It has been said that IT is no longer a business resource but has evolved to become a business environment. Companies are therefore relying on IT to fulfil a critical role in driving business through cost-efficiency, reliability, and redundancy. Paul Henaghan, Senior Vice President – Asia, Software AG, examines the value of partnerships in helping the IT vendor drive these business-critical solutions to the market.
The dynamic business environment of today sees companies compete on a global level and not just a national one. Globalisation through delivery mechanisms like the Internet and increased awareness for what is offered in other markets sees the focus of companies continually shift to meet the needs of their customers. The organic nature of meeting these ever-changing needs results in its own set of challenges for companies of any size.
Customers are also expecting products and services to be individualised according to their requirements (the “personalisation” concept). The hive mentality of old does not exist in this new age of business. The combination of these factors can result in a tremendous increase in operational costs as well as the reduction of profit margins.
Delivering value
IT systems are under pressure to deliver maximum value as budgets are being closely scrutinised. This often means making use of existing technology with minimal resources devoted to extending the life and functionality of those assets. In doing so, companies inevitably move away from the ‘rip and replace’ mentality of the late-90s and focus on modernising, optimising, and harmonising their existing systems to improve collaboration and user creativity.
Customers should be able to leverage their existing investments and relationships in order to build new ones. To do this, vendors rely on partners who capitalise on the benefits of business process management (BPM) and service oriented architecture (SOA) technology, working with new and existing customers.
In working closely together, partners and vendors can deliver unique solutions. This is done by combining the market and client knowledge that a partner possesses in a specific market with the technological capabilities of a vendor. It stands to reason that a large and growing partner ecosystem and an integrated and flexible partner programme can help improve the operational costs of the end customer.
Knowing What to Do
Partners therefore fulfil an important component of the business model of an IT vendor. The partner should work with the vendor to deliver quality products and services that can meet the needs of the clients.
A vendor needs to take into consideration that partners come in all shapes and sizes; for example, a system integrator, that literally integrates the technology and products according to the requirements of a client, or a reseller partner that markets and distributes a product line as a component of its location, vertical industry, or service offerings. There needs to be consideration for these different kinds of partners and their requirements.
Driving it Home
Ultimately, the relationship between the vendor and its partners are critical to the success of both companies and the perception they create in the marketplace. If the relationship is successful, it will prove to be mutually beneficial to both.
For example a partner that provides software solutions for supply chain execution in Singapore may incorporate its vendor’s product set into its offering, and the combined offering will enable the partner to become the defacto standard logistics solution in its segment. This will give the partner’s customers access to select its designated vendor’s products, crafted into the partner’s solution, for a single cost and is a true example of the symbiotic relationship that can exist between the software vendor and a partner who has specialist niche knowledge.
The result is a triple win: the end user, the partner, and the vendor create a relationship which delivers value for all parties. |
