Digital Transformation and Partner Networks. Discussion August 2015
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1 Digital Transformation and Partner Networks Discussion August 2015
2 Contents Welcome Digital Transformation & New Partner Dynamics Partner Network Evolution Designing for The New Digital Model - Programs to Platforms - Building Blocks - Calls to Action
3 Introducing Digital Bridge Partners We are proud to announce that Channel Cloud Consulting is now Digital Bridge Partners a consulting practice focused on bridging digital business models and partner networks. Our evolution is a natural extension of the work we ve been doing for many years: Developing digital strategies Creating go to market plans Architecting partner ecosystems This deck reveals our evolving perspective on digitally-enabling partner networks. We look forward to hearing your thoughts about the implications of digital transformation on industries, partner networks, companies, and individuals. 2
4 Turning and turning in the widening gyre The falcon cannot hear the falconer; Things fall apart; the centre cannot hold; Mere anarchy is loosed upon the world - W.B. Yeats
5 Digital Disruption is Breaking Apart Traditional Business Models and Forcing Companies to Adapt Four forces are converging to digitally disrupt existing value structures. Reduction in Switching Costs Complementary Innovation The stronger the combination of forces, the greater the disruption. This change is accelerating, driving digital disruption, and creating the need for new business models. Increases in Convenience & Efficiency Digital Disruption New Ecosystems of Value Source: DigitalTonto and Digital Bridge Partners 4
6 Partner Networks Are a Crucial Strategic Lever in the Digital Economy Partner Networks are transforming: Traditional customer, supplier, and partner roles are being redefined Value and supply chain relationships are shifting and recombining New partner identities and functions are being introduced New monetization & engagement models will predominate, enabling greater agility, increasing collaboration, and creating new business outcomes Workforce Engagement Millennials will be the majority of the US workforce by 2016 Sources: CCC Analysis, IDC, Ardent Partners, Statista Omni-Channel Customer Experience Digital Economy Big Data/IoT/Analyt ics 9B Mobile users by % Growth in adoption of business networks in 2 years Recombinant Partner Networks 212B connected devices by
7 Demand Chain Supply Chain Evolution Digital Disruption is Breaking Down Traditional Partner Network Hierarchies Ecosystem Participants (companies & individuals) are taking on new roles, restructuring, and engaging with each other based on mutual interest to deliver new forms of value Hierarchical Supply and Demand Chain Technology Partners Channel Suppliers Strategic Partners Employees Contractors Customers Recombinant Network Technology Partner Employees/Co ntractors Channel Customer Supplier Strategic Partners 6
8 Management Model Controlled Collaborative A New Agile and Flexible Partner Management and Enablement Approach is Required Relationships among partners are becoming: Varied Flexible Collaborative Participant Oriented A new management and enablement approach must respond as: Products become services that require Partnerto-Partner interactions Value creation and monetization moves from the physical to the digital layer Proscribed Program Orchestrated Modular Traditional Models in % drop in resellers 70% drop in revenue Enablement Model Platform New Models in % increase in relationships 30% increase in revenue Sources: CCC Analysis, Gartner 7
9 Partner Enablement Must Evolve From a Program to a Platform Approach Program Model Relies heavily on directed hierarchy and 1:1 alignment driven by vendor Channel and resale centric Capabilities based Sell To relationships Emphasizes 1:1 relationships Based on discrete, structured roles Focused on large volume base Minimal vertical, industry or unique IP focus Platform Model Designed to be modular and practice based with less reliance on the vendor IP and services centric Business outcome based Sell thru and with relationships Emphasizes collaboration and ecosystem Based on flexible agile roles Invests in smaller innovators Deeper vertical industry segmentation and emphasis on unique value 8
10 Program Silos Resale Development Influence OEM/ Technology Flexible Platform Marketing Practice Workflow Collaboration Transactions Dashboard Evolution of the Engagement Architecture - Technology Vertical Example Vendor Vendor Engagement Platform Customer Customer 9
11 The Building Blocks of a Partner Platform Must Enable Agility, Change, and Revenue Growth Modularity Function and/or Practice Based Agile and Recombinable Defined Integrations Clear Commercial Terms Clear Inputs and Outputs Supported Workflows Facilitating Process Collaboration Facilitating Interaction Security Portal Based Transactional Transparency Trust Based IP Rules Shared Interaction Resource: The village square Economic Platform Shared Commercial Terms Analytics and Intelligence Open Information Near Real Time 10
12 Call To Action Key Questions to Answer in Evaluating Your Partner Network New Business Models Partnership Model Requirements Partner Platform Gaps Partner Engagement Gaps Partner Organization How will Digital Disruption transform your business and operating models? Do you understand the value contributions that need to be made by the partner network? How will partner network value (customers, suppliers, alliances, channels) change in your digitallydriven business model? What new partner segments and partners will be required to deliver on customer requirements? Does your existing partner program need to morph into a platform to address the requirements of your new, flexible ecosystem? Do you need to change your management paradigm with partners to drive greater collaboration and modularity? Are you properly structured organizationally to pursue the new mandates? 11
13 Thank You Allan Adler Dylan Charles
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