Ingram Micro Service Advantage

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_1

Ingram Micro Service Advantage

James SkeltonJune 4, 2014


AgendaProgram Overview

Why Service Advantage?

Service Advantage Process Outline

Next StepsConfidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.


Service Advantage VisionTo create a high-value experience for select partners currently engaging with Ingram Micro for Cisco Services

Jointly develop and deliver goal-oriented plans to grow Cisco Services Business based on metrics, best practices and business tools.

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.


Service Advantage Program Overview

YOU

CISCO

INGRAM MICRO

For Ingram Micro’s most highly-engaged

partners

An Exclusive ProgramIn-depth analysis of your current Cisco business

Understand your direction and goals

Provide a prescription for services-led growth

Give you the tools to execute on the plan and move your business forward


Benefits …By the Numbers

Partners that have engaged directly with Cisco have realized

61%YoY Services Growth

24%YoY Product Growth


Service Advantage Process

1 Collaborative program review with partner executive management

2 Authorize Cisco to share services business data with Ingram Micro. Discovery call with Ingram Micro.

3 Ingram Micro will create and present findings, goals, and plans to grow services business

4 Regular engagement to execute plan, monitor progress, and measure results

Program Introduction

Discovery & Metrics

Build Custom Plan

Deliver Plan


How to Approach to Services Attach and RenewP E R F O R M A N C E M E T R I C D A T A R E V I E W

Understand roles and responsibilities

How soon do you quote service

renewals?

Use contract data for up-sell and refresh?

What tools do you use?

Current Attach and Renew rates?

Smart Services?

Discovery


Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_8Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

Set Achievable Goals Against

Key Performance Metrics

Custom Plan

Baseline MetricsYoY Revenue

Current Attach RateCurrent Renewal Rate

GoalsYoY Revenue GrowthCurrent Attach Rate GrowthCurrent Renewal Rate Growth

Incentive Opportunity$1,500 per Quarter for Goal Attainment


Custom PlanComprehensive Review of Services Installed Base

Determine Customer threshold for Automation

Assign responsibility for Renewals

E-Consulting Review and Analysis

Schedule Monthly call to review opportunitiesConfidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.


E-ConsultingOverall Rebates Summary Quarter-to-Date

Sales Performance and RebateMetric

Service Coverage

Service Opportunity Metric Value

Projected Rebate*

Consolidated Attach Rate (LLW Adj.) $502,204 $567,991 88.4% 2.84%

Renewal Rate – SE QTD $493,042 $1,006,357 49.0% 0.00%

Current Projected Sales Rebate FQTD 2.84%

Premium Services Rebate * 1.00%

Maximize your Sales Performance Rebate

by taking action on missed opportunitiesMonth End Metrics: November 2013


Top 20 Indirect Attach (LLW Adj)1 Opportunities

Install-Site Name

Total Opportunities

(USD)

Service Covered

(USD)

Remaining Opportunities

(USD)Attach Rate

XXXXXXXXXXXX $4,890 $4,094 $796 83.7%XXXXXXXXXXXX $2,202 $1,516 $686 68.8%XXXXXXXXXXXX $1,766 $1,118 $648 63.3%XXXXXXXXXXXX $620 $12 $608 1.9%XXXXXXXXXXXX $1,734 $1,342 $392 77.4%XXXXXXXXXXXX $1,956 $1,618 $338 82.7%XXXXXXXXXXXX $213 $0 $213 0.0%XXXXXXXXXXXX $180 $0 $180 0.0%XXXXXXXXXXXX $142 $0 $142 0.0%

Totals $151,322 $87,246 $64,076 57.7%

E-ConsultingTop 20 Attach Opportunities Last 12 Months

Top 20 Indirect Attach (LLW Adj)1 Opportunities

Install-Site Name

Total Opportunities

(USD)

Service Covered

(USD)

Remaining Opportunities

(USD)Attach Rate

XXXXXXXXXXXX $36,663 $15,327 $21,336 41.8%XXXXXXXXXXXX $21,804 $5,400 $16,404 24.8%XXXXXXXXXXXX $10,475 $4,312 $6,163 41.2%XXXXXXXXXXXX $25,668 $20,675 $4,993 80.5%XXXXXXXXXXXX $13,782 $10,806 $2,976 78.4%XXXXXXXXXXXX $2,578 $460 $2,118 17.8%XXXXXXXXXXXX $4,807 $3,421 $1,386 71.2%XXXXXXXXXXXX $1,414 $156 $1,258 11.0%XXXXXXXXXXXX $1,797 $599 $1,198 33.3%XXXXXXXXXXXX $12,771 $11,600 $1,171 90.8%XXXXXXXXXXXX $5,860 $4,790 $1,070 81.7%

Month End Metrics: November 2013


1. Implement a sales governance process Ensure all efforts are made to attach services at the point of sale

2. Create sales process paths Lead the sales resources to logical attach opportunities

3. Monitor each order Require management approval on orders with less than

three items

E-ConsultingFindings and Recommendations: Attach Rate

RECOMMENDATION

FINDING DIAGNOSISPartner Type = Tier 2 80% <= AR < 90%

Optimize your Services Attach Rate to receive a higher rebate

For Optimizing Your Services Attach Rate

4. Know how to focus on individual customersMatch their needs with services they can attach that will

be most effective

5. Set a goal to raise your Attach Rate higher Receive a greater rebate

6. Provide incentives for sales Attain a higher Attach Rate goal with a compensation

plan that rewards performance



Renewal Opportunities

FY14Actual Renewal

FY14 to DateMulti-year Contracts

$ 0.376M $ 0.272M $ 0.090M

E-ConsultingRenewal Rate Estimates FY-to-Date

Month End Metrics: November 2013* Overdue = still available for renewal. **Based on performance FY14 To Date

Missed Renewal Opportunity FY14

Overdue Renewal Opportunity *

Potential Year-end RR Result **

$ 0.104M $ 0.012M 77.7%


E-ConsultingRenewal Rate Monthly Performance

Month End Metrics: November 2013* Overdue = still available for renewal. **Based on performance FY14 To Date. US Dollars

Month Renewal Base Actual Renewal Renewal Rate % Multi-YearRenewal Rate

with Multi-YearEligible but

Not RenewedAUG 2013 $48,092 $38,557 80.2% $5,275 82.1% $9,535

SEP 2013 $139,773 $135,135 96.7% $2,237 96.7% $4,638

OCT 2013 $110,305 $70,297 63.7% $28,382 71.2% $40,008

NOV 2013 $77,970 $27,704 35.5% $54,446 62.0% $50.266

DEC 2013 $306,403 $6,773 2.2% $151,559 34.6% $299,630

JAN 2014 $176,221 $12,802 7.3% $239,754 60.7% $163,419

FEB 2014 $346,136 $3,853 1.1% $45,250 12.5% $342,283

MAR 2014 $277,509 $30,231 10.9% $14,035 15.2% $247,278

APR 2014 $165,391 $11,452 6.9% $144,363 50.3% $153,939

MAY 2014 $96,315 $13,924 14.5% $10,281 22.7% $82,391

JUN 2014 $367,260 $2,806 0.8% $35,231 9.5% $364,454

JUL 2014 $272,235 $6,909 2.5% $309,634 54.4% $265,326

TOTAL $2,383,610 $360,443 - $1,040,447 - $2,023,167


E-ConsultingTop 20 Un-renewed Opportunities FY-to-Date

Install-Site NameContract Number

Total Opportunity

Missed Opportunity

Month StatusXXXXXXXXXXXX XXXXXXX $32,341 NOV Q2 ActiveXXXXXXXXXXXX XXXXXXX $25,500 OCT Q1 ExpiredXXXXXXXXXXXX XXXXXXX $4,640 OCT Q1 ExpiredXXXXXXXXXXXX XXXXXXX $3,615 OCT Q1 ExpiredXXXXXXXXXXXX XXXXXXX $2,642 NOV Q2 ActiveXXXXXXXXXXXX XXXXXXX $2,556 NOV Q2 ActiveXXXXXXXXXXXX XXXXXXX $2,404 AUG Q1 ExpiredXXXXXXXXXXXX XXXXXXX $2,190 NOV Q2 OverdueXXXXXXXXXXXX XXXXXXX $2,070 NOV Q2 OverdueXXXXXXXXXXXX XXXXXXX $2,014 NOV Q2 Overdue

Install-Site NameContract Number

Total Opportunity

Missed Opportunity

Month StatusXXXXXXXXXXXX XXXXXXX $1,892 NOV Q2 ActiveXXXXXXXXXXXX XXXXXXX $1,730 OCT Q1 OverdueXXXXXXXXXXXX XXXXXXX $1,496 SEP Q1 ExpiredXXXXXXXXXXXX XXXXXXX $1,319 AUG Q1 ExpiredXXXXXXXXXXXX XXXXXXX $1,186 NOV Q2 OverdueXXXXXXXXXXXX XXXXXXX $987 OCT Q1 ExpiredXXXXXXXXXXXX XXXXXXX $969 AUG Q1 ExpiredXXXXXXXXXXXX XXXXXXX $912 AUG Q1 ExpiredXXXXXXXXXXXX XXXXXXX $864 OCT Q1 Expired

Estimated Total Un-Renewed Opportunities FY-to-Date: $104,206



1. Establish a structured renewal process and timeline

2. Track maintenance renewals onlineCisco Service Contract Center – Renewal Business Summary

3. Create service renewal quotes and place ordersOnline at Cisco Service Contract Center

4. Optimize your current sales resourcesOutside Sales = New opps • Inside Sales = Maintain / Renew

E-ConsultingFindings and Recommendations: Renewal Rate

RECOMMENDATION

FINDING DIAGNOSISPartner Type = Tier 2 RR < 75%

Current Services Renewal Rate is below the minimum threshold to receive a rebate

For Improving Your Services Renewal Rates

5. Inside Sales management of small accountsLow dollar value renewals, small contract extensions,

uncovered equipment

6. Implement a Customer Relationship Management system

So your sales resources can work collectively

7. Motivate your team to hit Renewal RateAchieve a rebate from Cisco



Deliver on PlanReview Performance

Tracking against metrics Monthly progress report

Quarterly Business ReviewDemonstrate how program is driving business results

Yearly Re-EvaluationHow has the engagement impacted the areas of focus?Realignment of objectives to meet the changing direction of your business



Deliver on PlanOpportunity Management

Single Point of Contact

Customized Renewal and

Unattached Reporting

Services Best Practices

Training

Demand Generation ProgramsConfidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

Automation


Next Steps

Engage with your Ingram Cisco Services

Channel Account Specialist

Authorize Cisco to share your Services Data with Ingram and Schedule a

Discovery CallConfidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.


Thank You

Documents

Ingram Micro Service Advantage