better proposals bigger profits with ibm global financing

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New for 2013

Better proposals, bigger profits with IBM Global Financing

Sell more, win more and drive more profit

Know Your IBM

http://www.ibm.com/partnerworld/knowyouribm

Better proposals, bigger profits with IBM Global Financing 2 Sell more, win more and drive more profit

Know Your IBM http://www.ibm.com/partnerworld/knowyouribm

Better proposals, bigger profits with IBM Global Financing

Welcome to the Better proposals, bigger profits with IBM Global Fi nancing module. In this module you will learn how selling IBM Global Financing can benefit you by helping to increase your sales opportunities. Make sure you navigate through all the screens in order to successfully complete the quiz for this module. To qualify for KYI points or promotions associated with the module you must complete the quiz within three attempts before the deadline. If you do not successfully complete the quiz within three attempts before the deadline then unfortunately you do not qualify for KYI points or promotions associated with the module.



Introduction

IBM Global Financing can help you to provide your clients with a valuable service, making it easier for you to sell more hardware, software and services. It's a critical lever for you to improve your win rates, increase your profits, enhance your cash flow, expand your pipeline and increase customer satisfaction.

By the end of this module you will be able to:

Know IBM Global Financing

• Understand the benefits to you of leading with financing • Present the features and benefits of IBM Global Financing to your customers • List the IBM Global Financing key tools and offerings • Know when and why to offer IBM Certified Pre-Owned Equipment

Sell IBM Global Financing

• Understand the four sales process steps • Identify the target clients and their business needs • Explain the IBM Global Financing value proposition • Identify the top challenges to sell IBM Global Financing • Explain the competitive differentiators • Explain how IBM Global Financing contribute to Smarter Planet • Communicate the value of IBM Global Financing in sales conversations • List the actions to do to start selling with IBM Global Financing



Menu

Know IBM Global Financing Visit this section to have an overview of IBM Global Financing.

• How selling IBM Global Financing benefits your business • Key features and benefits of IBM Global Financing • Benefits of financing for your clients • How IT financing helps clients to control costs • IBM Global Financing key offerings • IBM Global Financing leases and loans • IBM Global Financing tools • IBM Certified Pre-Owned Equipment

Sell IBM Global Financing Visit this section to learn about selling IBM Global Financing.

• Sales steps you need to follow • Target clients and business needs • Client pain points • How IBM Global Financing can address CIO's challenges • How IBM Global Financing can address Financial Decision Maker's challenges • Business Partner financing case studies • High Performance selling with financing • Top challenges to sell IBM Global Financing • Top challenges to sell IBM Certified Pre-owned Equipment • Competitive Differentiators • IBM Global Financing helps fund a Smarter Planet • Scenario exercise • Act now with IBM Global Financing • Conclusion




How selling IBM Global Financing benefits your busi ness

IBM Global Financing exists to help clients acquire IBM solutions. From the Business Partner perspective, we exist to help you to sell more, to grow faster, and to grow more profitably. We have a great portfolio of leases and loans and IBM Certified pre-owned equipment. Our Rapid Financing tool helps you to get financing quotes and contracts quickly and easily. And we have financing experts who can work with you to present deals with the strongest possible business case. Our leases and loans frequently transform the economics of a client's investment and so enable your sale.

Sell more

An average 32% increase (*) in hardware stack revenue from clients who financed with IBM Global Financing. Package hardware, software and services into a single monthly payment (both IBM and non-IBM) - including your BP services.

(*) Source: IBM Market Intelligence Data Analytics "Sell More" study of Siebel opportunities.

Win more

36% increase (*) in win percentage when financing is included in BP owned server and storage opportunities.

(*) Source: IBM Market Intelligence Data Analytics "Win More" study of Siebel opportunities.

Drive more profit

Financing helps reduce pressure to discount. When clients ask for a better deal, financing gives you alternatives to a price discussion and helps you close the deal.

What's in it for BPs?

• Competitive advantage to help you meet client needs and profit in the new economy

• Unmatched portfolio of offerings from working capital to leases and loans as well as IBM Certified Pre-owned Equipment

• Tools & expertise to simply and effectively integrate financing into your business

http://www.youtube.com/watch?v=y-Xiz2N6AN4&list=PLBCEE9D251AF7DE3C&index=2 Video: How IBM Global Financing can help grow your business. Duration: 2:57

http://www.youtube.com/watch?v=SMexA9gpgp0&list=PLBCEE9D251AF7DE3C&index=8 Video: How IBM Global Financing can help grow your business. Duration: 2:40




Key features and benefits of IBM Global Financing

Let's review some of the most important benefits you can obtain by selling IBM Global Financing as a Business Partner.

Increase win rate

Bundle your solution with financing to sell more and win more.

36% increase * in win percentage when financing is included in BP owned server and storage opportunities. Obtain leases and loans on the total solution:

Package hardware, software and services into a single monthly payment (both IBM and non-IBM) - including your BP services.

(*) Source: IBM Market Intelligence Data Analytics "Win More" study of Siebel opportunities

Reduce price erosion

When the customer likes your proposal, but asks for a better deal:

• Without financing, you can either say 'no' or negotiate on price

• With financing, you have the opportunity to offer alternatives that help you reduce the pressure to discount, maintain your margin and close the deal

Example:

"You have my best price... I can spread the cost over one year, interest free" "How about a 3-year lease with no payments for the first 90 days?" "Shall we consider IBM Certified Pre-owned Equipment - genuine IBM equipment - at a lower price?"

And more benefits...

• Maintain the financial footprint to strengthen your relationship with the account

o Mid-lease sales opportunity o End of lease replacement opportunity o Financing creates "impending events" for IT

decisions. As a result, financed accounts typically grow faster than clients who purchase without a financing facility

• Unmatched portfolio of offerings from working capital to leases and loans as well as IBM Certified Pre-owned Equipment

• Enjoy faster growth from financed customers Typically financed customers grow 30 - 40% (*) faster than those who purchase outright

• Earn a financing fee - IBM Global Financing commission on eligible transactions can boost a deal's



profitability

(*) Source: IBM Market Intelligence Data Analytics "Grow More" study of financed clients.


Benefits of financing for your clients

In today's economy, cost control is a key business focus. Your clients need to work smarter to keep up with the accelerating pace of business change. By offering IBM Global Financing, you can help your clients quickly leverage new technologies to become more competitive – a must in today's smarter, fast-paced environment – with one complete financing package. Financing can help clients accelerate the cash flow break even on a typical project to...

Manage cash more effectively

Feature: Financing simple loans and leases helps to preserve cash and credit lines for more strategic investments. Benefit: Financing can improve key financial metrics such as return on assets or debt to equity ratios.

Accelerate your project's cash flow break-even point

Featur e: Leasing helps match project costs to anticipated benefits and accelerates implementation of attractive new technologies. Benefit: FMV leasing can also reduce Total Cost of Ownership (TCO): the total cost of operation can actually be lower than outright purchase.

Manage budget constraints which can delay implementation

Feature: IBM Global Financing offers simple loans and leases to meet your individual budget, project or firm requirements, e.g. uneven cashflows, or upfront payment of holidays. Benefit: Financing gives you the ability to implement the project when it's needed. Implementation costs can be reduced, returns can be realized faster.




How IT financing helps clients to control costs

Nowadays Growth is rated as a top priority for businesses. More than 85% of SMB board directors stated that their business strategies are mostly or completely focused on revenue growth 1.

The Facts How Financing helps

Controlling business costs is a priority.

Midmarket CFOs report that pressure remains high to control costs and increase efficiency2.

• Pressure to reduce cost base: 74% • Need for faster decision making: 74% • Demand for external transparency: 65% • Product / service demand growth: 53% • Ability to attract and retain talent: 40%

Financing can provide predictable costs to help you plan for your future. Financing can turn upfront costs into affordable monthly payments:

• For example $250K upfront costs versus $7.150 per month4

Access to credit is still tight for SMB's.

• 90% SMBs say that the availability of credit is a problem3

• 61% SMBs say that it's harder to get a loan now than it was 4 years ago3

Companies can see savings up to 12% over outright purchase with Fair Market value leasing , which conserves cash that they can use to innovate and grow5.

(1) Source: Gartner-Forbes 2012 Board of Directors Survey, June 28, 2012 - Report # G00235863. (2) Source: IBM CEO Study MM view 2012. (3) Source: Small Business Majority, Main Street Alliance and the American Sustainable Business Council, January 26, 2012. (4) Hypothetical example using list prices; Monthly IBM Global Financing rate based on 36 month FMV lease on the hardware and loan on software and services with "Best" credit rating and ValuePlan lease. (5) Represents Net Present Value savings over a 36 months period for an IBM hardware Fair Market Value lease from IBM Global Financing with a "best credit" customer and including an assumed value for the customer's cost of capital of the US prime rate.




IBM Global Financing key offerings

IBM Global Financing is the world's largest IT financier and has three key lines of business:

Leases and loans for your clients

Enables credit qualified clients of IBM and Business Partners to lease or finance their acquisition of IT solutions including IBM and non-IBM hardware, software and services. Some of the offerings are: IBM Systems Solution Financing

Get a 0% 36-month FMV lease on the eligible hardware -plus 0% interest on software, other hardware and services- all for one rate, on one contract, with one monthly payment. Unlike some 'as low as' zero offers, all credit-approved clients pay purchase price/36 months.

Eligible Hardware North America: IBM System x , IBM Power Express Systems , Power Blade Servers and Storage mid-range disk systems .

Eligible hardware in the UK, Germany, Denmark, Sweden, Norway and Finland: IBM System x .

IBM eligible hardware financed on 36 month fair market value lease; all other items financed on 36 month loan. Deal sizes vary by country. Other restrictions may apply.

0% IBM Software Financing

• 0% interest rate offer on IBM Software for 12-month terms is ideal for virtually all clients, especially those with tight budgets

• Take the price of IBM Software and divide by 12 - and bid that monthly payment to your credit qualified client (Countries with quarterly payments, divide by four)

• Available for credit qualified clients in most countries worldwide where IBM Global Financing does business

• In addition, financing rates as low as 0% for 2 and 3 year terms for most Lotus Software Products (excluding Lotus Live)

• Additional restrictions may apply



IBM Global Financing Migration Lease Program

Help clients move to IBM technology!

Move up to IBM's next generation Power technology and obtain a huge boost to your client's capacity and processing performance with potentially minimal budget impact. IBM Global Financing can help credit qualified clients free up cash -generate savings faster- and potentially lower their monthly payments when they replace their existing technology with IBM's newest Power processors.

0% IBM Systems and Storage financing over 12 months

Available in most of the countries in which IBM Global Financing does business. 0% financing available on a 12-month full payout lease. Product eligibility varies by country:

• NA: All IBM Systems Storage products and most IBM Power System products (Power products excluded: 9117, 9119, 9125, 9179)

• Europe and GMU: IBM Power Systems , IBM System x and IBM Storage (varies by country)

Financing for advanced technologies such as Cloud and Analytics

Through simple loans and custom leases, we can establish affordable monthly rates and customized payment structures to help make your cloud and analytics solutions attainable for your clients.

Financing for PureSystems

• Boost your sales and profits with PureSystems financing • Up and running without the upfront cost • Get IBM PureSystems with no payments for 90 days

Appliances financing

Fair market value leasing makes it even easier for your clients to acquire IBM appliances by lowering their total cost of ownership. Includes DataPower, ISS, Netezza, PureApplication System, PureData Systems and more coming in 2013.

Working capital for your business

Provides credit qualified companies with working capital to finance day-to-day operations or grow their businesses using asset-based lending. IBM Global Financing's Commercial Financing offerings include: Receivables Financing

Receivables Financing accelerates Business Partner cash flow by enabling businesses to borrow against the value of their receivables and/or inventory, which the business expects to turn into cash in the near term.

Inventory Financing

Our inventory financing offering provides up to 100% advance rates with free financing periods up to 90 days for approved vendors, as well as early payment discount options in many countries. We provide financing for hardware, software, and services from IBM and non-IBM suppliers, manufacturers, and distributors.

Payables Financing (where available)

With the Trade Payables Program from IBM Global Financing, you can get paid on your IBM accounts in as little as 15 days, instead of according to your normal terms. It's an easy way to improve cash flow without having to increase bank borrowing.



IBM Certified Pre -owned Equipment and asset buyback

Recovers value, remarkets used equipment and parts, and recycles equipment at "end of life" in accordance with environmental laws and regulations. Global Asset Recovery key offerings are: IBM Certified Pre -Owned Equipment

In the event that client budgets are tight, or you run the risk of losing to competition based on price, you can still make the sale by offering IBM Certified Pre-owned Equipment with the ability to define your own profit margins.

Global Asset Recovery Services offers include customized IBM Certified Pre-owned servers, storage and PC products with purchase or financing options.

For clients running older equipment who are unwilling or not able to upgrade; IBM Certified Pre-owned equipment can give the customer additional capacity, provide parts or replace broken equipment. This provides you with a reason to call, bridges the customer until they can complete an upgrade and helps prevent switching to a lower cost competitive platform. IBM Certified Pre-owned equipment is also an affordable alternative for back-up and recovery or short term IT projects.

IBM Server and Storage Exchange Programs

Provide your clients with an affordable upgrade option to take advantage of the latest eligible Server and Storage platforms, using a non-disruptive side by side migration approach. Our Systems Exchange offerings minimize the financial impact of migrating to the latest technology, by providing a fair market value credit for your client's current system.

Asset buyback

When a client is replacing existing hardware, IBM Global Financing can buy their marketable assets to assist you in selling IBM equipment and free up funds for their new IT investment.

Through our asset buyback program, we can provide your clients with fair market cash value for their qualifying retired assets and dispose of their used equipment, in a hassle-free manner and in compliance with applicable environmental laws and regulations.




IBM Global Financing leases and loans

IBM Global Financing provides many kinds of financing options for your clients. The most popular of these are leases and loans, explained below. IBM Global Financing offers qualified clients very competitive rates for IBM brands.

Fair Market Value (FMV) Lease

Fair Market Value (FMV) Lease Provides the lowest total payments over the lease term, which can range up to five years but is most commonly 36 months. At end of lease, the lessee can purchase assets at the then FMV of the equipment, return the equipment or renew the lease.

Client Benefits: Ideal for clients who want the most cost effective solution with a built in technology refresh. Clients can easily upgrade the equipment during the life of the lease. During the lease term, the lessor retains ownership of the equipment and the lessee is entitled to its use.

Full Payout Lease Full Payout Lease

Available for all types of depreciable assets. At the end of the lease, the title is transferred to the lessee once all payment obligations have been met. Clients who desire future ownership of assets should consider a full payout lease.

Client Benefits: During the lease term, the lessor retains ownership of the equipment and the lessee is entitled to its use while leveraging the periodic payments of the full payout lease to ease the financial burden of the IT acquisition. Payment can be tailored to suit clients' specific budgetary or cash-flow constraints, for example step payments and payment deferrals.

Loans Loans

With this option the client pays back the money which the financier provided. The money loaned may be used to pay software license, charges for services, or purchase equipment the client would own.




IBM Global Financing tools

IBM Global Financing provides easy tools to help you include financing services in your deals.

Rapid Financing® Rapid Financing® The Rapid Financing® tool makes it easier for you to include financing in all of your proposals.

The Rapid Financing web based tool helps you generate instant financing proposals, submit credit checks, produce financing contracts and track quotes. If a client wants to go ahead, you print out the contract or e-mail it to your client to sign. You can complete simple financing transactions, from start to finish, in minutes on many types of deals.

Rapid Financing streamlines the process, speeding the whole transaction from the time you apply for your client's credit to the time you close the deal. It's accurate, secure and easy to use.

Availability Rapid Financing is currently available in 35 countries and in 17 languages with more than 5,000 Partner firms using it today.

Countries where the Rapid Online Financing tool is available

Argentina, Austria, Australia, Belgium, Brazil, Canada, Chile, China, Columbia, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States, Uruguay

If the Rapid Online Financing tool is not available in your country, you can contact IBM Global Financing for a quote: https://www-03.ibm.com/financing/us/contact/index.html

Rapid Financing App Rapid Financing App

The new Rapid Financing mobile app lets you include financing options in your client deals quickly and easily while on the road. You can



simply enter some basic information about your solution and client to get financing quotes, credit approval and contracts in minutes.

Availability

Live in US Nov 2012, rolling out to over 30 countries in 2013. See for yourself how easy it is to lead with a monthly payment using the Rapid Financing mobile app. Explore our demo and get started today

http://youtu.be/N3na4yRmLNA

Rapid Financing Calculators

Rapid Financing Calculators Online calculators available allow you to obtain instant monthly payment estimates for your clients.

Available in 29 countries worldwide. Account Management Tool (AMT)

Account Management Tool (AMT)

A powerful, integrated suite of advanced online functions for accessing and managing all aspects of your account, 24/7 including: account summary, list of schedule payments, electronic statements, remittances and more.

Private Trading Exchange tool (PTX)

Private Trading Exchange tool (PTX)

PTX allows distributors and Tier 1 Solution providers to get IBM Certified Pre-owned Equipment price and inventory availability.




IBM Certified Pre-Owned Equipment

IBM Global Financing provides your clients with a broad choice of IBM-refurbished products, all with a 90-day quality-satisfaction guarantee for peace of mind from a trusted IT provider. This is a great alternative when new equipment is not an option or when a client is interested in maintaining a specific machine model type that is no longer available in new production.

Why offer IBM Certified Pre-Owned Equipment?

Selling IBM Certified Pre-owned Equipment opens new sales opportunities.

• 70% of clients are buying pre-owned equipment (*) • Sell IBM Certified Pre-owned Equipment when

budgets are tight • Additional financing available to credit stressed clients

when they acquire IBM Certified Pre-owned equipment • Sell exchange upgrades for additional revenue and a

protected upgrade path

(*) Source: IDC 2012 & Beyond -Technology Strategies and Tactics for Maximizing IT Value

How do I order IBM Certified Pre-owned Equipment?

Tier 1 Solution Providers can order IBM Certified Pre-owned Equipment using the Private Trading Exchange (PTX) tool. PTX is a password-protected Web site designed specifically for resellers of pre-owned IT equipment, with real time response, providing on-demand access to a variety of pre-owned equipment buying opportunities. PTX allows you to get IBM Certified Pre-owned Equipment price and inventory availability, including Request for Quote (RFQ) for unique requirements. Tier 2 Solution Providers can place orders for IBM Certified Pre-owned Equipment directly with their distributors.




Sales steps you need to follow

Learn to identify the different steps of selling and what it is expected from you at each stage.

Prospecting Your search for (new) customers • Look for opportunities in your existing install base • How to deal with objections and leave the door open for

future sales • Introduce yourself, state your purpose, qualify, plan next

steps

Finding Customer Pains

Becoming a Sales Consultant • Understand customer needs • Identify problems your products, services and financing can

solve • Understand competition • Help your customer understand the business implications of

the problem and move from problem awareness to solution commitment

Qualifying the Customer

How to avoid wasting your valuable time in chasing prospects who will never become customers

• Make sure the solution solves the customer's problem • Find out if the customer sees the value of your product • Confirm that the customer has the budget to purchase and

determine if ready to purchase • Talk to the right person, who can make a buying decision

Closing the sale Basic pointers to winning • Close from the beginning • Recognize when potential customers are ready to buy • Note that free trials often lead directly to sales • Choose from the IBM portfolio of migration or consolidation

assessment tools and incentive offerings to open doors with customers and progress deals




Target clients and business needs

At the Prospecting phase, you need to consider where your potential client may be. Knowing your target customer is crucial to build solid sales arguments. Clients across all industries need to conserve cash to fund IT solutions. Financing will appeal to businesses of all sizes. Typical sponsors will be CIOs, CFOs, purchasing managers, IT directors and IT managers.

Target clients Look for the following when trying to identify a potential financing client:

• Project requires upfront payment • Project has multiple vendors for hardware, software and

services • Client wants to reserve cash for other projects • Client wants the flexibility to add or upgrade their hardware • Client is starting an intensive project that may have a

multiyear cost recovery period • Client is financially sound but experiencing a short-term

budget challenge • Client wants the lessor to dispose of the hardware at end of

life

Availability

• Available to credit-qualified clients in over 50 countries (click the map to see available countries)

• Valid for companies with at least 10 employees • Valid for deal sizes greater than USD 5,000 or local country

equivalent



Availability

North America:

• Canada • USA

Growth Markets:

• Argentina • Australia • Brazil • Bulgaria • Chile • China • Colombia • Croatia • Czech Republic • Ecuador • Egypt • Hong Kong • Hungary • India • Malaysia • Mexico • New Zealand • Peru • Philippines • Poland • Romania • Russia • Serbia • Singapore • Slovakia • Slovenia • South Africa • South Korea • Taiwan • Thailand • Turkey • UAE • Uruguay • Venezuela

Europe:

• Austria • Belgium • Denmark • Finland • France • Germany • Iceland • Ireland • Israel • Italy • Luxembourg • Netherlands • Norway • Portugal • Spain • Sweden • Switzerland • UK

Japan




Client pain points

New decision makers have emerged. Chief financial officers and chief executive officers are increasingly involved in IT decisions. Sellers need to address these new stakeholders, and IBM Global Financing can help with this.

Financial decision maker pain points I need to reduce costs, optimize cash flow, and improve Return On Investment (ROI).

Financing helps accelerate a project’s cashflow break-event point and better align costs to expected benefits. Fair Market Value (FMV) lease options can improve ROI when compared to an outright purchase. Our financing for your total IT solution can help you control cash flow and manage risk with predictable, fixed costs. In order to help clients reduce cost and manage liquidity, cash flow and payments, IBM Global Financing offers:

• Leasing as an attractive alternative to purchasing • Industry-leading low rate financing • Flexible payment options

I need to expand existing infrastructure affordably, without investing in new hardware.

IBM Global Financing offers you IBM Certified Pre-owned Equipment, refurbished, tested and with a 90-day quality satisfaction guarantee, it can provide you with an economical solution in lieu of new hardware. IBM Certified Pre-owned Equipment can provide a cost-effective alternative when matching, upgrading or adding to your present equipment.

I need to maximize our company's liquidity.

IBM Global Financing provides an additional funding source that helps maximize liquidity and allows you to free up cash, helping companies preserve capital and lines of credit for core business needs.

It is difficult for me to access financing.

Acquiring an IBM solution has never been easier or more affordable for credit qualified clients. Packaging your IT solution with financing simplifies budgeting and planning, cuts costs and gives you peace of mind to know precisely what you'll owe each month. IBM Global Financing offers credit qualified clients access to affordable leases and loans for a complete IT solution for both IBM and non-IBM hardware, software and services. Most offerings are available to credit qualified companies with as little as 10 employees and transaction sizes as low as USD 5,000 (or country equivalent).



IT/business decision maker pain points I need to improve our IT infrastructure while lowering costs and mitigating risk.

FMV leasing can lower total cost of ownership by as much as 12 percent (*) over outright purchase. Programmatic IT refreshes can help lower ongoing maintenance and support costs.

(*) Represents Net Present Value savings over a 36-month period for an IT infrastructure Fair Market Value lease, "best credit" customer. Current IBM Global Financing monthly rates for IBM hardware used to calculate present value savings. Savings can vary according to hardware platform.

I need to develop a proactive plan for our IT refresh and upgrade management needs.

Flexible, mid-lease and end-of-lease options can help you adapt your IT strategy to changing market and cash-flow conditions, and lower ongoing maintenance and support costs with leasing-based refreshes.

I need to simplify the administration of our IT assets across the enterprise.

Leasing can help ensure timely replacement of equipment. Our online asset-management tools can help you control costs and better manage your IT assets.

I need to mitigate our technology obsolescence risk and equipment disposal issues.

FMV leasing shifts IT obsolescence risk to IBM Global Financing. Our end-of-life services minimize costs, administration and liabilities of asset disposition.




How IBM Global Financing can address CIO's challeng es

We have identified a number of the key challenges faced by key financial decision makers. First review the challenges faced by the CIO or IT decision maker in today's new environment and how IBM Global Financing can address them.

The Challenge How financing can help Budget reductions • Acquire more technology without significantly

affecting the current budget • Get more for less with IBM Certified Pre-owned

Equipment

Budget forecasting

• Turn large, upfront costs into smaller, predictable payments over a fixed period of time

• Bundle project costs into a single recurring payment stream

Increasing total cost of ownership (TCO)

• Realize a significantly lower TCO with FMV leasing than with outright purchase

• Lower ongoing maintenance and support costs with leasing-based refreshes

IT refresh and upgrade management

• Increase capacity with little to no change in monthly payments with mid-lease upgrades

Asset management and tracking

• Save time and resources by tracking and managing equipment online

Technology obsolescence

• Keep IT equipment current by shifting obsolescence risk to IBM Global Financing




How IBM Global Financing can address Financial Deci sion Maker's challenges

We have identified a number of the key challenges faced by key company stakeholders. Now review the challenges faced by the Financial Decision Maker in today's new environment and how IBM Global Financing can address them.

The Challenge How financing can help Optimize cash flow

• Reduce up-front costs and better align costs to expected benefits

Maximize liquidity • Additional funding source to free up cash and preserve credit lines for core business needs

Reduce financial unpredictability • Manage risk with predictable fixed costs

Improve asset utilization • Help ensure optimization with leasing refreshes

• Renew, return or extend lease at the end of term

Reduce costs, improve Return on Investment

• Improve ROI with FMV leases that are lower in cost on a PV basis than outright purchase

http://www.livestream.com/ibmpartnerworld/video?clipId=flv_da71f9fd-173d-43fb-83a3-f8a4ecb8d86d




Business Partner financing case studies

Landstar Systems, Inc. The need: The solution: The benefits: The company needed a flexible and robust IT platform to drive its critical applications, and a solution that would provide the investment protection to support their unique business model.

Landstar implemented a pair of IBM Power® 570 servers, IBM Rational®, IBM WebSphere®, IBM Tivoli®, and IBM DB2® and packaged the solution with IBM Global Financing.

• The solution from IBM Business Partner Dynamix Group allows control of the software portfolio value through in-house application development, provides high performance and availability for business services, and delivers superior IT economics reducing operating costs

• The client acquired the solution under a 3-year lease term which gives them the flexibility to accommodate their growing IT needs to add more processors, memory, software, and services mid-lease or at the end of the lease

Champion Solutions Group The need: The solution: The benefits: hampion Solutions Group knew they were losing some business on price and the availability of older technology. Some companies can’t afford new equipment every time they needed to do an upgrade or expand their legacy environments. In order to help these customers protect their investments they would need someone that specializes in used equipment.

Champion Solutions Group saw the need for older technology at a lower cost that is certified and has the ability to be placed on maintenance. Champion uses IBM Certified Pre-owned Equipment as an important strategy element for keeping customers and growing business.

BM Global Financing provides:

• Access to a large inventory of IBM Certified Pre-owned equipment, upgrades and features

• Online pricing tools that provide the quickest, most accurate and best possible price and turnaround

• A 90 day satisfaction guarantee and IBM maintenance options



Celerity UK: How a BP leverages financing to improve their own business. The need: The solution: The benefits: Although their customers readily understand the value of IT infrastructure solutions, their stretched IT budgets delayed some customer agreements, and made them extremely reluctant to spend. Furthermore, even after contracts were established, Celerity sometimes received payments intermittently.

Celerity made IBM Global Financing an integral part of its business. As the company expected, financed sales help it build customer relationships, manage working capital and reduce trading risks.

• BP closes deals more quickly and receives payments faster and more predictably

• BP increased its competitiveness in the IT services market, due to Global Financing competitive rates, and flexible quoting capabilities

• IBM Global Financing helps Celerity manage its working capital more effectively and pay less for credit




High Performance selling with financing

According to the "High performance selling with financing" report (*), the owners and management of business partners should be extremely interested in end user financing, and salespeople who can sell it, because end user financing can increase the BP's Return on cash deployed in their business and the valuation of the business. Less than 25% of the salespeople (and sales managers) in the IT industry are as "financially literate" as salespeople in the auto industry, truck industry, airplane industry and real estate industry. 10-20% of IT salespeople sell 70-80% of the financing volume in the industry. Benefits for BPs

There are several additional benefits for BPs that engage in end user financing:

• The ability to win more often and close deals more quickly by changing a large upfront capital outlay to manageable payments

• Reduce the pressure to discount by offering leasing terms

• The generation of more repeat business mid-lease and end of lease options, which provide a reason to continue to call customers

• Financing can remove the immediate budget concerns and changes the discussion with the client from "what can you afford right now" to "what solution do you really need to meet your business objectives"

Financially literate salespeople

We know that those salespeople in the IT industry who are "financially literate" make substantially more money than average and are more likely to fit the profile presented below. Financially literate salespeople in the IT industry are dramatically different than the other 75%. Financially literate salespeople:

• have higher close rates than those who are not financing literate

• have larger transaction sizes • have higher transaction yields • get paid faster • have fewer collection problems • have more noncompetitive deals • have longer tenure at their employers • make more money

(*) Source: 2012 Channelcorp white paper: High Performance Selling with Financing




Top challenges to sell IBM Global Financing

The main challenge you will find when selling IBM Global Financing solutions is that the customer has cash in hand and doesn't see a need for financing. There are important ways to show to customers how financing can give them increased opportunities.

Preservation of capital Cash is a limited asset, and there may be better ways to use it than tying it up in a depreciating asset like IT-like seizing a business opportunity before your competitor can arrange financing, or weathering a downturn that cripples your competition. Ultimately, using cash to invest in your business may provide returns that are far higher than the interest rate of a lease.

Better management of your assets

With online tools that let your team manage all aspects of your leased assets from acquisition through decommissioning, you'll never end up paying too much -or too long- for unused hardware or software licenses.

Flexible end -of-lease options

With a Fair Market Value (FMV) lease, you can choose to return the asset to IBM Global Financing with no further obligation, purchase the equipment outright at its fair market value, sign a new lease for a year or more, or extend the lease on a monthly basis for as long as you need the equipment.




Top challenges to sell IBM Certified Pre-owned Equi pment

Customers may have concerns about purchasing pre-owned equipment despite the IBM reputation for quality and exceptional service. Having the right answers to common concerns will help you overcome their objections and move forward with a solution.

“Is the equipment reliable?”

“IBM Certified Pre-owned Equipment and Pre-owned with Warranty both feature the quality and reliability you expect from IBM. Systems are fully refurbished, packaged and sealed at IBM sites with all cables and manuals included. The equipment is certified and qualifies for IBM maintenance agreements, but sold at a reduced price.”

“I don't want old technology.”

“With access to the broadest selection of pre-owned IBM systems, upgrades and features available, including a wide array of newer-model equipment, IBM Certified Pre-owned Equipment and Pre-owned with Warranty solutions offer a full range of IBM products, including PCs, laptops, midrange and mainframe servers, storage and more!”




Competitive Differentiators

IBM Business Partners have done over $4.2 billion in client financing with IBM Global Financing in 2012, up 20% over the prior year. As a provider of financing for IT solutions for 31 years, in more than 50 countries IBM Global Financing is a proven, reliable source of funding. IBM Global Financing is the worldwide leader in IT financing with USD 36B in assets, and also offers working capital for clients and business partners, to enable transformation.

Complete

IBM Global Financing is a one-stop financing source for both IBM and non-IBM IT solutions, including hardware, software and services, with flexible offerings and competitive rates. IBM Global Financing has a complete range of IT financing capabilities from IT Planning to Asset Disposal. Unsurpassed client financing, commercial financing and asset recovery capabilities in more than 50 countries.

Flexible

IBM Global Financing offers a variety of payment terms and will work to structure a lease to meet your client's specific cash-flow requirements.

End of life services

IBM Global Financing offers a variety of solutions to help your clients, whether purchasing marketable assets for cash, or disposing of unmarketable equipment in compliance with applicable environmental laws.

Competitive rates

IBM Global Financing has very competitive rates for our lease offerings. In addition, credit qualified clients can optimize cash flow and ROI with low-rate and 0% financing offers (*), that provide predictable monthly payments on eligible IBM hardware, software and services solutions.

(*) depending on solution for deals up to USD 500,000 in the U.S. and USD 300,000 outside the U.S. IBM hardware financed through FMV leases; all other items financed by means of loans. Charges for software and services must be one-time, nonrecurring. Dependent on country availability, offers include 0% for 36 month FMV leasing on select IBM hardware and 12 month loans for IBM software.




IBM Global Financing helps fund a Smarter Planet

On a smarter planet, the opportunities that can emerge from intelligent and interconnected systems are unlimited. Unfortunately, your client's budget is not. The challenge for many organizations is how to invest in smarter systems when the majority of the budget is going toward maintaining current systems.

In November 2012 IBM Global Financing announced that it is offering IBM Business Partners worldwide up to $4 billion in financing for credit-qualified clients over a period of 12 months. This financing, through IBM Global Financing, can make obtaining credit easier and more accessible to enable IBM's global partner ecosystem and their clients to acquire advanced technologies such as cloud, analytics and PureSystems

As your clients plan their roadmap to a smarter planet, they need a strategy for funding the different components in their business' smarter systems.

IBM Global Financing can offer simple, flexible lease and loan packages -- some starting at as low as 0 percent for 12 months with no money down -- allowing businesses to acquire essential technology and services while managing cash flow more effectively.




Scenario exercise

Welcome to the scenario exercise.

The objective for the scenario is to provide you a low-risk environment for the reproduction of real-life business situations, to prepare before carrying out any operation directly with a client which may affect your business results.

In following screens you will be presented a real-life situation and a number of alternatives from which you must choose the best option in order to proceed.

The estimated time for this exercise is about 5 minutes.

Scene 1

You have just finished drawing up a quote for your customer, a chief information officer in a midsize medical company: "I like your solution but the costs are too high for our budget allocation. We need to increase our server performance and reliability at a lower cost."

What would you tell him?

Options Result Feedback "Financing can help you fund your IT investment. Can I put together some monthly payment options for you that would fit your budget?"

Go to Scene 2

"You should explore the possibility of financing. Leasing could also be an attractive alternative for you"

"Financing can help you fund your IT investment. Can I put together some monthly payment options for you that would fit your budget?"

Alluding the possibility of financing is a good reply to this customer in order to keep the door open to that option.

However, this comment doesn't make any mention that IBM can help with financing. By completing your arguments offering the IBM Global Financing services you increase your competitive advantage to help the client meet his



needs and profit in the new economy. What's more, It's quick and easy to get lease quotes and contracts through our Rapid Online Financing tool®.

Although this is not the best answer, it remains an effective way to continue driving your sales effort.

"Perfect! And remember that we can make adjustments to lower that price. Just call me when you make a decision"

You are out.

Your customer is gone.

This customer has considered your quote, but due to economic constraints he is delaying the buying decision. As a sales consultant you should offer alternatives to facilitate the sale. Remember some of the items on the four sales steps:

• Identify problems your products, services and financing can solve

Scene 2:

"Did you know that you can finance the total solution of hardware, software, services and maintenance for both IBM and non-IBM IT content?"

"We prefer to pay cash for IT Purchases."

Options Result Feedback "Take this card and contact our financial experts"

The customer put the financier business card into his desk and forgot about you.

This customer is not taking into account any financing option although he sees the need of increasing server performance and reliability at a low cost. Leaving the next step in his hands may cause you to lose the opportunity to close your deal and also to increase the contract by adding additional products and services. As a sales consultant you should offer alternatives to facilitate the sale. Remember some of the items on the four sales steps:

• Make sure the solution solves the customer's problem

"Is this because you think it is difficult for you to

"IBM Global Financing can simplify the financial management of your project by customizing

Alluding to the difficulty they could have to access financing is a good reply to this customer in order to keep the door open to that option. To help on this you've got



access financing?"

payments and terms to match project costs with anticipated benefits. As you know, cash is a limited asset, many CFOs are interested in hearing about an alternative source of credit that doesn't impact their current bank lines providing you with greater flexibility."

an important tool in your tool kit. You are partnered with IBM Global Financing and when you go forward with a solution to your clients, you have the ability to offer them an alternative source of cash at competitive rates and very flexible terms. For the IT Manager, you're taking this large expenditure that they would normally need to ask for and turning it into affordable monthly payments that they can manage within their budget so that they can convince the CFO that it's time to make the investment.


"IBM Global Financing can simplify the financial management of your project by customizing payments and terms in order to match project costs with anticipated benefits"

Go to Scene 3

Scene 3

"As you know, cash is a limited asset; many CFOs are interested in hearing about an alternative source of credit that doesn't impact their current bank lines, providing you with greater flexibility."

"We keep our assets for at least four years, so ownership is cheaper than leasing."

Options Result Feedback "Fair market value leasing is often the easiest, fastest and most effective way of lowering the total cost of ownership, (often by as much as 12 percent*) and improve your financial return for

Go to Scene 4



the IT solution"

"In that case, please contact us as soon as you are ready to move forward with a cash purchase"

You are out.


This customer did not take into consideration financing based on company policies. Although they are ready to buy and consider your proposal as a great solution the budget constraints are stopping them from closing the purchase.

As a sales consultant you should offer alternatives to facilitate the sale. Remember some of the items on the four sales steps:

• Recognize when potential customers are ready to buy

"And what will you do with the equipment at the end of its life?"

"Fair market value leasing is often the easiest, fastest and most effective way of lowering the total cost of ownership, (often by as much as 12 percent*) and improve your financial return for the IT solution."

Alluding to the aspects of equipment disposal is a good reply to this customer in order to make the customer think and change his mind about leasing.

However, this comment still doesn't make any mention about IBM Global Financing as the captive financier of a world-class IT and business solutions provider. Its combination of technology and finance background and capabilities can't be matched by many other financial institutions and solves the difficulty that some customers could have to access financing.




Scene 4:

"A lease often lets you realize considerable savings compared to an outright purchase, because you pay only for the use of the equipment and it reduces the concerns and costs associated with equipment disposal. We can also provide a full payout lease or loan options at very attractive rates."

"My company won’t finance anything that doesn’t qualify as an operating lease, so that rules out software and any other full payout acquisitions."

Options Result Feedback "Capital assets, including software, are depreciated on a company's books over time, and IBM Global Financing can offer attractive payment options from 12 to 60 months so you can pick the term that best suits your needs"

Go to Final Scene

"That's fine, I can quote you a Fair Market value lease on the hardware and you can pay cash for your software and services"

"But take into account that capital assets, including software, are depreciated on a company's books over time, and IBM Global Financing can offer attractive payment options from 12 to 60 months so you can pick the term that best suits your needs"

Alluding to different solutions for hardware and software is a good reply to this customer in order to give the customer a possible solution to his needs.

However, you are missing an opportunity to help your client package the total solution with financing and better match their costs to the expected benefits. You will convince the customer faster if you also mention briefly all the features and benefits on offer in this new option.


"Ok, please keep me in mind for future purchases"

You are out.


This customer is asking for a different kind of contract than you were prepared to offer.

Although they are ready to buy, you have not been able to offer what they need.

As a sales consultant you should offer alternatives to facilitate the sale. IBM Global Financing software financing



provides an incremental source of funding for the up-front expenditures, allowing your clients to spread their investment across monthly payments and preserve their existing credit line for their strategic initiatives.

Final Scene

“Instead of paying a lump sum payment upfront for software and services we can help you conserve your cash and give you the benefit for paying over time.

Can we meet again to go through the IBM Global Financing options available and find out which best fits your needs?”

"That sounds really good. Let me check my agenda."

CONGRATULATIONS!!

You are in good shape to close your sale. Choose from IBM Global Financing portfolio what offering best fits your customer's expectations. Look to lead with a monthly payment option in every proposal you do, to improve your business case or offer pre-owned IBM systems and make your solution more affordable!

You have reacted properly to the sequence of scenes presented covering the following objectives:

• Identify problems your products, services and financing can solve • Make sure the solution solves the customer's problem • Recognize when potential customers are ready to buy • Choose from the IBM portfolio of migration or consolidation assessment tools and

incentive offerings to open doors with customers and progress deals




Act now with IBM Global Financing

Embrace financing as a core component of your business model.

1 Start winning today

Bring financing into the discussion early in the sales process with your client. Include an IBM Global Financing payment option in every proposal. Leverage the benefits of financing to sell more and win more.

2 Explore PartnerWorld

Visit our newly designed IBM Global Financing home page on PartnerWorld at www.ibm.com/financing/partner with a quick and simple 1-2-3 approach to Getting Started with IBM Global Financing. Access our online tools, get helpful educational materials, and find sales collateral you can use with your clients.

3 Questions?

Contact IBM Global Financing at https://www-03.ibm.com/financing/us/contact/index.html, (select your country from the drop down menu). Leverage your IBM Global Financing representative to help you integrate financing into your sales engagements and review account strategies.

Legal Disclaimer:

IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates and availability are based on a client’s credit rating, financing terms, offering type, equipment and product type and options, and may vary by country. Non-hardware items must be one-time, non-recurring charges and are financed by means of loans. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice and may not be available in all countries.

IBM and IBM Global Financing do not, nor intend to, offer or provide accounting, tax or legal advice to clients. Clients should consult with their own financial, tax and legal advisors. Any tax or accounting treatment decisions made by or on behalf of the client are the sole responsibility of the client.

IBM, the IBM logo, ibm.com and Rapid Financing are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide.



Conclusion

This is the end of the learning module Better proposals, bigger profits with IBM Global Financing .

• In Know IBM Global Financing you learned about the key features, the lead offerings and tools, and the main reasons for clients to use the IBM Global Financing services

• In Sell IBM Global Financing you learned about the selling process and opportunities, target clients, competitive differentiators and how IBM Global Financing contributes to a Smarter Planet. You have also learned how to better handle your sales conversations, handle the client concerns and give value-driven responses

To review Learn and Earn deadlines please access the Terms and Conditions located on the Know Your IBM (KYI) site at http://www.ibm.com/partnerworld/knowyouribm.

Once you enter the quiz, you will not be able to return to the module so please ensure you have reviewed the entire module in detail.

As a Know Your IBM user you have the option to view education modules in numerous languages. Please note that you only get rewarded once for completing each module.

Good luck!

better proposals bigger profits with ibm global financing

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