
Tuesday, August 26, 2008
What Do You Think Differentiates Great VARs From The Rest Of The Pack?
Posted by Robert M. Cohen at 8:33am
President and Business Editor Integrated mar.com (eChannelLine Daily News; Conne
During the past few weeks I asked some members of the ChannelLine Advisory Council to help me to start a discussion thread on what the Trusted Business Advisor Certification program is really trying to accomplish. While the TBA program is designed to help VARs succeeds, its primary emphasis is on differentiating business savvy VARs from small box pushers and people who are in the industry to because they think it is a great way to buy IT products at a discount and then sell these products to friends and family.
My Question: What differentiates great VARs from the rest of the pack in terms of providing business-focused IT solutions, services and support to SMBs?
The infamous channel advocate Robert H. Lane, who held senior positions at General Electric, Nortel, and was President of Commodore International during the successful launch of Commodore started off the thread with what he called ‘just a few musing’: “A VAR is like any other intermediary, he performs a role for the manufacturer or creator of the product or service. He can be local or National- even International if he fulfills a role that no one else wants to take the risk to undertake. Undertake for a host of reasons - cost, understanding local needs, political connections or in some cases no interest in undertaking distribution of the product or service.
As the local source of the product - in what we are talking about a software solution or application - he is local – hands and feet on the ground. Knows the local landscape and should understand what the local market requires and is looking for (not always true).”
David Lee, MCP, Small Business Specialist with DigiVie Communications starts by saying that the great VARs “take the time to understand client business processes – everything from how they make dollars to who does what function in those processes. They actually provide timely service and delivering solutions that either solves problems or produces measurable results. By doing these two items well, clients will think of you first any time they have a business process/IT related question or idea.
“Experience and a desire to be the best they can with a commitment to "do no harm" are the basic qualities of a great VAR” says Cynthia R. Slade, Microsoft Small Business Specialist, Amicus and Attorney Certified Consultant with the Shalli.Company. “The technology skills they have will vary greatly depending on the focus of their business practice. Certifications and applicable knowledge are not the same. Large VARs are not better able to serve the SMBs than small VARs and small VARs are not better able to serve the SMBs than large VARs.”
Peter Valters, GM - Professional Services for Empowered Networks believes that to be the best, “VAR’s have to react to a changing market, they need to have a much narrower focus and stop trying to be everything to everybody. The high margin high volume model of the past is disappearing. VAR’s need to pay much more attention to improving their financial and business management focus. With the high margin high volume market disappearing, VAR’s that don’t react will not be in business much longer.”
David Fitzerman of DFC International Computing sums it up succinctly saying “To differentiate themselves, VARs have to have a definite superiority when it comes to tech support. They use technology and be aware of the human touch. They must communicate with their clients at the clients level and they have to go to great lengths to understand their customers. They cannot be rigid and if they make a mistake they have to admit to it and never ever point fingers.”
Cole Systems Associates’ VP Operations & Administration, Ajay Singhal says “A great VAR know his customer and their business inside out. They consistently provide timely,
reliable advice and service. They are good listeners and sincere in their approach, and ethical. They are looking out for their customer’s best long-term interests and the needs of the customer 1, 2, 5 years down the road, not just in the current sale. They are thinking and functioning as their customer’s “virtual CIO”.
· Their IT advice is focused on improving the customer’s entire business, not just their IT department.
· The VAR’s sales teams are offering complete solutions, not just box-pushing.
· The VARs are offering several relevant testimonials and references detailing not just great IT work, but vouching for the quality of their business advice.
Maybe VARs should offer an external audit or IT assessment service, where it measures the effectiveness of their customer’s current IT processes in meeting the needs of the business. With a service such as this, the VAR would have positioned itself not as a peddler but as a true business advisor dealing with c-level executives, discussing how to improve the performance of the customer’s business through IT. Here margins don’t play a factor. Here a vendor’s brand doesn’t matter. Here what matters is the VAR’s knowledge and their relationships, and the value of that is priceless.”
David Botterill, C.O.O for Mainland Information Systems, echoes Ajay’s comments, stating that:
· “Great VARs dont try to be everything to everybody and have deep skills.
· Anything they sell they have to make sure they are good at it.
· They have strong process.
· They focus is on quality and customer service.
· They spend more dollars on training, labs, etc.
· They have a strong marketing team and use CRM tools.
· They have strong reporting systems.
· They look to have some leading edge solutions
· They are not afraid to invest in building their offerings.
· They have strong relationships with the vendors.”
Mary Ellen Grom, Director of Strategic Marketing, for specialty distributor ScanSource comments VARs: “have to have a business plan, a well defined vision and must measure results. I also think that having a definition of SMB that is tailored to the vendor solution is important - meaning an Avaya SMB solution may be different than a Motorola SMB solution as determined by the needs of the end user. Having the flexibility to customize for SMBs can make a huge difference.
These best VARs are focused on doing the right things, not just doing things right. They understand when/where to say NO when an opportunity is not right for their core value proposition. They have defined exit strategies - whether it be leaders who want to build their company to be passed along to someone/some company at some point in time or they know their "going out of business" strategy pain points”.
David Cieslak, CPA.CITP, GSEC Principal, Arxis Technology, Inc.
One of the most obvious differentiators I can think of between exceptional VARs and other organizations relates to business process, i.e. exceptional VARs have a framework for success. Our stated steps for success are:
1. Needs assessment – thoroughly evaluate your business challenges, structure, processes, and information requirements.
2. Evaluation and selection – focus on your key requirements and develop a strategy to meet them employing the best elements of technology
3. Project Management – develop a project plan incorporating scope, timeframe, deliverables, and internal resources.
4. Implementation – install, configure, and optimize the system for your working environment.
5. Business Process Re-Engineering – recommend changes to current business processes to help you achieve breakthrough improvements in performance measures
6. Systems Integration and Custom Development – integrate systems, modify software or create entirely new applications to meet the unique needs of your business.
7. Training and Education – offer one-on-one or group training to enable your employees to use the system to its full potential.
8. Ongoing support – offer support services over the phone, via the Internet, or on-site to keep you operating at peak efficiency.
9. System enhancement – provide the necessary assistance to maximize the existing investment while extending your capabilities to help you achieve even greater success.”
“Exceptional VARs stand out largely due to their truly specialized skills, i.e. the ability to deliver truly unique, targeted and expert solutions” explains David. “This involves a continuous process of learning and service delivery improvement.”
I would love to hear your comments regarding: What differentiates great VARs from the rest of the pack in terms of providing business-focused IT solutions, services and support to SMBs?
Together we can and will make a difference.
Together we will make the IT Channel more profitable for all of us!
Robert M. Cohen
President & Business Editor
office: 905-763-1200 ext. 226
toll free: 800-465-2059
cell: 416-568-2059
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Posted by Mark Rhoades at 4:14pm
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