High Tech Channel Management Best Practices

Speakers

Jeff Zobrist, Director Global Channel Operations, Siemens/UGS

Dushyant Pandya, VP Product Strategy, Salesforce.com

Track: High Tech Vertical

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Channel sales are a significant part of revenue

Source: Gartner Research

Indirect SalesIndirect Sales70%70%

Direct SalesDirect Sales30%30%

Revenue Breakdown by ChannelFor High Tech, Manufacturing, & Consumer Goods

High Tech Channel Management Variations

Differing levels of channel focus by region

Different levels of collaboration by partner types

Partner participation and mind share

What Channel Challenges Are You Facing Today?

Channel Conflict?

Mind share?

Visibility?

Scale?

Adoption?

Do you know who your top performing partners are? Do you know why they are your top performers? ”“

Increase Channel Growth and Partner Success

Automate Recruitment

Market Sell Measure

View Every Metric

Improve Effectiveness

Generate Loyalty

Recruit

Sales Analytics

Forecasting

Dashboards

Data Quality Management

Partner Recruitment

Partner Account Management

Partner Training

Channel Plans

Lead Management

Partner Communications

Funds & Budgeting Management

Document Management

Deal Registration

Opportunity Management

Activity Management

Pricing Management

Workflow

Jeff Zobrist

Director, Global Channel OperationsPLM Software

jeff.zobrist@siemens.com

Siemens PLM Software

Predecessor companies (SDRC & UGS) founded in 1960s 2001 - EDS purchased UGS & SDRC to become the #1 PLM

provider 2004 - Private Equity purchased UGS from EDS $2B 2007 - Siemens Acquired UGS $3.5B Leading provider of PLM software

>47,000 customers > 4.4M licenses

Creates and manages more than 40% of the world’s 3D data Strong Partner Ecosystem (>30% YoY revenue growth)

• INDUSTRY: Product lifecycle management software & services

• EMPLOYEES: 7,400

• REVENUE: $1.2B

• # USERS: 950 Internal / 1,300 Partners

• GEOGRAPHY: 62 Countries

February 2007

Confidential / © Siemens AG / Siemens Management Consulting 2007. All rights reserved

2391 A&D SPI 2010 02/07 – 070227 Intro Siemens for UGS v2.ppt

l

A Global Powerhouse in Electrical Engineering and Electronics

Total sales in billion USD, 2006 163Exchange rate of

EUR/USD: 1,32027JPY/USD: 0,008402

KRW/USD: 0,001091

115

93 92 9186

7770

6157

February 2007

Confidential / © Siemens AG / Siemens Management Consulting 2007. All rights reserved

2391 A&D SPI 2010 02/07 – 070227 Intro Siemens for UGS v2.ppt

Touching Lives Everywhere …

>$110 bln in revenue

4th largest employer in the world (largest foreign employer in the United States)

Employs more software engineers than Microsoft

75% of all company revenues come from new products (less than five years old)

3rd largest source of R&D investment in the United States

Produces more than ⅓ of all electricity in the US

Automation systems that help the U.S. Postal Service process 90 percent of the nation's mail

Equipment to generate more than one-third of the nation's electricity

Technologies in 50 percent of all cars on the nation's roads

One-third of North America's light rail vehicles

Processing of 164 million healthcare information transactions

Lighting technologies in 75 percent of all cars on the nation's (US) roads

Page 11 July 2007 Confidential / Copyright © Siemens AG 2007. All rights reserved UGS PLM Software

Unifying product design and productionfor greater Speed with Confidence…

SPEED (First to Market) Achieve concurrent disciplines by integrating product &

production Digitally analyze products &

production for agile processes

Re-use assets: knowledge, engineering, parts, manufacturing plans & resources

CONFIDENCE (Right to Market) Simulate and validate for predictable quality, cost and

compliance Close the loop between virtual & physical data for continuous

improvement Manage change predictably to ensure high quality throughout

the lifecycle

Why is PRM important to Siemens?

Partners are important to our growth, we have to integrate them

Tremendous value is created by partners Making it easier to do business increases mind

share

Partners are an extension of our workforce Another organization to manage Not a traditional reporting relationship

In order to improve productivity, you have to measure it

Need capacity and productivity metrics for partners

Key objective:Motivating and increasing the productivity of the 4,000-5,000 partner feet on the street who represent and sell for you but

don’t directly work for you

Key partner relationship challenges

Partners represent a significant amount of revenue and growth potential

Sales organization spread across many geographies and partner types Different sales processes – need to either support or unify the processes in the field

Differing levels of focus on indirect channel

Existing system was not flexible enough to support business Not global - customized zone by zone, which made it difficult to redesign

Did not support full partner sales integration

Reporting inadequate

Direct

Indirect

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Americas EMEA Asia

… and three geographic Sales areas with different focuses

0 200 400 600 800

SystemIntegrators

Tier 2Channel

ChannelSales

SoftwarePartners

…Large number of partners…

UGS’s partner solutions were complicated by…

PRM Objectives

Improve “Ease of Doing Business” with Partners Deal Registration, links into Partner Portal information from Opportunity, Single

source of information, ability to share account and opportunity information, etc.

Improve the effectiveness of our Global Channel Sales Team by leveraging a single platform

Remove the need for all the separate databases, spreadsheets, word documents, emails, and reports (now all on-line and associative)

Improve Communication Sharing (based on set-up) between Channel manager, channel partner, direct

sales Work and communicate in local language (only a few fields must be in English)

NEW – PRM functionality Fully integrate SFA Capability (Leads & Opportunities) with PRM Capability

(Partner Management)

Multi-Phase Roll Out Keep it simple – a tool for Channel Managers and Partners (90/10 Rule)

PRM is bigger than a Partner Sales Portal

SFA / CRM

Customer Accounts

Customer contacts

Opportunities

Leads

Dashboards

Reports

Activities & tasks

“Partner HR”

Partner accounts

Partner contacts

Leads Partner

recruitment

Contracts

Budgets

Channel plans

Certifications

Dashboards

Reports

Activities & tasks

Partner Portal

Leads

Opportunities

MDF budgets

Channel Plans

Activities & tasks

How Siemens looked at it …

SFDC PRM – Single Sales Tool for Channel Managers

SFDC PRM – Single Sales Tool for Channel Partners

Single sign on from existing partner portal

Create, accept, and manage leads

Deal / opportunity registration

Opportunity management

Direct integration from opportunity to sales/marketing materials and quote/order entry

MDF tracking (requests & claims)

Annual & Quarterly Business Planning

Export/update/import leads and opportunities (custom functionality)

Live Across the Globe in 100 Days: Key Steps

Timeline

Dec 2006: Selected salesforce.com

Jan 2007: Kicked off project

May 2007: Go-live in all geographies

3 week roll-out

1. Executive decision and buy in

Board, CEO, GSS EVP

2. Small global team formed

3. Global business process changes & definition

Moved from opportunity based system to account based system

4. salesforce.com customization

SFA/CRM and PRM field customization

Custom development

5. Integration to other systems

6. SFDC Localization

7. Data Migration

8. Hiring dedicated support staff

9. Training

UGS PRM – Lessons Learned

Power of Customization Ready, Fire, Aim – with a hosted application, it was easy to build the

system, get feedback, and then refine Keep it simple – stay focused on the end user Question the need and use of every field

Planning process Full support of executives, sales, IT Core team of 10 people, with 2-3 subject matter experts behind each Weekly meetings, with a 5 day kickoff: ensured alignment

Rollout Very fast rollout, with few surprises Easy to achieve wide adoption

Going Live is Only the Beginning

Study usage by users & partners – see who is getting value

User feedback to drive usefulness of tool

Leverage new Salesforce.com functionality as it becomes

available

How to make our users more productive

Fit new features & capabilities into day to day use of the tool

Weekly meetings to review functionality, problems,

enhancements

Data cleanup from migration

Jeff Zobrist

Director, Global Channel OperationsPLM Software

jeff.zobrist@siemens.com

QUESTION & ANSWER SESSION

Customer Hall of Fame

Kerry Grimes, Vice President, Mid Market and Global Channel Sales says: “Jeff’s knowledge of our company and partner sales model, coupled with his fast acquired knowledge of SFDC, makes him the ultimate authority and “Go-to-Guy” when it comes to SFDC PRM/CRM. Regardless of the time or time zone Jeff was in during our global deployment – he was there for anyone, day or night, to insure our global rollout was a huge success for both our internal and partner users. Due to Jeff’s tireless efforts and endless energy we’ve had a very successful global rollout which is already delivering benefits.”

Jeff ZobristDirector, Global Channel OperationsPLM Software

What the fans are saying:

Famed Statistics:• 100 Day Global PRM Implementation• >400 Partners and 1,250 Partner users• Custom integration into existing systems and processes• Custom PRM tabs, objects, functionality

Don’t miss these Activities:

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