“Adding value and box shifting are like oil and water, they don’t mix. Distributors either run a logistics based or a service based business model, you cannot mix the two. When you are working on a 3% margin, which some high volume commodity product distributors do, then there is no room for adding value. There are 5 tests to determine if a distributor is a true value added distributor (VAD)
1. is advice available at time of order,
2. is real time support provided during installation,
3. is there a depth of application knowledge available,
4. does the distributor actively support the sales process,
5. will the distributor’s commitment to the solution continue after the bill has been paid”.
ICON’s focus is on sales and technology support of cutting edge communications solutions and because we concentrate on the emerging and new communications solutions we can do this and compete on price and delivery. ICON runs a service based business model for its distribution you don’t buy a box from us you buy a complete support package which includes technology support and education, real time problem solving and hands on sales support.
The slow but inexorable move towards VoIP and UC technologies is driving sales and generating interest in a desire for knowledge about these solutions. On the horizon, cloud based solutions are beginning to make an impact on sales and this will certainly increase as improved connectivity services are rolled out likewise the virtualisation of corporate servers is generating more opportunities for UC solutions.
The hot products includes solutions which in one way or another exploit these emerging technologies. MESSAGEmanager (a unified Fax, SMS, Telex messaging solution) embraces virtualisation and is the favoured FAX server for businesses which are running virtualised servers. In terms of cloud communications the MESSAGEmanager channel offering is about to increase with MMOD (MESSAGEmanager On Demand) which is a cloud based enterprise FAX and SMS and in the on-site mobility space the IP DECT solutions from Polycom are in demand being the solution of choice in the hosted environment of the cloud (Voice over Wi-Fi is restricted to CPE solutions). In the VoIP and UC space Wave IP the IP-PBX which includes integrated business applications out of the box is slowly displacing the non IP UC solutions.
The emergence of solutions which require a high level of technology support during their introduction and market adoption stages. The difficulties faced by the reseller channel over the next few years will be to launch these technologies into its customer base.
A significant part of the launch of the emerging technologies is the distribution of knowledge to the channel. This is not a role for the logistics focussed distributor and the vendor is not able to provide the coverage or penetration down to the grass roots level needed.
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| Wave IP training course students |
VAD (Value Added Distributor) managed training and support to the reseller channel in the emerging technologies is a key enabler to product launch. ICON provides cost free, training in sales and technology of the UC VOIP solutions such as Wave and takes on responsibility for channel education when major product changes occur. None of this is done by the logistics based box shifter..
The new technologies require a solutions sale, sophisticated specification and installation, and ongoing support. ICON has positioned itself as a value added systems distributor by putting adding value at the core of business and not just a slogan of the marketing process. This means;
· Responding to a dealer’s individual need. - This requires the understanding that only a true VAD can provide. Without a core strength of specialism it is hard to offer real expert advice. As part of our individual treatment we offer to; actively work with dealers to win the sale, provide sales and technical training which suits their needs.
· Extending commitment to the dealer into post sales service. - ICON provides a problem solving telephone based support experts, out of warranty repair and an ongoing commitment to a solution sourced from it. In some cases it also works with the dealer to train the customer.
· Focusing on relationship building and positive communications. - The knowledge that a dealer can call and speak to someone that knows about an order or client installation and will be able to walk them through the problem, make suggestions and offer a solution all adds to the value of a boxed product.
· Distributing products that really need a value-added service, are compatible, and will add depth rather than breadth to the portfolio. - That way icon can provide unrivalled advice on the interoperability and suitability of the products and how the functionality can be exploited across the applications.
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