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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
fax: 905-886-6216



In response to Stuart Crawford's comments
"
Robert

Excellent VARs or Trusted Business Advisors ensure that the 
clients are recieving the right technology solutions to 
meet the business needs of the clients that they serve.  
Serve is the key word here, when we cross over from being a 
reseller to a Business Advisor we are no longer concerned 
about targets or quotes, clip levels and rebates.  The only 
concern we have is that the clients that we serve are 
receiving the correct solution to meet their business 
requirements.

On top of this, we need to ensure that the right technology 
solution or software application is being deployed that 
fits this.  Gone are the days of selling solutions or 
equipment just because there is a discount or a back log at 
distribution.

The solution must fit the needs of the business and also 
the Trusted Business Advisor must have the foresight to see 
where the client is going even if the client is not aware 
themselves.

When resellers and IT Professionals understand this 
concept, then they are truly a TBA.

Cheers

Stuart R. Crawford
Calgary, AB
http://www.itmatters.ca
http://www.stuartcrawford.com
"

Robert M. Cohen replies:
Right On. Of course. 

The TBA also has to ensure that he is making money 
over the long run. Cause without profitability he will 
not be able to stay in business. Eventually, this will 
lead to the unfortunate position of him not being able 
to continue to provide the best solutions for his 
customers. 

Posted by Robert M. Cohen at 3:44am

Robert

Excellent VARs or Trusted Business Advisors ensure that the 
clients are recieving the right technology solutions to 
meet the business needs of the clients that they serve.  
Serve is the key word here, when we cross over from being a 
reseller to a Business Advisor we are no longer concerned 
about targets or quotes, clip levels and rebates.  The only 
concern we have is that the clients that we serve are 
receiving the correct solution to meet their business 
requirements.

On top of this, we need to ensure that the right technology 
solution or software application is being deployed that 
fits this.  Gone are the days of selling solutions or 
equipment just because there is a discount or a back log at 
distribution.

The solution must fit the needs of the business and also 
the Trusted Business Advisor must have the foresight to see 
where the client is going even if the client is not aware 
themselves.

When resellers and IT Professionals understand this 
concept, then they are truly a TBA.

Cheers

Stuart R. Crawford
Calgary, AB
http://www.itmatters.ca
http://www.stuartcrawford.com

Posted by Stuart Crawford at 10:13pm

In response to David Raab's comments
"
Good VARs are well practiced and accustomed to delivering 
in a reactive mode. Great VARs practice and deploy  a 
strong long term business strategy that results in 
delivering SUSTAINABLE value.  Demonstrating a business 
practice that radiates the confidence of viability and 
longevity is key for end-user partnering as well as 
industry partner investment and support.
"

Robert M. Cohen replies:
Hey David:

You have done a great job in summing up the difference 
between a VAR and a Trusted Business Advisor. I am so 
looking forward to working with you on putting 
together the curriculum for this program, promoting 
the program to the VARs and getting them trained and 
certified.

Of course, part of this is getting the message out to 
Vendors on why they need to treat TBAs like true 
partners and/or like customers. As opposed to treating 
them as if they are a second rate extension to their 
sales team. 

Simultaneously, we need to let the SMB world know what 
value TBAs bring to the table and why they need to 
work with TBAs.

It is going to be a lot of very rewarding work. 

Posted by Robert M. Cohen at 7:01am

In response to Derek De Vette, VP Channel Affairs, Diskeeper Corporation's comments
"
Rob,

An awfully sweeping question considering the specialities 
of certain VARs. Regardless...

Technical expertise (technology, software, servers, etc.); 
business savvy; ability to sell the true value of their 
services (Sales & Marketing); and the intangible but oh so 
important GENUINE willingness to provide friendly above and 
beyond service to their clients. 

One could add to this the desire to succeed--hang out with 
VAR Arlen Sorenson of Heartland Technologies Group for a 
day. Complacency and mediocrity are not on his list of 
"

Robert M. Cohen replies:
Derek: Overall, as always, I fully agree with you. 

The problem as I see it is that in most sales 
situations, a good salesperson find out who is the key 
decision maker or influencer and then focuses on 
selling to that person. For SMBs buying technology, 
that person is normally their VAR.  

Yet, instead of selling to the VAR, IT Vendors expect 
that VAR to sell for them. The industry would be a 
whole lot better if we recognized a VAR for what a VAR 
is ... a trusted business advisor to its SMB 
customers. They own the relationship. They determine 
what products and brands are purchased. They hold the 
power. Unfortunately, the one thing that the Vendors 
and VARs have in comment is that neither of them 
realize that VARs have the power. 

Posted by Robert M. Cohen at 1:06am

In response to Mark Rhoades's comments
"
All of the above ring very true and as Robert stated 
"

Robert M. Cohen replies:
Thanx Mark.

Posted by Robert M. Cohen at 12:50am

All of the above ring very true and as Robert stated 

Posted by Mark Rhoades at 4:14pm

Rob,

An awfully sweeping question considering the specialities 
of certain VARs. Regardless...

Technical expertise (technology, software, servers, etc.); 
business savvy; ability to sell the true value of their 
services (Sales & Marketing); and the intangible but oh so 
important GENUINE willingness to provide friendly above and 
beyond service to their clients. 

One could add to this the desire to succeed--hang out with 
VAR Arlen Sorenson of Heartland Technologies Group for a 
day. Complacency and mediocrity are not on his list of 

Posted by Derek De Vette, VP Channel Affairs, Diskeeper Corporation at 3:48pm

Good VARs are well practiced and accustomed to delivering 
in a reactive mode. Great VARs practice and deploy  a 
strong long term business strategy that results in 
delivering SUSTAINABLE value.  Demonstrating a business 
practice that radiates the confidence of viability and 
longevity is key for end-user partnering as well as 
industry partner investment and support.

Posted by David Raab at 9:39am

Robert -

All the comments, to date, ring true - although there are 
a few that appear somewhat dated in concept.  In reality, 
each individual end user defines what a great VAR is, as 
each business has a unique need - making most of the 
comments accurate.  I believe it is better to ask how the 
end user illustrates whether or not the VAR is great.  
There are a number of ways the end user demonstrates his 
belief that a VAR is 

Posted by Tricia Wurts, President Wurts & Associates, Inc., a 19-year old channel consultancy at 7:54am

A great VAR focuses on the description of the acronym - 
Value Added Reseller by selling solutions and providing 
good service vs. selling components of a solution (pushing 
boxes).  They add value by employing highly skilled 
technical staff who are trained and closely engaged with 
their manufacturer's engineering teams.  They employ sales 
people who would rather sell the right solution vs. the 
solution that has higher margins, who respond to their 
customers quickly and remains current on technology trends 
and key differentiators of similar products.  A great VAR 
is proactive in their sales and marketing strategy and does 
not wait for leads from their vendors but when they get 
leads, they follow up immediately and respond to vendors 
with feedback so they are chosen as the 

Posted by Charlie Provenza, Colubris Networks at 7:16am

Great VAR's have:
been trained and are knowledgeable in the value add 
solutions they provide
have customers who can attest to their expertise
know to decline assignments outside their knowledge base 
and to instead network with other VAR's with the expertise 
needed - we all prefer a carpenter who brings in a plumber 
to do the plumbing work and vice-versa
a great VAR could be a master contractor for his/her client 
bringing in the experts as needed

Posted by Dennis Meharchand at 6:52am

Great question with many great answers.  Here is my two
cents worth:

*Focusing on real solutions. 
*Using a consultative sales approach to help our clients use
technology to meet their tactical and strategic objectives.
*Listening to their clients.
*Solving real problems for their clients.
*Growing despite economic situations beyond their control.
*Keeping ahead of the technology curve.
*Service, service and service is the location, location and
location comparison.
*Ahead of the pack of other VARs.
*Contribute back to industry, community, etc..

Posted by Chaim Lowenstein at 1:35am


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