Partner Sales Strategy

Partner Days D3 - 15/04/2011

Xavier Pansaers – Chief Sales Officer

OPENERP Production presents :

Actors :

JIM the PARTNER

ROBERT the CLIENTROBERT the CLIENT

TOM the OPENERP

Account Mgr

A Partner

named JIM is selling

OPENERP Services OPENERP Services

to A Client

called ROBERT …

JIM The Partner says:

“ Hi Robert ! My Name is JIM;

OPENERP official partner.”

“Ready to sign the OpenERP

Publisher Warranty? ”Publisher Warranty? ”

and Robert the Client says : “Are

you...”

As a matter of fact,

Robert need an live Robert need live

demo

to be attracted …

Ok ! Ride on ...Let’s speak about Sales Strategies

# 1 Rule

DEMONSTRATE(workflow kills)

NOW, JIM is thinking

about increasing his

revenue on

OPENERP...OPENERP...

# 2 Rule

ADDRESS OPENERP to

the right marketthe right market

1. Existing Installed Base

2. New Customer Base

1. GET Revenue from JIM

installed BASE !

“JIM is eager to start “JIM is eager to start

selling quickly OpenERP ;

no time hunting for new

business/revenue ...”

Then JIM wants revenues

from his existing installed

base !

Not only by hunting new implementations !

TOM The Editor suggests to JIM …

• IT TAKES 5-7 TIMES MORE TO ACQUIRE A NEW CUSTOMER THAN IT

TAKES TO SELL TO AN EXITING CUSTOMER !

• SELLING TO EXISTING CUSTOMERS IS LESS RISKY THAN STARTING NEW

PROJECTS FROM SCRATCH, FOR FIXED PRICE PROJECTSPROJECTS FROM SCRATCH, FOR FIXED PRICE PROJECTS

• JIM IS A STRONG POSITION TO NEGOTIATE AN ADEQUATE

PRICING WHEN YOU SELL TO AN EXISTING CUSTOMER

• IN SOME CASES IT’S DIFFICULT TO GROW BY ALWAYS LOOKING FOR NEW

CUSTOMERS, SEE YOUR CUSTOMERS AS AN ASSET.

“Hey JIM! Your installed base is a

goldmine” says TOM

• INDEED JIM HAVE A SIGNIFICANT INSTALLED BASE BUT DO NOT SUCCEED TO

GENERATE REVENUES FROM IT

• TOM INPUT: “A TYPICAL 50K€ PROJECT SHOULD BRING YOU MINIMUM

20K EVERY YEAR”20K EVERY YEAR”

• 8K OF MAINTENANCE (OPW) + SUPPORT

• 6K SELLING NEW FEATURES OF NEW VERSION

• 6K SELLING CUSTOMIZATION & NEW DEVELOPMENTS

• LET’ SAY JIM ACHIEVES 10 IMPLEMENTATIONS OF 50K€ . JIM SHOULD GET A

YEARLY REVENUE OF 200K€ ON ITS EXISTING INSTALLED BASE

•

Look at this graph JIM …

• HYPOTHESIS:• Cost of Sales: 30% ; Cost of Services: 40% ;G&A : 17% ;OPW: 3.8 K€

• 5 New projects a year @50K average

2. GET Revenue from New

Customers ...

“JIM is eager to start selling

to new clients as well ”to new clients as well ”

But ROBERT is not an easy

client ... Are you Robert?

ROBERT is a traditional

CTO of a Taxi Company ...

but JIM does not know

how to proceed yet

...

# 3 RuleSEQUENCE your sales

cycle … Rhythm is the cycle … Rhythm is the

key ….

JIM needs to apply

OPENERP Project

Selling MethodologySelling Methodology

linked to OPENERP

Implementation Methodology ...

TOM suggests to JIM the following strategy

1•Software Assessment

2•Pre- Analysis

3•Analysis

1•Sell OpenERP Publisher Warranty & Sell a POC

2•Sell 5-10 Consulting days PARTNER/OERP

•Pre-analysis define the final quote

3

•Sell Consulting days PARTNER/OERP

• Sell Project Management

6/10/2010

3•Analysis

4•Implementation

5• Deployment

6•Support

3 • Sell Project Management

4•Sell developers or use OERP Off-Shore capacity or both

5• Sell Training or Train yourself (CTP)

6• Sell Support & Sell New features every 6 months

# 4 RuleDO NOT SELL « THE FULL MONTY »

SELL A MODULAR

APPROACHAPPROACH

ROBERT TAXIS have 195 Branches in total -

45-50 Business units are SAP installed … the rest

Millions €

SAP OPENERP BUSINESS UNITS INSTALLED

#BUSINESS UNITS

Long Tail ApproachSAP BU’S

OPENERP

BU’s

JIM to ROBERT: « Are You convinced now ? »

But ROBERT still have someBut ROBERT still have some

doubts…

ROBERT:« OPEN SOURCE, Is it not for free ? »

JIM:« Open Source and OPENERP are

not for free ; it’s FREEDOM to accessnot for free ; it’s FREEDOM to access

the code & customize it to your

specific needs »

ROBERT:« Are you gonna here next year? »

JIM:« OPENERP is a fast growing

company, recognized by VC’s, company, recognized by VC’s,

recognized by the community,

recognized by Danone, MSF, La

Poste, La Ferme du Sart, Major EU

universities, etc»

ROBERT:«SAP passed by yesterday and told me

they have made something for the

logisitic & automotive »

JIM:JIM:«Do you prefer spending € in

licencing or making it specific to

your needs… specially for your Taxi

Company»

# 5 Rule

SCALE YOUR SALES

TOM helps JIM to SCALE SALES

with OPENERP Value proposition

OPENERP ENTERPRISE (OPW) – A MUST HAVE

OPENERP ENTERPRISE (OPW)

« Get rid of Pain ; focus on value added services »

1. BUG FIXING, SECURITY ALERTS

2. SUPPORT

3. MIGRATION3. MIGRATION

A. Minor Release every 6 months

B. Major Release every 18 months

C. OPENERP ensure Partners having new features to sell through the versioning

D. Partners will monetize new features through their services

6/10/2010

PACKAGE A GLOBAL OFFER FOR EACH VERSION

• PRESENTATION OF THE NEW FEATURES

• MIGRATION & DEPLOYMENT TO NEW VERSION

• ACTIVATION & PARAMETERIZATION OF THE NEW

FEATURES

• C /

FEATURES

• CUSTOM DEVELOPMENTS/CUSTOMIZATIONS OF

SOME FEATURES

• TRAINING OF THE USERS TO THE NEW VERSION

6/10/2010

PROFESSIONAL SERVICES ON DEMAND

� PRESALES CONSULTANT

� FUNCTIONAL CONSULTANT

� TECHNICAL CONSULTANT

6/10/2010

Expert Consultant

• 1,250 €

Consultant

• 850€

OFF-SHORE SERVICES ON DEMAND

� DEVELOPERS ON DEMAND

Training

Min Off Shore Package

(2 dev. full time + 1/3 PM ) x 1

6/10/2010

Training

• 1750€

• 875 € until June 2011

(2 dev. full time + 1/3 PM ) x 1 month

• Dev 220 € / Day

• PM 350€ /Day

• New! Partner discounts applied on off shore services

up to June 2011

EDUCATION – Certified Training Program

� BOOST YOUR REVENUE BY OFFERING TRAININGS

� NEWS! MATERIALS IN SPANISH OUT SOON !

6/10/2010

� NEWS! MATERIALS IN SPANISH OUT SOON !

SAAS REFERRAL PROGRAM FOR PARTNERS

� NEW! SAAS PARTNER PROGRAM

• 10% READY, 15% SILVER, 20% GOLD

• THE STANDARD OPENERP CONTRACT WILL APPLY

• ONLY AVAILABLE TO THE PARTNERS

• THE PARTNER IS BILLED DIRECTLY AND WILL REBILL HIS CUSTOMERS AT HIS OWN PRICE

6/10/2010

• THE PARTNER IS BILLED DIRECTLY AND WILL REBILL HIS CUSTOMERS AT HIS OWN PRICE

• THE PARTNER MANAGERS THE CONTROL CENTER FOR HIS CUSTOMERS

• THE PARTNER CAN MANAGE SEVERAL CUSTOMERS ON HIS INSTANCE

• A CHANGE IN THE PARTNERS CONTRACT WILL BE NEEDED

PLEASE DISCUSS WITH YOUR ACCOUNT MANAGER FOR ANY PACKAGE

OVER 250 USERS

MARKETING SERVICES

� JOINT EVENTS

� DIRECT MAILINGS

� BUSINESS CASES

� INCREASE VISIBILITY

� LEAD GENERATION PROGRAM

� AND MANY MORE

6/10/2010

ROBERT , ARE YOU

HAPPY NOW ?

Let’s wrap up !

# 1 Rule – DEMONSTRATE

# 2 Rule – ADDRESS OPENERP to the right market# 2 Rule – ADDRESS OPENERP to the right market

# 3 Rule – SEQUENCE your Sales Cycle

# 4 Rule – SELL A MODULAR approach

# 5 Rule – SCALE YOUR SALES

OERP Sales

Organisation

1. Marketing

6/10/2010

LeadMgmt(Chris)

DM/Event (Helene)

Channel Mkt

(Nicoleta)

2. Sales

SaaS / SB (Maxime) Partnerships (Thomas)StrategicAlliances (Nikolas)

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ISR (Juan)

ISR (Marc)

ISR (Dennis)

ISR (Zeldha)

Sales (Nora)

Sales (Nicolas)

Sales (Ruben)

Sales (TBH)

3. Channels

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Gold/Silver(Marnix)

Gold/Silver(TBH)

Silver/Ready(Ludo)

Ready (Alex) Ready (TBH) Ready (TBH)

Make some noises !

HAPPY SELLING !