Directions EMEACommunity for Dynamics NAV partners

Directions EMEA 2015

Change or Disappear!

Is your company able to cope

with ‘ERP disruption’?

• In the early 70-ties Eastmann Kodak was ww market leader in

photography with a virtual monopoly on every step of the process

• In 1975 Steven Sasson (24 years old) invented the digital camera

• However, the Marketing department was not interested since it

would eat away the film revenue!

• The digital camera patent helped earn billions for Kodak in the

years after

• When Kodak finally embraced digital photography it was too late

• In 2012 Eastman Kodak filed for bankruptcy

• On April 9, 2012 Facebook purchased Instagram for $ 1 billion

Realize the potential….

What does your marketing say?

Introducing Partner Master Class(Part of the UK kick-off, May 2011)

• Recognised Worldwide as the TOP PDC

• All personnel have built VAR/ISV Partners from scratch

• Live and breath your business pains

• Wide range of experience in all areas

• Proven Success in multiple countries across Europe

• Top Class Coaches

About Guus Krabbenborg

• Over 25 years experience in business applications

• Co-founder in 1994 of DBS Business Solutions, an international

Dynamics CRM partner with 120 employees

• In 1999 commercial director at Navision in The Netherlands

• Started TerDege in 2000, specialized in business training and coaching

for Dynamics partners around the globe

• Since 2005 Guus runs workshops for prospect companies searching for

new ERP and CRM solutions

• Today he is co-owner of both PMC and QBS Group

• Finally Guus writes blogs and publishes books and a well-known

newsletter for Dynamics partners

The IT Channel Company

Help partners in adapting technology, business model, go-to-

market strategy and customer lifecycle management.

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Disruption impact

The new Buying behavior is causing ERP Disruption

Some aspects of the ‘new buying behavior’

• Buyers are risk averse

• Buyers prefer (micro-)vertical solutions

• Buyers look for complete solutions – not point solutions anymore

• IT has less influence on the decision-making process

• Subscription pricing becomes the standard

• Need for standardized solutions - customization is losing popularity

• Time-to-value becomes more important

• Simplicity is chosen over complexity

Want to be in business tomorrow?

Dear Guus,

Just a few minutes ago, I sold another Dynamics NAV Give-Me-Five-Package on the phone.

I followed your instructions, constantly asked “why” and delivered more than expected to the client It was easy and so much fun. I love it.

Thanks again for your inspiration. .

Best Regards

Stefan KriegerComporsys Hansa GmbHSpitzerdorfstr. 3, 22880 WedelTel. +49 (0)4103 12117-0Fax +49 (0)4103 12117-29http://www.comporsys.de

Amtsgericht Pinneberg, HRB 5860Geschäftsführung: Olaf Krieger, Stefan Krieger

20

Desire to Control the buying

experience

Remaining Anonymous (avoiding

human interaction)

Self-Educating/Highly Informed

Independent Validation (3rd party

intermediaries)

Low Risk tolerance

Fear Consciousness

Relevance

Microsoft Confidential – For Partner Use Only

Changing Buyer Behavior

Current Marketing Void

Example of the Car Industry

In 2005 an average Opel customer visited the showroom 6,5 times

before buying a new car

Today this average is only 1,5!

So the buying process in almost completely done online

Impact on the car industry:

• Dealers must shift from sales to service and maintenance

• Less expensive showrooms and less cars in the showrooms

• Ongoing investment in better websites

• Big investments in 3D projection of your new car (think model, color, etc.)

In 2014 in Europe 6.500 big car dealers closed their businesses (12%)

Is that a move from indirect to direct sales?!

Industry knowledge/content

All-In pricing

Low risk

• Vendor viability

• Customer concentrations

• Fixed fee implementations

“Good Enough” functionality

Frictionless buying experience

Buyers Reward

Expectations

Risk

Engagement

Time and Budget

Flexibility

Consumption

Project outcome

Levels of complexity

Simple & Transparant

Give power to your customers

Consult Design Implement Integrate Maintain Manage Adopt

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Various partner types...

Bonzai type

Lifestyle partner

Aggressive growth

And where are you?

• What is your culture of experiments and making mistakes?

• Trying something new?

• What is the ‘Yes, but - grade’ in your company?

• Available budgets for innovation

• Going (micro-) vertical

• Offering subscription pricing

• Real investments in marketing

• Allowing yourself to dream…..

• And how long will your best people wait for all this?

So how innovative are you?

• Recurring revenue is key in today’s M&A markets!

• There is a growing valuation gap between project businesses and

subscription businesses

• This difference in valuation can easily be a factor 2 to 4

• Do you know the impact on the value of your own company?

Your company valuation

So it’s really time to change!!

Waiting for the magic moment….?

Don’t miss the boat! Expand your market!

Microsoft Confidential 43

Threath Opportunity

How good are you in changing?

• Nice booklet called ‘Who moved my cheese?’

• It’s all about how people deal with changes

• So how do YOU deal with change?

• Are you waiting for your cheese to return?

• Or are you willing to go after the

new cheese?

• And what about the rest of

your company??

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• Lorem ipsum dolor sit amet, consectetur adipiscing elit.

“Projects”

Time

Results

“Products”

“Start-up”

Funding

Employees

& Customers

M

a

r

k

e

t

i

n

g

How to start a product business?

• Customizations is an art ;-) Better without customizations

• Standard answer: Yes Able to say ‘No’ and reframe

• Traditional view “Born in the cloud”

• Yes, but…. Yes we can!

• Looking for complexity Just do it!

• Business based on 1:1 services Productized 1:many services

• “Find, Win and Forget” Continuous engagement

Project vs Product people

• You will ignore the fastest growing part of the market

• Be forced to move up in the market

• Have to focus on the ‘M’ of the SMB markets

BUT

• Do you have the solutions to be successful there?

• Do you have the competencies to be successful there?

• Are you able to win against those competitors?

Not into Products, then…

Two types of repeatability….

We all know repeatable software:

- add on’s or components on top of Dynamics NAV

- with a specific vertical or horizontal focus

- they help partners to move from 1-to-1 towards 1-to-many

But what about repeatable services?

Example 1:Many support

1:Many end-user training

Customer comfort…

Customers support each other

• Ignoring cloud offerings

• Loosing your old customer base

• Support/BREP revenue

• Your new customers right after the implementation

• CRM solutions as ‘Trojan Horse’

• Preparedness to invest in marketing?

• Preparedness to change?

• So why wait for disruption?

Some Dynamics examples

The NAV markets are changing...

Previous situation

Buyers are IT and Finance

Function/feature websites

Leads via sales reps (push)

Technical/functional relevance is key

Long sales cycles

Intensive conversations

Long implementations

High customer risk

(Over)customization

Stand-alone Dynamics NAV

Today and tomorrow...

More and more business buyers

Buying guidance websites

Leads via relevant content (pull)

Business relevance is everything

Short(er) sales cycles

Anonimous buying journey

Short(er) implementations

Low(er) customer risk

Standard solutions

‘Business Solution from Microsoft’

The impact on your company....

Today and tomorrow...

Business buyers

Buying guidance websites

Leads via relevant content (pull)

Business relevance is everything

Short(er) sales cycles

Anonimous buying journey

Short(er) implementations

Low(er) customer risk

Standard solutions

‘Business Solution from Microsoft’

Partner challenges

Talk business language/role based websites

Understanding the buying process/education

Creating relevant content

Developing business competenties

New sales methodology (new sales?)

Offering relevant content via ‘gating’

Change mindset / internal DNA

Taking more risk as partner/avoiding risks

Standardization in all processes

Embracing the Microsoft stack/competenties

New customer requirements

Much better partner websites!!

Business conversations with your sales

A more professional delivery process

Low(er) risk!!

Subscription pricing

Faster delivery (next-next-finish)

Micro-verticalization

Looking for end-to-end solutions

Interested in buying Successful Projects!

Want to be in business tomorrow?

Feel free to take a business card!

Check http://www.partnermasterclass.com/training/workshop/ for

our ERP Disruption and Cloud SureStep training offering

Guus Krabbenborggk@Partnermasterclass.com

www.Partnermasterclass.com

Mobile +31 622 496 073

Enjoy DIRECTIONS 2015!

Join Us !

www.directionsemea.com