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Partner Sales Strategy
    Partner Days D3 - 15/04/2011

    Xavier Pansaers – Chief Sales Officer
OPENERP Production presents :

Actors :
JIM the PARTNER
ROBERT the CLIENT
TOM the OPENERP
Account Mgr
A Partner
named JIM
is selling
OPENERP Services
to A Client
called ROBERT …
JIM The Partner says:
 “ Hi Robert ! My Name is JIM;
OPENERP official partner.”
“Ready to sign the OpenERP
Publisher Warranty? ”

and Robert the Client says : “Are
you...”
OpenERP Xavier Pansaers Sales Strategy
,
As a matter of fact
Robert need an live
demo
to be attracted …
Ok ! Ride on ...
Let’s speak about Sales Strategies



# 1 Rule
DEMONSTRATE
(workflow kills)
NOW, JIM is thinking
about increasing his
revenue on
OPENERP...
# 2 Rule
ADDRESS OPENERP to
the right market

1. Existing Installed Base
2. New Customer Base
1. GET Revenue from JIM
   installed BASE !

  “JIM is eager to start
  selling quickly OpenERP ;
  no time hunting for new
  business/revenue ...”
Then JIM wants revenues
from his existing installed
base !

Not only by hunting new
implementations !
TOM The Editor suggests to JIM …

   • IT TAKES 5-7   TIMES MORE TO ACQUIRE A NEW CUSTOMER THAN IT
     TAKES TO SELL TO AN EXITING CUSTOMER !

   • SELLING TO EXISTING CUSTOMERS IS LESS RISKY THAN STARTING NEW
     PROJECTS FROM SCRATCH, FOR FIXED PRICE PROJECTS


   • JIM IS A STRONG POSITION TO NEGOTIATE AN ADEQUATE
     PRICING WHEN YOU SELL TO AN EXISTING CUSTOMER
   • IN SOME CASES IT’S DIFFICULT TO GROW BY ALWAYS LOOKING FOR NEW
     CUSTOMERS, SEE YOUR CUSTOMERS AS AN ASSET.
“Hey JIM! Your installed base is a
              goldmine” says TOM

• INDEED JIM HAVE A SIGNIFICANT INSTALLED BASE BUT DO NOT SUCCEED TO
  GENERATE REVENUES FROM IT

• TOM INPUT: “A TYPICAL 50K€ PROJECT SHOULD BRING YOU MINIMUM
      20K EVERY YEAR”
    • 8K OF MAINTENANCE (OPW) + SUPPORT
    • 6K SELLING NEW FEATURES OF NEW VERSION
    • 6K SELLING CUSTOMIZATION & NEW DEVELOPMENTS

• LET’ SAY JIM ACHIEVES 10 IMPLEMENTATIONS OF 50K€ . JIM SHOULD GET A
YEARLY REVENUE OF 200K€ ON ITS EXISTING INSTALLED BASE
       •
Look at this graph JIM …
   • HYPOTHESIS:
      • Cost of Sales: 30% ; Cost of Services: 40% ;G&A : 17% ;OPW: 3.8 K€
      • 5 New projects a year @50K average
2. GET Revenue from New
   Customers ...
  “JIM is eager to start selling
 to new clients as well ”

 But ROBERT is not an easy
 client ... Are you Robert?
ROBERT is a traditional
CTO of a Taxi Company ...

but JIM does not know
how to proceed yet
...
# 3 Rule
SEQUENCE your sales
cycle … Rhythm is the
key ….
JIM needs to apply
OPENERP Project
Selling Methodology
linked to OPENERP
Implementation
Methodology ...
TOM suggests to JIM the following strategy

          • Software Assessment       • Sell OpenERP Publisher Warranty & Sell a POC
    1                             1

          • Pre- Analysis             • Sell 5-10 Consulting days PARTNER/OERP
    2                             2   • Pre-analysis define the final quote

          • Analysis                  • Sell Consulting days PARTNER/OERP
    3                             3   • Sell Project Management


          • Implementation            • Sell developers or use OERP Off-Shore capacity or both
    4                             4

          • Deployment                • Sell Training or Train yourself (CTP)
    5                             5

          • Support                   • Sell Support & Sell New features every 6 months
    6                             6


  6/10/2010
# 4 Rule
DO NOT SELL « THE FULL MONTY »
SELL A MODULAR
APPROACH
ROBERT TAXIS have 195 Branches in total -
45-50 Business units are SAP installed … the rest
Millions €
             SAP                 OPENERP BUSINESS UNITS INSTALLED




                                                         SAP BU’S
                   Long Tail Approach
                                                         OPENERP
                                                         BU’s




                                                      #BUSINESS UNITS
JIM to ROBERT:
« Are You convinced now ? »


But ROBERT still have some
doubts…
ROBERT:
« OPEN SOURCE, Is it not for free ? »
JIM:
« Open Source and OPENERP are
not for free ; it’s FREEDOM to access
the code & customize it to your
specific needs »
ROBERT:
« Are you gonna here next year? »
JIM:
« OPENERP is a fast growing
company, recognized by VC’s,
recognized by the community,
recognized by Danone, MSF, La
Poste, La Ferme du Sart, Major EU
universities, etc»
ROBERT:
«SAP passed by yesterday and told me
they have made something for the
logisitic & automotive »
JIM:
«Do you prefer spending € in
licencing or making it specific to
your needs… specially for your Taxi
Company»
# 5 Rule
SCALE YOUR SALES

TOM helps JIM to SCALE SALES
with OPENERP Value proposition
OPENERP ENTERPRISE (OPW) – A MUST HAVE

OPENERP ENTERPRISE (OPW)
« Get rid of Pain ; focus on value added services »
   1.    BUG FIXING, SECURITY ALERTS
   2.    SUPPORT
   3.    MIGRATION
         A.   Minor Release every 6 months
         B.   Major Release every 18 months
         C.   OPENERP ensure Partners having new features to sell through the versioning
         D.   Partners will monetize new features through their services




  6/10/2010
PACKAGE A GLOBAL OFFER FOR EACH VERSION

    • PRESENTATION OF THE NEW FEATURES
    • MIGRATION & DEPLOYMENT TO NEW VERSION
    • ACTIVATION & PARAMETERIZATION OF THE NEW
        FEATURES
    •   CUSTOM DEVELOPMENTS/CUSTOMIZATIONS OF
        SOME FEATURES
    •   TRAINING OF THE USERS TO THE NEW VERSION



  6/10/2010
PROFESSIONAL SERVICES ON DEMAND


         PRESALES CONSULTANT
         FUNCTIONAL CONSULTANT
         TECHNICAL CONSULTANT


             Expert Consultant   Consultant

                • 1,250 €         • 850€




 6/10/2010
OFF-SHORE SERVICES ON DEMAND


         DEVELOPERS ON DEMAND

                                   Min Off Shore Package
             Training           (2 dev. full time + 1/3 PM ) x 1
                                              month
             • 1750€                 • Dev 220 € / Day
      • 875 € until June 2011         • PM 350€ /Day
                                 • New! Partner discounts
                                 applied on off shore services
                                       up to June 2011


 6/10/2010
EDUCATION – Certified Training Program


         BOOST YOUR REVENUE BY OFFERING TRAININGS

         NEWS! MATERIALS IN SPANISH OUT SOON !




 6/10/2010
SAAS REFERRAL PROGRAM FOR PARTNERS

      NEW! SAAS PARTNER PROGRAM
  •   10% READY, 15% SILVER, 20% GOLD
  •   THE STANDARD OPENERP CONTRACT WILL APPLY
  •   ONLY AVAILABLE TO THE PARTNERS
  •   THE PARTNER IS BILLED DIRECTLY AND WILL REBILL HIS CUSTOMERS AT HIS OWN PRICE
  •   THE PARTNER MANAGERS THE CONTROL CENTER FOR HIS CUSTOMERS
  •   THE PARTNER CAN MANAGE SEVERAL CUSTOMERS ON HIS INSTANCE
  •   A CHANGE IN THE PARTNERS CONTRACT WILL BE NEEDED

      PLEASE DISCUSS WITH YOUR ACCOUNT MANAGER FOR ANY PACKAGE
                             OVER 250 USERS


 6/10/2010
MARKETING SERVICES

              JOINT EVENTS
              DIRECT MAILINGS
              BUSINESS CASES
              INCREASE VISIBILITY
              LEAD GENERATION PROGRAM
              AND MANY MORE




  6/10/2010
ROBERT , ARE YOU
HAPPY NOW ?
Let’s wrap up !

# 1 Rule – DEMONSTRATE
# 2 Rule – ADDRESS OPENERP to the right market
# 3 Rule – SEQUENCE your Sales Cycle
# 4 Rule – SELL A MODULAR approach
# 5 Rule – SCALE YOUR SALES
OERP Sales
Organisation
1. Marketing

             Lead                  Channel
                      DM/Event
            Mgmt                     Mkt
                       (Helene)
            (Chris)               (Nicoleta)
6/10/2010
2. Sales


                                                                                        Strategic
         SaaS / SB (Maxime)                            Partnerships (Thomas)            Alliances
                                                                                        (Nikolas)




  ISR         ISR       ISR         ISR        Sales        Sales       Sales   Sales
(Juan)       (Marc)   (Dennis)   (Zeldha)     (Nora)      (Nicolas)   (Ruben)   (TBH)




 6/10/2010                                                                                   38
3. Channels



   Gold/Silver   Gold/Silver    Silver/Ready
                                               Ready (Alex)   Ready (TBH)   Ready (TBH)
    (Marnix)       (TBH)            (Ludo)




6/10/2010                                                                            39
Make some noises !


HAPPY SELLING !

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OpenERP Xavier Pansaers Sales Strategy

  • 1. Partner Sales Strategy Partner Days D3 - 15/04/2011 Xavier Pansaers – Chief Sales Officer
  • 2. OPENERP Production presents : Actors : JIM the PARTNER ROBERT the CLIENT TOM the OPENERP Account Mgr
  • 3. A Partner named JIM is selling OPENERP Services to A Client called ROBERT …
  • 4. JIM The Partner says: “ Hi Robert ! My Name is JIM; OPENERP official partner.” “Ready to sign the OpenERP Publisher Warranty? ” and Robert the Client says : “Are you...”
  • 6. , As a matter of fact Robert need an live demo to be attracted …
  • 7. Ok ! Ride on ... Let’s speak about Sales Strategies # 1 Rule DEMONSTRATE (workflow kills)
  • 8. NOW, JIM is thinking about increasing his revenue on OPENERP...
  • 9. # 2 Rule ADDRESS OPENERP to the right market 1. Existing Installed Base 2. New Customer Base
  • 10. 1. GET Revenue from JIM installed BASE ! “JIM is eager to start selling quickly OpenERP ; no time hunting for new business/revenue ...”
  • 11. Then JIM wants revenues from his existing installed base ! Not only by hunting new implementations !
  • 12. TOM The Editor suggests to JIM … • IT TAKES 5-7 TIMES MORE TO ACQUIRE A NEW CUSTOMER THAN IT TAKES TO SELL TO AN EXITING CUSTOMER ! • SELLING TO EXISTING CUSTOMERS IS LESS RISKY THAN STARTING NEW PROJECTS FROM SCRATCH, FOR FIXED PRICE PROJECTS • JIM IS A STRONG POSITION TO NEGOTIATE AN ADEQUATE PRICING WHEN YOU SELL TO AN EXISTING CUSTOMER • IN SOME CASES IT’S DIFFICULT TO GROW BY ALWAYS LOOKING FOR NEW CUSTOMERS, SEE YOUR CUSTOMERS AS AN ASSET.
  • 13. “Hey JIM! Your installed base is a goldmine” says TOM • INDEED JIM HAVE A SIGNIFICANT INSTALLED BASE BUT DO NOT SUCCEED TO GENERATE REVENUES FROM IT • TOM INPUT: “A TYPICAL 50K€ PROJECT SHOULD BRING YOU MINIMUM 20K EVERY YEAR” • 8K OF MAINTENANCE (OPW) + SUPPORT • 6K SELLING NEW FEATURES OF NEW VERSION • 6K SELLING CUSTOMIZATION & NEW DEVELOPMENTS • LET’ SAY JIM ACHIEVES 10 IMPLEMENTATIONS OF 50K€ . JIM SHOULD GET A YEARLY REVENUE OF 200K€ ON ITS EXISTING INSTALLED BASE •
  • 14. Look at this graph JIM … • HYPOTHESIS: • Cost of Sales: 30% ; Cost of Services: 40% ;G&A : 17% ;OPW: 3.8 K€ • 5 New projects a year @50K average
  • 15. 2. GET Revenue from New Customers ... “JIM is eager to start selling to new clients as well ” But ROBERT is not an easy client ... Are you Robert?
  • 16. ROBERT is a traditional CTO of a Taxi Company ... but JIM does not know how to proceed yet ...
  • 17. # 3 Rule SEQUENCE your sales cycle … Rhythm is the key ….
  • 18. JIM needs to apply OPENERP Project Selling Methodology linked to OPENERP Implementation Methodology ...
  • 19. TOM suggests to JIM the following strategy • Software Assessment • Sell OpenERP Publisher Warranty & Sell a POC 1 1 • Pre- Analysis • Sell 5-10 Consulting days PARTNER/OERP 2 2 • Pre-analysis define the final quote • Analysis • Sell Consulting days PARTNER/OERP 3 3 • Sell Project Management • Implementation • Sell developers or use OERP Off-Shore capacity or both 4 4 • Deployment • Sell Training or Train yourself (CTP) 5 5 • Support • Sell Support & Sell New features every 6 months 6 6 6/10/2010
  • 20. # 4 Rule DO NOT SELL « THE FULL MONTY » SELL A MODULAR APPROACH
  • 21. ROBERT TAXIS have 195 Branches in total - 45-50 Business units are SAP installed … the rest Millions € SAP OPENERP BUSINESS UNITS INSTALLED SAP BU’S Long Tail Approach OPENERP BU’s #BUSINESS UNITS
  • 22. JIM to ROBERT: « Are You convinced now ? » But ROBERT still have some doubts…
  • 23. ROBERT: « OPEN SOURCE, Is it not for free ? » JIM: « Open Source and OPENERP are not for free ; it’s FREEDOM to access the code & customize it to your specific needs »
  • 24. ROBERT: « Are you gonna here next year? » JIM: « OPENERP is a fast growing company, recognized by VC’s, recognized by the community, recognized by Danone, MSF, La Poste, La Ferme du Sart, Major EU universities, etc»
  • 25. ROBERT: «SAP passed by yesterday and told me they have made something for the logisitic & automotive » JIM: «Do you prefer spending € in licencing or making it specific to your needs… specially for your Taxi Company»
  • 26. # 5 Rule SCALE YOUR SALES TOM helps JIM to SCALE SALES with OPENERP Value proposition
  • 27. OPENERP ENTERPRISE (OPW) – A MUST HAVE OPENERP ENTERPRISE (OPW) « Get rid of Pain ; focus on value added services » 1. BUG FIXING, SECURITY ALERTS 2. SUPPORT 3. MIGRATION A. Minor Release every 6 months B. Major Release every 18 months C. OPENERP ensure Partners having new features to sell through the versioning D. Partners will monetize new features through their services 6/10/2010
  • 28. PACKAGE A GLOBAL OFFER FOR EACH VERSION • PRESENTATION OF THE NEW FEATURES • MIGRATION & DEPLOYMENT TO NEW VERSION • ACTIVATION & PARAMETERIZATION OF THE NEW FEATURES • CUSTOM DEVELOPMENTS/CUSTOMIZATIONS OF SOME FEATURES • TRAINING OF THE USERS TO THE NEW VERSION 6/10/2010
  • 29. PROFESSIONAL SERVICES ON DEMAND PRESALES CONSULTANT FUNCTIONAL CONSULTANT TECHNICAL CONSULTANT Expert Consultant Consultant • 1,250 € • 850€ 6/10/2010
  • 30. OFF-SHORE SERVICES ON DEMAND DEVELOPERS ON DEMAND Min Off Shore Package Training (2 dev. full time + 1/3 PM ) x 1 month • 1750€ • Dev 220 € / Day • 875 € until June 2011 • PM 350€ /Day • New! Partner discounts applied on off shore services up to June 2011 6/10/2010
  • 31. EDUCATION – Certified Training Program BOOST YOUR REVENUE BY OFFERING TRAININGS NEWS! MATERIALS IN SPANISH OUT SOON ! 6/10/2010
  • 32. SAAS REFERRAL PROGRAM FOR PARTNERS NEW! SAAS PARTNER PROGRAM • 10% READY, 15% SILVER, 20% GOLD • THE STANDARD OPENERP CONTRACT WILL APPLY • ONLY AVAILABLE TO THE PARTNERS • THE PARTNER IS BILLED DIRECTLY AND WILL REBILL HIS CUSTOMERS AT HIS OWN PRICE • THE PARTNER MANAGERS THE CONTROL CENTER FOR HIS CUSTOMERS • THE PARTNER CAN MANAGE SEVERAL CUSTOMERS ON HIS INSTANCE • A CHANGE IN THE PARTNERS CONTRACT WILL BE NEEDED PLEASE DISCUSS WITH YOUR ACCOUNT MANAGER FOR ANY PACKAGE OVER 250 USERS 6/10/2010
  • 33. MARKETING SERVICES JOINT EVENTS DIRECT MAILINGS BUSINESS CASES INCREASE VISIBILITY LEAD GENERATION PROGRAM AND MANY MORE 6/10/2010
  • 34. ROBERT , ARE YOU HAPPY NOW ?
  • 35. Let’s wrap up ! # 1 Rule – DEMONSTRATE # 2 Rule – ADDRESS OPENERP to the right market # 3 Rule – SEQUENCE your Sales Cycle # 4 Rule – SELL A MODULAR approach # 5 Rule – SCALE YOUR SALES
  • 37. 1. Marketing Lead Channel DM/Event Mgmt Mkt (Helene) (Chris) (Nicoleta) 6/10/2010
  • 38. 2. Sales Strategic SaaS / SB (Maxime) Partnerships (Thomas) Alliances (Nikolas) ISR ISR ISR ISR Sales Sales Sales Sales (Juan) (Marc) (Dennis) (Zeldha) (Nora) (Nicolas) (Ruben) (TBH) 6/10/2010 38
  • 39. 3. Channels Gold/Silver Gold/Silver Silver/Ready Ready (Alex) Ready (TBH) Ready (TBH) (Marnix) (TBH) (Ludo) 6/10/2010 39
  • 40. Make some noises ! HAPPY SELLING !