© 2012 IBM Corporation
Varicent, an IBM Company30-Day WW Channels Update
June 2012Sue HahnChannel Integration Executive
© 2012 IBM Corporation
Acquisition Company Name & Logo:
Overview description/Highlights: The Varicent Sales Performance Management (SPM) solution enables companies to automate the process of calculating, reporting & analyzing variable-based pay. The solution suite includes a platform with the following modules:
Incentive Compensation Management – create, model and manage pay-for-performance programs.
Quota Planning – assign appropriate quota levels according to territories, products and lines of business.
Territory Management – determine optimal territory coverage model, manage change.
Channel Management – analyze effectiveness Incentive Compensation Management – create, model and manage of each sales channel including agents, distributors and resellers.
** Key dates: Announcement Date/Close Date Planned Transfer of Business Passport Advantage date
Apr 13, 2012 / May, 22 2012**Feb 1, 2013**Oct 4, 2012 (Perpetual license only)
* SVP Authorization Highlights: IBM SW Product Group
Business AnalyticsCognos Performance Management
Certification Requirements TBD
Links/Resources Software Seller’s Workplace - http://w3-103.ibm.com/software/xl/portal/content?synKey=I906713C25509Z88
Quick Reference Sheet for Varicent
** Please Note: Future Key Dates are Subject to Change.**
© 2012 IBM Corporation
Acquiring a leader in sales performance management solutions• Headquartered in Toronto, Canada with offices in Canada, US, UK, Australia, Hong Kong, Mexico, Singapore –
195 employees• Innovator of new solutions for sales performance management (SPM) including incentive compensation, quota
planning, territory and channel management• Fast growing vendor in emerging market of Sales Performance Management (SPM); Ranked by Deloitte’s Fast
50, Ventana Research and Gartner as a leading category vendor
Addressing a growing opportunity• Sales Performance Management is a high growth area bolstered by the economic need to align pay with
performance. SPM software helps companies address complexity, accommodate business growth and change, improve reliability, and optimize performance while avoiding unexpected outcomes
• Organizations of all sizes are dissatisfied with the time, costs and resources required to maintain and update spreadsheet-based or legacy sales management and incentive compensation processes and systems
Delivering solutions leadership • 180 customer deployments across all sectors with key customers in Banking, Insurance, Telco and Retail
(Distribution) sectors
Building on IBM leadership in Business Analytics• Deepens IBM’s comprehensive set of solutions for performance management processes across finance, sales,
customer, and operations
IBM acquires Varicent Software Inc. adding sales performance management to its Smarter Analytics initiative
© 2012 IBM Corporation
Align Anticipate Act Big Data Platform Data Warehousing Information Integration and
Governance Data Management Enterprise Content Management Defensible Disposal
Business Analytics and Optimization Consulting ServicesBAO Strategy | Customer Analytics | Regulatory and Risk | Fraud Analytics | Financial Performance ManagementInformation Management Foundation | IBM Research First-of-a-kind Projects | Application Management Services
IBM Smarter Analytics Signature SolutionsCustomer | Finance | Anti-Fraud, Waste & Abuse
IBM Solution AcceleratorsPortfolio aligned to Industry Imperatives
Smarter Computing - Systems that are tuned to the task, designed for data, managed with cloud technologies
Business Intelligence Performance Management Sales Performance
Management Predictive and Advanced Analytics Risk Analytics Sentiment Analytics Big Data Analytics Content Analytics Web and Digital Analytics Online Benchmark Spend Analytics
Decision Management Advanced Case Management Digital Marketing Optimization Cross-channel Selling and Marketing Pricing, Promotion, and Assortment
Optimization Marketing Performance Optimization Supply Chain Optimization Organization and Workforce
Transformation
Systems that learn and reasonWatson l Watson for Healthcare l Watson for Financial Services l Ready for Watson
Learn
Transform
IBM Capabilities
© 2012 IBM Corporation
Growing Revenue Intelligently
Leveraging all information, all people, all perspectives and enabling all decisions
PerformanceManagement
Predictive Analytics
RiskAnalytics
Business Intelligence
Content Analytics
Enterprises will miss the equivalent of 5% to 10% of annual sales as “lost opportunities” that could have been captures through improved management of sales territories, quotas and compensation plans.
Source: Gartner Marketscope for Sales Incentive Compensation Management Software, March 2010
Why Now for Sales Performance Management?
• Rebuilding sales capacity to drive growth strategies
• Increasing insight into underlying assumptions and likely outcomes of compensation strategies
• Greater required flexibility in supporting more-complex and dynamic sales models
• Greater governance over outlays• Dissatisfaction with the time, costs
and resources required to maintain and upgrade legacy compensation systems
• Dissatisfaction with the reliability of spreadsheets
FinancialOperationalSales
Anticipate to see, predict,
and shape business outcomes
© 2012 IBM Corporation
Incentive CompensationBuild, model and implement variable pay programs that effectively drive desired sales behavior
Territory Management
Optimize sales coverage and manage
frequent personnel changes across
territories
Channel ManagementGain a single, accurate view of your entire sales force and all your distribution channels
Why Varicent Software? A Leader in Sales Performance Management
Territory Management
Quota Planning
Channel Management
Incentive Compensation
VaricentSales Performance
Management
Quota PlanningPlan and distribute revenue targets efficiently across all levels of your sales organization
CRMERP HRIS Industry Data
FP&SM TM
© 2012 IBM Corporation
Quota Planning
Territory Management
Incentive Compensation
Channel Management
• Plan by Individuals, Teams, Regions, Channels, Products
• Target / Goal Setting • Variance Analysis• Scenario Planning• Quota Approvals• Quota Re-assignments• Top Down – Bottom Up
• Direct, OEM and Distributor Tracking
• Agency Mgmt – Insurance
• Certifications• Training• Plan Eligibility• Employee Effective
Dating
• Optimize Territories• Set Territories • Plan & Assign Targets,
Goals and Forecasts• Credit Rule Calculations• Manage Splits• Temporary Coverage• Proration• Retroactive Territory
Changes
• Plan Documentation and Communication
• Plan Calculation & Reporting• Manage Commissions,
Bonuses, MBOs, Non-Cash Rewards, Scorecards, Stock Options
• Inquiry Tracking & Resolution• Prior Period Adjustments• Data Integration• Payroll / AP Extraction
Varicent – A Complete Solution for Sales Performance Management
© 2012 IBM Corporation
Varicent Software Differentiators
Simple, Powerful Technology– Reporting– Calculation engine– Workflow– Audit Logs– Inquiries and Disputes– Data Loading
Extensible Data Model
Scalability and Performance
User-defined, rules-based calculation engine
Library of sample applications and accelerators
Domain expertise and focus on customer success
© 2012 IBM Corporation
Grow, retain and satisfy customers
Increase operational efficiency
Manage risk, fraud and regulatory compliance
Transform financial processes
Smarter Analytics is about organizational alignment Varicent clients are doing it today
• Agility in plan and people changes
• Visibility and control across properties to direct strategic growth
• Improves Payment Accuracy and Takes Monthly Processing
• From Two Weeks to Two Days
• Dispose of Ineffectiveness, Inefficiencies, and Errors
• Compliance and transparency
• Auditability in key compensation process
© 2012 IBM Corporation
Varicent – Sample Customers
© 2012 IBM Corporation
Authorized Product Groups
TIVOLI
Storage Security/Compl. Automation Ent. Asset Mgmt
RATIONALAll
LOTUSPortal
INFORMATION MGMTInfoSphere Data Mgmt
INDUSTRY SOLUTIONSECM Industry SW EMM CommerceFrameworks
AIM (WebSphere) BUSINESS ANALYTICSWebSphere Core Bus. Process Mgmt BI/PM AnalyticsRA
* Planned Subject to Change *
*
© 2012 IBM Corporation
Varicent Business Partner TypesSystem Integrators (SI’s) This is the primary partner type in the Varicent ecosystem. Systems Integrators
(SI’s) consist of both GSIs, such as Accenture or Deloitte, as well as smaller, regional or boutique SI’s. SI’s largely focus on implementation services, either product implementation or large scale business process transformation or re-engineering.
Services Partners Services Partners are third party relationships that offer complementary products
or services which support the implementation of Varicent. The partner can prime or subcontract. Selection criteria of this partner set is driven by primarily location (Canada and lower costs), availability (Deloitte with 16 resources for testing and report building), or to supplement missing skills for a specific implementation. Currently, Open Symmetry, with locations in Singapore, UK, Canada, and US is their primary partner.
Resellers Varicent is in the process of building a reseller channel. Very few resell partners
today. The primary focus of the resell channel is to drive growth outside of North America with relationships owned and managed by Territory Sales Managers. Resellers are selected mostly for local market presence and is in the early stage of development.
Technology Partners Varicent has two (2) technology partnerships. Of note, is their long term
relationship with Microsoft. Considered a priority partner, a key supporter of SQL and their new offering: azure cloud, Amarande sales work directly with Microsoft industry teams on the selling side. Amarande is a global ISV partner.
© 2012 IBM Corporation
Varicent Channel Road to Success
1- Preserve
• Preserve the current successful consulting partners, system integrators and expand capabilities
• Target key Partners for cross-enablement on other IBM BI/FPM Products
2- Fast Start – Early Adopter Program – Drive Revenue
• Recruit Cognos BPs to Invest, enable and reward in an early adopter channel and build a repeatable, scalable program. Recruit competitive SPM/ICM partners.
• “Fast start bootcamp”, early enablement. Sell-to, Sell-through program, BP marketing campaign
3- Grow
• Cultivate systems integrators: focus heavily on leveraging, expanding and cementing relationships in their SPM/ICM practices
• Strong focus on GMU, EMEA, AP and underserved regions
• Rollout Varicent enablement to broader BP community
• SPM/ICM technical certifications
ToBClose
Preserve
Fast Start – Early Adopters
Grow
Feb 2012Oct 2012
PA SVPMay 2012
© 2012 IBM Corporation
Channel Goals, Objectives Outcomes – Team Effort1. Select the right partners – prioritize regions, partners• Both “Sell to”, “Sell through” program
2. BA Channel BP and Opportunity owner Work with the partner on OI Facilitate dialog on the opportunity, provide recommendations and guidance Document, communicate, follow-up on action items
3. Build repeatable, scalable program to drive revenue through Channel• Work with the BP to ensure the right team is engaged, keep progressing the opportunity and their
capabilities
• Varicent Sales, Pre Sales, Tiger Team, Channel Reps, VAD Reps, Competitive, Industry, etc.
• Goal is for the BP to become self-sufficient
4. “Fast Start” Enablement• Partner Pitch• Sales Enablement• Presales, Technical Enablement• Implementation Enablement• Sales, Marketing, Campaign Materials
5. Align with Regional requirements – EMEA, AP, CEE
© 2012 IBM Corporation
Assistance & Information Resources
IBM PartnerWorld, IBM Software Group acquisitions, Varicent Software https://www-
304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_acquisitions_varicent_software
Sue Hahn, Channel Integration Executive
Email: [email protected]