SAP CRM Partner Channel Management High Tech

We do understand the concept of Partner Channel Management, there is a manufacturer, a distributor (partner) and the End customer who buys the product.

For Example:

Manufacturer: Intel (Manufactures Computer Chips)

Distributor: Ingram Micro (Authorized Distributor for Intel)

End Customer: HP/Dell/IBM etc. (End customer who buys the product from the Distributor)

In this post I will focus on the Partner Channel Management scenario within SAP CRM 7.0 related to industry specific High Tech.

There are three variants within High Tech:

High Tech - Electronics and Component Manufacturing

Ex: HP

High Tech - Semiconductor and Photovoltaic Companies

Ex: AMD

High Tech - Software Providers

Ex: Adobe

In general within SAP CRM High Tech the following processes are being managed:

Channel Partner Relationship Management:

To manage the relationship scenario between the manufacturer and the distributor.

Lead and Opportunity Management:

This scenario helps manage the process of capturing a lead and converting into a sale through opportunity management.

Campaign Management with Channel Partners:

Various Campaigns can be created and executed to encourage channel partners to achieve targets and generate targeted brand awareness.

Activity Management:

Needed during the entire process of converting a lead to an opportunity to manage meetings, appointments etc.

Market Development Funds:

To keep track of and manage the funds being provided to the channel partner for marketing activities such as brand awareness etc.

Analytics:

This helps monitor all the sales generated through a particular channel partner, check the pipeline statistics and analyze future performance and objectives.

Various High Tech Industries have benefitted by implementing the SAP CRM's High Tech process solution and following are a few of them which I have come across:

1) Better transparency on the Resale done by the channel partners to the end customers:

2) Tracking the efforts put in by the channel partner to win a sale and generate brand awareness.

3) Strong seamless integration with supply chain (Inventory Management) to track availability and delivery.

4) Strategically deploy efforts to manage the existing partners without compromise of expanding the partner base.

5) Near real time collaboration between the brand owner and the channel partner especially in Inventory Management.

To maximize the utilization of the software and the processes within Partner Channel Management, I would like to see organizations focus on the following drawbacks during and after implementation:

1) Corporate Culture and Commitment:

     The Brand Owner's should also consider sharing their Corporate culture and commitment towards the brand with their Channel Partners which in turn will

     increase visibility and assist Channel Partners to share the same with the End Customers in turn increasing good will.

2) Leveraging of all the IT processes:

     Brand Owner's and Channel Partners should ensure utilizing all the processes being implemented in the system and keep the implementation team/support        team well informed of any drawbacks and initiate resolving the same at the earliest.

3) Training and Regressive testing:

    Proper and extensive training has to be provided to the end users and should not be compromised in an effort to go-live at the earliest.

    Extensive regressive testing should also be carried out.

    The client/organization should be flexible to extend the go-live date if necessary in order to ensure the above mentioned activities are carried out by the  implementation partner.

THE ELEMENTS OF CHANNEL MANAGEMENT

The following section highlights the elements that are required for a true end-to-endchannel sales management solution. Developing a competitive partner program anddesigning it on paper are only the beginning. The critical key is execution. Partneringcommunities are an impatient group, as they are committing significant resources tosupport a brand owner's technology and relying on that brand owner to help driverevenue for them. Brand owners have a limited number of chances to get their programs right. Don't announce a program that you can't deliver on. Fruitful partner programs are built on trust and money. If they don't trust you, they won't makemoney for you.Program components break into three general categories:

!Demand generation/marketing programs.

Marketing programs are at the topof the funnel and are designed to narrow down a target audience to companiesand individuals that will actually purchase products. Marketing organizations at abrand owner also typically own the customer list, so they are also responsible for driving lead-generation campaigns into the installed base as well as leads for new prospects.There needs to be close alignment of tasks and responsibilities defined betweenthe sales and marketing organizations, since many leads go stale in the handoff between the boundaries of the sales and marketing organizations.Activities in the marketing component should include:

#General marketing programs — lead generation and awareness

#Campaign management

#Co-marketing activities and MDF management

#Soft product bundles

#Brand management

#Lead generation, distribution, and tracking

!Sales programs.

Sales programs are where the current PRM V2.0 functionalityis aimed. This targets activities that actually drive revenue and the sales process.These programs are where dramatic gains can be made and where automationcan truly scale the business process. This ability to scale will allow brand ownersto aim specific channel partners at specific markets. Infrastructure issues will nolonger dictate sales strategies.Activities in the sales component should include:

#Account/activity management

#Lead/opportunity tracking

#Deal registration

#RFP support and collaboration

#Quotation and configuration support

#Order management

#Sales tracking and forecasting across partner tiers

#Channel compensation — rebates, spifs, etc.

!Operational and infrastructure components.

Operational and infrastructurecomponents are where the second "end" of the end-to-end integration takesplace. The addition of this piece gives a "holistic view" of the process and iswhere true performance measurement against stated key performance indicatorscan occur. It marries customer, sales, and partner transactional data together toallow for decisions based on analytics, bringing true visibility up and down thesales pipelines.Operational/infrastructure components should include:

#Inventory management

#Pipeline stock

#Shelf stock

#Transactional data

#POS data

#Pricing within the channel

#Analytics

#Decision making

*****************************************

Partner Management
Secure solid business relationships by recruiting the right partners, managing their training, and creating effective programs to maximize revenue.

Manage channel partner relationships throughout the entire partner lifecycle
Channel Marketing
Motivate partners to sell your products rather than competitive offerings
Channel Sales
Align the knowledge, tools, and expert advice given to your partners and sales team
Partner Order Management
Optimize partner ordering processes
Channel Service
Ensure consistent and timely service to end customers
Partner and Channel Analytics
x

Recruit new partners, manage compensation plans, and track partner certifications
Segment your partner base for more effective partner management

Leverage personalization features and a partner locator to drive demand for your products through channel partners.

Maintain consistent branding to engage in joint marketing campaigns with partners
Manage channel marketing funds and partner incentives
Align marketing content, catalogs, collateral, campaigns, and lead-building tools

Enable a full range of channel sales processes, including account and contract management, activity management, opportunity management, and deal registration.

Gain insight into demand across all selling channels
Predict future business effectively with pipeline forecasting

Enable all channel order management processes such as quote and order management, interactive selling, pricing and contracts, and inventory management.

Include partners in collaborative selling across the organization
Empower end customers to order products and services across your demand network
Support distributed order-management scenarios to enhance customer service

Enable many channel service business processes, including knowledge management, service resource planning, service order management, and complaints management.

Give your partners the tools and expertise to manage ongoing service relationships
Provide live partner support, warranty management, and returns management

Measure performance with a standard set of guidelines that indicate the health of your partner organization and the profitability of your business relationship.