difference between taking ownership of the product and

invoicing the customerDays Sales Outstanding• Time difference between invoicing the customer and receiving the

cashDays Payable Outstanding• Time difference between receiving ownership of product and

paying the supplierWorking Capital Days• How long it takes between paying the supplier and receiving cash

from the customerWorking Capital Turn• How many times in a year the Partner converts cash to cash

26

Documents

How To Increase Your Bets With Juniper · Title: Global PowerPoint Template and Icon Library POT - zipped file Author: MarCom Subject: PowerPoint Resources Created Date: 3/11/2008