CHALLENGES FOR EUROPE S IT INDUSTRY IN 2017 AND BEYOND ADAM SIMON, GLOBAL MANAGING DIRECTOR

Transcription

1 CHALLENGES FOR EUROPE S IT INDUSTRY IN 2017 AND BEYOND ADAM SIMON, GLOBAL MANAGING DIRECTOR

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3 RESELLERS ARE POSITIVE ABOUT 2016 HOW WOULD YOU SAY YOUR BUSINESS PERFORMED IN 2016? 3

4 AND FULLY RETAIN THEIR OPTIMISM FOR 2017 HOW DO YOU EXPECT YOUR BUSINESS TO PERFORM IN 2017 COMPARED TO 2016? 4

5 FEWER ARE SELLING PC S AND DESKTOPS IN THE UK, BUT THOSE THAT STAY ARE TAKING UP THE SLACK Q M M M03 Channel Reseller Count Revenue ( ) Avg Rev Per Reseller Corporate Reseller Etailer Business Etailer Consumer Retail Chain Small and Medium Reseller ALL

6 AND FRANCE IS THE SAME Q M M M03 Channel Reseller Count Revenue ( ) Avg Rev Per Reseller Corporate Reseller Etailer Business Etailer Consumer Retail Chain Small and Medium Reseller ALL

7 RESELLERS ARE RENEWING EACH MONTH 7

8 RESELLERS ARE HAPPY WITH THEIR DISTRIBUTORS HOW WOULD YOU RATE THE PERFORMANCE OF YOUR MAIN DISTRIBUTOR? 8

9 AND ARE RELATIVELY CALM REGARDING MARKET CONSOLIDATION OVERALL, HOW DO YOU VIEW THE CONSOLIDATION TREND IN THE MARKET? 9

10 EUROPE S RESELLERS AND RETAILERS ARE AT THE FOREFRONT OF THE IT CHALLENGES BEING DRIVEN BY DIGITAL TRANSFORMATION Customer demands Recruit & retain right talent Routes to market Distribution delivery & services Digital & cloud services Vendor offerings 10

11 OVER 6,000 RESELLERS ACROSS EUROPE SURVEYED; TOP 6 COUNTRIES 3,769 6,245 resellers responded in total (including all other countries) 11

12 CHANNELWATCH RESPONDENTS ARE RESELLER DECISION-MAKERS 12

13 FROM ACROSS THE RESELLER LANDSCAPE 13

14 AND REPRESENTATIVE BY SIZE OF COMPANY 14

15 EVER MORE DEMANDING CUSTOMERS 1 consumer b2b

16 No 1 Challenge The Omnichannel Consumer Shops anytime & everywhere Expects fast delivery to wherever

17 THE SAME PERSON TAKES CONSUMER-LEARNT HABITS TO WORK 18

18 CUSTOMER ARE EVER-MORE DEMANDING Source: The European Channel in CRN report 19

19 Do you agree that customers are ever more demanding? How are you experiencing this? And what are you doing about it?

20 CHOOSE MOST CONVENIENT ROUTES TO MARKET AND FLIP BETWEEN CHANNELS 2 What does anytime/anywhere do to logistics? Where are resellers purchasing?

21 OMNICHANNEL IS ALL ABOUT ADAPTING TO THE DIGITAL CUSTOMER , ,8 51, ,8 25, ,1 12,9 10 % Respondents 0 Adapt to customer shopping habits Increase sales Acquire new customers Stop losing market share to competitors Retain best customers Increase profitability Stop losing sales to ecommerce 22 22

22 BUT IT COSTS A LOT - JOHN LEWIS - A CASE STUDY IN DIGITALISATION WHY IT PUT TENS OF MILLIONS INTO DIGITAL TRANSFORMATION Omnichannel from an investor perspective 23

23 RESELLERS, LEARNING FROM THEIR CONSUMER HABITS, FLIP CHANNELS AND PURCHASE VIA ETAILERS DO YOU SOMETIMES PURCHASE PRODUCTS VIA ETAILERS INSTEAD OF BUYING VIA DISTRIBUTORS? 24

24 WITH PRICE AND PRODUCT AVAILABILITY AS KEY DRIVERS WHAT IS THE MAIN REASON YOU PURCHASE VIA E-TAILERS? 25

25 LONG TAIL/PRODUCT AVAILABILITY Number of SKU s online 2,277 Amazon 18 Maplin 19 JLP 36 Littlewoods.com 26

26 Are your resellers struggling with new logistical requirements imposed by the customer How are you helping them?

27 AND WANT NEW CATEGORIES WHICH REQUIRE NEW SKILLS 3 1. from mobility to BI 2. from hardware to cloud 3. towards a real focus on security

28 1. BI/ANALYTICS IS THE #1 PRIORITY ON THE CIO SPEND FOR 2017 Please indicate the top 3 technology areas where your company/business/ unit/government or public entity will be spending the highest amount of new/ discretionary funding in Source: Gartner 2017 CIO Agenda Report: Seizing the Digital Ecosystem 29

29 A TSUNAMI OF DATA Half of all the data that exists in the world was created in And less than 0.5% of all the data collected last year was analyzed and used. Judy Marks, CEO of Siemens 30

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31 TRANSLATES INTO DISSATISFACTION IN THE YOUNG The more deeply you dive, the more you understand that you need to dive even deeper. Andy Dow, Group Marketing Director, Tech Data UK 32

32 BI/ANALYTICS FOR DISTRIBUTORS Analytics in 2017 promises distributors further innovation, incremental revenue and profit potential through the development of complex BI solutions. AND VAR S MOVE FROM SOFTWARE SALES TO SOLUTIONS PROVIDER 33

33 BI/ANALYTICS TOOLS ARE THE SECRET TO CONTEXT UNLOCKING VALUE FOR CUSTOMERS New measures Product Place Promo Vendor Market Share by Product assortment Vendor Market Share by Total Storage GB (both embedded and upgrades) Competitive Sweet Spots of upfront reseller margins Product Life Cycle sweet spots of upfront rebates Price per DIMM GB (RAM) or Storage GB (HDD) by vendor (at any price level) 34

34 What kind of opportunity is BI/Analytics to your business? How are you currently investing in BI? Is this for your own business or to help your partners develop BI solutions in their business?

35 2. CLOUD CHALLENGE - HOW ARE RESELLERS KEEPING UP WITH THE CHANGE? 36

36 CLOUD SERVICES THE MAJORITY ARE TAKING UP THE CHALLENGE DO YOU CURRENTLY RESELL ANY CLOUD SERVICES? 37

37 SECURITY, INVESTMENT & COMPLEXITY ARE PUTTING OFF SOME WHAT IS THE MAIN REASON WHY YOU WOULD NOT RESELL CLOUD SERVICES? 38

38 BACK-UP IS THE DRIVER FOR THOSE THAT ARE MOVING WHICH CLOUD SERVICES HAVE YOU SOLD IN THE LAST 6 MONTHS? 39

39 VENDOR-HOSTED SERVICES VIA DISTIS ARE WELL PLACED IN SOME COUNTRIES WHAT KIND OF CLOUD SERVICES WOULD YOU PREFER TO SELL? 40

40 THE DISTRIBUTOR SHIFT TO THE CLOUD 41

41 DISTIS GENERALLY GET GOOD RATINGS HOW DO YOU RATE THEIR CLOUD SERVICES? 42

42 If you had a message for your resellers about new digital and cloud categories what would it be?

43 3. CUSTOMERS WANT SECURITY AND THE CHALLENGE CANNOT BE IGNORED WANNACRY CONTEXT SECURITY SOFTWARE SALES WEEK 20 The attack started on 12th May these are the results of security software sales in week 20 from 15 th May 44

44 INVESTORS, C-SUITE & CIO S NEED TO BE ALIGNED CIO NOT ALIGNED 45

45 WHILE VENDORS TRANSFORM THEIR OFFERINGS 4 Move into services Marketing programmes Vendor consolidation

46 FOR RESELLERS IT IS IMPORTANT TO GO INTO NEW SERVICE AREAS HOW IMPORTANT IS IT FOR YOU TO PARTNER WITH VENDORS IN THE DELIVERY OF PC SERVICES? 47

47 WHICH PC SERVICES DO YOU CONSIDER THE MOST IMPORTANT TO BE PART OF? WHICH PC SERVICES DO YOU CONSIDER THE MOST IMPORTANT TO BE PART OF? 48

48 TRANSLATES INTO DISSATISFACTION IN THE YOUNG Customers are not buying a product but the ability of getting an outcome on a daily basis. They are buying a guarantee that their business will operate always. This is an expectation economy. Channel Research Group member 49

49 What is the role of distis in new PC Services on offer?

50 REQUIRING DISTIS TO ADAPT THEIR SERVICES 5 value-add to channel impact of industry consolidation

51 EASY TO DO BUSINESS WITH, BUT MORE TRAINING & SUPPORT IS NEEDED WHAT ARE STRENGTHS AND WEAKNESSES OF YOUR MAIN DISTRIBUTOR? Criterion Ranking Ease of doing business 1 Speed of delivery 2 Prompt communications 3 Price transparency 4 Customer service 5 Product portfolio 6 Web interface - B2B Customer Portal 7 Credit terms 8 Product availability 9 Pre-sales support 10 Pricing 11 Delivery costs 12 Technical support 13 Certification 14 Training 15 Marketing support 16 Criterion UK Ranking Ease of doing business 1 Credit terms 2 Product portfolio 3 Training 14 Marketing support 15 Certification 16 Criterion Germany Ranking Prompt communications 1 Ease of doing business 2 Speed of delivery 3 Certification 14 Pricing 15 Delivery costs 16 Criterion France Ranking Speed of delivery 1 Ease of doing business 2 Web interface - B2B Customer Portal 3 Technical support 14 Training 15 Marketing support 16 52

52 HUNGER FROM RESELLERS FOR SAAS, HAAS, IOT, IAAS, PAAS COACHING IN WHICH AREAS WOULD DISTRIBUTOR COACHING BE MOST VALUABLE TO YOU TO POSITION YOURSELF IN THE MARKET? 53

53 OPPORTUNITIES FOR DISTRIBUTORS TO DEVELOP OMNICHANNEL CAPABILITY Question: where have you acquired new partners in order to execute omnichannel? Systems Platforms/Integration CRM - Loyalty Distribution Logistics Mobile Marketing/Offers Inventory management Distribution Warehousing Call Center Follow-up Services Local Deliver Last Mile Customer Experience Management Big Data Analytics Returns Automation/Management 20,7 34,5 44,8 44,8 44,8 41,4 41,4 51,7 55,2 58,6 75,9 % Respondents to CONTEXT Omnichannel Survey 54

54 WHILE THE IT INDUSTRY STRUGGLES TO RECRUIT & RETAIN KEY PEOPLE 6 getting and retaining talent

55 TRANSLATES INTO DISSATISFACTION IN THE YOUNG What is the biggest challenge you face? Recruitment of good staff members finding them and keeping them. Source: Channel Research Group Member 56

56 TRANSLATES INTO DISSATISFACTION IN THE YOUNG People want to be grown, not just employed. Source: Phil Jones, Managing Director, Brother UK 57

57 THE EMPLOYEE Source: MIT Sloan - Deloitte Digital 58

58 NEW SKILLS NEEDED SOME EXAMPLES Targeting (and retaining) talent Blockchain 59

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60 MILLENIALS DAY aujourd'hui chez Nestlé! Une journée consacrée à la Génération Y : conférences, ateliers et surtout un concours, le MILLENIALS CHALLENGE. Les 6 équipes finalistes composées de jeunes de moins de 30 ans nous ont proposé leurs projets 61 et leur vision du Nestlé idéal. Bravo à tous!

61 PEOPLE WANT TO BE GROWN NOT EMPLOYED Phil Jones MD Brother UK 62

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63 What are your best practices with recruitment and retention of people?

64 THANKS! Follow CONTEXTworld Adam Simon Global Managing For more information about the CONTEXT Channelwatch Research, please contact Kinga Oryl at 65

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