Channel Management

New personal blog

2006-12-01T17:33:00.000-05:00

I have started a personal blog at http://michaellang.blogspot.com/.

Michael

What to put in your portal?

2005-12-19T14:20:00.000-05:00

Portals have been a hot topic for most channel selling organizations since it became practical to enable some form of self-service over the internet to channel partners. Some ideas related to portal offerings are in the following article:

Cisco Launches Portal to Help Partners Speed Sales, Deployment
from the Channel Insider

"A new sales tool unveiled this week by Cisco Systems Inc. is designed to help partners reduce deployment and sales cycles for the network vendor's advanced products and solutions.

Steps to Success, a Web portal, provides resellers with access to sales tips, best practice libraries, chat and phone support, and partner-specific outlines designed to walk VAR sales teams through the sales and deployment process. "more...

Portals get more interesting if you are able to connect business execution tools with the static product and process information traditionally available. More on that to follow.

Michael

Contact information update

2005-12-19T13:55:00.000-05:00

Due to a major restructuring at BlueRoads, I am leaving the organization. I enjoyed my time with the organization, and wish all my BlueRoads colleagues the best of luck.

I will continue to publish this newsletter on an irregular basis.

My contact information is changing as well. My phone numbers all remain the same. My email address that you can reach me at is mlang905 at hotmail dot com.

Axel is leaving BlueRoads as well. His new contact information is as follows:

Blog: http://axelschultze.blogspot.com
Website: http://www.axelschultze.com/
Email: as@axelschultze.com

Thanks for all of your kind comments.

Michael

Deal Registration ideas: Part Two

2005-11-23T13:00:00.000-05:00

Deal Registration refers to a channel program designed to encourage channel partners to bring new sales opportunities to a vendor. In many ways it is the opposite of lead management. Leads are opportunities that a vendor passes to their channel, while registered deals are opportunities that are passes to the vendor from their partners.

As a vendor, the difficult part about a deal registration program is deciding which sales opportunities you are interested in receiving from your channel partners. Contrary to initial expecations, and as your colleagues who have already launched a deal registration program will tell you, partners are typically highly interested in sharing opportunities with you. Especially if there is a business incentive to do so.

In many cases the incentive may be the requirement to register opportunities that the partner would like help with, or deals over a certain size that merit your attention, or in some cases deals that the channel partner is requesting margin relief on.

Part Two is an article describing the requirements for participation in a deal registration at APC:

APC Announces New Rewards And Channel Program
from ChannelMinds.com

"...By participating in APC’s new programs, partners receive access to all APC’s program benefits and pricing. Program levels and qualifications are as follows:

- As an APC Authorised partner, sales force personnel and engineers pro-actively identify and pursue InfraStruXure opportunities. Authorised partners have access to all APC resources for new clients and for product specific questions. These partners can also consult the APC Web site for additional program information, access their personal Web page and receive training.

- A Silver Certified partner has the same criteria as the Authorised partner; however, sales force personnel and engineers must also be competent to design InfraStruXure systems up to 20kW.

- Gold Certified partners must possess a basic-level of NCPI knowledge and prove competency with APC’s online configuration tools. Sales force personnel and engineers must also be competent to design InfraStruXure systems up to 80kW.

Partners who wish to join APC’s Certified Partner Programs are not required to make significant upfront investments. APC supports partners’ entry into the program via no-cost trainings, fully funded customer education events and direct field support on initial sales opportunities brought to APC by partners. Members of the certified partner programs receive a personal Web page, priority technical support, and listing on APC’s partner locator." more...

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There are many different ways to approach this idea, but it is clear that the limits to a deal registration program are actually limited by whatever your imagination can dream up. More deal registration program ideas to follow...

Michael

Lead Generation and your organization

2005-11-22T11:40:00.000-05:00

Now that it is possible to build out closed systems for lead management (see earlier article on lead management success from BlueRoads), methods for populating the channel CRM system with leads are becoming more important. Louis Columbus has published a helpful article about generating leads from the folks who are already speaking with your customers:

Generating Leads from your Frontline
from CRMBuyer.com

"It may appear that having frontline employees have a mix of objectives would cause confusion. In the companies who have started using frontline employees for lead generation, cross-selling and up-selling, the results are significant. These companies have accomplished a balance between service and selling.

Ask any salesperson what they never have enough of, and leads will always be at the top of the list. The traditional forms of creating leads including advertising, direct mail, webinars, events and tradeshows, and even cold calling aren't delivering enough leads to create consistently strong pipelines.

The definition of a strong pipeline varies by companies. A "strong" pipeline in one company is considered a 5X multiple of sales reps' quotas, with some sales management teams stressing 3X as a minimum. With such strong demand for leads, thought-leading companies in lead generation are turning to their frontline employees as a lead generation source.

The Forgotten Frontline

Four companies have taken the steps to look to their frontline employees as a source of generating new leads from prospects and existing customers. Continental Airlines, RBC Financial Group, County National Bank, and Alpha Company are among the companies that have enabled their frontline employees to create leads from the many more interactions these employees have compared to their revenue-generating counterparts. One company put the ratio at 150:1, meaning for every revenue-generating contact from sales, support spoke to customers 150 times. Cross-selling and up-selling is a natural extension for support staffs. If you haven't encountered this with your credit card provider, you will soon. The financial services industry continues to be one of the most prevalent users of this strategy with significant results. " more...

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A couple of related points: first, the quality of leads from a lead generation program can have a significant impact on your organization's ability to drive more business from a lead management program. The nice thing about a frontline lead is that there is naturally a certain amount of qualification that has already taken up front, typically from a person who is already familiar with what your value proposition is.

Second, being able to measure the impact of leads from different lead generation programs is key to helping determine what the best source of leads is for your particular business. Some businesses do very well with direct mail, while others might enjoy more success from trade shows.

More about the topic in a future article...

Michael

Deal Registration ideas: Part One

2005-11-21T11:53:00.000-05:00

Developed earlier this year, a company named Avanton has come up with some unique ideas in the deployment of their deal registration program:

Avanton Puts New Spin On Deal Registration
from CRN

"Security appliance vendor Avanton is offering a new channel program designed to help partners close sales.

Avanton's Alive At Five program, unveiled Monday, is a deal-registration program that requires partners to produce five solid leads each per quarter.

Armed with those leads, Avanton's channel managers and direct-sales team take steps to help close the sales, said Chuck Watkins, newly hired chief sales officer at Avanton, Manhattan Beach, Calif.

"What we set out to do was create a channel model that is low effort, high return for the partner," said Watkins. "We have eliminated all the heavy lifting that comes with the traditional partner/VAR relationship." more...

As per your requests, I will start sharing some more deal registration program ideas in future newsletters.

Michael

Microsoft finally weds itself to services

2005-11-15T10:10:00.000-05:00

Bill Gates: 'This Is the Live Era'
from VARBusiness

"After aggressively exploring the software-based services space for the past several years, Microsoft has made its commitment official. At an event held for the media and analysts in downtown San Francisco, Microsoft chairman Bill Gates and several colleagues outlined the ways the company plans to incorporate services components into virtually every aspect of its business in a new initiative dubbed Live Software.

Gates compared today's event to a pair of seminal moments in Microsoft's history: its much-hyped conversion to the Internet in 1995 and its .Net migration to XML and Web services in 2000.

"Every five years or so, we look at our strategy and make these big bets," Gates said. "The releases we're showing you today are the full realization of our XML/Web services efforts, and the opportunity to build the new applications wouldn't have been possible without this approach." more...

Sounds like this software as a service idea might be getting some attention...

Michael

Five problems with Salesforce.com

2005-11-12T00:24:00.000-05:00

"Forget Benioff's Hype: Five Problems Will Thwart Salesforce.com's Rise in On-Demand CRM

By Bob Thompson, Founder, CRMGuru.com
November 8, 2005

In enterprise software, the latest innovation is not about the software but how it's delivered—via the Internet. Salesforce.com has earned a reputation as an innovator and market leader in on-demand CRM, but getting on top and staying there are two different things.

In my view, the real on-demand CRM market leader will emerge in the next two years, and it won't be salesforce.com. Why?" more...

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With all of the focus on recent news from Oracle, Siebel and Microsoft, Salesforce.com CEO Bennioff has been throwing lots of comments into the press regarding the future viability of Software as a Service. He has also been making some strong remarks about how difficult it will be for Oracle/Siebel/Microsoft to dent the progress SFDC has made in the CRM space.

Bob Thompson has some interesting counter points. You decide.

Michael

Team effort trumps product focus

2005-10-28T13:40:00.000-04:00

"It's about integrating all of our relationships into the sales process and doing it in an effective, measured way" - Timothy Eades, SVP of Sales and Marketing, Sana Security

In this article in the 1 to 1 marketing newsletter from Peppers and Rogers Group, Jason Compton writes about how the vendor/partner relationship has changed with the deployment of BlueRoads, as well as some channel savvy.

Michael

Microsoft Getting Into Hosting

2005-10-28T13:07:00.000-04:00

From CRN:

"Software giant to take on Salesforce.com, IBM with hosted CRM, ERP

Starting next spring, customers will be able to get hosted CRM from Microsoft—as well as from hosting partners.

At least that’s the plan the Redmond, Wash.-based software giant has now, sources said. Microsoft hopes to have hosted CRM available in the second half of 2006, with hosted Dynamics ERP likely to follow, sources said.

Howard Diamond, CEO of ePartners, Dallas, said hosted CRM is a natural for Microsoft and does not see a conflict with his own hosting business. “CRM is a funny thing. It’s the only [Microsoft Business Solutions] product that is also covered by Enterprise Agreements, so I make more money on the services than the product anyway. This is a logical evolution of the product that I need to do the service sales I want.”

Currently partners such as ePartners and NaviSite host Microsoft CRM and other applications for clients."
more...

Michael

Adoption rates

2005-10-28T13:00:00.000-04:00

One of the hardest things to deal with during a CRM implementation is user adoption. You can build it, but will they come?

A lot has been written about how to deal with user adoption, typically in articles related to change management (Google THAT one to see what I am talking about - 396 Million web pages the last time I looked it up).

Here is another horror story, minus a lot of the gory details:

Salesforce.com: Trouble with Cisco

The number one rule: Make sure you think about what the end user experience is throughout the entire project cycle.

In this particular case there are some other technical issues causing the dissatisfaction:

CNET: Report: Salesforce stumbles in Cisco deal

CRM Buyer: Salesforce.com CRM Rollout at Cisco Stalling

Computerworld: Salesforce.com CRM Rollout at Cisco Said to Slow, Research firm: Project is 9 months behind schedule

CRM Daily: Salesforce Rollout at Cisco Delayed

ZDNET: Smashforce, mirrorforce and smashmouth at salesforce.com

The last article is particularly helpful in giving another view of what is going on with Salesforce.

Just a reminder that archives of this newsletter are stored at Channel Management on Blogger.

Michael

The Hosted Challenge

2005-10-28T12:01:00.000-04:00

from PortalsMag.com and Line56.com:

"...It's hard to argue with the value proposition of hosted applications, particularly in CRM. The vendor takes care of the infrastructure and is able to offer big discounts against traditional software; meanwhile, the hosted applications have plenty of functionality, with proponents claiming that any extra functionality else falls into the "bells and whistles" category that, in many cases, has pumped up total cost of ownership while becoming shelfware in the end."
more...

This is an important series because it discusses the advantges and disadvantages of a hosted model. You didn't think I was only going to talk about the positives, did you :) ?

The other parts:

Part 2
Part 3

Enjoy,

Michael

NEW White Paper | Best Practices in Partner Productivity

2005-10-28T10:15:00.000-04:00

Best Practices in Partner Productivity

BlueRoads realizes that our success is dependent on the success of our customers and their channel partners. As a result, we designed BlueRoads with both vendor and partner in mind and followed strict design disciplines: assume zero-training for partner users; always provide a benefit to the user; everything must integrate. By following these disciplines, BlueRoads designed a system that helps to increase channel performance and productivity for both vendor and partner. This paper highlights key features and functions designed to boost partner productivity.

Available here later this week.

Michael

BlueRoads User Conference Puts the Spotlight on Channel CRM

2005-10-28T10:13:00.000-04:00

SAN MATEO, Calif.--(BUSINESS WIRE)--Oct. 24, 2005--With a rich focus on advancing the channel CRM movement, BlueRoads Corporation, a channel CRM Software-as-a-Service (SaaS) company, gathered customers and users from the vendor and partner communities to discuss best practices via real-world vendor and partner case studies.
more...

Linked In

2005-10-20T09:55:00.000-04:00

This is a little off topic, but given the number of networking requests from everyone I thought I would share it.

Linked In is a free professional network designed to help you find contacts and keep in touch with colleagues. It works by referral. Basically, you sign up for a free account and then begin adding people you already know on the system to your connections. A connection is someone that you are willing to interact with to refer other connections to. I have been using it for a while and it has been very helpful.

From their website:

"LinkedIn strengthens and extends your existing network of trusted contacts.

LinkedIn is a networking tool that helps you discover inside connections to recommended job candidates, industry experts and business partners. Through LinkedIn, you can accelerate your business effectiveness and career success by leveraging the network you already have. LinkedIn makes it easy to receive and seek out opportunities through your extended network while protecting your privacy, your inbox and your existing professional relationships.

Professionals also get access to LinkedIn Jobs, a relationship-powered job network that allows professionals to search job listings and discover inside connections to hiring managers, HR professionals and recruiters. Employers and recruiters can post positions on LinkedIn Jobs and get great candidates recommended by their trusted contacts.

LinkedIn is currently used by over 3.8 million professionals across the globe. This makes LinkedIn’s base of registered users four times larger than those of all other online business networks combined. LinkedIn has over 1,200,000 users in Europe and over 350,000 in Asia."

If you would like to make a connection to me, you can find me on Linked In as mlang at blueroads dot com.

Michael

B to B Channel Marketing in Crisis - Top 3 Pain Points

2005-10-14T13:42:00.000-04:00

"If you rely on resellers, distributors, influential consultants, or other channel partners to get new customers or move inventory, here's your wake-up call. Channel marketing is in a state of crisis.

MarketingSherpa's research team has published a new seven-page special report for you, including useful background, study data, and details on the top three channel marketing 'Pain Points' you should address immediately..." more...

The article basically explains the reasoning behind better communication and collaboration with your indirect channel partners.

Along with publishing their first B to B channel report, MarketingSherpa is hosting a Lead Generation Summit in Boston on October 24-25, and again in San Francisco November 17-18. I know several of you on this email list were looking for an event like this - this one I highly recommend.

Michael

Seven Steps to a Business Case

2005-10-14T00:46:00.000-04:00

Some basic blocking and tackling in the business world, related to the justification of an IT project. This article is from Computerworld. While it is written for IT managers to allow them to participate in business case development, it is also a helpful overview for folks who might want a recap.

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I especially like their sidebar on "10 traps to avoid":

"1. Don't present initiatives as IT projects. Instead, they're business initiatives that leverage technology.

2. Don't skimp on research. Know the technology, the problems it can solve and its limits.

3. Don't speak in tech terms. Use the language of the business.

4. Don't present only best-case scenarios. Understand and explain the worst-case scenarios, too.

5. Don't overlook peripheral costs. Activities like training need to be taken into account.

6. Don't forget to detail a project's expected disruption to regular operations.

7. Don't ignore nonfinancial benefits.

8. Don't go it alone. Get executives from other departments to support your case.

9. Don't overanalyze. It can lead to analysis paralysis.

10. Don't underestimate the power of enthusiasm when pitching your project."

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"One of the key things we talk about with CIOs is that building an effective business case has nothing to do with coming up with a perfect ROI," she explains. "It's really about structuring your evaluations with the costs and benefits so you can use those calculations to make a good business decision." - Rebecca Wettemann (VP, Nucleus Research).

Michael

Channel Focus North America 2005 - 11th & 12th April 2005, Denver

2005-10-13T16:38:00.000-04:00

From the Channel Focus website

What Makes Channel Focus North America Unique?

Quite simply, there are no other marketing and sales conferences in the world quite like Baptie & Company's Channel Focus series. There are a host of reasons why Channel Focus North America has grown to become the biggest and most successful channel conference in North America.

Channel Focus North America is a content driven event where many past attendees and other experts have generously contributed their time to help us develop the agenda and topics. This always ensures the content is right on point for what's happening now and will be happening in the next years.
Channel Focus North America is amazingly real world, with a tremendous amount of peer sharing of honest and practical ideas. In part, that's because it is a closed forum: there are no press in attendance. It is fundamentally a group of highly seasoned industry sales and marketing executives getting together to learn and help each other. That's why attendees take away real solutions that they can apply immediately.
The quality of speakers and workshop leaders at Channel Focus North America is recognized as being the best of any North America conference. The conference features not just leading figures from within our industry, but also experts from other industries who join the event to provide ideas we can adapt from what they are doing. And, unlike many other conferences, most of the speakers stay and actively participate in all of the conference activities including workshops.
When you attend Channel Focus North America, you start becoming part of a real community -- establishing contacts and resources that will help you in years to come. It's another big reason we have such high repeat delegate attendance.

The conference features an unparalleled combination of informative presentations and interactive workshops that will enable you to come back and start making meaningful enhancements in your own strategies and programs more...

Previous Attendees

3Com, Absolute Software, Adaptec, ADC, ADIC, ADTRAN, Adtran, Advanced Call Center Technologies, Affinity Internet, Agilent Inc., Agilysys, Alcatel, Alvaka Networks, Amazon Consulting, LLC., AMD, Aqueduct, Inc., Aspen Marketing Technology Group, AT&T, Autobytel, Autodesk, Inc., Avaya, Avnet Computer Marketing, Avocent, BEA Systems, Blackbaud, BMC Software, Borland Software, Bowne Global Solutions, Bramasol, Brocade Communications, BSA International, Campaigners, Canon USA, Captaris, Cardiff Software, CCI, Centennial Software, Ceyoniq, Inc., Changepoint Corporation, ChannelWave Software, Check Point Software Technologies, Cisco Systems, Citrix Systems, CMP Channel Group, Cognos, Cohesion, Comergent, Compass Aerospace, compuBase, Concord Communications, Inc., Corel Corporation, Corel Inc., CRN, Data Kinetics Ltd, Data Systems Worldwide, Inc., Delta Products Corp, Demand Logic International, Digital Impact, EarthLink, Inc., Eastman Kodak Company, EDS, Elron Software, eMarketer, EMC, Enterasys Networks, Epson America, Inc., ESRI, Eurologic Systems, Inc., Evault, Exodus A Cable & Wireless Service, Extensis, Extreme Networks, FEA, FFWD, FileMaker, FileNET Corporation, Fluke Networks, Fortress Technologies, Front Range Solutions, Frontline Solutions, Frontline Specialists, Inc., FRx Software, F-Secure Inc., Fujitsu PC, Global Technology Distribution Council, Google, Group One Software, Gyrographic Comminications, Handspring, Harris Automation, Harte-Hanks, Hawkeye | Cohesion, HBR Technologies, Hewlett Packard, Hitachi Data Systems, HP, Hughes Network Systems, I.B.I.S., IBM, ICLP, Imation, Indus International, Inc., Infocus, InfoNow Corporation, Information Builders, Infowave Software, Ingram Micro, Insider Marketing/Insider Creative, InStranet, Inc., Integrated Research Inc., Intel Corporation, Intelsat, Interland, Intermec Technologies, Internet Security Systems, Interwork - Canada, Intuit, Iomega, IPED, Ipswitch, Inc., Kern Direct, KPG, Lawson Software, Legato Systems, Let's Talk Business, Lexmark International, Made2manage Systems, Inc., Maersk Data, Marconi, Market One, MarketSource, MarketStar, Maxtor Corp., McDATA Corp., Media Cybernetics, Mercury Interactive, Microsoft, Milan Technologies, MindGame Marketing, Inc., Mitel Networks, Motorola, MRV Communications, MTS-Integratrak, N-Able, NCR, NEC Mitsubishi, NEC Technologies, NetIQ, Netmanage, Inc., Network Associates, Networks 2000, Nokia, Nortel Networks, Novell, Oce-USA, Inc., Omtool Ltd, OnDemand, Inc., Optio Software, Oracle Corporation, Overland Storage, Palm One, Panasonic, Panorama Corporation, Partnerware, Patchlink, Peregrine Systems, Phoenix Technologies, Plextor, PM Consulting Group, Pointbase, PowerQuest, ProClarity, PRTM, Psion Teklogix Inc., PTC, Qualcomm Inc., Quantum, RADVISION, Raritan, Reed, Research In Motion, RSA Security, S1 Corporation, Sales Advantage Alliance, Samsung, Wireless Terminals, Sandlot, SAP, Scribe Software, Seagate Technology, Secure Computing, SecureWorks, Inc., Segue Software, SGI, Shawn Yeager & Company, Sicola Martin, Siebel Systems, Siemens EN, Siemens Communications, SignalSoft Corporation, Smart Channel Strategies, Smart Tech, SMART Technologies, SonicWall, Sony Electronics, Inc., SOPHOS, Sound Consulting, Stratus, Strix Systems, Sun Microsystems, Sybase, Symantec Corporation, Symbol Technologies, Synnex, Systems Union Inc., Techmar, The Sales Alliance, TIG, TOSHIBA , TransAmerica Distribution Finance, Trend Micro, Tripwire, Inc., UNLV, US Commercial Service, Vanguard Managed Solutions, VARBusiness, Veritas, Verteris, ViewSonic Corp., Visual Numerica, Webhire, Inc., Wilshire Group/Gage, Witness Systems, Wonderware, WRQ, Inc., Wyse Technology, Xchange, Xerox Corporation, XIOtech Corp, Zebra Technologies Corporation...

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This is a critical event for all those involved in a channel management role. BlueRoads has recently announced that Kathleen Hayes, VP Marketing, been added to the advisory board of Baptie Channel Conference North America. Congratulations to Kathleen!

I do not work for the Baptie folks (believe it or not), but the conversations that I have had with customers and others in the industry about the event suggest that this is one event you will not want to miss.

Michael

Hosted service model - Oracle and Siebel merger, from CRM Buyer

2005-10-07T12:45:00.000-04:00

It was only a matter of time until I chimed in on the recent Oracle-Siebel merger. I like the comments made by Denis Pombriant in CRM Buyer:

"It would be very good for the entire tech sector and global business in general if we could forecast a time when the infrastructure of computing is recaptured by the solution provider. Some of the largest potential markets on the planet could benefit greatly from an IT architecture that significantly reduces infrastructure costs." more...

I find it hard to believe that infrastructure savings for the customer are actually a driver for any of the vendors concerned, especially given the revenue associated with consulting and implementation, but clearly there are going to be some ancillary benefits from a move to a Software as a Service model. I think it will be interesting to see if there is any move made to offer traditional Oracle products (read that as applications) as hosted service models. Siebel has been delving into this area with the earlier purchase of Upshot, now Siebel On Demand. Salesforce.com I believe has done an excellent job of demonstrating the mdoel for direct sales, to the point of showing Siebel how the game is played. Let's see what happens when the On Demand model hits the Oracle fan...

Of particular note in the article is the concept of invigorating and revolutionizing an industry by applying fresh new ideas from somewhere else. While I realize that this is nothing new, I think that Software as a Service does challenge the high tech industry with not just a new pricing model (like so many of the "revolutions" of the past), but also with a new business model that requires changes ranging from financial to cultural considerations. Customer expectations can change when they realize that they are on a contract that requires annual renewal, and I think customer service expectations should change as well.

Michael

BlueRoads Channel Connect 2005

2005-09-28T13:18:00.000-04:00

BlueRoads Channel Connect '05 is a "must attend" event for anyone responsible for channel strategy, marketing, or sales. The conference is designed for channel leaders by channel leaders highlighting the strategies, best practices, and technologies that enable vendors and partners to market and sell more effectively – together.

:: Build relationships with BlueRoads users and channel experts
:: Discover the latest tips and proven strategies for deal registration
:: See the future of channel management technology

Registration is open and the event is only two months away. Hotel reservations should be received by the Ritz-Carlton no later than Friday, September 9, 2005.

Who Should Attend
The user conference is invaluable for all BlueRoads channel management software users. Whether you are a vendor that has rolled out the solution for your channel, or a partner using the solution through one or more vendors, you will find a wide range of sessions designed to meet your interests and needs.

Hotel Information
The Ritz-Carlton, Half Moon Bay, named by Conde Nast Traveler as one of the "World's Best Places to Stay," offers abundant recreation from championship golf and invigorating spa treatments to world-class dining.

The Ritz-Carlton is holding a special block of guest rooms at a discounted rate until September 9, 2005. Please make your reservation early as space is limited. After September 9, the rooms will be released to the general public. For reservations, call (888) 293-0524 and reference the BlueRoads International User Conference.

--------------------------------------------------------------------------------

Conference Agenda:

Sunday, October 9 | 11:30 am - 6:30 pm
:: Best Ball Golf Tournament on the renowned Ocean Course

Monday, October 10 | 9:00 am - 10:00 am
:: Opening Keynote: The Future of Channel Management
Axel Schultze, Founder & CEO, BlueRoads Corp .
During tough economic times, many companies have turned to the channel to achieve corporate financial goals. As the economy rebounds, smart companies will build on these partner relationships to accelerate market momentum. Axel Schultze explores the top channel management trends that will impact business strategies for 2005 and beyond.

Business Track | 10:00 am - 2:30 pm
:: Proven Best Practices: Deal Registration, The Trust Factor
Gregg Kalman, SVP Channel Strategy & Programs, Avaya Inc.
Increased reliance on indirect revenue gives rise to CEO mandates to improve channel performance and predictability. The key to success is motivating partners to openly share information. Gregg Kalman discusses the importance of trust in deal registration and the role BlueRoads played in enabling Avaya to exceed its 12-month pipeline goal by 275% in less than 30 days.

:: Real-World Channel Strategies I : The New World of Distribution
Duncan Potter, Vice President of Worldwide Marketing, Westcon Group Inc.
The IT channel is undergoing a tremendous change and Westcon Group is emerging as a major force that is shaping the future of the IT distribution market. Duncan Potter explores how Westcon teamed with BlueRoads to bring vendors added value and provide VAR sales teams with the programs and tools that help open up new opportunities.

:: Real-World Channel Strategies II : The Partner Perspective
Garth Oliveria, Business Development Manager, Accuvant, Inc.
Companies spend time and money recruiting and training partners and building compelling programs, yet channel performance remains elusive. The missing link in many strategies is the partner perspective. Garth Oliveria shares what partners want from vendors to make it easier to do business – together.

Technology Track | 2:30 pm – 5:00 pm
:: 2005 Channel Management Innovations
Paul Nagy, Vice President of Products, BlueRoads Corp.
BlueRoads is at the forefront of channel management and delivered a number of innovations in 2005. Paul Nagy reviews the hottest features that bring value to vendor and partner users alike.

:: 2006 Product Roadmap, A Glimpse of the Future
Paul Nagy, Vice President of Products, BlueRoads Corp.
Deal registration. Reporting, analytics and data access. Integration strategies. Paul Nagy explores the top channel management features planned for 2006 and the role users play in shaping the future.

Awards Ceremony and Closing Reception | 5:00 pm - 8:00 pm
:: Celebrate with music, food, and libations

Register soon – space is limited.

Michael

Closed Loop Lead Management

2005-09-28T11:28:00.000-04:00

Lead Management - Closing the Sales Loop at Nortel Networks
"By Andrew K. Reese, Supply & Demand Chain Executive magazine

By putting in place procedures and technologies to enforce accountability in its lead management program, Nortel Networks proved that the old maxim of "measuring to improve" certainly applies to the sales process.

Get a group of marketing people together with a team from sales to talk about lead management, and sooner or later someone's going to start pointing fingers. Marketing might talk about good leads squandered for lack of follow-up. Sales might retort that marketing is just throwing leads, any leads, over the wall, regardless of quality. Trouble is, unless someone can come to the table with hard numbers demonstrating that one or another party has been dropping the ball, this kind of meeting is not likely to be particularly productive. After all, as the old management saw goes, you can't improve what you can't measure. Fortunately, recent years have seen the appearance of a number of technology solutions that have put this kind of information in the hands of executives looking to improve their companies' lead management processes, as the case of Nortel Networks illustrates."
more...

This is an interesting article that provides an additional level of detail around the Nortel experience with Lead Management. The case study for the BlueRoads solution can be found here.

Michael

TCO of Software as a Service (SaaS) versus traditional implementation models

2005-09-28T05:00:00.000-04:00

One of the compelling arguments of a SaaS model is the cost model. There are some important assumptions being made here, and most of them are related to whether the software exhibits the same functionality, ie. are we comparing apples to apples. This has become easier as the CRM industry has matured, but there are still features and functions that are specific to a few vendors to the exclusion of others.

As an example, just because a module is labelled "PRM" does not mean that it has the same functionality as any other "PRM" module. For the purposes of the TCO discussion, let's assume that they are the same.

I am frequently asked about the TCO model for BlueRoads. A close TCO comparison to BlueRoads is hosted CRM.

There has been a significant move in the CRM world away from client/server implementations of CRM for 5 major reasons:

Hidden costs, typically outside of the original ROI model, including IT and support costs

High failure rate (need I say more here? extensive news coverage...)
F word still dominates CRM thoughts
CRM dissatisfation

CRM failures: Don't blame the tools (ZDnet from 2002, still interesting)
Why 90% of CRM implementations fail to reach their full potential

Protracted implementations, in many cases more than double the original estimates. This is fairly typical for enterprise implementations

Unacceptable business risk, given weak predicability of costs, success rates, and implementation length

Expensive upgrade path, due to the requirement to either pay further maintenance payments, or pay for new versions when they come out. And the cost of a new implementation to upgrade to the new version.

Let's focus on only the costs equation for now. In the traditional client/server model, costs (which average 10 times the subscription price of a Software as a Service model) generally breakdown as follows: Software Licenses 43%, Customization & Implementation 43%, Hardware 26%, IT Personnel 14%, Maintenance 7%, and Training 7%.

The Software as a Service model (the annual subscription is typically 10 percent of the client/server costs) is typically Subscription fee 70%, Implementation, Customization & Training 30%.

The big benefit from a TCO perspective is reduced total cost, simpler cost structure, and reduced up-front capital investment. More on other risks of typical client/server implementation in the future...

Michael

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Don't forget that the newsletter archives are at the Channel Management blog.

BlueRoads Member of SIIA SaaS Working Group

2005-09-25T00:00:00.000-04:00

BlueRoads’ CEO, Axel Schultze, has been selected as a member for the Software & Information Industry Association (SIIA) Software-as-a-Service (SaaS) Working Group. SIIA is the principal trade association for the software and digital content industry. This specific committee acts as a neutral industry group working to validate the SaaS business model, and is uniquely positioned to address the challenges of the new paradigm, illuminate benefits and drive industry acceptance.

Recently recognized by Gartner and Forrester as a leading SaaS vendor, BlueRoads is excited to be involved in the evolution of the SaaS model, as it holds great promise for both vendors and channel partners alike.

Michael

Hosted CRM sales double

2005-09-24T11:05:00.000-04:00

"Sales of hosted customer relationship management (CRM) applications more than doubled last year, according to a report by AMR Research , suggesting that the hosted model has reached "prime time" as a delivery method for CRM applications.

The hosted model differs from traditional licensed software in that applications are served over the Web rather than installed on-site.

In addition to impressive hosted growth, the overall CRM market saw double-digit growth for the first time in five years, the research found."...more

Full text is at CRM Buyer. Also check out the background research at: The Shifting Sands of the CRM Landscape from AMR.

New BlueRoads study published

2005-09-23T15:26:00.000-04:00

BlueRoads Releases Results of Channel Lead Management Benchmark Study

Indicates Optimizing the Indirect Sales Channel is More Important Than Ever

SAN MATEO, Calif. – August 29, 2005 – BlueRoads Corporation, a channel management Software-as-a-Service company, today announced the results of a channel lead management benchmark study, demonstrating a strong and consistent correlation between speed and closure rates in the channel. The study is the first-of-its-kind, and addresses the five key areas of channel lead management: lead aging, lead distribution, opportunity feedback, sales latency and closure rates. The study not only explains these concepts, but also explains at length how to leverage them to lay the groundwork for near-term performance improvements on which to build long-term strategies.

“Channel lead management plays a vital role for high-technology companies as channel sales increasingly account for more revenue and market share growth opportunities,” said Axel Schultze, president and CEO, BlueRoads. “In today’s competitive environment, it’s crucial to optimize channel lead management. A leading analyst firm pointed out that more than 70 percent of leads are never acted on because they don’t get into the right hands at the right time. This figure is staggering and is a real wake-up call for an industry that is fighting tooth and nail to revitalize sales.”more

-----
Some comments...

I believe this study speaks to a topic that we have all heard and internalized since our first business class - the speed at which a company responds to a sales opportunity relates to the likelihood of converting that sales opportunity to a customer. What is particularly valuable to a discussion about speed are the data points within the study.

It is not unusual to hear that an organization that I work with does not have deep visbility into key metrics related to channel sales activity. Part of the reason for this is that detailed performance data can be very difficult if not impossible to track without the use of an automated system. The best answer I hear when I ask "What was your lead closure rate for the last 2 quarters?" is an educated guess.

Read more about the positive impacts of a responsive channel in the study. It can be downloaded by registering at http://www.blueroads.com/lead_benchmark/index.html

Michael

Sana Finds Sales Leads, Support Fix

2005-09-19T13:58:00.000-04:00

By Ira Apfel

"Case study: Sana Security needed a better way to keep on top of its revenue forecasting and goals. BlueRoads offered a much better solution than spreadsheets.

John Zicker may be chairman and CEO of a software company, but the way that quarterly revenue projections used to be done at his four-year-old company was decidedly low-tech.

"We had spreadsheets in-house, and people would be calling up and asking our resellers, 'What opportunities are you working on?'" said Zicker, who heads Sana Security Inc., in San Mateo, Calif. "We'd get to the end of a quarter and look at our quarterly growth and look at what we forecast.

"Although it turned out that we had hit our quarterly revenue goals, half of our deals were not closed, and we'd say to ourselves, 'Well, we dodged the bullet again, but we can't do that forever.'"

Zicker's problem was more than just a technological challenge that Sana's IT department had to tackle. Zicker's inability to more accurately forecast revenues, identify and support strong sales leads in the field, and best allocate precious marketing resources represents the strategic challenges that nearly every executive must confront."
more....

Real world look at measuring channel activity.

Michael

Blog has archives of Channel Management newsletter

2005-09-19T13:53:00.000-04:00

Blogger is hosting an archive of past issues of the newsletter here.

Just a reminder that the Channel Management newsletter is invite only. For an invitation, send email to mlang@blueroads.com.

Michael

The emergence of SaaS as a trend

2005-09-12T13:39:00.000-04:00

Software-as-a-Service Tops Industry Trends
(from destinationCRM.com)

"SaaS represents the combined software architecture, delivery, and user interaction model needed to support hundreds of thousands of globally dispersed users.
by Axel Schultze

Software-as-a-service (SaaS) is going mainstream and innovative technology vendors are being rewarded by rising adoption rates. The simple reason, which has always been at the heart of enterprise computing solutions, is customer value. SaaS offers significant customer benefits including lower costs that are aligned with usage, minimal up-front expense, rapid implementation and time to value, and reduced risk. Industry analyst firm Gartner predicts that by 2006, 15 percent of new sales application deployments will use a software-as-a-service model and by 2010, 30 percent of all new software will be delivered as a service. And while the mid-market is an obvious target for this model according to research from analyst firm Summit Strategies, one SaaS application area of particular interest to larger corporations is channel management."
more...

More discussion about Software as a Service to follow...

Michael

BlueRoads Releases Results of Channel Lead Management Benchmark Study

2005-09-05T13:37:00.000-04:00

Indicates Optimizing the Indirect Sales Channel is More Important Than Ever

SAN MATEO, Calif. – August 29, 2005 – BlueRoads Corporation, a channel management Software-as-a-Service company, today announced the results of a channel lead management benchmark study, demonstrating a strong and consistent correlation between speed and closure rates in the channel. The study is the first-of-its-kind, and addresses the five key areas of channel lead management: lead aging, lead distribution, opportunity feedback, sales latency and closure rates. The study not only explains these concepts, but also explains at length how to leverage them to lay the groundwork for near-term performance improvements on which to build long-term strategies.

“Channel lead management plays a vital role for high-technology companies as channel sales increasingly account for more revenue and market share growth opportunities,” said Axel Schultze, president and CEO, BlueRoads. “In today’s competitive environment, it’s crucial to optimize channel lead management. A leading analyst firm pointed out that more than 70 percent of leads are never acted on because they don’t get into the right hands at the right time. This figure is staggering and is a real wake-up call for an industry that is fighting tooth and nail to revitalize sales.”

The benchmark study was designed to measure the comprehensive channel lead management process in order to identify the key performance indicators that have the highest impact on stimulating revenue. The study results outlined how the process time between lead generation and availability to sales is a crucial factor to closing a lead, and that reducing lead aging can be a demonstrable competitive advantage. To ensure leads get into the right hands at the right time, BlueRoads has pioneered a unique pull-based lead distribution methodology, where the available and interested individual partner salesperson self-selects the lead for active follow-up. This is extremely important because in the traditional “push” model there is no clear measurability and no visibility into the follow on process, whereas the “pull” methodology provides a clear performance indicator that allows measurement of the reaction time in the partner channel.

In addition to the importance of the “pull” methodology, the study revealed that initial feedback from the partner is a strong performance indicator, as it shows the ability of the channel to aggressively follow-up with prospect demand. Finally, study findings showed the correlation between closure rates and the sales cycle. Closure rate on raw leads as a relative value tells more about the partner’s ability to close new business versus installed base revenue than any other key performance indicator. The ability to close new opportunities indicates which partners are ideal candidates to help launch new products or explore new markets.

BlueRoads Corporation sponsored the research study among customers of the company’s channel management Software-as-a-Service. The company drew upon data supplied in a random sample of 100,000 channel sales leads generated between 2001 and 2005. These sales leads represent the demand generated by high-technology companies of various sizes, product segements, and average sales prices.

To download a full copy of the benchmark study, please register at: http://www.blueroads.com/lead_benchmark/index.html

About BlueRoads 6
BlueRoads 6 is the latest version of the company's leading-edge channel management software that allows companies to market and sell more effectively through indirect channels, strengthening the bond between vendor and partner. Unlike traditional PRM systems, BlueRoads 6 is designed with unique partner-centric methodologies that streamline channel processes, which yield the highest possible results with the least amount of partner effort. This reduces the time and effort required to actively participate, and increases partner adoption of programs and processes.

BlueRoads Corporation
BlueRoads Corporation provides channel management Software-as-a-Service, which enables companies to market and sell more effectively through indirect channels. BlueRoads was recognized by Gartner Group as a "cool vendor" for 2005, for its delivery of innovative, impactful and intriguing solutions for the industry. BlueRoads' impressive customer list includes Hitachi Data Systems, Nortel, SurfControl and many more. The company is headquartered in San Mateo, California and funded by ArrowPath Venture Capital, El Dorado Ventures and Cardinal Venture Capital. For more information about how BlueRoads is helping companies create active channels with higher returns visit our website at http://www.blueroads.com or call 650.349.8500.

Press contacts:
Kathleen Hayes
BlueRoads Corporation
650.349.8500
kathleen.hayes@blueroads.com

Jason Davis
Horn Group, Inc.
415.905.4008
jdavis@horngroup.com

Lead Management Nortel Case Study

2005-08-29T12:29:00.000-04:00

from BlueRoads:

"BlueRoads has been instrumental in creating a win-win situation for Nortel Networks and our channel partners. Since rolling out the solution our channel sales revenues from leads have doubled, on average, quarter over quarter for six consecutive quarters and counting."

- James Weaver, Sr. Marketing Manager,
Lead Generation and Database Marketing for North American Enterprise Marketing

DOUBLE incremental revenue quarter over quarter. Not a number to scoff at.

The case study is a classic success story that represents how a change in thinking about the indirect channel can have significant impact on business results. This is especially important given the nature of an indirect channel - unlike direct sales, as a vendor you do not have the ability to compel your channel partners to work with you. Vendors and channel partners need to work cooperatively and with trust in order to enjoy any real synergy through the channel relationship.

I have a few ideas about the Nortel experience that I think are relevant:

1) Make good use of lead generation. Developing and nurturing potential customer contacts can be incredibly expensive, and marketing organizations work very hard to find good leads. Direct mail, trade shows, coop marketing, and other methods are used to gather leads - a lot of effort that can be wasted if the lead management cycle is ineffective.

2) Create a closed-loop lead management cycle. This means that to maximize effectiveness, a lead management process should follow the progress of a lead from generation all the way through the opportunity to it's eventual close. This is particularly important as you attempt to guage the effectiveness of the various lead generation programs you have, and rank them by lead closure rate.

3) Automate. Much of a vendor's time is spent doing tasks that can be easily automated with a good lead management system. Why have channel managers spend their time on the phone with partners to gather forecast information when they can be working with your partners to close business?

The full text of the Nortel case study can be found here.

The Importance of User Acceptance

2005-08-22T17:48:00.000-04:00

"BlueRoads recognized that in order to fully service and support the indirect channel, applications had to be developed that approach the relationship from the partner's perspective."

-Denis Pombriant,
Beagle Research

I have spent the past 10 years (has it been that long already?) in the enterprise applications space, working with vendors and users, and now channel partners, to figure out ways of creating successful software solutions. It is terribly exciting. And sometimes, it can be just terrible.

A significant amount of time of any software project, and I mean the vast percentage, is used up determining what the functional requirements are. The remainder is usually spent trying to get the software to deliver the functionality. Given all of the money and effort made in the typical project to "get it right", it can be surprising how frequently the end user is ignored. I don't mean "put off", or delayed, or even avoided. I am talking about being outright ignored.

Examples of this sort of functional paralysis are all around us. Does anyone remember how difficult it was to use an ATM when they first came out? I mean the first ones, with the cryptic screens and the buttons that did not make any sense. What about some of the early website attempts? I found a site the other day that archives older versions of websites. The early Amazon website is one standout - I mean ugggggly.

The worst offenders, however, tend to be systems that we all use at work. Early ERP, cryptic CRM, and especially some of the DOS-era accounting systems were all designed with robust functionality in mind. Most of them I don't think had the end user in mind at all.

End Users need to be involved in software projects the same as any stakeholder. No one wants to spend big dollars, any dollars, only to have the users not adopt the new system and methods of doing things. This is especially important for the indirect sales channel - you have no direct control over partner behaviour, and you need to make the system as attractive as possible to encourage voluntary usage.

Make sure you involve a sampling of your end users, and pay attention to their advice!

Michael

BlueRoads Resource Library Part 1

2005-08-15T19:43:00.000-04:00

The resource library at the BlueRoads website is an indispensible collection of information. It includes BlueRoads Product Datasheets, Customer Case Studies, White Papers, and the Channel Power newsletter archive.

BlueRoads Product Datasheets
High-level information about BlueRoads products, including an overview, features and benefits. All data sheets are in .pdf format.

BlueRoads 6 Overview
BlueRoads Lead Manager
BlueRoads Renewal Manager
BlueRoads Deal Registration Manager
BlueRoads MDF and Coop Manager

I will cover more information as well as updates through the newletter in the future.

Michael

Cool Vendors in IT Services and Outsourcing, 2005

2005-08-08T18:31:00.000-04:00

This report by Gartner recognizes BlueRoads as one of four vendors at the forefront of service delivery and business innovation. Gartner defines a cool vendor as a company that offers technologies or solutions that are: Innovative, enable users to do things they couldn't do before; Impactful, have, or will have, business impact (not just technology for the sake of technology); Intriguing, have caught Gartner's interest or curiosity in approximately the past six months. Gartner account required for download.

This is particularly relevant as coverage of tools for channel management is sorely lacking, as evidenced through any search on Google, or with any of the major analyst who covers the software industry.

I would love to see more coverage of tools and solutions that can help vendors in the channel management space. Leave me an email at mlang@blueroads.com if you have something that you would like posted to the newsletter.

Michael

Welcome to the Blog

2005-08-01T18:10:00.000-04:00

Welcome to the Channel Management blog. This is a completely free newsletter that I am sharing with colleagues, customers and friends. It focuses on software and tools to improve channel business processes.

A new blog post will be issued every week (usually Mondays) with information related to the latest techniques, marketing ideas, and of course news about BlueRoads.

The blog is invite only - to get a friend on to the mailing list, send an email to me.

Michael Lang