IBM has announced the Software Value Incentive (SVI), a programme to financially reward the role business partners play in IBM’s sales within next-generation emerging economies.
The programme represents one of the most simplified incentive approaches in the industry, enabling companies to increase profits through delivery of higher-value software solutions regardless of where they help in the sales and fulfillment process.
Initially launched as a pilot in the US, Canada, UK and Australia, the SVI program is now available to business partners in 122 countries, with special focus on emerging economies such as such as Vietnam, Egypt, South Africa and United Arab Emirates, where IBM continues to nurture the growth of new companies. SVI aims to recognise companies that invest time into identifying opportunities early on in the sales cycle, and help drive them through to completion.
Nearly 2 000 worldwide business partners have already participated in the pilot launch, representing millions of dollars in realized profits. As a result, many of these companies have been able to re-invest revenue in future growth initiatives.
By bringing together companies at various stages of the sales cycle, SVI enables businesses to expand their ecosystem and identify partners that have complementary skills, services, business models and distribution channels. The SVI program significantly increases the incentives for business partners that are involved earlier in the sales process – at the identify and sell stages — independent of whether they’re involved with fulfillment activity.
Additionally, SVI offers incremental incentives for partners who sell solutions into the high growth small or medium-sized business (SMB) customer segment, another key growth area for the IBM business. In fact, 60 percent of SVI transactions have been SMB space, given IBM's focus on this market.
IBM haws also announced that it has extended its Grow Your Business initiative to business partners in Japan. Due to strong demand for increased localized support, IBM also is translating the tool into French, Spanish, German, Italian, Portuguese, Korean and Chinese. Initially launched in October 2007, Grow Your Business with IBM Software provides specific cross brand sales scenarios across IBM Software Groups' vast product portfolio.
The tool facilitates cost effective growth by recommending scenarios that utilize Business Partners' existing areas of expertise and available skills. With this initiative, business partners gain access to an online analysis of software products, descriptions of their business value and an instant estimate of their return on investment.
"As part of its own growth strategy, especially in emerging economies, IBM is helping business partners boost the margin they see from the sales of IBM middleware," says Kevin Derman, channel sales manager for IBM Software Group. "With programmes such as SVI and Grow Your Business, IBM is leapfrogging the competition by offering the most comprehensive incentive programs to the widest range of partners, including ISVs, system integrators and resellers, including those in emerging economies who are leading with IBM's middleware portfolio of offerings."