slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Bruce Stuart PowerPoint Presentation
Download Presentation
Bruce Stuart

Loading in 2 Seconds...

play fullscreen
1 / 29

Bruce Stuart - PowerPoint PPT Presentation


  • 167 Views
  • Uploaded on

Bruce Stuart. President ChannelCorp Management. Bruce Stuart. Channelcorp 2013 …transition, transform and grow. Bruce Stuart. Bruce R. Stuart, President Global management consulting firm- www.channelcorp.com

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Bruce Stuart' - wenda


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Bruce Stuart

President

ChannelCorp Management

Bruce Stuart

slide2

Channelcorp

2013…transition, transform and grow.

Bruce Stuart

slide3

Bruce R. Stuart, President

Global management consulting firm-www.channelcorp.com

Specializes in business model transitions and increasing the profitability and value of resellers and solution providers

Assists IT vendors improve the quality of their channels

Past 5 years – focused on the role of reseller CEOs in building the value of their businesses by transforming classically oriented product-centric businesses into vertically oriented service-centric and cloud centric businesses

Insights have helped many reseller CEOs around the world increase the profitability and long term value of their organizations

500 articles/13 books/40 countries3

slide4

Module structure.

Module 1Is it structural or transitory?

Module 2What is your game plan?

Module 3What are your strategic options?

Module 4What really has to happen?

slide6

Module 1

Is it structural or transitory?

  • 1.1 Transitions on three dimensions
  • 1.2 Cash on cash investments
  • 1.3 Cash flow/profit impact
  • 1.4 The third dimension –business model transition
  • 1.5 Module summary
slide7

1.1 Transitions on three dimensions

  • Module 1
  • Is it structural or transitory?

existing

technologies

installed

base

new

technologies

new categories

of technologies

transformation focus

transition focus

classic focus

existing

clients

new

clients

new

markets

slide8

existingaccounts

newaccounts

newmarkets

existingproducts

15¢/$

30¢/$

60¢/$

newproducts

30¢/$

60¢/$

120¢/$

newtechnologies

60¢/$

120¢/$

240¢/$

  • 1.2 Cash on cash investments
  • Module 1
  • Is it structural or transitory?
slide9

existingaccounts

newaccounts

newmarkets

+ profit

+ CF

+ profitø CF

ø profit– CF

existingproducts

+ profitø CF

ø profit– CF

– profit– CF

newproducts

newtechnologies

ø profit– CF

– profit– CF

– profit– CF

  • 1.3 Cash flow/profit impact
  • Module 1
  • Is it structural or transitory?
slide10

classic

centric(T)

transition

Centric(T/r)

transformation

Centric(R/t)

  • 1.4 The third dimension – business model transition
  • Module 1
  • Is it structural or transitory?
slide11

Module 1

  • Is it structural or transitory?
  • 1.5 module summary-so what

What is really going on is deeper than the current economic situation-the move to new markets and a recurring revenue model is a structural change

Transitions and transformations are being forced by the market, the technology and vendors’ strategies…not doing anything may be a slow liquidation strategy for a partner

So what…because of the valuations

-transition focused resellers-2 to 3 times the value of the classic

-transformation focused resellers-2 to 4 times the value of the classic

slide13

Module 2

  • What is your game plan?
  • 2.1 Defensive strategy
  • 2.2 Offensive strategy
  • 2.3 Success models
  • 2.4 module summary
slide14

Module 2

  • What is your game plan?
  • 2.1 Defensive strategy

90% report engagement

50%+making it up as they go

35% have no business road map or partial business road map for their “non classical” investments and strategy

Lost sale analysis-are you losing deals because you don’t have a legitimate offering in a relevant hot cluster?

We are seeing incumbent solution providers not being considered because their clients don’t know or believe they have the capability

Systematic erosion of the base has a negative impact on the value of your business

Do you need to make Mid Market, BYOD, applications, recurring revenue model/hot cluster investments to continue to be CONSIDERED by both existing and new clients?

Are these “non classic investments” the new “table stakes” in your markets?

slide15

Module 2

  • What is your game plan?
  • 2.2 Offensive strategy

Good news:

50% making it up

35% no plan

67% no one dedicated to marketing

50% technically insolvent

40% financially challenged

Growth centric transitional and transformational resellers are using vertically oriented hot cluster,Mid Market, BYOD, video and applications capabilities to generate new business from new clients and new business from existing clients-50% growth

No CONSIDERATION, no proposal, no sale

Clear movement to offensive business plan with appropriate investment in infrastructure and skills, properly executed

Game plan-defend and expand the installed base

For these organizations the move to non classical investments, a recurring revenue model and the exploitation of hot clusters is a growth story

slide16

Module 2

  • What is your game plan?
  • 2.3 Success models

Organizational structures-specialized vs generalist

Marketing capabilities-more prospects

Sales capabilities-focus on customer acquisition cost, comp plans

Technical capabilities-set plays vs huge custom assignments

Financial capabilities-more smaller vs fewer bigger

Cash flow impacts-bigger AR portfolio, leasing as option

What really has to happen…what has been happening inside the success models?

slide17

Module 2

  • What is your game plan?
  • 2.4 modulesummary

What do you want to do, or what are you doing?

How do non classical or hot cluster investments fit in with your overall investment strategy?

Lost sale analysis tells the “truth”

Defensive strategy maintains or slows the reduction in business value, but unlikely to drive growth

Offensive strategy presents a chance to build business value

It is really tough to change the spots on a leopard.

slide19

Module 3

  • What are your strategic options?

3.1 The options

3.2 Born classic partner-stay

3.3 Born classic partner-complement

3.4 Born classic partner-transform

3.5 Born vertical-stay vertical

3.6 Born vertical-complement

3.7 Do nothing

3.8 module summary

slide20

Module 3

  • What are your strategic options?
  • 3.1 The options

Corporate heritage

Business skills of senior management

Characteristics of service/support/training/consulting business

Sales and marketing talent base of the organization

Financial strength of the organization

Characteristics of installed base

Net new opportunities in the market-density of opportunities

It is really tough to change the spots on a leopard.

Adaptation precludes adaptability

slide21

Module 3

  • What are your strategic options?
  • 3.2 Born classic partner…stay classic partner

Slow liquidation strategy unless you are the best or least expensive product centric reseller in your market

Could be successful if appropriate ecosystems or partner to partner alliances built

Must garner increased share of potentially diminishing market(non vertical market)

Worry about client retention and reductions in “consideration rate” for new opportunities if “non classic” and hot cluster capability becomes table stakes in the market

Purposive strategy to continue to expand historic business

In 12-24 months BYOD, cloud, hot cluster, apps will likely be the new normal

slide22

Module 3

  • What are your strategic options?
  • 3.3 Born classic…complement with transition strategy

Inline with market trends-could produce a winning strategy based on a historically classic partner business model

Starts as a defensive client retention strategy that can provide the basis for a strategic transition to an offensive client acquisition strategy…it begins with increased consideration

Grow new business from your existing business-look for NEW BUSINESSES not new business in your base-then move out

Spin out your mid market, vertical or cloud business and grow it separate from the core-viable option

Acquire a company that has already transitioned

Numerous business building options exist

Option depends on what your business is good at

This is not a risk free strategy!

The devil is in the compensation

slide23

Module 3

  • What are your strategic options?
  • 3.4 Born classic partner…full transformation strategy

Dramatic business model transition executed over 24-36 month period-ROIC/valuation driven-NEEDS MARKET DENSITY

Plan to de-emphasize classic product centric business over time to align all resources behind mid market, BYOD, apps, video, vertical and recurring revenue future

Capital to build out/acquire new vertical businesses could come from the sale or milking of historic business

At the extreme this strategy may require partner to partner selling alliances to service classic product requests from existing and new clients

This strategy allows an “all the wood behind the arrow” approach

Could be a good fit for owners with an “all in” personality and style of business

You may leave some people behind with this strategy

slide24

Module 3

  • What are your strategic options?
  • 3.5 Born transformed …stay transformed

Green fields recurring revenue startup has benefit of no incumbent cost structure, organization structure or “unsuitable” personnel

Pure startup- no customers- require 24X to 36X monthly burn rate

Two versions-free standing or corporate division

Excellent way to create something of value for next generation (family), or equity opportunity for long term employees without diluting ownership of the “mother ship”

Opportunity for “50 something” owners to re invent business in the next five years that will increase the value of the business on resale-part of a retirement exit strategy

Purpose built startups created by well financed tech savvy serial entrepreneurs and backed by strong vendor or distributor relationships with will be tough for incumbents to beat

slide25

Module 3

  • What are your strategic options?
  • 3.6 Born transformed…complement with classic

Provides full coverage for clients regardless of how the client wishes to acquire their solutions

Likely realistic end game for all born transformed businesses

Product could come from partner to partner or third party independent alliances, intra company alliances or out of inventory

Problem of mixing business models is created again-problematic for the sales force compensation model especially

This strategy needs a broad range of capabilities that could dilute the required focus

slide26

Module 3

  • What are your strategic options?
  • 3.7 Do nothing

Always hungry never starving existence unlikely to improve going forward

No decision is a decision

Slow, maybe fast, liquidation strategy depending on how fast your customers are lost to the competitive vertical offerings of others in your market

May be a good time to get out to minimize your maximum loss

Do an operations review around willingness and ability to be profitable in vertical before you decide not to do anything

slide28

Module 4

  • What really has to happen?

4. Action plan

slide29

Module 4

  • What really has to happen?
  • Action plan

Go to school on your base

Can you afford to do nothing-LOST SALE ANALYSIS

Does it look like you may need to transition or transform your business model?

What are the key drivers of the investment decisions you need to make?

Which option or collection of options are likely to be the most successful given the current state of your company and your aspirations for it?

What do you require from Avaya to make the changes?

Take a good hard look at your existing business