How to Prepare Your Business 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

Steen Helmer 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

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

The traditional way of making money

TRANSACTIONAL

PROJECT-BASED SERVICES

MANAGED SERVICES

APPS AND IP

The partner of the future

TRANSACTIONAL

PROJECT-BASED SERVICES

MANAGED SERVICES

APPS AND IP

The Partner of the Future Longer term business outlook

Business focus shifts away from resale, towards verticals

Sales motions move from one time to recurring

Business activities shift to managed services, building IP

Major buyer shifts toward line of business

Sources of competition diversify

Marketing shifts to digital

Enabling Your Business Cloud Partner Profitability Cloud Competencies • Small and Midmarket Cloud Solutions • Cloud Productivity • Cloud Platform • Cloud Customer Relationship Management

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

Cloud Transformation Resources

• Partner in the Center of the Customer Lifecycle

• E-Book with key insights to help you build a profitable cloud practice

• Participation in flexible business models based on your business maturity

• Guidance from cloud solution providers who have achieved success in a cloud business model • Business Model training

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

Pinpoint • • • •

Create new opportunities Inspire customer demand Optimize lead flow Connect with other partners

Strategy by Steve Blank

https://youtu.be/rr4g-JxGQoM

Journey to cloud maturity Advanced stage ‘Trusted Advisor’ status Increased profitability

Mid stage Established relationships Stable cloud revenue

Early stage Transactional sales Deal-based revenue

Advanced-stage partners are more profitable Earn 8× more cloud revenue € € € € € € € €

€

Realize 3× higher profit margins from cloud productivity solutions

Earn 1.6× more revenue per employee

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 Have positive opinions on opportunities the cloud delivers Early

30%

91%

Advanced

69% 69%

Advanced

Mid

81%

52%

Mid

Early

Over 90% have recruited staff for the cloud

30% 53%

Early stage

71%

Mid-stage

Advanced-stage

Embrace the cloud 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. New

Develop a long-term cloud vision

More training and staff

Maximize your potential

• Use Microsoft Cloud Services internally • Cloud training

• Hire to the cloud • Expand training

• Be an early adopter • Further expand training

• 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

Define and structure your offer 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

New

Sell a product

Upsell a workload

Sell a solution

Within 30 days

In addition to previous

• Use strategic partnerships • Within 6 months

• • • •

Pre-deployment services Deployment and migration services On-going management and administration Help-desk support

• • • •

Online, on-demand training videos In-person training events Online materials about new products Customer case studies

• • • • •

Business-process re-engineering IP solutions Consulting solutions Enterprise social networking Customer relationship management (CRM)

Specialized cloud sales teams Advanced stage partners are 3× more likely to have separate cloud teams

Cloud account managers Advanced 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 Started Focus 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

Value Proposition Canvas

www.strategyzer.com

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

Sell your offer 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.

New

Build a cloud-sales plan

Grow customer base

• Provide incentives • Monitor related KPIs

• • • •

Create a separate cloud team Become a trusted advisor Focus on selling to BDMs Add cloud account manager

Deepen the customer relationship • Separate quotas for cloud solutions • Monitor account management KPIs • i.e. customer-renewal rates

Digital marketing leads Advanced 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

Market your offer 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.

New

Generate awareness • • • •

13% marketing € to the cloud Monitor marketing KPIs Online customer references Marketing activities • • • •

Build your website Email, search-engine marketing Social Media marketing Blogs

Generate more leads

Thought leadership

• 25% marketing € to the cloud • Inbound marketing and online presence: blog, SEO, social

• 50% marketing € to the cloud • Hire dedicated cloud-marketing staff • Marketing activities

• Marketing activities • Peer-to-peer platforms • Search-engine marketing • Community and other in-person events

• • • • • •

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.com Playbook

www.tbkpublishing.com Fast Review & Option Assessment

Business Model Management Today’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

Contact Steen Helmer for further information, +45 4040 9099 or [email protected]

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 selfstudy documents. Excl. VAT, transportation and venue costs

Value Proposition Design Do 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

Contact Steen Helmer for further information, +45 4040 9099 or [email protected]

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 selfstudy documents. Excl. VAT transportation and venue costs

TBK Consult • Why our clients use us

• How we operate

• What we do

Need help!

Steen Helmer +45 4040 9099 [email protected]

www.tbkconsult.com