IBM has launched, internationally, a programme designed to simplify and standardise the 50-plus sales incentive programmes that reseller partners have with IBM.
"Its aim," says Benoit Chatelard, distribution executive IBM SA, "is to make it easy to partner with IBM."
In SA partnerships account for about one-third of sales for IBM. Roughly R600 million was sold via the channel last year and sales through the channel are growing at a double-digit rate, says Chatelard. "We are growing fast because of a big transformation last year of the route to market. IBM SA has moved from a low level of channel participation to almost the same as corporate level for the first quarter of 1999."
IBM has a "hybrid distribution model", where the route to market is defined by the customer set. "A `different courses for different horses` approach," says Micheal Collins, GM Personal Systems Group IBM SA.
Chatelard describes four routes to market defined by the size of the company and the degree to which the customer needs support services. A large company with self-integration capacity will be able to approach IBM directly. The other three routes involve the channel in varying degrees. A small company with no need for support services will be able to buy through the IBM Shop, the organisation`s Internet offering soon to be rolled out in SA. Small customers needing support will buy through IBM resellers. The fourth scenario involves larger customers that need integration services, and IBM will then partner with other vendors.
A strong channel compliments IBM`s capabilities with other services and solutions. Chatelard expects to do an extra R200 million worth of business through the channel in 1999.
At the moment IBM has different programmes for each of its hardware, software and services brands, making it very difficult for partners in the channel, which sell across many brands, to administer the various programmes. Partners were also asking to be recognised for their investment in IBM and for some way of being differentiated and rewarded for their commitment to IBM.
IBM SA was, in the form of the Power of Partnership Club launched last year, already quite advanced in the process of establishing programmes to make it easier for partners to sell across IBM brands as well as to unify recognition and incentives. The PartnerWorld programme will build on this, says Collins, by further reducing the complexity of partnering with IBM and giving easier access.
There are two aspects to PartnerWorld. The first entails a singular Web framework for all information, communication and support to partners. This is part of IBM`s strategy to make better use of e-business.
The second aspect involves differentiating partners by ranking them into one of three tiers of partnership: Member, Advanced and Premier. "The programme will differentiate the access to information, support, the recognition and reward of the people who are investing in IBM, so the more you invest the more you can become a Premier partner," says Chatelard.
The criteria for ranking IBM`s partners into the three categories still have to be established, but Chatelard says there will be no more than 20 Premier partners. However, the criteria will include value-add, degree of investment in IBM products and services, level of skill and degree of commitment.
Chatelard expects the PartnerWorld programme to be rolled out before the end of the year.
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