Developping Vendor Financing Partnerships in IT
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Developping Vendor Financing Partnerships in IT Eurolease forum Richard Gendreau 16 th May, 2013
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Developping Vendor Financing Partnerships in IT. Eurolease forum. Richard Gendreau 16 th May, 2013. BNP Paribas Leasing Solutions Global overview. 2011 - Ranks 1st in Europe. BNP Paribas Leasing Solutions An organisation Specialised by Markets. 3 International Business Lines - PowerPoint PPT Presentation
Transcript of Developping Vendor Financing Partnerships in IT
Developping Vendor Financing Partnerships in IT
Eurolease forum
Richard Gendreau 16th May, 2013
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BNP Paribas Leasing Solutions Global overview
2011 - Ranks 1st in Europe
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BNP Paribas Leasing Solutions An organisation Specialised by Markets
3 International Business Lines to remain close to our client’sand partner’s needs:
Technology Solutions► Specialised in technological assets:
– Office Equipment– IT (hardware, software)– Telecom equipment– Medical
Equipment & Logistics Solutions ► Specialised in professional rolling equipment:
- Farming Machinery, Construction and Public Works equipment, Materials Handling equipment, Light Commercial and Commercial Vehicles.
Bank Leasing Services► Specialised in leasing solutions for Bank’s customers
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Why investigate the IT market for vendor financing ?
Wide market
Attractive from a growth perspective
Tech refresh fits with renting … and thus to a vendor financing model
Why ?
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IT vendor financing - Findings
Information Technology is not ONE market but SEVERAL marketS
Software # Hardware Hardware relates to PCs, Servers, Storage, Printers… Small ticket # Mid / Large ticket Tier 1, tier 2 & tier 3 distribution models
Vendor financing penetration remains weak
_aaS take up PaaS, IaaS, SaaS models…
Findings
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Roadmap will depend upon
Type of partner Manufacturer, Software Editor, Reseller, VAR, Distributor, VAD, Integrator… ?
End user typology Corporate Accounts, Mid Caps, SMEs, Professionals
… Vertical Markets ?
Geography Mature country / Emerging market… or economically depressed?
Roadmap
The IT market represents an attractive opportunity for lessors investing in a vendor finance but it requires1) The implementation of specific structure(s)2) The design and roll out of the right products and services3) A cultural fit
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Wholesale Retail
Partners • Global vendors • Resellers
Ticket size • Mid/Large • Small
Commercial Fronting
• Vendor • Vendor
Vendor relation • Centralized • Decentralized
Product offering• Renting• IPAs
• Leasing• Renting
Client• Mid Market• Large Corporates
• Professionals• SME• Mid Market
IT market(s) segmentation
Referral
• VARs
• Mid
• Lessor
• Coordinated
• Master & Schedules
• SME• Mid Market• Large Corporates
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Wholesale Retail
Key Value Drivers
1) Large coverage
2) International centralised organisation
3) Country SPOCs
1) Sales coverage in the field
2) Strong marketing support
3) Fast & simple processes
Key Success Factors
Top down governance
Large volumes to gain granularity of the portfolio
Structure an efficient and profitable model
Strong sales engagement
Key Performance
Indicators
• Volumes
• SLAs
• Sales penetration
• Risk indicator per partner
• Productivity
Main stakes per market segment
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IT Retail : How Do We Make It Happen...
IT Retail: “Position Leasing as a Sales Aid and Not a Product to Sell”
Make It Easy Training Programme – sales, ops Helpdesk from Origination to Booking Rate Calculators; Lease v Cash Tool On line tool; from Quote to Contract
Increase Awareness Product Promotions Exhibition Support
Help Partners to Add Value to their Customers Co Branding Credit Checks Joint Meetings with Key Customers
Internally Establish Cross Functional Teams Sales, Marketing, Ops, Risk & IT
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IT Wholesale : Global approach
IT Wholesale: “Provide a One Stop Shop”
Need for : Geographical coverage Top Down governance Consistent approach and processes Tailor made structures Operational excellence
Points to note Time to break even “Imperfect” paper Granularity of the portfolio Operating risks
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Software financing : Specific approach
Software financing: “Dispel the Myths that Software cannot be Financed”
Lessor cultural adjustment Credit policies Contractual package Litigation & Recoveries processes
Vendor leasing to progress Financing not in the vendors’ DNA Strategic stance Education & Engagement !
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But also because IT is a fast moving reality
Innovation is crucial need to anticipate: hosted, _aaS,
Service is growing FM, TCO
Adapt constantly difference is blurring between assets
Act local stay close to reality
Think global & implement local !
Momentum
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Vendor financing
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BNP PARIBAS LEASING SOLUTIONSInternational Business Line
Technology Solutions
Richard GENDREAUHead of Partnerships
+33 (0) 6 64 01 39 22 [email protected]
