webinar - enable partners proven solutions

www.hawkeyechannel.comwww.hawkeyechannel.com

May 13, 2010

Vaughn Aust, VP Product Management

Enable Your Partners with Proven Strategies

www.hawkeyechannel.com 2© 2010 hawkeye, all rights reserved.

Agenda

Three practical tools to implement solid partner enablement strategies:1. Deal registration

• Benefits of deal registration• What partners and vendors want• Best practices• Automating deal registration

2. Global payment systems• Vendor and partner perspectives• Challenges of global payment systems• Implementing a global payment system

– Client success story

• Vendor Cost Savings

3. MDF/Co-op• MDF vs. Co-op and Push vs. Pull• Measuring Program effectiveness• Best practices• Automating MDF/Co-op

Ag

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www.hawkeyechannel.com

Accelerate your channel success.

3

Capture mindshare. Increase sales. Boost margins. Foster loyalty.

Wh

y ha

wke

ye?

Strategy. Tackle your toughest challenge with actionable strategies that maximize sales and profitability.

Programs. Optimize investments with turnkey and custom tools—tailored to your unique needs.

Collaboration. Connect, collaborate and sell more through a partner-centric, multi-vendor community.

Why hawkeye?

Rare insight into emerging trends and best practices

Unique understanding of what it takes to engage partners

Turnkey and custom solutions tailored to your unique needs

Global deployment of industry-leading channel solutions. 108 currencies • 189 countries • 16 languages

© 2010 hawkeye, all rights reserved.


Solutions for the world’s leading companies.

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You can depend on hawkeye to maximize your channel investments

1996 Cohesion, Inc. founded

1998 Hawkeye Group founded

2000 Hawkeye acquires Cohesion

2003 Hawkeye expands into Europe

2007 Hawkeye expands into Asia Pacific

2009 Hawkeye introduces PartnerConduit and SaaS offerings

Wh

y ha

wke

ye?

Channel focused. Strategic, experienced minds. Rare insight into emerging channel trends with a quest for game-changing opportunities.

Results driven. Flawless execution in translating strategic concepts into real channel solutions with a laser focus on results.

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DEAL REGISTRATION

5© 2010 hawkeye, all rights reserved.


Why deal registration?

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Reduce channel conflict Protect partner sales investment Reduce partner margin erosion Provide early visibility into the partner

pipeline Enhance sales forecasting capabilities Reduce partner attrition/turnover Sustain and build mindshare Grow markets, market share, new

customer base Serve as a “control valve” for the sales

process

More vendors – 78.6% - offer deal registration

programs than just a year ago (only 70%).

2010 Partner Program Guide,Everything Channel

Partners most often participate in deal reg programs to beat the

competition and increase margin opportunities.

IPED


What do partners want?D

ea

l Re

gistra

tion

A fast, responsive deal registration process supports the relationship of trust between partner and vendor that deal registration programs should help enhance.

Fast turnaround – no more than 24 hours Online registration process Simple & uncomplicated – no more than one screen of info Vendor to monitor process and restrict use for “deal squatters” Allow for longer sales cycles on some products without having to file

for multiple extensions Enforce the rules and protect the registrant

Make sure the process is available online and requires the minimum amount of paperwork to verify that a real deal exists, then base future registrations on how

much business is actually won. Don’t let one partner just list all the big opportunities, without working the deals.

Partner


What do vendors want?

The vendor’s extended team needs enhanced functionalities.

De

al R

eg

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nChannel Account

Managers

FinanceDistributors

Sales territory mapping Automated routing and status updates Routing option for Special Pricing deals and

standard Deals Online review and approval available for all

stakeholders Mobile approval available, especially for the

CAMs Status updates and Routing emails are easily

available in history Financial compliance controls Opportunities associated to distributors Upfront discount processes linked to

Distribution Link final payment/sales data back to deal

application Rebate payment check processing The ability to self serve, especially changing

territory mapping, routing and approval rules


What are best practices in deal registration programs?

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Clearly defined and enforced business rules with infrastructure to simplify participation and documentation.


Program features and access• Easy-to-use registration process• Online visibility and reporting for both partners

and vendors• Flexible and scalable application• Self-service interfaces• Optimal resources to process and validate

registrations• Optimal payment process to approve and

process deals

Supporting infrastructure• Secure portal access• Ability to set partners up as suppliers• Automatic payment mechanisms• Automated matching of opportunities and orders• Verification of order eligibility• Exception processing• Automated metrics and reporting/scorecards

Key Components

Program Features

Supporting infrastructure

Business rules

Globalization

Compensation

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Business rules• Full participant in vendor’s channel program• Single Sales Objective (SSO/deal) entered 30

days prior to closing deal• Rewards paid only after customer invoice is

paid• Reward paid for agreed upon products &

services• Exceptions processed by channel sales rep• Expiration of registered deals after “x” months

(6 months is typical, but may vary based on sales cycle for product/solution)

• Enforcement!– Vendors’ direct sales team– Arbitration options– Co-engagement and sub-contracting– Re-registration of expired deals

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Globalization• Ability to handle multiple

currencies• Appropriate regional business

rules• Multiple language capability

Compensation• Match compensation to partner

role– Influencers: commission on the

sale or back-end rebates– Resellers: points system applied

to training, marketing, etc. (reinvestment)

De

al R

eg

istratio

nInfluencers• Services-centric

revenue model with generalist approach

• Objective is to empower services opportunities

Resellers• Solution

development revenue model based on vertical market expertise

• Objective is to leverage available add-on solution expertise and capabilities


Client Success Story

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Automated Deal Registration


Protect and reward partners• Streamlined interface facilitates

identification, registration, development and closing of new sales opportunities

• Ability to search and view all opportunities by status, customer, product

Enforce program rules

Enhance pipeline visibility

Minimize administration requirements

Deliver clear ROI• Line-of-sight to ROI with deal tracking, full

audit trails, and real-time, global, consolidated reporting

De

al R

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Hawkeye’s ChannelDeal solution is powered by our channelconduit platform

Case in PointA network vendor needed a global, automated deal registration system that would help unify it’s operations. Within 3 years of implementation, the number of partners registering deals has tripled and the number of transactions has increased five-fold. Administration time has dropped dramatically – all resulting in increased partner profitability and incremental revenue growth.


GLOBAL PAYMENT SYSTEMS



“The number of solution providers rated as "in trouble" based on net income data jumped to 9.3

percent in 2010 from 5.8 percent in 2009...

After reaching a high of 250,000 in 2007, the number of solution provider businesses in the North American market dropped to 200,000 in

2009 as IT spending declined. Most of the solution providers that closed up shop generated

less than $1 million in annual revenue.Everything Channel research reported in

ChannelWeb, March 2010

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Why do partners want a global payment system?

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On time payments Payments in their preferred

currency Consolidated payments for

multiple programs Clear visibility into benefits Clear, consistent and understood

process

Partners are focused on business critical

processes. They want to reduce time spent on

administration.

Cash flow and on time payments are more important than ever

before!


Why do vendors want a global payment system?

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Program managers and Operations managers want:• Reduce/eliminate partner

complaints• Focus on program success

Finance Directors want:• Focus on other finance functions• Global tax liability painlessly

addressed• Cost efficient payment process

Vendors are focused on reducing costs and increasing partner satisfaction.


Why are global payments so challenging?


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•Multiple programs, duplicated effort•Different sources of payment information•Different methods of collecting bank account information•Front-line support knowledge

Process Inconsistency

•Different VAT/GST tax advice and resulting processes•More than 130 countries have these taxes•Vary between 5% and 25%•Partners are required to invoice the Vendor for the value of the benefit

VAT/GST Tax Liability


Why are global payments so challenging?


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•Storage of partner personal information•Partner account entry – beneficiary name•Third parties: SAS 70, GAAP•Vendor bank account: access, batch control, auditing

Security*

•Varying routing methods: SWIFT, IBAN, ABA•Up-front/online versus Back-end processing

Bank Account Validation

*Hawkeye disclaimer: We are not tax experts, but are simply pointing out best practices that we have implemented for global, fortune 100 technology clients.


What are the benefits of a global payment system?G

lob

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aym

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t Syste

ms

For Partners For Vendors

Consolidation of payments Improved cash flow with

faster payment Provide bank details once Effective communication Managing fewer payments Standardized, predictable

cycle Online tracking of payment

process Payments in local currency

Standardized, single global payment platform

Reduced payment cycle time Predictable delivery of payments Improved partner satisfaction Consolidation of multiple payments Reduced transaction costs Centralized reporting & tracking Consistent banking data collection Standardized payment

communications Online, consolidated reporting Decreased Help Center volume


What are best practices in a global payment system?


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Centralize programs

Standardize payments

Validate banking information upfront

Utilize electronic invoicing

Require partners to invoice for market penetration services



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System efficiencies improved cash flow for partners and cut costs for the vendor


Where they were able to save:

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Hawkeye’s ChannelPay solution is powered by our channelconduit platform

Case in PointA technology vendor had programs in over 100 countries and had been using regionalized vendors and internal, regionalized accounting centers to process ~$1 billion in payments annually to over 8,000 partners. A global payment system helped them realize significant cost savings and increased partner satisfaction.

Customer service savings 38%Delivery & audit savings 67%Management savings 20%Saved per payment $25.1330-Day payment delivery >40%SLA >95%


MDF/CO-OP



Why do vendors fund partner marketing and sales campaigns?

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Joint campaigns grow business through the channel.

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F/C

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MDF/Co-Op Spend

Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programs

Partners contribute 4% of their marketing budgets to MDF/co-op programs

Grow channel

sales

Extend resources & budget

Build brand

awareness

Reach new

customers

Generate demand


What are MDF and co-op funds—and how do they differ?

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Funds differ by partner type and objective Market Development Funds (MDF): distributed to partners in advance of

sales• Ideal for partners with a services business model who “push” products through

channel; specify brand, develop markets, and grow business Co-op (Cooperative) Funds: distributed to partners based on % of trailing

sales• Ideal for partners who fulfill demand and “pull” products through channel;

do not specify brand or sell services


MD

F/C

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Push

Pull

Co-op and MDF should be used

differently based on “push” versus

“pull” expectations of the partner’s business

model.


The Role of Partner Type


Service PartnersConsult, Design, Implement

PUSH ABILITY

Mixed ModelTransactions + Services

“VAR”

Fulfillment PartnersTransaction, Volume

PULL REQUIREMENT

From a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties.

MD

F/C

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Develop your discretionary funds program based on the types of partners you plan to enable.


What do partners want in MDF/Co-op Programs?

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MD

F/C

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Clear processes with simple rules Speedy payments—

30 days or less Online status/tracking and updates Pay claims in cash, not credit Greater flexibility for activities—

trust the partner to know their customers

and how to market to them Vertical-friendly options Solution-friendly options

“Simplifying the tool is the best way. I suggest having someone who knows

nothing about marketing or co-op try to work the tool and see what difficulty

that person has.”Partner

Most partners are involved in more than one program and

some in as many as a dozen; with each program, the

administrative burden grows.


How can you measure the effectiveness of MDF/co-op programs?

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Use solid, consistent metrics to measure performance


Measurement MetricProgram ROI • ROI = Total Gross Profit/Total Cost of Program

• Revenue Per Invested Dollar (RPI) = Revenue Generated by Activity Cost of Activity• Sales $$• Total # Leads Generated

Program Utilization • # of Active MDF Partners Total # of MDF Partners

• # of Partners Using Tool• Total Hits to Site

Claim Activity • Claimed $$$ + Allocated $$$ Beginning $$$ + Adjustment $$$

• Total Claims Submitted• Total # Claims Denied (compliance)

Fund Utilization • Funds Accrued• Funds Expired

• Outstanding Liability• Unclaimed Funds

Prior Approvals • Total Pre-approvals Submitted• Total Pre-approvals Accepted

• Total Denied• Total Currently on Hold

System Efficiency • Total Calls to Channel Mgmt• Response Times on Calls• Total Emails to Channel Mgmt• Response Time on Emails

• Length of Time from Claim Approval to Payout

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How do I measure ROI?

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1. Ask

2. Data analytics• Use Sales, MDF Campaigns, Average

Product Life Cycle, comparison of participating and non-participating

3. Execute campaigns on behalf of partners

Industry Benchmarks

Time from claim to payment—

3 weeks

Administrative cost / project—$20-$30 per project

Program cost vs. total value—

Less than 1%

Fund utilization rate—12%-50% industry range


Program Utilization Challenges

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By some estimates, 50% or more of all potential MDF/Co-op funds go unused


Why do funds go unused? Unfamiliarity/unaware Complexities, administrative burdens Processes that do not engender trust Long delays in approvals and

payment

Partners want to easily apply for funds—and

receive payments quickly.

Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden

grows.

Un-used funds = lost opportunities

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What are best practices in MDF/co-op programs?

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Employ integrated components to boost utilization.

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F/C

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Make it easy and

profitable

• Ease-of-use• Speedy

payments• Clear ROI• Online tools

Sell the value

• Drive awareness

• Help partners leverage unused funds

• Help field understand value

Speed deployment

and pay-outs

• Ready-to-go marketing campaigns

• Pre-approval• Easy fulfillment

End-to-end global

support

• Help desk• Claims auditing• Payment

processing• Reporting



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Maximize fund utilization—and partner satisfaction


Easily manage funds and approve/deny requests• Highly flexible, automated workflow• Online submission and management

Speed time-to-payment• Electronic funds distribution• Simplified compliance with tax and legal regulations

Easily track and measure program metrics• Single view of program activity status and reports• Complete, visible audit trail through integration of all

functions—Finance, CAM, Partner, and Administrator

Quickly deploy the solution—worldwide • Integration with your existing systems• Multi-languages, multi-currencies, local business rules

MD

F/C

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Hawkeye’s ChannelMDF solution is powered by our channelconduit platform

Case in PointSubstantial ROI benefits can be realized with an automated solution. For one hawkeye client, deploying an automated solution to 325 partner companies in more than 60 countries, resulted in partner projects doubling within the first six months and payment time frames shrank from 12 weeks to less than four weeks.


SUMMARY & QUESTIONS



Key PointsK

ey P

oin

ts

Automation of key partner enablement

programs and features results in

critical cost savings for both the vendor and their partners.

MAKE IT FAST

MAKE IT EASY

MAKE IT TRANSPARENT


Questions, Discussion

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Qu

estio

ns


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