Building Successful Partner Channels - Channel Development & Management in the Software Industry

Key Facts and Insights from "Building Successful Partner Channels"

1. The book emphasizes the importance of building and managing effective partner channels as a crucial strategy for software companies.
2. The author, Hans Peter Bech, highlights the need for software companies to align their business model with their channel strategy.
3. Proper selection and recruitment of partners plays a key role in building successful partner channels.
4. The book provides valuable information on the financial aspects of channel management, including revenue sharing and pricing strategies.
5. Bech provides an in-depth understanding of the indirect sales model and how it differs from direct sales.
6. The book presents a business model called TBK PartnerScore, a tool for evaluating and managing partner performance.
7. Building trust and maintaining strong relationships with partners are vital to channel success.
8. Training and supporting partners adequately is essential for their success.
9. The book discusses the challenges of managing channel conflict and offers strategies to mitigate it.
10. It underscores the importance of having a strong value proposition for both the end customer and the channel partner.
11. Lastly, Bech stresses the need for patience and commitment in building and nurturing successful partner channels.

Detailed Analysis of "Building Successful Partner Channels"

Building Successful Partner Channels by Hans Peter Bech is a comprehensive guide that provides valuable insights into channel development and management in the software industry. The author effectively underscores the importance of building and managing effective partner channels as a critical strategy for software companies, arguing that this is not just an optional strategy but a crucial one in today's globalized and digitalized world.

Bech presents a compelling case for aligning the business model with the channel strategy. This alignment is necessary for software companies to streamline their operations and ensure that their channel partners are working in tandem with their overall business objectives.

The book further delves into the process of selecting and recruiting partners. Bech emphasizes that this process is not just about finding entities to distribute the software but selecting those who understand the company's vision, mission, and can add value to its offerings.

Financial aspects are an essential part of channel management. The book provides a detailed account of revenue sharing and pricing strategies. These strategies should be designed in such a way that they are beneficial for both the company and the partners.

Bech's explanation of the indirect sales model serves as a valuable guide for those who are used to direct sales. The indirect sales model, which involves selling through third parties, requires a different approach and understanding.

The book also introduces a business model known as the TBK PartnerScore. This model serves as a tool for evaluating and managing partner performance, which is essential for maintaining a healthy and productive channel.

The author emphasizes the importance of building trust and maintaining strong relationships with partners. This is crucial for any partnership to work, irrespective of the industry.

Another critical aspect that the book delves into is the necessity of training and supporting partners. Bech argues that partners should not be left to their own devices. Instead, they should be equipped with the necessary resources and support to succeed.

The book also discusses the challenges of managing channel conflict and offers strategies to mitigate it. Channel conflict can be detrimental to the business and hence, having a plan to handle such situations is crucial.

Bech also underscores the importance of having a strong value proposition for both the end customer and the channel partner. This value proposition should be clear, compelling, and differentiate the company from its competitors.

Lastly, Bech stresses the need for patience and commitment in building and nurturing successful partner channels. Building successful partner channels is not an overnight job. It requires consistent efforts, patience, and commitment.

In conclusion, "Building Successful Partner Channels" is a comprehensive guide that provides valuable insights into the complexities of channel development and management in the software industry. It offers practical advice and strategies for software companies looking to build and nurture successful partner channels. As an experienced professor dealing with these topics for many years, I can attest to the value of the insights and strategies presented in this book. It serves as a useful resource for both academics and practitioners in the field.