IBM Software Group © 2006 IBM Corporation Software Value Incentive03/23/2006 Software Value Incentive Ask the Experts March 27-31, 2006 Mary Cipriani,

IBM Software Group

Software Value Incentive 03/23/2006 © 2006 IBM Corporation

Software Value IncentiveAsk the ExpertsMarch 27-31, 2006

Mary Cipriani, Mary Cotham, Chris Follansbee, Greg Milani

IBM Software Group

© 2003 IBM Corporation2 Software Value Incentive 03/23/2006

Agenda

SVI Process overview

Where to go for more information

Call to action

Key Dates

Q&A

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Key Points To Remember Meet the software certification requirements (2007)

Sell minimum $10k per sales order

Register and be approved minimum of 30 days prior to Sales Order Date

Be first to submit complete, validated opportunity

Resubmit existing PWLM and ICSF opportunities to GPP

Sell eligible products to eligible end users

For existing Passport customers, use the Customer Account Name and Address as appears on their Passport contract

Use the online product table to select the correct Brand Family

Submit eligible Sales Documentation as Proof of Performance

Build Your Partner Ecosystem

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Software Value Incentive Process Overview

MONDAY - Enrolling in SVI

TUESDAY - Selling eligible products to eligible end-users

WEDNESDAY - Submitting validated opportunities

THURSDAY - Submitting eligible sales documentation

FRIDAY - Requesting payment

IBM approves or rejects the opportunity

The Sale is Won

Business Partner applies for SVI participation

Sales/Selling process

Business Partner registers and submits

an opportunity

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Enrolling in SVI

Selling eligible products to eligible end-users

Submitting validated opportunities

Submitting eligible sales documentation

Requesting payment


The Sale is Won




an opportunity

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Enrolling in SVI - Prerequisites

IBM PartnerWorld Business Partner Member level or higher

3 Software Certifications (waived through Jan 2007)

– 2 Technical

– 1 Sales

1 certification in each software brand for the opportunities being submitted

Electronic Funds Transfer for SVI Fee payments

Internet access for the online PartnerWorld and GPP tools

– Note: Use MS Internet Explorer. Firefox and Google toolbar integration are incompatible with the GPP application.

1 SVI enrollment per Business Partner company per country

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Enrolling in SVI - Partner The partner’s Authorized Profile Administrator (APA) reads

and accepts the SVI Terms and Conditions electronically

– SVI T&Cs contract available now on PartnerWorld site

APA selects their Preferred Distributor

– If VAP, must use default choice of VAP preferred distributor.

– If not currently VAP, choose VAD

– If influence only (not fulfill), must choose ibm.com

Business Partner’s APA and their Business Contact will receive an email accepting or denying participation in Software Value Incentive

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Software Value Incentive enrollment screen

This is the SVI enrollment form for the Business Partner

https://www-304.ibm.com/jct09002c/partnerworld/mem/sell/sel_sip_svi_apply.html

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SVI Enrollment and Approval – IBM SVI Admin IBM SVI Administrator Validates

– PartnerWorld Membership status, VAD selection, and acceptance of SVI T&Cs

– Business Partner’s current software technical certifications which determines their eligibility by brand to earn incentives (Jan 2007)

If approved

– IBM creates first User ID and Password for the APA to access the GPP tool

– Notifies the Business Partner of approval via e-mail

APA can then grant access to GPP to additional users in their firm

SVI Enrollment begins April 3rd

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Enrolling in SVI

GPP Position Responsibilities

Business Partner GPP Administrator (APA)

Creates user profiles and manages them.

Note: Additional Users need to first have an IBM Registration ID and be listed as an employee in PartnerWorld profile.

Business Partner Sales Rep Creates opportunity records and edits opportunity records for which the Business Partner Sales Rep is the primary or on the sales team.

Business Partner Sales Manager or HQ Sales Manager

Creates opportunity records and edits opportunity records of Business Partner Sales Reps that report to the Sales Manager.

Note: The Business Partner Sales Manager position is hierarchical. To define the hierarchy, identify which Business Partner Sales Reps report to a manager. This manager can view all records that anyone identified as a report.

Business Partner Opportunity Focal Point

Accepts or rejects an opportunity record assigned to the company, create opportunity records, and edit opportunity records. The Business Partner Opportunity Focal Point is not required to be the primary or on the sales team.

The GPP Business Partner positions that a partner can create include:

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SVI Enrollment and Approval

Reasons why an enrollment might be denied:

– lack of required software IBM Professional Certifications

– Business Partner already in a mutually exclusive program (GSI)

Notification from GPP:

– Business Partner firm currently using GPP (hardware BCC program) - GPP Administrator is notified of enrollment

– Business Partner firm new to both SVI and GPP, IBM SVI Administrator notifies you that you are the GPP Administrator and instructs you to set up user profiles for your firm in GPP

Partner’s GPP Administrator (APA) sets up userids and employee job roles in GPP

Users can access GPP and begin entering opportunities starting April 10th

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Enrolling in SVI




Requesting payment


The Sale is Won




an opportunity

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Sell An Eligible Middleware Product

Must be New License part number fulfilled via Passport Advantage: –License + SW Maintenance, Trade Up License + SW Maintenance, Initial Fixed Term

License & Maintenance

Ineligible Products– Maintenance Renewals, Maintenance Reinstatements, Media/Doc packs

Cross brand products must be ordered via Passport Advantage, and not via hardware configurator tools

– example: WebSphere for iSeries has both PA part number and iSeries PID number

Eligible part numbers are those in the same brand and brand family that are registered in the opportunity

– Use the Brand Category table to ensure correct selection on the Revenue tab when creating SVI opportunity record

Transactions fulfilled through mutually exclusive programs (OEM) are not eligible

When Business Partners are fulfilling, only the transactions processed through their Preferred Distributor are eligible for SVI fees

When a VAP rebate is applied to a specific part number in an eligible transaction, the revenue from that part number is ineligible for the SVI Sell incentive if the opportunity owner is the VAP Partner

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Sell to an Eligible End User

Utilize the Midmarket Help Desk to verify if an account is SMB or Enterprise

SVI will use the “Customer Code for BP Incentives” field

Verify if the account is ineligible Government ISU code

– Federal Government

– State/Local Government

– some Public Hospitals, Public Schools

When creating opportunity record in GPP, select the customer account record that matches the customer number on the Passport contract that will be used for the license order

Sale cannot be to a Business Partner company that fulfills Passport or a Business Partner company participating in SVI

For US Business Partners, Passport ship-to location must be in US

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Enrolling in SVI




Requesting payment


The Sale is Won




an opportunity

IBM Software Group


Submitting Validated Opportunities

Submit for SVI eligibility, and be approved minimum 30 calendar days prior to the IBM Sales Order Date

– Once an opportunity is approved for SVI eligibility, the 30 day clock starts from the timestamp of when it was submitted for approval.

– If an opportunity is rejected as Incomplete it returns to Draft mode. When a partner resubmits it, and if it is then approved, the 30-day clock starts anew from the timestamp of when it was resubmitted for approval.

– Pay close attention to 30-day requirements as Quarter-End approaches.

Create separate opportunity records if product is being ordered in phased approach

For US, opportunity total must be minimum of $10k per Sales Order Transaction

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Submitting Validated Opportunities

An opportunity record consists of both a “Header” and associated “Detail” records (Applets).

The Header includes information about the end user customer, the solution, business need, who has access and its status / control information

Revenue applet – this is where you select information specific to the brand family and it’s associated revenue

Accounts applet – select the location matching the PA address

Contacts applet – add the Approver or Decision Maker’s contact info

Sales Team applet – select the IBMers or VAD reps you wish to have access

Attachments applet – attach Oppty Validation Template, Sales Documentation

Activities applet, Bid Cert Detail applet – not applicable to SVI

An opportunity record can be created as new or copied from an existing opportunity

If creating new Account record, use full legal name, not abbreviations

See the Partner SVI Education material posted to PartnerWorld SVI site

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Header Record

select oppty # to view detail records

Applets

Detail Recordbe sure to save

be sure to save

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Creating a New Opportunity – partner basics Set Timezone

Arrange Columns– if you’re not a Hardware Business Partner, remove BCC, hw fields

Verify that Account is in database or create a new one

Verify that Contact is in database or create a new one

Create Opportunity Record– associate Account and Contact info to Opportunity– Description field must include BANT– SSM stage, close date, odds– Brand Family, quantity, price, opportunity reason

Add Users to Sales Team

Attach Supporting Documents and Submit for Eligibility

Be sure to Save at every step

To Logoff: Ctrl+Shift+X or close your browser

Partners should reference the Opportunity Entry Template word doc & GPP Quick Reference Card

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Updating a previously submitted opportunity

After an opportunity is submitted for SVI eligibility, you can change the revenue value, the odds, and the close date

The following fields cannot be changed:

– Brand Family

– Type

– Description field

– Account Name and Address

– Additional revenue records cannot be added

If you need to change these fields, you must create a new opportunity

Supporting proof of Sales Documentation can be attached to the opportunity record at any time prior to submitting for payment

Opportunities Rejected as Incomplete are reset to Draft mode

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Defining SVI Validated Opportunity

A Validated Opportunity record must include the following information:

Prospect’s contact information must be complete in Contact tab– Name, Title, Email, Phone, Address– Job Role must be Approver, or Decision Maker

Prospect’s Company information must be complete in Accounts tab

Opportunity tab must include:– Description of business problem (250 characters)– Product categories proposed– Revenue Detail – Brand Family, Qty, Price– Projected sales close date– Sales Stage 4/Validated or higher

Note: Required fields in GPP are indicated with red asterisk, but SVI requires more data fields to be filled in. Refer to SVI Operations Guide for complete list of required fields for SVI opportunity records.

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SVI Validated Opportunity – Description field

Only validated opportunities should be submitted for SVI eligibility. A validated software opportunity description must include BANT: Budget, Authority, Need, Timeframe

– Description of business problem– Description of the suggested solution to the business problem and how IBM

middleware will be used– Does the customer have funds budgeted for this project?– Authority – the contact on the opportunity record must be a Decision Maker or

Approver– Timeframe – this is typically close date, but add detail as necessary to clarify

Validated opportunities do not include seminar attendees, direct mail responses, business show attendees, etc

Refer to SSM education materials on PartnerWorld

250 characters in Description Field

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SVI BANT Opportunity Validation Template

Additional info can be included as an attachment using the BANT Criteria Template (word doc) for Opportunity Validation

What is the customer’s current hardware/software environment?

What is the description of the customer’s current business problem?

What is the impact of the business problem on key customer stakeholders?

What is the suggested IBM Middleware solution?

What are the key benefits of the IBM Middleware solution that will address the business problem?

Who is the customer decision maker(s) involved in approving the recommendations and/or budget?

What is the timeline of key decision milestones, and what criteria will be used?

Has budget been identified and approved for this project?

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Searching For Duplicates Business Partner creates and saves a validated Opportunity (Draft

mode)

Partner submits Opportunity, status changes from Draft to Duplicate Opportunity Search

First IBM searches GPP to see if another BP has already submitted and been approved for the same opportunity

– Same Account Name?

– Same Country, Same State, Same City?

– Same Brand Category in Revenue Record?

– Same Dollar Amount, Close Date, Description?

Then second search in Siebel CRM using same search criteria to see if IBM has already identified the same opportunity

– Seibel CRM search will only include IBM OI records that are Open

– Is this SVI partner listed on the IBM Siebel record?

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Determining Eligibility - IBM Approve as Net New Opportunity for ID and Sell

Reject as Ineligible– Invalid Customer (Public Sector)– No technical certification found for the partner in the brand family (starting in 2007)

Reject as Incomplete: (returns to Draft mode, updated records can be resubmitted)– Completeness Check: Have all required fields in the Opportunity record been

completed with valid information? Be sure to click on “Save” at each step!– Validation Check: Has the partner provided sufficient BANT detail to describe the

opportunity as Validated Sales Stage?

Reject for ID and Sell:– Brand Family is already included in a previously accepted opportunity

Reject For ID, Approved For Sell:–already known to IBM (already in Siebel, and SVI BP is listed as resource)

Reject for ID:–already known to IBM (already in Siebel but BP not listed as resource)–If BP gets added to Siebel record, resubmit and could be approved for Sell

Determine SVI Status of each Revenue Record, Overall Opportunity Status

Typically, IBM will accept/reject submitted opportunity records within five business days

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Enrolling in SVI




Requesting payment


The Sale is Won




an opportunity

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Defining SVI Eligible Documentation

Documentation that is considered evidence of a Business Partner’s recommendation must meet the following requirements:

Recommendation of IBM Middleware

Reflect the forecasted revenue

Product categories must match those registered in GPP

Dated before the IBM Sales-Order-Date for the user’s purchase

Submitted in country native language

Dated and contain specific implementation dates

Show evidence that the Business Partner authored the document

Show evidence that the documentation was given or presented to the user by the Business Partner.

Reflect the selling of solutions, not just a product

Show a sustained time line for two-way communications

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SVI Eligible Documentation - acceptable

Proposal for solutions

Statement of work

Proof of concept

Prototype

Copy of the customer contract

Documentation of sales calls made

Letter from the customer

Architectural study

Copy of an implementation plan

Sizing or configuration document presented to the purchaser

You must submit at least three documents, and they must provide sufficient documentation that demonstrates your influence on the customer’s buying decision.

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SVI Ineligible Documentation - unacceptable

Products that the Business Partner previously sold to an Infrastructure Business Partner

Filler documents – insignificant sales activities

Documentation about relationship with end-customer

End-user calls to the Business Partner asking for a quote.

Social e-mails, internal memos and notes

Day Timer calendar entries unless they are supported by actual meeting documents

IBM Quick Proposal Templates from the PartnerWorld Web site

IBM product literature, such as PDF brochures

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Enrolling in SVI




Requesting payment


The Sale is Won




an opportunity

IBM Software Group


Updating Sales Stage to Won and Submitting Payment Request

Before submitting for payment request, partner must ensure that:

The revenue amount matches the amount you actually sold and, if necessary, go back and update the revenue records in the opportunity.

Attach all necessary sales documentation

Indicate in the opportunity record if you are fulfilling the transaction.

If you are fulfilling, provide and/or update the IBM account customer number, Passport Agreement and site number

Provide and/or update the sales order number or IBM invoice date in the opportunity comment field. Also, when placing PA order, include the Opportunity number on Business Partner’s PO to the VAD. This will help to ensure accurate payments to the partner.

Once the opportunity has been submitted for payment request, these fields cannot be changed.

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SVI Payment Process Flow

Partner submits closed opportunity for payment request

IBM searches for matching Passport Sales Order

IBM reviews Sales Documentation and determines approval

IBM will apply the payment business rules to the identified line items and calculate the payment amount on those line items that meet all the business rules

IBM will approve or reject the payment amount and release payment authorization to IBM Accounts Payable

See SVI Operations Guide for additional details and rules on Fee Payment Processing, Adjustments and Audits, and Termination from the Program

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Fee Calculation by IBM Once the eligible lines items in the sales order are determined as payable,

the Identify and Sell fees are calculated for each of these line items, based on the fee schedule

There are no caps on the amount of SVI fees that can be earned for an eligible opportunity.

To calculate your SVI fees, IBM will use an approximated Suggest Volume Price or approximated Suggested Retail Price, as applicable, for the Eligible Products included in the sales order

If your forecasted revenue for a brand family in an eligible opportunity is greater than the actual revenue in the associated eligible sales order line items for that brand family, the incentive will be calculated based on the actual revenue amount for those line items.

If your forecasted revenue for a brand family in an eligible opportunity is less than the actual revenue in the associated eligible sales order line items for that brand family, a 25% uplift will be applied to the forecasted revenue for that brand family. The SVI incentive fee percentages will be applied to the lesser of the actual revenue in the associated eligible sales order line items for the brand family, or the uplifted revenue amount for the brand family

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Why a Fee Payment May Be Denied

insufficient sales documentation

no matching sales order found for the opportunity

doesn’t meet payment business rules:

– submitted and approved at least 30 calendar days before the IBM sales order date

– payment request submitted in 60 days or less after the IBM sales order date

– payment request is submitted on or before the opportunity expiration date

– The sum of the line items in the sales order that are eligible for payment are less than $10k

not a Passport Advantage transaction to an eligible end user

The sales order line item has already been processed by the payment application

IBM Software Group



Enrolling in SVI




Requesting payment


The Sale is Won




an opportunity

IBM Software Group


Where to go for more information

External

• Business Partner information available on PWwww.ibm.com/sales/partnerworld/softwarevalueincentive

Operations Guide, Program Guide, Program overview

• Learning materials

Quick reference card

Self-study course including simulations

Online help

IBM Software Group


IBM Software Group


Where to go (continued)

• PartnerWorld Help Desk 800-IBM-9990

How-to questions on enrolling in SVI and creating opportunities in GPP

• Opportunity Entry Template

To be used as completeness checklist to assist Business Partners when creating new records

Posted with March 23 Think!Thursday materials

• BANT Criteria Opportunity Validation Template

Optional template which can be used for further documentation

Posted with March 23 Think!Thursday materials

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Where to go (continued) Lunch & Learn sessions for Americas Business Partners week of 3/27

– Monday 3/27 Enrolling in SVI– Tuesday 3/28 Determining eligibility of end-users and products– Wednesday 3/29 Submitting validated opportunities– Thursday 3/30 Submitting eligible sales documentation– Friday 3/31 Requesting IBM payment

Start Time: 1:00 pm ET / 12:00 pm CT / 11:00 am MT / 10:00 am PT

Length: 60 minutes

Call In: Toll free 888-569-5033; or 719-457-2653

Title: Hot Topics

Passcode: 6232450

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Call to Action – Plan for Change Prior to enrolling in SVI

– Is your PartnerWorld profile up to date?– Who is the Authorized Profile Administrator (APA)? If unknown, contact Partnerline Helpdesk.– Do you have qualifying certifications now or plans to get them in place in 2006?– Do you plan to Fulfill, and if so are contracts in place with a designated VAD?– Have you decided who to designate as your preferred VAD? (If you’re participating in the VAP program and have

already designated a VAD, the same VAD must be used for SVI.)– Do the additional SVI users you intend to add to GPP already have IBM Registration IDs, and are these employees

listed in your PartnerWorld profile? https://www.ibm.com/account/profile/us

Establish a plan for opportunity registration – Use the Opportunity Entry Template and the Opportunity Validation Template to gather the required information to

assist in creation of complete and validated opportunities– Will registration be centralized or distributed? Determine who in your organization will be responsible for entering &

updating opportunity records– Communicate with your employees the importance of not discussing opportunities with others until they’ve been

submitted and approved in GPP– Communicate with your employees the importance of registering opportunities in a timely manner to qualify for

‘Identify” and “Sell” fees– Review Online Education and simulation to become familiar with Siebel navigation. Be sure to “Save”!

Consider compensation– Since fees will be paid quarterly after the sale, determine effect on your internal incentive and compensation plan.– Determine how/if you’ll reward your sales reps for opportunity registration since it is required to receive SVI incentives

Understand program changes– SVI replaces ICSF and TCI. Develop plan to register existing opportunities into GPP– No changes to VAP or Passport fulfillment; BP can participate in SVI, VAP & Passport license resell.

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Maximizing BP SVI Earnings Potential

• To meet the requirements to earn SVI fees, a Business Partner should have a process in place to enter validated opportunities and to provide documentation as proof of involvement.

• To minimize the risk of losing SVI fees, the Business Partners must adhere to the program rules on dates, deadlines, and required documentation.

• To fully leverage the SVI program Business Partners must identify and sell the opportunity.

• For opportunity validation and to earn SVI fees, Business Partners need to have certifications in the brands they intend to sell. (This requirement is waived for 2006, but BP should have plans in place to achieve desired certifications by end of year.)

• Opportunities must be registered & submitted for SVI validation at least thirty days prior to IBM sales order date in order to be eligible for SVI fees. (This requirement will be waived in April 2006 for first thirty days of implementation.)

• By following the documented processes & requirements when submitting opportunities; Business Partners will speed the validation process and maximize their potential to earn SVI fees. BPs should not expect exceptions to be made to the documented processes of the Software Value Incentive!

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Key Dates

March 23 - Think!Thursday

March 27-31 - Lunch & Learn, ask the experts

April 3 - SVI enrollment begins

April 10 - SVI opportunity registration begins

March 31 - TCI ends

March 15 - Last ICSF lead accepted

March 30 - Last order date for ICSF

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Questions??

IBM Software Group © 2006 IBM Corporation Software Value Incentive03/23/2006 Software Value Incentive Ask the Experts March 27-31, 2006 Mary Cipriani,

Documents

ibm software group

software brand

software certifications

payment ibm

business partner company

svi terms

svi enrollment

eligible products