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IBM Point-of-Sale Teleconference Series: June 15, 2004

This teleconference covers marketing updates, co-marketing campaigns, customer references, education and training, IRES announcement update, SIF announcement, product refresh, and more.

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IBM Point-of-Sale Teleconference Series: June 15, 2004

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  1. IBM Point-of-Sale Teleconference Series:June 15, 2004 Tammy Priest

  2. Agenda • Marketing Update – Tammy Priest • Co-Marketing • Customer References • Education and Training • IRES Annoucement Update • SIF Announcement • Product Refresh – Tami Garneau • Preloaded hardware • The New IBM PartnerWorld Program – Nancy Greene • Maintenance Options for Point-of-Sale – Wayne Correa

  3. Co-marketing Campaigns • Dollar for Dollar Program • Premier Business Partners - $15,000 in co-funding, $7,500 in co-funding for User’s Conferences, $1,000 in Literature on Demand credit • Advanced Business Partners - $8,000 in co-funding, $500 in Literature on Demand credit • Must be Premier or Advanced by June 30, 2004 to participate • Campaigns must be submitted by September 30, 2004 • We have 11 Premier and Advanced Business Partners – four have participated to date • 2004 Co-marketing Campaign • Up to $2000 per campaign, two times per calendar year • Additional $1000 available if promoting IRES (IBM Retail Environment for SUSE Linux) • May be used for direct mail, outbound telemarketing, advertising, tradeshows • SurePOS 300 Bundle Co-marketing Campaign • $4,000 towards demand generation campaign • Only a few slots left • Customer Reference Incentive • Business Partner submits an eligible customer reference via the Customer Reference Consent form • Business Partner may receive no charge admission to the 2005 Retail Store Solutions Education Conference – in Long Beach, CA • Available to the first 50 references, but slots are filling up quickly. Get yours in today! Literature on Demand Web site: http://www.printers.ibm.com/sales/datalogs.nsf/agrsscatalog

  4. Customer References Congratulations to the following Business Partners who have recently submitted customer references: INFOGENESIS SEQUOIA SYSTEMS TECHNOLOGY GROUP STCR Each of these Business Partners submitted multiple customer references and will receive one free admission to the 2005 Retail Store Solutions Education Conference for each submission. They will also be highlighted in our quarterly sales newsletter.

  5. Send us your company newsletters • Do you have a company newsletter? Please remember to add us to your distribution list so that we can help you promote your successes. • Christina Akers, Marketing Communications: cakers@us.ibm.com • Deborah Bine, Marketing Communications: dbine@us.ibm.com • Cathy Wagner, Marketing Programs (grocery/pharmacy): cew@us.ibm.com • Nancy Greene, Marketing Programs (foodservice/hospitality): nagreene@us.ibm.com • Sarah Wind, Marketing Programs (specialty/kiosk): windsar@us.ibm.com • Jerry Leeman, Segment Manager – Specialty/Hospitality: leemanj@us.ibm.com • Patty Mahan, Segment Manager – Grocery: pattym@us.ibm.com

  6. Education and Trainingwww.ibm.com/education/retail • Self Checkout Training • Account Management Class • Session I: July 12-14, 2004 – Jacksonville, Florida • Session II: July 19-21, 2004 – Jacksonville, Florida • Session III: August 9-11, 2004 – Jacksonville, Florida • Project Management Class • Session I: July 12-23, 2004 – Jacksonville, Florida • Session II: July 26-August 6, 2004 – Jacksonville, Florida • Register for the Account Management and Project Management classes beginning June 1, 2004, on the Global Retail Store Education Web site: www.ibm.com/education/retail

  7. IRES Update • IRES is an i-listed PRPQ that is being added to the BP exhibit in the US / Canada via a Letter 500 effective June 15. • IRES is an i-listed PRPQ not to "hide" or "limit" the orders, but rather because there are specific manual processes that happen "behind the scenes" to fulfill the IRES order. The steps include: • IBM is not a Linux distributor -- as part of the IRES order, IBM triggers Novell to ship the SUSE LINUX Retail Solution, which is the foundation of the IRES environment. • To order IRES, there is a PRPQ Request Form that must be submitted. The request form is found on http://www-1.ibm.com/partnerworld/pwhome.nsf/weblook/pat_pos.html . The request form includes basic customer information (name and address), as well as the quantity of each system (high end server, low end server, client) that will be ordered. The form must be filled out and submitted to Art Warner. The instructions for submitting this form are on the request form as well. • There is an agreement that must be signed by the End Customer, and submitted to Art Warner, prior to the PRPQ Request being approved. This agreement covers the Ts&Cs for the support and software maintenance of IRES. This agreement is between IBM and the end customer, brokered by the Business Partner. The agreement can also be found at http://www-1.ibm.com/partnerworld/pwhome.nsf/weblook/pat_pos.html .

  8. IRES Update – cont. • To help guide the ordering process, there will be a checklist placed on http://www-1.ibm.com/partnerworld/pwhome.nsf/weblook/pat_pos.html and on the Marketing Repository. This will also document these steps that must happen for the order to be approved and fulfilled. • IRES is available in the Hardware Mall for Developers at a 50% discount.

  9. Store Integration Framework • IBM Store Integrator V1 will be announced June 22 and will GA July 16. It enables you to reuse the business logic in your ACE, SA, or GSA POS applications. • Provides a common Java™ API to integrate store and Web-based applications with POS. Business Partners and Independent Software Vendors can use this API to interface their applications once with ACE, SA, and GSA. • Eliminates the need to maintain duplicate price files or payment facilities. Other applications can now just reuse the pricing and transaction logic in POS. • Enables the extension of existing ACE, SA, or GSA POS applications using modern Java development tools. • Provides an enhanced XML-based GUI toolkit to develop simple, intuitive consumer and operator POS interfaces with upgrades available for SureVision and Astra PRPQ customers. • Enables integrated management of the store based on the Java Management Extensions (JMX) standard. • Delivers a key component of the IBM Store Integration Framework. • All of SIF collateral can be ordered through the Print on Demand tool at https://w3.printers.ibm.com/sales/catalogs.nsf/agrsscatalogint.

  10. IBM Microsoft Preload Update6-22-2004 - Announce

  11. Overview: • Planned Announce Date -> 6/22/2004 • Planned GA Date -> 6/25/2004 • Target Customers • Tier 1 and Tier 2 • AG, EMEA and AP • Distributors will still continue to provide MS preloads • Price to customer must be a HW and OS solution price (total)

  12. Plans for Announcement WW MTMsl • 4840-563 => -W63 • 4840-53Z => -W3Z • 4840-54Z => -W4Z • 4840-55Z => -W5Z • 4840-56Z => -W6Z • 4810-32H => -W2H • Planned MTMs • 4800-741 => - W41 • 4800-781 => -W81 • 4840-533 => -W33 • 4840-543 => -W43 • 4840-553 => -W53 • English Only • May be overwritten with same release of OS (* Even different Language version) • Planned OS • XP Professional (w/Embedded Restrictions – next slide) • XP Embedded is a different Operating System and the user may not overwrite the preload image with an XP Embedded image. • RPQ Alternate Option • Unique HW Configurations • Other OS Releases (Windows NT, 98 or 2000 Prof.) • Customer Requires “Downgrade Rights” • Customer can not comply with “embedded restrictions” for Announced models EULA

  13. Embedded Restrictions for WW MTMs • What are “Embedded Restrictions” • Can not overwrite the preloaded image of XP Prof. with a different release of a MS OS (ie. NT, 98, 2000 Prof.) but could overwrite with a different image for XP Professional (which may include the customer/integrator’s fixes/virus patches, etc.) • Can not use Office Automation applications unless directly related to Store Operations • DB/Email/Spreadsheets/Word • Can not have the standard MS Desktop “shell” as the Retail Application Interface. Actually, the standard MS Desktop "shell" should not be displayed as the interface to the end user

  14. Which Path should I take? Is Announced MTM desired HW config? Can Customer Comply w/ Embedded Restrictions? NO NO Other “System Builder” Model Yes Yes NO Yes Submit RPQ Submit RPQ Can Customer Comply w/ Embedded Restrictions? Yes • Embedded Restrictions • No “Downgrade Rights” • Office Automation Restrictions for Store Operations only • Microsoft Desktop shell may NOT be displayed as End User Interface Place Order

  15. The New IBM PartnerWorld Program

  16. Premier Advanced Software Member Multiple Infrastructures Systems & Services Personal Systems Software Developers Current PartnerWorld Program ... 4 tracks • Multiple tracks to join for IBM support • Overlapping and duplicate offerings • No centralized skills tracking • Multiple I/T infrastructures and databases • Limited cross brand programs or offerings • Tailored to IBM Brands

  17. New, Simplified PartnerWorld Program • Aligned to Business Partner business models instead of IBM product groups • Integrated with go-to-market strategies and priorities • Single Web experience • Business Partners recognized for their total IBM contribution • Provides visibility and removes barriers to full breadth of IBM support and enablement offerings Premier Advanced Member Common Infrastructure

  18. Simplified Points Approach (North America Example) Points Skills or Solutions (Minimums apply, 3 for Advanced, 6 for Premier) Approved Skills 1 ISV Solution TBD Revenue * Total: $250K Server and Storage (excluding xSeries) 1 $75K PC, xSeries, Printer and Retail Store Solutions 1 $75K Software 1 $150K Services 1 SMB: $75KServer and Storage (excluding xSeries) 1 $25K PC, xSeries and Printer 1 $25K Software 1 Customer Satisfaction Conducted Customer Satisfaction Survey via 3rd party 1 Achieved Net Satisfaction Index (NSI): 79-85 86-100 2 4 Notes: * Includes reseller and validated influencer revenue Targets: Advanced Premier 7 points 25 points Note: An approved joint marketing plan, PartnerPlan, is required for Premier

  19. Points Calculation (North America Example) Attainment Points Skills or Solutions (Minimums apply) Approved Skills * 6 6 Revenue Total: $250K Server and Storage (excl. xSeries) $500K 2 $75K PC, xSeries, Printer and Retail Store Solutions $900K 12 $75K Software $0K $150K Services $150K 1 SMB: $75K Server and Storage (excl. xSeries) n/a $25K PC, xSeries and Printer n/a $25K Software n/a Customer Satisfaction Conducted Customer Satisfaction Survey via 3rd party Yes 1 NSI 86-100 Yes 4 PartnerPlan Complete Yes N/A Total 26 Qualification Premier * 20 points from current Retail Store Solutions Skills table = 1 point on new PW table

  20. Current Skills table

  21. Transition Plan • Third Quarter 2004 • New PartnerWorld Program implemented with a single PartnerWorld level for Resellers, Consultants & Integrators • Business Partner is assigned the current highest level within the Tracks • Third Quarter 2004 – First Quarter 2005 (After initial leveling): • Business Partners may increase PartnerWorld level based on the points table only • The system will recalculate the BP's level using YTD 2004 revenue on a regular basis • IBM will not down level a Business Partner in 2004 • Fourth Quarter 2004 • Points for approved solutions added to the table for all Business Partners • ISVs are integrated into the single, simplified PartnerWorld program • First Quarter 2005 • All Business Partners must qualify for their 2005 level based on the points table, using YE 2004 revenue

  22. To Get Started . . . The PartnerWorld Web site – ibm.com/partnerworld -- is the first step in learning about the new PartnerWorld Program. At the Web site you can read and/or download: • IBM PartnerWorld Marketing Brochure – provides a high level overview of the new, simplified program • IBM PartnerWorld Program Guide – contains detailed, concise information about the new program, benefits and offerings, as well as specific information about how to qualify for each membership level • IBM PartnerWorld Transition Guide – intended for Business Partner company administrators, it provides details of actions that should be taken to ensure a smooth transition to the new, simplified program • Frequently Asked Questions – we’ve anticipated the questions you may have about the new program and we answer them in a clear, concise way.

  23. Business Partner Maintenance Contract Optionsfor Point of Sale Products IBM Global Services

  24. Maintenance Contracting Options • If you want an easy way to sell 1 and 3 year warranty upgrades and extensions on a simple online contract, you want to earn discount on that sale, and you sell the hardware through Partner Commerce (SAP), choose ServicePac contract. • If you like to stay engaged with the customer, earn the highest discount, contract and collect revenue directly from the end user for warranty upgrades or maintenance and own renewals, choose ServiceSuite contract - Remarketing • If you like to engage with the customer, earn a fee, provide customer with a contract for warranty upgrades or maintenance and have IBM maintain the relationship ( billing, renewals, etc. ), choose ServiceSuite contract - Fee • If you like IBM to engage with the customer, earn a fee, have IBM close the contract for warranty upgrades or maintenance and have IBM maintain the relationship ( billing, renewals, etc. ), or you need non-standard T&Cs or pricing,choose ServiceElect contract - Lead Pass Fee.

  25. ServicePac • Offering Summary • One page contract, sold by part number • Registered and activated via web. • Available to all Business Partners. Sold through SAP Only. • Warranty Service Upgrades and Post Warranty Maintenance Service • Supports standard terms, conditions and pricing • Most currently marketed prepackaged (non-complex configurations) machines, except 4694, 4800, and 4835 • Two selectable service levels (9X5, 7X24) • Competitively priced, One Time Charge - all prepay, 1 or 3 years options available • Discounted price extended to Distributor or SP1 • Business Partner Benefits • Quick and easy. • Minimum investment of time to submit opportunity • Compensation commensurate with sales/administrative activity

  26. ServiceSuite – Remarketed option • Offering Summary • Supports Standard Warranty Service Upgrades and Post Warranty Maintenance Service • Offers various standard service levels • Auto-insert and auto-renew options • Allows support for some non-IBM product • IBM bills Business Partner • Business Partner firm must be approved through the Remarketer Acceptance Program • Business Partner Benefits • Most popular contracting option amongst Business Partner community • Allows Business Partner to maintain the customer relationship • Highest margin based on highest level of BP involvement • IBM offers discount off the suggested price; BP sets the price to end user • Provides future revenue stream based on ongoing renewals

  27. ServiceSuite – Closed Contract Fee option • Offering Summary • Supports Standard Warranty Service Upgrades and Post Warranty Maintenance Service • Offers various standard service levels • Allows support for some non-IBM product • Auto-insert and auto-renew options • IBM determines pricing, bills end user directly, manages customer relationship and renewals • Business Partner Benefits • Business Partner closes the sale and acts as middleman providing contract to end user • Reduces administrative overhead • Provides revenue source to your firm

  28. ServiceElect – Lead/Pass Fee option • Offering Summary • Supports Non-standard Warranty Service Upgrades and Post Warranty Maintenance Service • Allows non-standard terms, conditions and pricing • Offers various service levels • Allows support for some non-IBM products • Auto-insert and auto-renew options • Available to Solution Provider (T1 or T2) who have direct relationship with and can qualify the end user • Business Partner submits electronic request to IBM, then disengages • IBM determines pricing, bills end user directly, manages customer relationship and renewals • Business Partner Benefits • Minimum investment of time to submit opportunity • Reduces administrative and sales overhead • IBM closes the deal - provides revenue source to your firm (10% of 12 month contract revenue value)

  29. Contracting Option – Summary ServiceSuite ServiceElect Description Pac Rem. Fee Lead/ Pass • Standard Offerings X X X X • Non-Standard X • Quick and Easy X X • Compensation Level H H M L • Sales/Admin Resources M H M L • Renewal BP BP IBM IBM • Sets Prices BP BP IBM IBM • Future Revenue Stream BP BP IBM IBM

  30. For More Information ….. • Contact your IGS Channel Sales Representative • Selwyn Dixon sdixon1@us.ibm.com • Marcia Evans mlevans@us.ibm.com • E-mail address for Channel Services Marketing (channels@us.ibm.com) • Tools • ServicePac … SAP • ServiceSuite – Remarketer or Fee – ISAT • ServiceElect – SERVOPps

  31. BACK UP CHARTS • See additional charts for further explanation on contracting features for ServiceSuite contract.

  32. ServiceSuite Contract - Terms and Conditions • 1-5 year contract terms are available • Monthly, quarterly, annual or prepayment billing options • Consolidated contract option (multiple customer numbers within one contract) • Automatic Insert feature • Automatic Renewal feature

  33. ServiceSuite- Remarketing Terms and Conditions • Automatic Renewal • No additional ‘selling’ involved • No customer signature is required • Same renewal term as original contract • Revenue stream assured • Renewal opportunity captured within IBM LIABP system

  34. ServiceSuite Contract – Remarketing Terms and Conditions (cont) • Automatic Insert Feature • Adds new products installed within the ‘using’ IBM customer number to the contract • Key is to ensure IBM administrator installs the new equipment under the ServiceSuite contract number • No additional ‘selling’ involved • No customer signature is required • Same service level as other products

  35. ServiceSuite Contract - Remarketing • Available for Business Partners to maintain contract relationship with end user by reselling contract • Supports standard terms and conditions • Business Partners use IBM’s Services Assistant tool to generate proposals and contracts • Offers one consolidated contract for warranty upgrades and hardware maintenance • Provides flexible contract terms • Discounts available based on contract term, prepayment option and remarketer discount

  36. Thank You Replay available for 14 days Toll free: 1-888-568-0387 Toll: 1-402-530-7926

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