Varicent, an IBM Company 30-Day WW Channels...

© 2012 IBM Corporation

Varicent, an IBM Company30-Day WW Channels Update

June 2012Sue HahnChannel Integration Executive


Acquisition Company Name & Logo:

Overview description/Highlights: The Varicent Sales Performance Management (SPM) solution enables companies to automate the process of calculating, reporting & analyzing variable-based pay. The solution suite includes a platform with the following modules:

Incentive Compensation Management – create, model and manage pay-for-performance programs.

Quota Planning – assign appropriate quota levels according to territories, products and lines of business.

Territory Management – determine optimal territory coverage model, manage change.

Channel Management – analyze effectiveness Incentive Compensation Management – create, model and manage of each sales channel including agents, distributors and resellers.

** Key dates: Announcement Date/Close Date Planned Transfer of Business Passport Advantage date

Apr 13, 2012 / May, 22 2012**Feb 1, 2013**Oct 4, 2012 (Perpetual license only)

* SVP Authorization Highlights: IBM SW Product Group

Business AnalyticsCognos Performance Management

Certification Requirements TBD

Links/Resources Software Seller’s Workplace - http://w3-103.ibm.com/software/xl/portal/content?synKey=I906713C25509Z88

Quick Reference Sheet for Varicent

** Please Note: Future Key Dates are Subject to Change.**


Acquiring a leader in sales performance management solutions• Headquartered in Toronto, Canada with offices in Canada, US, UK, Australia, Hong Kong, Mexico, Singapore –

195 employees• Innovator of new solutions for sales performance management (SPM) including incentive compensation, quota

planning, territory and channel management• Fast growing vendor in emerging market of Sales Performance Management (SPM); Ranked by Deloitte’s Fast

50, Ventana Research and Gartner as a leading category vendor

Addressing a growing opportunity• Sales Performance Management is a high growth area bolstered by the economic need to align pay with

performance. SPM software helps companies address complexity, accommodate business growth and change, improve reliability, and optimize performance while avoiding unexpected outcomes

• Organizations of all sizes are dissatisfied with the time, costs and resources required to maintain and update spreadsheet-based or legacy sales management and incentive compensation processes and systems

Delivering solutions leadership • 180 customer deployments across all sectors with key customers in Banking, Insurance, Telco and Retail

(Distribution) sectors

Building on IBM leadership in Business Analytics• Deepens IBM’s comprehensive set of solutions for performance management processes across finance, sales,

customer, and operations

IBM acquires Varicent Software Inc. adding sales performance management to its Smarter Analytics initiative


Align Anticipate Act Big Data Platform Data Warehousing Information Integration and

Governance Data Management Enterprise Content Management Defensible Disposal

Business Analytics and Optimization Consulting ServicesBAO Strategy | Customer Analytics | Regulatory and Risk | Fraud Analytics | Financial Performance ManagementInformation Management Foundation | IBM Research First-of-a-kind Projects | Application Management Services

IBM Smarter Analytics Signature SolutionsCustomer | Finance | Anti-Fraud, Waste & Abuse

IBM Solution AcceleratorsPortfolio aligned to Industry Imperatives

Smarter Computing - Systems that are tuned to the task, designed for data, managed with cloud technologies

Business Intelligence Performance Management Sales Performance

Management Predictive and Advanced Analytics Risk Analytics Sentiment Analytics Big Data Analytics Content Analytics Web and Digital Analytics Online Benchmark Spend Analytics

Decision Management Advanced Case Management Digital Marketing Optimization Cross-channel Selling and Marketing Pricing, Promotion, and Assortment

Optimization Marketing Performance Optimization Supply Chain Optimization Organization and Workforce

Transformation

Systems that learn and reasonWatson l Watson for Healthcare l Watson for Financial Services l Ready for Watson

Learn

Transform

IBM Capabilities


Growing Revenue Intelligently

Leveraging all information, all people, all perspectives and enabling all decisions

PerformanceManagement

Predictive Analytics

RiskAnalytics

Business Intelligence

Content Analytics

Enterprises will miss the equivalent of 5% to 10% of annual sales as “lost opportunities” that could have been captures through improved management of sales territories, quotas and compensation plans.

Source: Gartner Marketscope for Sales Incentive Compensation Management Software, March 2010

Why Now for Sales Performance Management?

• Rebuilding sales capacity to drive growth strategies

• Increasing insight into underlying assumptions and likely outcomes of compensation strategies

• Greater required flexibility in supporting more-complex and dynamic sales models

• Greater governance over outlays• Dissatisfaction with the time, costs

and resources required to maintain and upgrade legacy compensation systems

• Dissatisfaction with the reliability of spreadsheets

FinancialOperationalSales

Anticipate to see, predict,

and shape business outcomes


Incentive CompensationBuild, model and implement variable pay programs that effectively drive desired sales behavior

Territory Management

Optimize sales coverage and manage

frequent personnel changes across

territories

Channel ManagementGain a single, accurate view of your entire sales force and all your distribution channels

Why Varicent Software? A Leader in Sales Performance Management


Quota Planning

Channel Management

Incentive Compensation

VaricentSales Performance

Management

Quota PlanningPlan and distribute revenue targets efficiently across all levels of your sales organization

CRMERP HRIS Industry Data

FP&SM TM


Quota Planning


Incentive Compensation

Channel Management

• Plan by Individuals, Teams, Regions, Channels, Products

• Target / Goal Setting • Variance Analysis• Scenario Planning• Quota Approvals• Quota Re-assignments• Top Down – Bottom Up

• Direct, OEM and Distributor Tracking

• Agency Mgmt – Insurance

• Certifications• Training• Plan Eligibility• Employee Effective

Dating

• Optimize Territories• Set Territories • Plan & Assign Targets,

Goals and Forecasts• Credit Rule Calculations• Manage Splits• Temporary Coverage• Proration• Retroactive Territory

Changes

• Plan Documentation and Communication

• Plan Calculation & Reporting• Manage Commissions,

Bonuses, MBOs, Non-Cash Rewards, Scorecards, Stock Options

• Inquiry Tracking & Resolution• Prior Period Adjustments• Data Integration• Payroll / AP Extraction

Varicent – A Complete Solution for Sales Performance Management


Varicent Software Differentiators

Simple, Powerful Technology– Reporting– Calculation engine– Workflow– Audit Logs– Inquiries and Disputes– Data Loading

Extensible Data Model

Scalability and Performance

User-defined, rules-based calculation engine

Library of sample applications and accelerators

Domain expertise and focus on customer success


Grow, retain and satisfy customers

Increase operational efficiency

Manage risk, fraud and regulatory compliance

Transform financial processes

Smarter Analytics is about organizational alignment Varicent clients are doing it today

• Agility in plan and people changes

• Visibility and control across properties to direct strategic growth

• Improves Payment Accuracy and Takes Monthly Processing

• From Two Weeks to Two Days

• Dispose of Ineffectiveness, Inefficiencies, and Errors

• Compliance and transparency

• Auditability in key compensation process


Varicent – Sample Customers


Authorized Product Groups

TIVOLI

Storage Security/Compl. Automation Ent. Asset Mgmt

RATIONALAll

LOTUSPortal

INFORMATION MGMTInfoSphere Data Mgmt

INDUSTRY SOLUTIONSECM Industry SW EMM CommerceFrameworks

AIM (WebSphere) BUSINESS ANALYTICSWebSphere Core Bus. Process Mgmt BI/PM AnalyticsRA

* Planned Subject to Change *

*


Varicent Business Partner TypesSystem Integrators (SI’s) This is the primary partner type in the Varicent ecosystem. Systems Integrators

(SI’s) consist of both GSIs, such as Accenture or Deloitte, as well as smaller, regional or boutique SI’s. SI’s largely focus on implementation services, either product implementation or large scale business process transformation or re-engineering.

Services Partners Services Partners are third party relationships that offer complementary products

or services which support the implementation of Varicent. The partner can prime or subcontract. Selection criteria of this partner set is driven by primarily location (Canada and lower costs), availability (Deloitte with 16 resources for testing and report building), or to supplement missing skills for a specific implementation. Currently, Open Symmetry, with locations in Singapore, UK, Canada, and US is their primary partner.

Resellers Varicent is in the process of building a reseller channel. Very few resell partners

today. The primary focus of the resell channel is to drive growth outside of North America with relationships owned and managed by Territory Sales Managers. Resellers are selected mostly for local market presence and is in the early stage of development.

Technology Partners Varicent has two (2) technology partnerships. Of note, is their long term

relationship with Microsoft. Considered a priority partner, a key supporter of SQL and their new offering: azure cloud, Amarande sales work directly with Microsoft industry teams on the selling side. Amarande is a global ISV partner.


Varicent Channel Road to Success

1- Preserve

• Preserve the current successful consulting partners, system integrators and expand capabilities

• Target key Partners for cross-enablement on other IBM BI/FPM Products

2- Fast Start – Early Adopter Program – Drive Revenue

• Recruit Cognos BPs to Invest, enable and reward in an early adopter channel and build a repeatable, scalable program. Recruit competitive SPM/ICM partners.

• “Fast start bootcamp”, early enablement. Sell-to, Sell-through program, BP marketing campaign

3- Grow

• Cultivate systems integrators: focus heavily on leveraging, expanding and cementing relationships in their SPM/ICM practices

• Strong focus on GMU, EMEA, AP and underserved regions

• Rollout Varicent enablement to broader BP community

• SPM/ICM technical certifications

ToBClose

Preserve

Fast Start – Early Adopters

Grow

Feb 2012Oct 2012

PA SVPMay 2012


Channel Goals, Objectives Outcomes – Team Effort1. Select the right partners – prioritize regions, partners• Both “Sell to”, “Sell through” program

2. BA Channel BP and Opportunity owner Work with the partner on OI Facilitate dialog on the opportunity, provide recommendations and guidance Document, communicate, follow-up on action items

3. Build repeatable, scalable program to drive revenue through Channel• Work with the BP to ensure the right team is engaged, keep progressing the opportunity and their

capabilities

• Varicent Sales, Pre Sales, Tiger Team, Channel Reps, VAD Reps, Competitive, Industry, etc.

• Goal is for the BP to become self-sufficient

4. “Fast Start” Enablement• Partner Pitch• Sales Enablement• Presales, Technical Enablement• Implementation Enablement• Sales, Marketing, Campaign Materials

5. Align with Regional requirements – EMEA, AP, CEE


Assistance & Information Resources

IBM PartnerWorld, IBM Software Group acquisitions, Varicent Software https://www-

304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_acquisitions_varicent_software

Sue Hahn, Channel Integration Executive

Email: [email protected]

https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_acquisitions_varicent_software



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