Suggests a new model for partner relationship with much better rewards to Partners
Eastern Software Systems (ESS), India’s leading ERP Company has announced that it has launched an aggressive campaign to strengthen its channels route. ebizframe, the flagship ERP product of ESS is a 10 year old, mature, highly successful web enabled ERP software with over 600+ customers using it across 25+ countries. ESS is a CMM Level5 certified company, a demanding software development maturity certification that has been achieved only by around 160 companies globally. That ESS is also an ISO9001:2008 certified company tells you that it is keen to keep up quality standards with global best. A totally ERP focused organization, ESS is proud of its sustained growth and consistently positive balance sheets even in worse of economic scenarios.
ESS’ market research points out that the existing channels of ERP companies are finding it difficult to sustain their business considering the inherent lacunae in the business and delivery model of these partnerships. The partners who already are into ERP product distribution and implementation know it very well that who does the difficult work and who makes the margins in such a partnership. A major share of the product license revenues are typically cornered by the product owners whereas the partner is left with the tough task of implementing with hardly any margins left for them. For the Partners the margins are practically non-existent and even if they do exist they are hardly commensurate to justify any returns on the investments. To add to the woes, there is a long recovery cycle of whatever little margins they make. No wonder a lot of ERP partners who went into this business with high hopes have dropped out as they have found it difficult to sustain their business with such a tough proposition.
The existing model where partner does the implementation and the product companies corner the majority of product license revenue, does not utilize the strengths of its entities and ends up as a win-loss situation in favour of the product owners. The partner’s strength typically lies in their last mile connectivity (their reach to the end-customer). On the other hand the product owners know the product the best and have the necessary knowledge and implementation infrastructure to manage the ERP implementations successfully and profitably. The present model utilizes the last mile connectivity of the Partner but does not use the knowledge / implementation infrastructure of the product company. Instead it puts the onus of implementation on the partner with little help from the product owners. The partners typically with their thinner knowledge and implementation infrastructure have limited capabilities for implementing the ERP. Hence they have ended up making losses or little margins on a lot of their projects.
A model which uses the strengths of both the entities in the partnership is likely to be win-win situation for both. Also the last mile connectivity or the reach of the partners must be rewarded commensurately and not at the existing percentages that they get. There is an ample research that proves that in any sales cycle the lead generation and its efficacy impacts the quality and quantity of sales closures. So logically the lead generation should also be rewarded well as opposed to the existing percentages.
According to Mr. Anil Bakht, Managing Director, ESS, “ESS is offering a partnership model where a partner will only be required to refer the leads through its last mile connectivity whereas ESS will bring in their product licenses and the knowledge / implementation infrastructure. This coupled with much better commissions is a win-win situation. The partners end-up making more money in lesser time and with much less effort which was required if they were also implementing the ERP themselves. The model will bring in promising and commensurate rewards for both. The model is well tried and tested and ESS’ existing partners have reaped benefits by partnering with ESS on this model.”
ESS is aggressively looking at partners (company or individual) who want to get into the ERP space as well as the existing players in the ERP space. ESS will also approach some of the partners of competing ERPs who had dropped out of this business because of the loop holes in the model. Companies who are interested in having their slice of the cake of the booming ERP market can write in to marketing@essindia.co.in
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About Eastern Software Systems (ESS)
Eastern Software Systems Pvt. Ltd. [ESS] was founded in 1990 and is today a premiere IT Products and Services Provider offering cutting edge technology solutions and services for its clients worldwide. ESS is primarily known for its ERP "ebizframe" which is the largest selling Indian ERP today. ESS is assessed at SEI-CMM Level 5 [the highest level attainable for process capability maturity] and is also certified ISO-9001:2000. ESS offers its Products and Services in over 25 countries including India, S.E. Asia, Africa, Middle East and Latin America. ESS employs a large group of highly talented technical staff for serving its large client base. ESS primarily operates in the following domains: enterprise solutions (ebizframe ERP implementations), offshore development and support, and total IT outsourcing.
