New for IBM 10x4 Web-based Performance Bonus Program for Indirect Resellers IBM Corporation
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1 New for 2011 IBM 10x4 Web-based Performance Bonus Program for Indirect Resellers IBM Reseller Use Only
2 Agenda What is the 10x4 Program Who should register? How? What else can a Business Partner see? Who to speak to? 2
3 Objectives Help drive self-sufficient business by enabling planned growth with IBM Drive Knowledge based success with customers Improve access to earning potential Simpler method Simpler engagement with IBM 1Q - Announcement New way for IBM and business partners to plan joint business. New web-based Performance Bonus Program automatically offers base target, allowing; BP to choose stretch targets BP to monitor progress IBM to offer in-qtr incentives Over Achieve right to bottom of grid for System x & Storage! (see slide 9) Provides feedback on performance during the quarter. 3
4 What is the 10x4 Program? Starts at $5k target for entry-level or $10k for extra earnings Grow by 10% over your average last 4 quarters with IBM Earn up to 10% rebate Average $10k payout * Over Achieve right to bottom of grid for System x & Storage! (see slide 9) 3 Key brands System x, Storage, Services Use IBM Financing to help you * Earning potential is average per business partner within country Who should register? The person responsible for the commercial relationship & driving the IBM portfolio within the business. What does a business Partner need to do? Be a member of PartnerWorld. Register for the 10x4 Program Work with Distributor & IBM Representative to develop growth plan. Prerequisites All Business Partners wishing to participate must: 1. NOT be a Directly Targeted Business Partner by IBM. 2. Be registered in PartnerWorld with a valid IBM CE- ID (Partnerworld Company ID). This is required to validate entry at 10x4 registration. 3. Register on the 10x4 portal Registration is permitted only once Nominate the preferred Distributor as payment agent. This does not mean the reseller must buy from this Distributor. Terms & Conditions must be accepted online to activate the target 4. From 2H 2011 Must be registered for System x Connect Certifications will be required to earn additional higher than entry level. 4
5 How to Register for the First Time. We will use a vanity URL Germany: UK: DK: etc etc etc Click Map or Flag to choose your country 4 First Time Business Partners ONLY Click Registration 1. Confirm you have a CE-ID Complete the details 1. You will be given a username via with further information on how to set Password. 2. Please check SPAM filters. 5
6 Login with CE-ID/ address and Password to Set Targets Enter Username (CE-ID or address) & Password Then click login To be eligible for a reward, the Business Partner must: 1. Select Target for each Brand default standard is the entry level 2. Select a Distributor as payment agent. This does not mean the reseller must buy from this Distributor. 3. Accept the terms & Conditions. By brand Terms & Conditions are issued in PLETs on Partnerworld & included in the tool. Once terms & condition are accepted, this target window will be closed for the quarter. 6
7 What can I See? Campaigns/Activities includes information about valid accelerators Sales with IBM confirmed Sales Data vs the targets. Note: Non Euro-zone Countries with see both IBM $dollar & the converted currency, using the exchange rates shown in the PLET. Note: These are set for the Quarter. Sales Data will be loaded weekly Tuesday PM / Wednesday AM. Allowing for Bank Holidays. Data feeds are received from Authorised Distributors ONLY. Account Information shows Business Partner loaded information IBM Account Manager & contact details. All Partner User Interfaces Login Page Sales Targets Configuration page Agreed targets & chosen Distributor payment agent (Read Only) Maintenance Page for login data Change of Password/Business Partner Data Information page Special Activities currently running. Logout Communications Automatic 8 th Monday of Quarter regarding Performance s to BP contacts with Links for data maintenance 7
8 Things to Note Focus Brand are System x and Storage: Existing BP entry target calculated on average revenue of the previous 4 Quarters + growth New Reseller entry target = (= 10%Backend) Uncapped to the target level chosen. Overchieve to the maximum the Entry/Middle & Top will allow. 3 levels: ENTRY, MIDDLE, TOP Registration periods Top-Level: within the first month of a quarter Middle-Level: until the end of second month of a quarter Entry-Level: over the entire period ServicePac Up to target = Average revenue of the previous 2 Quarters + growth Earning are capped at Band chosen +2 higher. Payout from IBM via Distributor of choice.
9 1Q 2011 Grids 9 ServicePac Select one of the 3 targets offered Potentially over achieve up to 2 bands higher Incentive Target Band Target US$ Payment US$ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA System x & Storage Select one of the 3 targets offered Potentially over achieve to bottom of grid! Bandlevel Bandlevel Entry Middle Top Target Payout Payout Payout Band K$ K$ K$ K$ A 5 0, B 10 0,8 0,9 -- C 12 0,9 1 1,1 D ,1 1,2 E 16 1,1 1,2 1,3 F 18 1,2 1,3 1,4 G 20 1,3 1,4 1,6 H 25 1,4 1,6 1,8 I 30 1,5 1,7 2,0 J 35 1,6 1,8 2,5 K 40 1,7 1,9 3,0 L 45 1,8 2,0 3,5 M 50 1,9 2,5 4,0 N 60 2,0 3,0 4,5 O 70 2,1 3,5 5,0 P 80 2,2 4,0 5,5 Q 90 2,3 4,5 6,0 R 100 2,4 5,0 6,5 S 120 2,5 5,5 7,0 T 140 2,7 6,0 7,5 U 160 2,9 6,5 8,0 V 180 3,1 7,0 8,5 W 200 3,3 7,5 9,0 X 230 3,5 8,0 9,5 Y 260 4,0 8,5 10,0 Z 300 4,5 9,0 11,0 AA 350 5,0 9,5 12,0 AB 400 5,5 10,0 13,0 AC 450 6,0 10,5 14,0 AD 500 6,5 11,0 15,0 AE ,0 16,0 AF ,0 > 500 AG individual 8,5 4 Q Avg + 10 %---> 12,0 4 Q Avg +15 % > 17,0 BPs need to sign up to; Top Level Before 2 nd Month of Qtr Middle Level Before 3rd Month of Qtr Entry Level Before end of Qtr Once you sign up to a target you CANNOT change. If you over achieve you will be rewarded at the banding that the final revenue meets. For example. BP signs up to System x target of $12k What could they earn if he achieved $20k Top Level Middle Level Entry Level $1.6k $1.4k $1.3k
10 Timelines Beginning of QTR End of Month 1 End of Month 2 End of Month 3 End of QTR IBM opens tool for BP Deadline BP Deadline BP Deadline Registrations & for Top Level for Middle for Entry Target Signup Signup Level Signup Level Signup BP signing up for targets IBM loads weekly Sales data as reported by authorised distributors Automatic 8 th Monday on current Status System confirms closing sales data IBM make audit, then payments sent to Distributors as per terms & conditions stated in the PLETs* Distributors & IBM Sales support Business Partners with Sales Enablement & Skills Support ExpressSeller Offerings & Competitive Price Offerings PreSales Advisor Tools - Configuration & Product Information, Local promotions Fast Stock & Delivery. Education & Training Marketing Campaigns. Speak to your account manager about building a plan to deliver more revenue & margins with IBM for the next Quarter * PLET is the official announcement of the Program, there is one for each brand. 10
11 Support For PartnerWorld Setup (CEID) use PartnerWorld Contact Services: +44 (0) Live Chat online Web Form online 1. Your IBM Business Partner Client Representative (CRBP) 2. Program Enquires: 3. Registration/Administration Derren Wood: 11
12 How do I Sign Up to the Program Already a Partnerworld Registered BP? Register as per slide 5 Not a Partnerworld Member? - Work with PWCS team, to register and obtain your CE-ID number (can take 24-48hours). - Register as per slide 5 - How do I get paid? - During registration you will have to nominate a preferred Distributor to act as payment agent. This does not mean you must buy from this Distributor. - After the Quarter ends, and a full audit is completed, IBM will make a payment to the Distributor, confirming payout. They will then pass this on to you. - This will also be confirmed in the web tool. 12
13 FAQs 1 of 2 1) Payout is based on HVEC Total Revenue, Net Sale Price according to BPIW Sales Out Report (i.e. includes System x Special Bid). Not CHW. 2) The reseller can over perform to achieve the maximum payout in the grid within their selected growth level (Entry, Middle or Top). Extreme example; Reseller is allocated a Band C giving them an entry level target of $12k. They can select a Middle level stretch target of Band D $14k or a Top Level stretch target of $16k (see slide 6 of the education deck). If the reseller achieves $500k, they will receive $6.5, $11k or $15k depending on which level of target they have chosen (see slide 9 of the education deck). 3) The Reseller view will show their current sales and payout together with the next target and next level of payout (see slide 7 of the education deck). 4) This program is designed to be used in conjunction with Growth Programs. The only exclusions are T1s/Bespoke BDPs. 5) Financing is mentioned in the deck as it is an additional tool which may help your reseller reach their growth targets. It is not a brand for which they can set themselves a target within the tool. 6) Resellers should not experience any problems sharing one ID and PW to view the tool. Only one person should make changes at any time. 7) Resellers should receive their IDs and passwords instantaneously via . The PartnerWorld registration process we've been informed should take approx. 48hrs. 13
14 FAQs 2 of 2 9) Each reseller must; a) Select Target for each Brand default standard is the entry level b) Choose a Distributor who should act as payment agent. c) Accept the terms & Conditions. By brand Terms & Conditions are issued in PLETs on PartnerWorld & included in the tool d) Once terms & condition are accepted, this window will close for the quarter. N.B. If your reseller does not complete steps a) to d), they are not automatically allocated their default target and will not be active in the program. 10) When your resellers go into the tool to select their targets, they will be able to select either; i) Their allocated base target (e.g. 5,000 in Fig. 1 below) to receive Entry level payout ii) The next target band up (e.g. 10,000 in Fig 1 below) to receive a Middle level of payout iii) The target band above that (e.g. 12,000 in Fig. 1 below) to receive the Top level of payout (Works diagonally down and to the right in the table/matrix) If your reseller over achieves, they can earn whatever is shown against that level of payout aligned to the figure they achieve. E.g. Looking at slide 9, if the reseller achieves a figure of 100k, they would earn a payout of either 2.4k, 5k or 6.5k depending on the target and payout level they selected earlier in the quarter. 14
15 Backup Slides 15
16 Proposition will be delivered in 3 pillars upon brand foundations Relationship Program Driving revenue & margin Opportunity IBM/BP Plan market opportunity driven scaled w/ Skills investment Enablement Tools Stackable tools needed to assist BP Plan at the pace the BP wants. Skills Sales & Technical Scaled expectations by BP Type & Status IBM Brands STG, SWG, Services, IGF Consistent - 4Ps approach & contact 16
17 BP - Value Proposition will be built into a roadmap for BPs Distribution Relationship Enablement Skills Program Top Partners Growth Partners Development Partners New/Trading Partners Express Programs Partner Development Program 10x4 Growth Programs Bespoke BDP Stackable tools Sales & Marketing Tools w/ Partner World Pre-Sales Advisor T2/EU portals Seller Incentives On Channel Co Marketing Lead Passing Lead Protection BP Locator Scaled expectations Sales & Technical Sell 2Win System x Connect BSSC/SSSC Speciality Program IBM Brands STG, SWG, Services, IGF Consistent - 4Ps approach & contact 17 Note : 2 space bar click to complete chart
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