HP ROI Program for Software Partners Overview (Draft) Prepared: Eberhard Schade Date: September 2007 © 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice (additional content in notes page) Agenda • Introduction & Background on HP’s ROI Approach • Expanding HP ROI Program to Software Partners • How to become a Business Value Consultant The Shift to Business Technology • Past – IT driven by operational costs or cost advantages • The new reality: IT powers the business • IT risks are now business risks • IT opportunities are now business opportunities The Need to Quantify Value • Role of the CIO is changing • Measured on Business outcomes • IT is no longer a cost • IT is an investment • Quantifying IT value means looking for the benefits it creates for the business When is ROI appropriate? • As part of a business case • Assess value of existing IT investments • Establish an ROI baseline to measure progress • Demonstrate alignment of IT investments with customer’s business goals HP’s ROI Approach Customer Research Research Goals Results • Understand how customers measure value • Engage variety of customers across different verticals • Capture customer value into case studies • Create ROI framework and process • Use knowledge to develop ROI process and methodology • Package knowledge into appropriate tools HP’s ROI Model Discover Align Model Deliver Challenges (Anecdotes) Initiatives Business Applications Infrastructure Value Propositions Benefit Models (ROI Scenarios) Customer Data Demand / Cost Models ROI Result Business Case Package Attributes of HP ROI process DISCOVER • Credible data ALIGN • Systematic, non-intrusive approach MODEL Traceability • Create a baseline Initiatives Applications Infrastructure Value Propositions Benefit Models (ROI Scenarios) Demand / Cost Models Customer Data DELIVER • Challenges / Pain ( Anecdotes) ROI Result Business Case Package Cumulative cost-benefit summary $14,000,000 • Promote your customer sponsor’s success $12,000,000 $10,000,000 $8,000,000 Business Value Cost $6,000,000 $4,000,000 $2,000,000 $Year 1 Year 2 Year 3 Year 4 Year 5 Customer feedback “HP's systematic approach engaged both business and IT stakeholders in an eye-opening, give-and-take ROI Dialogue. The result is a thoughtful assessment, with credible results.” John Novak, CIO La Quinta “We now have the justification and process to stand confidently behind our budget requests.” Todd Katz, Senior Manager of IT Architecture, Sprint-Nextel “HP BTO Solutions have helped us improve the efficiency and effectiveness of our Business Process Quality and Management and Performance Optimization Management processes, which have resulted in significant cost avoidance and revenue savings. Over the course of three years, we estimate our total savings to be between $9 million and $11 million.” Dick LeFave, Senior Vice President and CIO, Sprint -Nextel Communications Characteristics of good ROI program • • • • • • • • • • ROI is tightly integrated with the vendor's value proposition. ROI citations are abundant. Demonstrations are driven by ROI needs. Executive presentations are filled with thoughtful and provable ROI. Vendor’s web sites abound with ROI information and capabilities. Appropriately designed customizable ROI tools are offered to buyers. Sales team can help clients with credible, customized ROI analyses. ROI claims are carefully and accurately described and supported. Customer-endorsed ROI is plentiful and well explained. Sales team has good answers to business value questions Source: Making Technology Investment Profitable; by Jack Keen; chapter 12 Expanding HP ROI Program to Partners © 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice HP Partner ROI Program The Program Exclusive Partnership between HP and qualified Partners The Goal Accelerate mutual success by transferring knowledge to help partners accelerate the sale of their HP Software-based solutions HP ROI Partner Program Overview Predictable program available to qualified HP Software Partners: • Engage − Partner Profiling and qualification • Enable − Training as ROI Practitioner and/or Business Value Consultant − Member of Value Space Virtual Community • Evaluate − Review and assess success of program with individual partners Key Benefits of Being an HP ROI Program Partner Partners have exclusive access to: • Business Value Consultant Training • ROI Analyst Tool by Alinean • ROI model templates for HP Software centers • Business Value Space (Virtual Community of Business Value Consultants) • Collaterals – white papers, case studies and sales material for value selling Immediate Benefits for HP Software Partner • • Quantifying the unique value of the opportunity and HP software solutions Reduce discounting and increase deal size • Business Value Consultant certification as a differentiator in recognizing staff for promotions • Integrate ROI into the Partner’s sales process • Co-branded case studies for industry recognition and thought leadership Criteria to become an HP ROI Program Partner? A. Pursue Business Value Consulting opportunities with your clients B. Commitment to time and resource investment C. Work seamless with HP Sales force on Value Consulting HP Certified and Trained to deliver • HP Certified Professionals are at the core of the HP’s ROI Partner program strategy • Having certified professionals on staff is mandatory for ROI Program Partner membership • HP ROI Program Partners have access to a comprehensive range of training content via HP Software University HP’s commitment to HP ROI Program Partners • HP provides − ROI assets (methodology, tools, collaterals) − Training (JITs, webinars, f2f, certification) − Support (HP Software Partner website, virtual community ) • Partner provides − Qualified staff − ROI case study material − Metrics on ROI asset usage and success rates Trusted for Business. End customer positioning for HP ROI Program Partners • ROI Program Partners guarantee an unparalleled combination of expertise, proximity and customized solutions. • ROI Program Partners can provide timely, accurate ROI Analysis assessment of customers’ IT investments to meet business needs. • ROI Program Partners are certified and recommended by HP. • ROI Program Partners focus on HP values of loyalty and un-compromising commitment to customers. How to become a Business Value Consultant? © 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice HP ROI Program Specializations The specialization offers Business Value Consultant training in combination with each of the HP Software Centers HP Certified Professional Program Specialization in Business Value Consultancy differentiates you The HP Certified Professional Program offers you the ability to quickly recoup your investment through increased sales and service opportunities. This program offers the „certification resources“ required to become a Business Value Consultant and to be eligble to exhibit the „Trusted Business Partner“ insigna. HP Certified Business Value Consultant HP Certified Business Value Consultant Partner For Value ! CRITERIA • Accredited member of the HP ROI Partner Program Successfully completed the following certifications: • HP Business Value Consultant • HP Software Centers (min. of one) Refresher • Once a year review completed ROI engagements with a HP BVC to determine level of refresher courses Benefits: • Use of Trusted Business Partner Insigna • Member of the WW Virtual Community on Business Value Consultancy •Use of HP ROI-Analysis templates for HP Software Centers •Access to Alinean ROIAnalyst tool Next steps to become an HP ROI Program Partner? A. Complete HP’s Partner Profiling Questionnaire B. Sign up for Silver or Gold level training and certification C. Complete HP ROI training curriculum and pass the certification test D. Attain a minimum of one additional HP Sales or Technical Certification HP ROI Program Partner Summary • Competitive benefits • Drives top and bottom line growth • Ability to specialize and differentiate • Demonstrated expertise through certification 2008 Certified ROI Program Partner Trusted Business Partner. Qualified to deliver. A ‘Win-Win’ Relationship • For Partner A. B. C. D. E. • Knowledge transfer • Leverage HP’s first-hand customer research and methodology / tool investments Enables value selling • Larger deals • Shorter sales cycles • Reduced discounting Profitable revenue growth • Differentiation / competitive advantage Industry recognition • Joint case studies (Customer ROI Spotlights) Staff professional development • Excellent learning opportunity − Quantifies IT contributions to business − Articulates IT alignment with business goals − Valuable publicity, positioning customer as technology leader − Validates decision to select HP − Benchmark report from IDC For HP − Our Partner’s success is our success! Different Customers …. Different needs We recognize that when it comes to building business cases customers have different needs. To accommodate these varying needs we have created two different ROI engagement paths Engagement Path 1 Engagement Path 2 With path 1 your customer has a clear understanding of the benefits and needs a limited (first pass ROI analysis) to demonstrate to his management the results of a ROI Analysis. Path 2 represents a consultative approach for customers with more demanding business case requirements. As a certified BVC you will be able help your customer articulate the value map and develop a customized ROI model and business case presentation ROI Calculator ROI Analyst Level of training Basic Intermediate ROI Program Level Silver Gold Level of understanding of your customers business technology problem Alinean Tool Table - Engagement paths for business case development