Foreword by Tim Curran Preface Acknowledgements PART ONE Introduction 01 How to get the best out of this book Who this book is for What do we mean by business model? How the book is set out 02 The business of getting technology products and services to market Distribution matters Challenging business dynamics Business models are key to value propositions A structured approach to positioning your value proposition Be careful with comparisons PART TWO Distributors and wholesalers 03 The role of the technology distributor Distributors/wholesalers Customer role - core functions Supplier role Vendor role - core functions 04 How the technology distributor business model works Role defines business model Profit is a very small number between two very big numbers Managing working capital is a balancing act The measures that matter and how to manage with them 05 Margins and profitability Multiple margins Gross margin and value add Margin mix or blended margin Contribution margin Net margin and operating margin 06 Working capital Working capital management Vendor credit Inventory Customer credit Working capital cycle 07 Productivity Earn and turn Contribution margin return on inventory investment Returns on working capital 08 Sustainability Sustainability - longer-term business health Return on net assets and return on capital employed Return on invested capital Value creation Managing value creation on an operational basis 09 Managing growth Growth dynamics Internally financed growth rate formula Economies of scale - profitability Economies of scale - working capital management Risks of growth - diseconomies of scale 10 The technology distribution landscape The global landscape Special characteristics and capabilities Recent trends and future outlook 11 How technology vendors can get the best from distribution The engagement process Managing the account relationship Some rules of thumb for making compelling business cases Summary PART THREE Final-tier trade channel players 12 The roles of the final-tier trade channel players The final-tier trade channel players The possible roles of final-tier trade channel players Matching channel roles to channel players Different roles command different compensation models Customer advocates and sell-with players Sell-with players and strategic alliances Applying this framework to your sector or channel 13 How the business model of the final-tier trade channel players works Role defines business model Services come from people, either directly or indirectly (eg web-delivered) Managing a service business The web-based service business model Overview of service business model measures 14 Sales and utilization Sales Utilization 15 Gross margin and recoverability Gross margin Recoverability Measures for the web-based service model 16 Working capital management The cash-to-cash cycle Improving working capital 17 Value creation and growth Value creation and improving the numbers Managing growth - the integrated product and service business model 18 How to sell to final-tier trade channel players What we mean by selling to final-tier trade channel players Segmenting the final-tier trade channel What the final tier looks for in a vendor What the final tier looks for in a distributor Managing the account relationship Some rules of thumb for making compelling business cases Selling ''with'' the final tier in an advocacy role Conclusion PART FOUR Retailers 19 The role of retailers Retailers and retailing Online retailing and catalogue 20 How the retail business model works Role defines business model Earn and turn Layout and planogramming Ranging and merchandising 21 The measures that matter and how to manage with them Sales (or takings or revenues) Margins Direct product cost (DPC) and direct product profitability (DPP) Turns and productivity 22 How to sell to retailers What we mean by selling to retailers The sales process Retailer challenges and their implications for suppliers Managing retail relationships at a strategic level Managing retail relationships at a tactical level Selling in to the retailer''s buying cycle and open-to-buy Should you deal with retailers direct or through a wholesaler? Summary Key ratios Glossary of technical terms Index.
Technology Distribution Channels : Understanding and Managing Channels to Market