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How to Prepare YourBusiness Model for the Cloud
Accelerate your journey to the Cloud
The Outcome for You in This Session
• Know what is changing in your business model
• How to describe your business model
• How to evolve your business model
• Where to get help to implement, execute and
support to your cloud-journey
Partner, co-owner and board member at TBK Consult
Executive in the Microsoft Partner Channel in 20+ years
Management Consultant helping software companies to grow local and global since 2006
DK & EMEA member of the board in the business network for Microsoft Partners - IAMCP
Masterclass in Business Model Generation framework
Certified LinkedIn expert & trainer
Steen Helmer
From Microsoft
Setting Up for Success in the Modern Cloud Business
As you can read in his original post from WPC he describes, what Microsoft believes it takes to get success as a Cloud Partner. Which among other things are:
1. IP differentiation
2. Digital marketing
3. Customer acquisition and retention
4. People and Measurement
Microsoft has done a great job with their partner offering in the ”SureStep Profitability Benchmark Resources” – but something is missing if you ask me!
From IAMCP Europe Summit
Céline Brémaud, VP EMEA Small Mid Market Solutions & Partners
TRANSACTIONALPROJECT-BASED
SERVICESMANAGED SERVICES APPS AND IP
The traditional way of making money
TRANSACTIONALPROJECT-BASED
SERVICESMANAGED SERVICES APPS AND IP
The partner of the future
Business activities shift to managed services, building IP
Major buyer shifts toward line of business
Sources of competition diversify
Business focus shifts away from resale, towards verticals
Sales motions move from one time to recurring
Marketing shifts to digital
Longer term business outlook
The Partner of the Future
Enabling Your BusinessCloud Partner Profitability
Cloud Transformation Resources
• E-Book with key insights to help you
build a profitable cloud practice
• Guidance from cloud solution
providers who have achieved success
in a cloud business model
• Business Model training
Cloud Competencies
• Small and Midmarket Cloud
Solutions
• Cloud Productivity
• Cloud Platform
• Cloud Customer Relationship
Management
Pinpoint
• Create new opportunities
• Inspire customer demand
• Optimize lead flow
• Connect with other partners
Internal Use Rights
• Familiarize and increase the
productivity of sales teams
• Perform internal development on the
latest technology
• Reduce the cost of running your
internal business
Technical Benefits & Services
• Build new skills with Microsoft
Services training
• Custom guidance in developing and
deploying solutions
• Achieve 3x more wins, experience
larger deal size, & more revenue
growth
Cloud Solution Provider Program
• Partner in the Center of the
Customer Lifecycle
• Participation in flexible business
models based on your business
maturity
Journey to cloud maturity
Early stageTransactional sales
Deal-based revenue
Mid stageEstablished relationships
Stable cloud revenue
Advanced stage‘Trusted Advisor’ status
Increased profitability
Advanced-stage partners are more profitable
Realize 3× higher
profit margins from
cloud productivity
solutions
Earn 1.6×more revenue
per employee
Earn 8× more
cloud revenue
€ €
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€
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Assess where you are now
Start your journey to the cloud with the SureStep Profitability Benchmark Assessment Tool
Sign in to MPN and access the toolkit on the Partner Marketing Center
What are the top best
practices you can
apply to accelerate
your cloud business?
Advanced-stage partners have embraced the cloud
69%
81%
91%
Early stage Mid-stage Advanced-stage
Over 90% have recruited
staff for the cloud
30%
30%
52%
53%
69%
71%
Have positive opinions on
opportunities the cloud
deliversEarly
Mid
Advanced
Early
Mid
Advanced
Maximize your potential
• Be an early adopter
• Further expand training
More training and staff
• Hire to the cloud
• Expand training
Develop a long-term cloud vision
• Use Microsoft Cloud Services internally
• Cloud training
Embrace the cloud
New
Advanced-stage partners’ leadership is passionate about the cloud. They hired new employees for the cloud and have provided cloud training to their current staff.
• Actively training staff on
Microsoft cloud solutions
• Online, on-demand training videos
• In-person training events
• Online materials about new products
• Customer case studies
• White papers
• Live webinars
Number of services attached
Advanced stage partners attach nearly twice as many services
Percentage of revenue from services
Advanced stage partners Earn 50% from services
Sell a solutionUpsell a workloadSell a product
Define and structure your offer
New
Advanced cloud partners focus on understanding the customer’s needs and building a comprehensive offer to meet them.
On average, they double the number of attached services per sale of cloud solutions
Within 30 days• Pre-deployment services
• Deployment and migration services
• On-going management and administration
• Help-desk support
In addition to previous • Online, on-demand training videos
• In-person training events
• Online materials about new products
• Customer case studies
• Use strategic partnerships
• Within 6 months• Business-process re-engineering
• IP solutions
• Consulting solutions
• Enterprise social networking
• Customer relationship management (CRM)
Specialized cloud sales teamsAdvanced stage partners are 3× more likely to have separate cloud teams
Cloud account managersAdvanced stage partners are 3× more likely to
have a cloud-account-manager team
What Makes a You a Succes –
Product/Services or…. ?
How to get StartedFocus on 3 areas
Business Model & Value Proposition
www.strategyzer.com
The Ideal Customer Profile Framework
• The Ideal Customer Profile is
a description of the type of
client who has proven to
derive most value from using
our product or service
relative to the effort it takes
us to complete the sale
What changes when you move to the cloud?
Pricing
Cash Flow
Sales and Marketing
Target Markets
Contracts
Customer Support
SaaS is a communications platform
Revenue sources
Deepen the customer relationship
• Separate quotas for cloud solutions
• Monitor account management KPIs• i.e. customer-renewal rates
Grow customer base
• Create a separate cloud team
• Become a trusted advisor
• Focus on selling to BDMs
• Add cloud account manager
Build a cloud-sales plan
• Provide incentives
• Monitor related KPIs
Sell your offer
New
Advanced partners focus on building long-term relationships with their customers. They perceive sale of Microsoft Cloud Services as a foot in the door that enables them to attach products and services. Each upgrade and renewal date is a sale opportunity for the account team.
Digital marketing leadsAdvanced stage partners get almost half their leads through digital marketing
How to Create a Massive LinkedIn Referral Network with THE Most Influential Players in Your Market!
Wednesday – 11:30 – Room: Franz Xaver Richter
Thought leadership
• 50% marketing € to the cloud
• Hire dedicated cloud-marketing staff
Generate more leads
• 25% marketing € to the cloud
• Inbound marketing and online presence: blog, SEO, social
Generate awareness
• 13% marketing € to the cloud
• Monitor marketing KPIs
• Online customer references
Market your offer
New
Advanced stage partners have established their cloud thought leadership. It makes it easier on customers to find their company, and it generates a flow of inbound leads.
• Marketing activities• Build your website
• Email, search-engine marketing
• Social Media marketing
• Blogs
• Marketing activities• Peer-to-peer platforms
• Search-engine marketing
• Community and other in-person
events
• Marketing activities• Online advertising and peer-to-peer platforms
• Social-media and search-engine marketing
• Community and other in-person events
• Publish blogs and white papers
• Speak publicly about cloud solutions
• Collaborate with key opinion leaders
Summary
1. Review of your existing business
2. Define & Descripe your Cloud Business Model
3. Test your new Business Model in the market
4. Implement & Execute your new Business Model
5. Market your Cloud Business
6. Evolve & Mature your Cloud Business
What’s next?
Microsoft:- Assess where you are in the journey to the cloud using SureStep Profitability Benchmark Assessment Tool
www.profitabilitychallenge.comPlaybook
www.tbkpublishing.com
Fast Review & Option Assessment
Business Model ManagementToday’s markets are not conquered with excellent products, but with excellent
business models.
All Microsoft Partners have a business model, but not all business models are excellent.
The objective of this workshop is to give software executives a toolbox for systematically
developing their companies and achieving leadership in their selected market segments.
”Business Model Management is a perfect framework to describe,
develop and test your business model and to be able, in an easy
and simple way, to communicate it to others. We have used the
framework to develop new concepts in order to ensure the
sustainability within new business segments, nationally and
internationally.”
Peter Jørgensen, CEO - www.workpoint.dk
”I was looking for an easy and operational way of documenting a
business model – I have found it with Business Model
Management.
The objective was to test the models in the market first and
then adjust before implementation.”
Peter Melvig, COO, Creuna - www.creuna.dk
FORMAT:
Individual workshop per company
CONTENT:
Preparation meeting and objectives +
1 day workshop + follow up meeting.
Participation of max. 12 pers.
Audience: Management, sale & marketing
Price: € 3.315,- incl. e-book and self-
study documents.
Excl. VAT, transportation and venue
costs
Contact Steen Helmer for further information, +45 4040 9099 or [email protected]
Value Proposition DesignDo you communicate technology, functions and features instead of what value you can
add to your customer?
Understand the pattern in creating value for your customers. Avoid using your time on ideas
that don’t work. Learn how you can develop and improve your Value Proposition in order to
create even more value for your customers. Get access to a framework which in a structured
way can help you achieve management alignment around your Value Proposition. Create a
mutual language to communicate how you add value for your customers and partners.
"Value Proposition Design is the perfect framework if your goal is
to be better at identifying, describing and communicating your
value proposition to your customers. That way you will avoid
talking too much on technology, functions and features.”
Claus Jarrels, COO – www.rackpeople.dk
”In relation to the development of new Office 365 products and
services we have got a much better common language to share
the product characteristics and the way we wish to
communicate this to our customers. The workshop gave us a
really good introduction to the method, anchor and practical
understanding through use of case studies.”
Karsten Mottlau, Business Solution Advisor - www.peoplenet.dk
FORMAT:
Individual workshop per company
CONTENT:
Preparation meeting and objectives +
1 day workshop + follow up meeting.
Participation of max. 12 pers.
Audience: Management, sale & marketing
Price: € 3.315,- incl. e-book and self-
study documents.
Excl. VAT transportation and venue costs
Contact Steen Helmer for further information, +45 4040 9099 or [email protected]
TBK Consult
• Why our clients use us
• How we operate
• What we do
Need help!
www.tbkconsult.com
Steen Helmer
+45 4040 9099