Volume 2 Value Manendra
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The document outlines Cisco's transition from a volume-based to a value-based channel management model post-2001. It highlights key issues with the previous model, such as partner specialization and certification, and emphasizes the importance of enabling partners to add value through improved incentives and support. The new model focuses on partner benefits, sales growth, customer satisfaction, and overall partner profitability.
Volume 2 Value Manendra
- 1. By MANENDRA SHUKLA
- 2. •In depth look at a volume based channel mgt model at CISCO •THE PAST(pre July 2000) •Cisco offerings •Channel structure •Channel incentives
- 3. KEY PROBLEM UNDER VOLUME BASED SYSTEM 1. Lack of partner specialization and expertise 2. Lack of partner certification 3. Structural incompatibility with VAR channel 4. Inability to stabilize partner margins. 5. Weakening customer experience
- 4. •Post 2001 •Switched to value based channel management model • Enable partner to add value •Enable partners to benefit from breadth & depth of experience
- 5. POST 2001: VALUE BASED CHANNEL MANAGEMENT •MARCH 2001 CISCO switch to value based channel management •The core initiative of value based channel management model 1. Partner value add 2. Partner benefited 3. Reward system
- 6. •Partner investment •Sales growth •Customer satisfaction with partners •Partner profitability •External reputation