Advantech’s Channel Strategy & Business Program Stefanie Chang Manager, Advantech Global Business Operation December 6, 2019
Transformation of Advantech Channel Management Channel Positioning Global Channel Regional Channel Classification Management Policy Management HQ Establish disciplined, legislative and Worldwide unified channel classification Empower & Authorization to regional systematic channel policy applying for structure, conducting auditing cross-sector channel management HQ and global channel management. & certification mechanism. align to global policy with solid execution. Channel Management 2.0
Key Initiatives of Channel Management 2.0 Channel Positioning, Authorization and Pricing Strategy Channel Mindshare Objectives and Business Programs Channel Performance Assessment, Auditing and Re-position
Advantech Worldwide Channel Positioning Classification PCP are the channels performing APCP are selective PCPs who Alliance Premier Channel sustainable volume revenue presenting close engagement and alignment Premier (>$1M or >$3M in big region) and reach with Advantech; will collaborate with PCP Partner required technical and strategic co-investment activities Channel (PCP) organizational capabilities . and business alliance programs . Partner (APCP) ACP/G,S,R are channel partners FCP/G,S,R are product focused Gold Gold or design-in focused partners (phase-1); with no obvious sector focus and serving the general distribution to or DFSI/SRP developer (phase-2). Shall Master Online industrial customers . Three take the mandatory technical Focus CP Authorized Fulfillment certification from Advantech. Define by 3- CP CP Sliver CP classes by Regular($100K), Silver($300K), Sliver (FCP) CP (ACP) Gold($500K) taking required product (MFCP) classe: Regular ($100K), Silver ($300K), Gold (ONCP) training from Advantech. ($500K). Require 40% quota of focus sales and KPIs of focus business. Regular Regular ONCP are MFCP <China special> operating in online/eCommerce partners, box-moving volume distribution , dedicate to develop the business through Dealer, VAR Dealer require safety stock to serve as the eCommerce platform only. The threshold of contract quota is $100K. fulfillment partner to customers (general Dealer is the tier-N indirect customers, shall be referred to a accounts/ key accounts/ channel partners/…) depending on business scenarios. specific CP/PCP for fulfillment service but still be engaged with Advantech for development plan and sales support. GBO v.201912
Advantech Channel Partner Development with Mindshare Objectives & Pricing Strategy PCP APCP • Strategic Business Breakthrough • Strategic alliance PCP • Resources of Technical & Organization • Co-investment • Conditional Exclusivity (sector/territory) • Joint venture: CCJV, JVCP ONCP MFCP ACP FCP • Revenue growth w/ • Revenue growth • Revenue growth, • Revenue growth, Targeted Profit generation Territory/Coverage Sector KA development • Volume disty master expansion • eCommerce Biz with • Focused product region distribution CP • Dealerships network digital tools & promotion (Phase I) • Safety Stock and program development • Domain Focus SI/SRP Fulfillment Service • Component business • Advantech branding (Phase II) Resources promotion awareness & promotion Injection
Advantech Channel Partner Development with Mindshare Objectives & Pricing Strategy Mindshare Objectives of Strategic / Focused Business Collaboration Mindshare PCP APCP Biz Growing with Mindshare • Strategic Business Breakthrough • Strategic alliance PCP • Resources of Technical & Organization • Co-investment • Conditional Exclusivity (sector/territory) • Joint venture: CCJV, JVCP ONCP MFCP ACP FCP • Revenue growth w/ • Revenue growth • Revenue growth, • Revenue growth, Targeted Profit generation Territory/Coverage Sector KA development • Volume disty master expansion • eCommerce Biz with • Focused product region distribution CP • Dealerships network digital tools & promotion (Phase I) • Safety Stock and program development • Domain Focus SI/SRP Fulfillment Service • Component business • Advantech branding (Phase II) Resources promotion awareness & promotion Injection
Advantech Channel Partner Development with Mindshare Objectives & Pricing Strategy Mindshare Objectives of Strategic / Focused Business Collaboration Mindshare Pricing Strategy by Position Level PCP APCP Biz Growing with Mindshare • Strategic Business Breakthrough • Strategic alliance PCP • Resources of Technical & Organization • Co-investment • Conditional Exclusivity (sector/territory) • Joint venture: CCJV, JVCP ONCP MFCP ACP FCP • Revenue growth w/ • Revenue growth • Revenue growth, • Revenue growth, Targeted Profit generation Territory/Coverage Sector KA development • Volume disty master expansion • eCommerce Biz with • Focused product region distribution CP • Dealerships network digital tools & promotion (Phase I) • Safety Stock and program development • Domain Focus SI/SRP Fulfillment Service • Component business • Advantech branding (Phase II) Resources promotion awareness & promotion Injection Pricing Strategy by Strategic / Focused Business Development Plan Pricing
Global Practices of Mindshare Business Program Device Philippine, Promotion & India Stock Program ASEAN, Organization WISE-PaaS VAR Co-Investment ME&A, & DFSI CCJV (dedicated force) Russia Dealer Program Dubai, Vietnam, or Leads Singapore, Turkey, Generation & Malaysia LATAM Fulfillment eCommerce Ukraine, Territorial Platform & ASEAN, Expansion JVCP Franchise S.Africa eStore Resources Injection to Japan, Focus Sector Europe Biz project Russia, India
Global Practices of Mindshare Business Program Device Philippine, Promotion & India Stock Program ASEAN, Organization WISE-PaaS VAR Co-Investment ME&A, & DFSI CCJV (dedicated force) Russia Dealer Program Dubai, Vietnam, or Leads Singapore, …… Turkey, Generation & Malaysia LATAM Fulfillment eCommerce Ukraine, Territorial Platform & ASEAN, Expansion JVCP Franchise S.Africa eStore Resources Injection to Japan, …… Focus Sector Europe Biz project Russia, …… India
Channel Management 2.0 Operation Structure Regional Cross-sector Corporate Channel Management HQ Global Business Operation Channel Positioning & Pricing Strategy Global Channel Corp. Channel Classification Policy Channel Program Mindshare Program & Conflict Management Sector Price Authorization Policy Strategy & Policy Channel Management Platform & System Performance Assessment Policy General Management Policy Channel Authorization & Contract Review Channel Auditing Strategic Alliance Program Channel Performance Assessment (CPA) Global Conflict Management Incentive/Rebate/JMF Review Price Region RLP & Price Grade Management Administration Channel System Price Review Gatekeeper Common Sector Defined Region by General Selling revenue Development General Channel Defined CP with General Distribution Sales Sector-Lead CSF organization SBG Sector Channel Sales Force Sector Business Development Sector-Lead Regional Channel Strategy EIoT SIoT IIoT Business Plan & Marketing Plan with Channel Special Resources empowerment Sales Activity & Marketing Promotion Direct RBU Sector BDM Account/Project Co-Development Partnership & Mindshare Development CSF CSF Special Resources empowerment AOnline/IoTMart Business Strategy Collaboration Channel Marketing Support & Program Channel Technical Support, Training & Certification Support & Service Sales Operation Support (inside sales)
Channel Performance Assessment Criteria Basic Quota Achievement Qualification Channel Contract Completion & Validation Baseline Business Plan and Marketing Plan Submission Quota Achievement of total Revenue Quota/KPI Achievement on Focused Area Collaboration Deliverables of Co-Branding Event & Marketing KPIs Organization Resources for Advantech Team Performance Completion of Technical Training & Certification Performance/Deliverables of Channel Program Alignment & Business Engagemen t and Strategy Alignment with Advantech Compliance Accordance with Advantech Channel Management Policy
Partnering for Success Mindshare Mutual commitment to business breakthrough with strategic objectives Stickiness Engagement Grow trust and connection Co-involvement of business with long term partnership development with resource supports Creation Collaborative contributions to create new value together
Co-Creating the Future Co-Creating the Future of the IoT World of the IoT World
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