There are so many changes in the Channel space and the way Partners work together. The trend is Ecosystems…….with that also Pure-Partner Versus
Vendor- Driven Ecosystems . With these new changes does One Plus One Equal Two or Three or even more?
P2P networks emerged several years ago in various forms and continue to evolve. Partners are increasingly working collaboratively to broaden geographic reach, extend expertise, and close more business. These networks are widely varied in structure and format, from very loose to contractual in design. In the following paragraphs, we discuss in detail each of the many ways partners are collaborating, the strengths and weaknesses of the alliance (be it formal or informal), and what roles partners, suppliers, and distributors have in the mix. I segment the various types of networks as follows:
· Pure P2P networks provide alliance opportunities between partners seeking out new skill sets and relationships that will enable technological, vertical, geographical, product, service, and end-customer revenue growth. The goal is for partners to share best practices, find complementary partners, and broaden their customer base. These alliances can take many forms between partners: formal and ongoing (legal), occasional (formal or informal), or on an ongoing but agreed-upon short-term basis similar to a subcontractor engagement that is project based.
· Vendor-driven networks help bring together partners that share a common technology goal and disparate skill sets but ultimately drive increased vendor revenue. Although these are necessary and beneficial networks for both the vendor and the partners, there are limitations to them due to their vendor-centric nature.
· Distributor-organized networks bring together a large range of partner skill sets, customer relationships, and technology relationships surrounding a specific market segment or vertical. These are similar to vendor-driven networks in that the distributor is seeking to increase its sales. They are different from vendor networks in the fact that distributors work with multiple vendors, therefore, they are not driving a single vendor’s revenue.
· Third-party "marketplace" networks allow customers to seek service providers for low-end services (installation, maintenance, and some configuration). Partners join the program and work via the tool to extend expertise and geography with their services. There are different example emerging in the market now, one currently is OnForce.
There is happening a lot and the Peer-to-peer networks (P2P) in all forms help drive important dynamics within the channel ecosystem. It drives peer relationships as well as sales of product and service within the channel ecosystem. Whether these networks are created organically, facilitated by new Internet tools and communities, driven by vendors, or initiated by distributors, I believe there are inherent benefits for partners to participate in these essential forums. Each has its own goal and serves its own needs:
· Partner networks have been around for some time, but incident rate and types of networks are on the rise.
· Partner networks will have different goals, but the common factor across each network is the need to broaden the scope of reach for a partner to better serve the expanding use of IT in the customer base.
· Partners have the ability to participate in multiple networks. When partners enter into a network, especially one that is vendor driven, there can be many points of influence. Suppliers should use this opportunity to bolster their partners’ loyalty because this can wane depending on the type of network the partner joins.
What is the FUTURE OUTLOOK – how will things evolve?
It is already happening, P2P networks will continue to increase in number and design. Suppliers, distributors, and third-party for-profit companies will continue to assist and even capitalize on this growing trend. Tools will continue to emerge. But this trend will eventually stabilize as all trends do, and with this balancing (adoption rate), I believe we will see several factors arise:
· The emergence of a lot of full third-party peer-to-peer networking community
· The acceptance by vendors and distributors that they control a partner-to-partner network and should focus on creating stickiness in a partner community with relevant sales and marketing tools, education, and support
· Partners entering any type of network and hoping to meet others with whom they can partner (Suppliers are best served to keep their partners close with an eye toward loyalty because this can wane if partners are not satisfied and are entering a network with new influencers.)
I strongly believe that Channel excellence and loyalty is made, not born. As I’ve stated, even when building an ecosystem, partners and suppliers cannot ever hope to win partner loyalty via partner networks. They are relevant communities within which to educate partners and to create some stickiness where partners will want to return again and again. But to hope to create incremental brand revenue is folly….for that one must change the business model, the partner model and a new partner loyalty program. Such advice about adding the partner capabilities may seem simplistic in theory, but I do realize that it is much more difficult in practice. That's why I’m dedicated to helping you Channel and Partner landscape grow and master this difficult transition and task.
Feel free to contact me if you have any questions: mvr@rosenteam.com
Regards - Mark
