Partnering up

How telecom operators

can expand their partner
channel for IT/digital
growth in B2B
Contacts
Dubai
Jad Hajj Chady Smayra Achilles Drettas
Partner Partner Principal
+971-4-436-3000 +971-4-436-3000 +971-4-436-3000
jad.hajj chady.smayra achilles.drettas
@strategyand.ae.pwc.com @strategyand.ae.pwc.com @strategyand.ae.pwc.com

About the authors

Jad Hajj is a partner with Strategy& Middle Achilles Drettas is a principal with Strategy&
East, part of the PwC network. Based in Dubai, Middle East. Based in Dubai, he is a member of the
he is a member of the technology, media, technology, media, telecommunications, and digital
telecommunications, and digital practice in the practice in the Middle East. He works with telecom
Middle East. He specializes in helping telecom operators and technology providers to expand their
operators and technology providers develop IT/digital business with enterprises. He brings deep
winning strategies and build distinctive digital expertise in corporate and business strategies,
capabilities. He has particular expertise in governance and operating models, and B2B sales
corporate and business-to-business strategy, and marketing transformation.
along with digitization and innovation.

Chady Smayra is a partner with Strategy&

Middle East. Based in Dubai, he is a member
of the technology, media, telecommunications,
and digital practice in the Middle East. He
has more than 22 years of experience in
information and communications technologies
(ICT) focused on the telecoms and technology
sectors. He specializes in growth strategy,
digital transformation, mergers and acquisitions,
technology ventures and digital business models,
and performance turnaround programs.
EXECUTIVE SUMMARY

Telecom operators have been expanding their offerings to capitalize on the region’s large
IT/digital services market, worth around US$52 billion in the Middle East and Africa in
2020, according to IDC. A major challenge for telecom operators is that their traditional
sales channel mix does not position them well for this market. Account managers
responsible for large corporate accounts lack the product knowledge and consultative
selling skills needed for the more complex field of IT/digital services. Telecom operators’
legacy business-to-business (B2B) sales channels for small and medium-sized enterprises
(SMEs), such as door-to-door (D2D) sellers and telesales, are similarly unsuitable.

Thanks to their extensive ecosystem of local technology services partners, leading cloud service
providers and independent hardware/software vendors have built the scale and valuations often
envied by telecom operators. To grasp the IT/digital opportunity, telecom operators need similar
broad-based partner channels. They need to take a structured approach by developing and
maintaining productive relationships with an extensive range of specialized local IT/digital partners,
including system integrators, consultants, managed service providers, resellers, and distributors.

A successful IT/digital partner channel program would lead to substantial gains in the SME
segment. It would also help telecom operators generate a 10 percent to 25 percent increase in
their IT/digital sales to large enterprises.

Telecom operators must make several critical decisions about this channel. First, they should
determine which customer segments, products, and services they want their partners to
prioritize and what roles partners should play. Second, they should identify the right channel
partners for each product and define an appealing value proposition to win these partners’
attention and commitment. Third, they must determine the design of key program components,
such as benefits, partner tiers, and qualification requirements. Fourth, telecom operators need
the right enablers to ensure seamless collaboration with partners.

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 1
A CHANGING B2B CHANNEL MIX

Telecom operators in the Middle East face a gradual slowdown in the B2B market.
Consequently, they are seeking to expand into the adjacent IT/digital services market, which has
been growing at much higher rates (see Exhibit 1). The IT/digital market covers an expanding
range of services and products, including traditional IT services, cloud computing, the internet
of things (IoT), big data, and emerging technology services. Penetrating this market is proving to
be more difficult than telecom operators had anticipated. One of the main issues is that telecom
operators’ sales channels are not well suited to the complexity of the IT/digital market.

EXHIBIT 1
IT/digital is driving growth in the business-to-business ICT market in the Middle East
and Africa
Value (US$ billions), CAGR %

−3.1% +3.6% CAGR

108.6 2020‒2024
104.2
97.3 97.1 100.3
94.3

60.4 64.2 5.2%

53.4 52.4 54.5 57.1

43.9 41.9 42.6 43.2 43.8 44.4 1.4%

2019 2020 2021 2022 2023 2024

Telecom IT/digital

Note: IT/digital as defined here includes IT and business services for large enterprises, small- and medium-sized enterprises, including small office/
home office. The definition excludes consumers.
CAGR = Compound annual growth rate.
Source: IDC, ICT Spending Guide - Forecast 2020

2 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
Account managers are not familiar with IT/digital products and services, and lack the
consultative selling skills required to develop such opportunities. Legacy channels for SMEs,
such as D2D sellers and telesales, are not appropriate for IT/digital services either. Such
channels are highly transactional in nature and the economics of selling IT/digital products
through them are not sustainable. Sales conversion rates are not as high due to the lower
penetration of IT/digital products, while the complexity and necessary customer education
involved in IT/digital services lead to more interactions, and therefore higher cost, than
traditional telecom sales.

Telecom operators need to follow the path set by major technology vendors and global cloud
providers, such as Microsoft, Dell, Cisco, Amazon Web Services, and Azure, whose extensive
partnership networks have been a major contributor to their overall success. Of course, telecom
operators should also retain direct face-to-face and virtual relationships. However, when it
comes to SMEs, the IT/digital partner channel is the most attractive for telecom operators
because it provides wider reach and greater opportunities to extract maximum potential from
existing accounts. Telecom operators should seek to collaborate with partners across various
customer segments, except perhaps in those select, often very large, accounts in which they
are already strongly positioned to sell IT/digital services directly without external assistance.

The IT/digital partner channel uses the existing sales forces of partners that offer
complementary services to their established enterprise customer base. This spreads the
partners’ sales cost over a wider range of services, providing economies of scale and thus more
profitable sales.

The prize can be substantial (see Exhibit 2). The IT/digital partner channel has the potential
to account for more than 70 percent of overall IT/digital sales to SMEs, even when using an
extensive channel mix involving virtual account managers and digital sales. The IT/digital partner
channel can also account for 10 to 20 percent of IT/digital sales to large enterprises. This figure
could be even higher for telecom operators with relatively poor access to large enterprise
accounts. The COVID-19 pandemic offers an additional reason to build the IT/digital partner
channel. Partners, with their already established relationships, can help telecom operators
overcome the impediments imposed by the COVID-19 pandemic in forging new ties.

EXHIBIT 2
A well-developed IT/digital partner channel can contribute over 70% to SME segment sales
Channel mix by segment

% IT SALES
CHANNEL SME LARGE

Account managers (face to face) 0% >75%

Virtual account managers <20% 0%

Door-to-door <5% 0%

Telesales (inbound calls/outbound calls) <5% 0%

Retail <5% 0%

Digital store <5% 0%

IT/digital partners >70% <20%

Source: Strategy& analysis

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 3
 The IT/digital partner channel should be diverse. It should encompass a broad variety of IT and
digital-centric partners, such as system integrators, consultants, and resellers and distributors
(see Exhibit 3).

EXHIBIT 3
The ICT partner channel is complex, encompassing a variety of potential partners
ICT partner types

TYPE ROLE

IT distributors Act as an intermediary in the distribution of software or hardware

Agents/simple resellers Simply sell and earn commissions from vendor solutions
Resellers

B2C physical and online retailers Purchase goods from a vendor and sell them to consumers

B2B online sellers1 Sell directly to businesses online

Value-added resellers Attach own value-adding services to resell as a complete package

Includes IT consultants and increasingly, other types

Consultants
of professional service providers2
IT/digital providers

Application developers Create applications software using vendor solutions

Hosting and managed Remotely manage a customer’s IT infrastructure and/or

services providers end-user systems
Bring together component subsystems and ensure that they
Systems integrators
function together

Tech vendors (hardware/software) Develop, market, and sell hardware and software

Note: B2B = business to business. B2C = business to consumer. 1 Also known as direct market resellers. 2 Business consultants, auditors,
law firms etc.
Source: Strategy&

4 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
Whereas telecom operators in the Middle East are accustomed to B2B sales partners such
as D2D and value-added resellers (VARs), they have yet to expand their partner channels in
such a broad-based manner. Globally, a few leading telecom operators have set examples of
this type of channel. Telstra Business in Australia revamped its channel program in 2016. It
switched the focus of its existing partners to IT/digital services, and attracted new partners
with specializations such as security, infrastructure as a service (IaaS), software as a service
(SaaS), and digital transformation. Following the acquisition of AlienVault in 2018, AT&T in the
U.S. inherited a partner program focused on cybersecurity, with two separate value propositions
targeting managed security service providers (MSSPs) and solutions providers. These
programs complement AT&T’s existing Partner Alliance and Partner Exchange programs, which
encompass mostly network-centric partners.

Building strong and sustainable relationships with IT/digital sales partners is difficult. Telecom
operators face competition for their partners’ sales attention from other suitors, such as tech
vendors and global cloud providers. As such, developing the channel requires focus and investment.

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 5
CREATING A SUCCESSFUL IT/DIGITAL PARTNER CHANNEL

Telecom operators need to make several critical decisions about the partner channel that
encompass: focus and roles, partner proposition, program design, and enablers (see Exhibit 4).

EXHIBIT 4
How to create a winning IT/digital partner channel

FOCUS AND ROLES

Channel focus: What customer segments, products, and
services should the channel be focusing on?
Channel role: What should be the role of the partner across
the value chain?

PARTNER PROPOSITION
Target partners: What types of partners will be most suitable
to promote target services?
Value proposition: What should be the value proposition to
each partner type?

PROGRAM DESIGN
Program benefits: What should the program offer as benefits?
Program tiering: What will be the program tiers, benefits, and
qualification requirements?
Commission design: How should partners be incentivized financially?

ENABLERS
Organization: How should the telecom operator be set up
internally to manage the program?
Tools: What tools should be provided to partners to enable
sales and collaboration?

Source: Strategy&

6 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
Focus and roles
The telecom operator first needs to decide channel focus and roles. This means defining the
segments that partners should target, identifying the products they will be focused on selling, and
articulating how they will be involved in the customer life cycle before, during, and after the sale.

Regarding segments, an easy decision is to have IT/digital partners target the SME segment.
What is more difficult to determine is whether the telecom operator should allow its IT/digital
partners to sell to large corporations and key accounts. Although a telecom operator possessing
a strong B2B position often avoids doing so, it is worthy of consideration. There are two
advantages to giving IT/digital partners access to large corporations and key accounts. First,
some IT/digital partners already have established relationships with these accounts, which
means the telecom operator is not surrendering any relationships by allowing them to resell
the telecom operator’s products and services. Second, some telecom operators are not well
positioned in the IT/digital business, which means that they would benefit from multiple contacts
with large corporations and key accounts, including those of sales partners.

Regarding products, the decision is whether to allow these partners to sell connectivity, which
is the telecom operator’s bread and butter, along with IT/digital products and services. There
are two considerations to bear in mind: market share, and winning the partner’s attention. First,
the telecom operator’s current market share helps to determine whether the additional partner-
generated sales volume can compensate for the discounted prices offered to these partners.
Second, the telecom operator should remember that it is competing with multiple global
vendors for its partners’ attention. Allowing partners to sell connectivity can be an effective
means of attracting them and increasing their loyalty.

The telecom operator also needs to determine its partners’ role across the value chain, from
product creation to lead generation, sales, delivery, and customer support. A variety of models
exist, and the following three are the most prevalent.

• “Sell to” model: The partner completes the sale. The telecom operator sells the products and
services to the partner, who resells to the end customers and retains the relationship and
contact with them.

• “Sale with” model: The partner closes the sales on behalf of the telecom operator. The end
customer contracts with the telecom operator directly, who is then responsible for service
provision and after-sales support to the customer.

• Referral model: The partner identifies a lead and passes it to the telecom partner for closure.
The entire process thereafter is managed by the telecom operator, who compensates the
partner for the referral.

The critical point is that the channel design should allow a wide range of sales models, for two
reasons. First, allowing partners to play a broad range of roles in the sales cycle means more
potential partners and wider sales reach for the telecom operator. Second, having multiple sales
models allows the partner channel to accommodate the various requirements of different products,
current and future. Indeed, the leading channel programs are able to measure the contribution of the
sales partners on a product and deal-by-deal basis, and compensate them accordingly.

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 7
Partner proposition
To design the value proposition that they offer to their partners, telecom operators first need
to define what types of partner are needed to promote IT/digital products and services to the
designated segments. Different partners will be suitable for each product and service. For
example, managed service providers and application integrators are likely to be good at promoting
cloud hosting services. For video surveillance, the most appropriate partners are likely to be
physical security consultants and operators, system integrators accustomed to deploying and
reselling Internet Protocol (IP) cameras, and local distributors of IP-based cameras.

A systematic approach to identifying potential partners involves understanding the end-to-end

value chain for the relevant product or service, and then searching for partners that operate
either more upstream or more downstream in that value chain (see Exhibit 5). Telecom operators
can assess potential partners using a two-dimensional matrix, with the sales reach in one
dimension and technical capabilities in the other. Partners that score high on both dimensions
are the best fit. However, if the telecom operator is looking to maximize reach, then partners
with strong capabilities in just one of these dimensions are also worthy of consideration.

EXHIBIT 5
How to identify potential partner types across the value chain

TECHNOLOGY
VALUE CHAIN
HORIZONTAL
Mobile-to- Bespoke
Digital Sensors/ Digital Managed
mobile Platforms Applications solution services
solutions devices consulting
connectivity development
Software
IT applications Application Application Managed
Packaged software deployment
(on-premises) consulting integration applications
and support
Hardware/software
IT infrastructure Hardware/software IT infrastructure Managed IT
IT consulting deployment
(on-premises) technology integration devices
and support
SaaS Cloud
Data collection Data
IaaS PaaS SaaS aggregation Cloud
advisory
SaaS
integration managed
/cloud collection
brokerage services

Hardware/software Managed
Cybersecurity Cyber PaaS Consulting Integration
technology services

Private network Hardware/software

Hardware/software Managed
Communications Connectivity planning deployment
technology networks
and design and support
Example of telecom operator positioning Potential partner role

Note: IaaS = Infrastructure-as-a-service; PaaS = Platform-as-a-service; SaaS = Software-as-a-service.

Source: Strategy&

8 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
The telecom operator needs to convince these potential partners to join its IT/digital partner
channel. This involves determining which elements of the value proposition to emphasize in
program design. Experience suggests the following are particularly important:

• Solve customer challenges: Telecom operators can help IT/digital partners to meet their
clients’ needs in a holistic way. Telecom operators will find it difficult to position themselves
as comprehensive enablers of innovation, given the prominence of global cloud providers.
Nevertheless, they can offer two unique selling points to partners: connectivity, and in-country
cloud infrastructure that is compliant with data protection regulations. They can encourage
partners to work with them rather than look for alternatives in the open market by offering
premium technical support and service-level agreements as part of their channel programs.

• Win more business: Telecom operators can help their IT/digital partners win more business
through their strong brand and customer reach. In particular, telecom operators can provide
formal accreditation, include partners in the telecom operator’s website and marketing events,
and share marketing qualified leads with IT/digital channel partners. They can also cooperate
on joint sales planning to target opportunities within the telecom operator’s customer base
and grant partners access to marketing tools and materials. The partners will value such
benefits because the majority are small operations with relatively low margins and reach.

• Generate new income: Telecom operators need to provide financial inducements to IT/digital
channel partners so that they join the partner ecosystem. Although the partnership brings
other equally important benefits, additional income is important to partners, especially for
smaller companies. Moreover, global vendors also offer such incentives. When partners
purchases services from the telecom operator, it can respond by offering sales incentives,
discounts, or rebates. Monetary and non-monetary awards for top-performing sales agents
can further boost sales performance.

• Collaborate seamlessly: The partnership demands commitment from both sides. The
telecom operator can establish dedicated partner account teams and streamlined processes
facilitated by support tools to make collaboration smooth. Besides, automation can reduce
the cost burden of the partnership.

• Build expertise: Telecom operators can offer training to their sales partners in such areas as
marketing, sales, and technical support. Sales partners value access to knowledge bases and
training that help their teams acquire expertise and serve their customers better. If properly
designed, such training would be valuable for partners and lead to more revenue for the
telecom operator.

The importance of each individual element in the value proposition will depend on various
factors. These include the partner’s business model, size of business, marketing capability,
and technical sophistication. As with designing products for customers, tailoring the value
proposition starts with an in-depth understanding of the businesses of the potential partners
and their challenges. Telecom operators should involve potential partners early in the design
process to ensure that the partner program is mutually beneficial.

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 9
Program design
Elaborating the design of the partner program entails determining its overall structure, and the
tiers of partners, along with the benefits, and the incentives to be provided to them.

The telecom operator is better off building a single, flexible program structure rewarding the
partner according to its own contribution to sales, and for each sale separately. Such flexibility
is an improvement on the previous approach of tailored sub-programs with unique benefits for
each target partner category. The limitation of the old model is that IT/digital services firms are
not easily categorized; for example, they could be system integrators, VARs, IT consultants,
managed service providers, or cloud hosting providers. Flexibility is vital because the
technology industry is dynamic, which means frequent crossover between categories. Players
expand across the technology services value chain — such as platforms, consulting, integration,
managed services — and across technology horizontals, such as connectivity, cloud, security,
enterprise IT hardware/software, IoT, and big data. Flexibility is also important because the role
of the partner will vary according to its capabilities and the relevant product or service. A flexible
definition of a partner’s role for any product avoids the frictions that could limit the effectiveness
of the partner program. Leading global vendors with broad product portfolios have started using
this flexible approach.

Most vendor programs encompass four tiers of partners. Promotion from one tier to the next
typically depends on sales performance, certifications, technical and solutions expertise, and
the submission of a joint business plan. The most basic tier is typically for registered partners.
There are minimal qualification requirements. The benefits are simple, such as access to a
partner portal that contains marketing collateral, training courses, a knowledge base, webcasts,
and on-line support tools. As partners advance into more rewarding tiers, they gain more
benefits, such as marketing support, dedicated channel account managers, premium technical
support, and field assistance from product specialists (see Exhibit 6).

10 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
EXHIBIT 6
Benefits provided by partner programs
Partner benefits

SOLVE BUILD
WIN GENERATE COLLABORATE CUSTOMER TECHNICAL
MORE DEALS NEW INCOME SEAMLESSLY CHALLENGES EXPERTISE
Joint marketing Sales incentives/ Partner performance Awards for New hire assistance
planning rebates monitoring tools innovation
Marketing and
communications Marketing Lead registration After-sales/ Business
development funds tools technical support transformation training
support services
Installation/ Fast-track training
Branding support Discount promotions CPQ tools configuration tools and certification

Marketing and Tiered discounts Partner performance Service/SLA Technical knowledge

sales tools reporting monitoring tools tests

Partner incentive
Marketing sales training SPIFs reporting Issue ticketing tools Technical training

Low-interest FAQs/knowledge Technical

Leads sharing CRM
financing base certification

Pre-sales and Dedicated Managed services

sales support Loyalty program After-sales training
account team community

Financial incentives Tools Support Training education upskilling

Note: CPQ = configure, price, quote; CRM = customer relationship management; FAQs = frequently asked questions; SLA = service level agreement; SPIFs = sales person incentive formulas.
Source: Global vendor partner programs; Strategy& analysis

Each telecom operator will have to devise its own specific program tiers, qualifications
requirements, and benefits. Telecom operators creating a program for the first time could start
with one program tier for which they set the minimum viable level of benefits to make partner
collaboration productive. They should then draft a plan so that they augment benefits as the
program expands. As its partner ecosystem grows, the telecom operator will want to manage
the cost of such benefits, at which point more than one tier will become necessary.

Sales incentives are an important element of the value proposition for potential IT/digital
partners. They are demanded by partners and they are a powerful means of encouraging
partners to work in concert with the telecom operator’s strategic goals. Telecom operators
should consider the following when designing their commission programs:

• Incentive mix: Combining incentives of various types can help to meet different objectives.
There are many types of incentives, such as discounts, rebates, immediate bonuses, and
referral payments. The key differences among them are the target (the partner or the partner’s
sales staff), duration (permanent or short-term incentives related to a specific promotion), and
actions involved (sales, referrals, renewals, or training). Partner discounts and rebates are
the most effective in attracting partner organizations and building loyalty, whereas immediate
bonuses for the partners’ sales reps can help boost sales. Combining partner and staff
partner incentives ensures that all sell-side stakeholders in the value chain are working toward
the same goal.

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 11
• Payout formula: Telecom operators can combine a variety of metrics into a single payout
formula, an approach also used by global technology vendors to encourage behaviors
in line with their strategies. In this approach, the payout comprises several components,
each associated with a different key performance indicator (KPI) and calculated based on
a predetermined percentage multiplier and associated base, such as quarterly revenue.
Telecom operators can link the percentage multiplier and the corresponding base to specific
sales and non-sales-related KPIs that reflect the telecom operators’ objectives. Such aims
could be joining the partner network, reaching “stretch” goals, sales of new or strategic
products and services, cross-selling, penetration of new segments or accounts, technical
certifications, and end-customer experience (see Exhibit 7).

• Non-cash rewards: Non-cash rewards can create more loyalty and provide higher value than the
telecom operator’s cost of providing them. Such rewards could include marketing support such
as the participation of the telecom operator in the partner’s customer events or sharing leads.

• Partner engagement: Telecom operators need a quarterly or more frequent sales incentive
cycle, with clear and frequent communication throughout. They should avoid the old-style,
ineffective programs that are communicated once at the start and paid out one or two months
after the end of the annual cycle. It is important before the start of the incentive cycle for the
telecom operator to highlight the objectives, expected benefits, and rules of engagement.
During the sales cycle, partners should be able to monitor their performance against goals in
a near real-time fashion. This can happen through dashboards in a sales partner portal offered
by the telecom operator. At the end of the cycle, the telecom operator should communicate
accrued rewards and settle quickly. Calculation of the incentive should be automated, mostly
using transaction data, reducing the need for partners to submit invoices or other cumbersome
claims processes that can discourage partner participation and create churn.

Telecom operators need a quarterly or more frequent sales

incentive cycle, with clear and frequent communication
throughout. They should avoid the old-style, ineffective programs
that are communicated once at the start and paid out one or two
months after the end of the annual cycle.

12 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
 EXHIBIT 7
A typical discount and rebate structure can be included in the payout formula for IT/
digital partners
Types of incentives

Base commission (%) for revenues sold

BASE RATE
through/to a given partner

STRETCH Additional % for exceeding set target, applied to all revenue

GOAL BONUS or amount above target. May vary depending on % achievement.

PRODUCT Additional % for revenue linked to specific product categories.

BONUS Can vary by product category.
ADDITIONAL BONUSES

CUSTOMER Additional % for revenue linked to specific customers

BONUS or segments

CROSS-SELLING
Additional % for reaching specific cross-selling targets
BONUS

Additional % granted for a finite period (e.g., 1 year) to new

NEW PARTNER
partners to “lure” them into the partnership

COMPETENCY Additional % granted for acquiring new set

BONUS competencies/becoming certified

Source: Strategy&

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 13
Enablers
The right people, policies, and processes must be in place and the necessary tools should be
provided to partners if the channel is to succeed.

Implementing a partner channel program successfully requires a shift in the mind-set and
responsibilities within the telecom operators’ organization, particularly its B2B units and
supporting functions. In particular:

• Product teams need to develop products that create opportunities for partners to add value.

• Marketing teams should design introductory material and provide partners with high-quality
marketing and sales support.

• Technology and operations teams should deploy tools and processes that reduce the cost of
doing business for the telecom operator and partners alike.

• Sales teams should adopt a new engagement model that involves joint selling in certain cases
with partner organizations.

A necessary component of a successful partner channel program is the establishment of a new

role, the Partner Account Manager (PAM) within the telecom operator’s organization. The PAM’s
role is to understand the sales partners’ needs and act as an internal change agent to ensure
partner satisfaction. Each PAM manages potential conflict with other sales channels by fostering
excellent communication and ensuring strict adherence to the rules of engagement. The PAM
builds the relationship and manages the performance of partner organizations. The PAM also
acts as a scout, identifying partners that meet the telecom operator’s target profile before
recruiting them and bringing them into the channel. This ensures that the new partners become
productive rapidly. The PAM manages the relationship continuously, agreeing performance
targets with the partners, leading partner training, and actively supporting sales execution by
working with the partner’s sales organization and internal specialists.

Telecom operators should make partner channel management as efficient as possible. This
means streamlined processes supported by digital tools and hands-on support to allow for
uninterrupted collaboration. There are four particular processes that will facilitate seamless
cooperation (see Exhibit 8).

14 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
EXHIBIT 8
Four processes can make the partner channel management more efficient

PARTNER GO-TO-MARKET

1. Marketing management 2. Sales management 3. After-sales service management

– Campaign execution – Opportunity development – Order delivery
Process

– Lead capture – Proposal creation/configure-price-quote – Billing and collection

– Lead qualification – Contract signing – Service monitoring
– Lead nurturing and assignment – Order generation – Issue resolution
– Marketing collateral and creatives – Selling opportunities identification tools – Configuration tools
– Marketing automation platform – Deal registration and referral tools – Installation tools
and tools
Support

– Marketing campaign execution ordering – Peer partnering database – Self-service issue resolution tools
– Third-party marketing agencies catalog – Searchable product/pricing database – Issue/complaints ticket creation
– Marketing development fund – Product demo kits and monitoring
management tools – Configure-price-quote tool – Service monitoring tools

PARTNER RELATIONSHIP MANAGEMENT

4a. Partner channel development 4b. Partner performance management

– Partner recruitment – Partner sales planning
Process

– Partner on-boarding and training – Partner performance monitoring

– Partner commissions and rewards management
– Partner communications material – Partner profile-based portal
and tools

– Standard contract templates – Partner performance reporting

Support

– Rules of engagement – Partner incentive reporting

– Automated rebate processing
– Escalation tools

Source: Strategy&

• Marketing management: The telecom operator should build a lead generation engine that
identifies, nurtures, and qualifies leads that it can assign to partners for closure. Alternatively,
it can enable the partners to generate qualified leads on their own through readily available
collateral and marketing automation tools.

• Sales management: The telecom operator should use sales software to monitor partner
performance in relation to agreed KPIs, thereby identifying gaps in performance and coverage
across products, segments, and geographies. The operator can shorten the sales cycle and
improve conversion rates by deploying automated workflows, which allow simple registration
of deals, along with configure-price-quote software.

• After-sales service management: The telecom operator should provide a host of tools that
enhance the after-sales support for partners and their customers. This can include tools that
enable partners to monitor service performance, as well as log and track service tickets.

• Partner channel development and Partner performance: The telecom operator should increase
partner satisfaction and build the channel by automating partner management processes
to make them more efficient. It is essential that new partner relationships begin with a solid
introductory process. It is also important to automate key daily activities that would otherwise
absorb partners’ time and increase their cost of doing business. Most critically, the partners
should have easy access to their performance and incentives earned to date through a
profile-based portal.

Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B 15
CONCLUSION

Telecom operators in the Middle East need partner channels that use wide-ranging roles to
achieve growth. By building diverse channels and strong relationships systematically, telecom
operators can seize the considerable opportunities in the fast-growing IT/digital market.

16 Strategy& | Partnering up: How telecom operators can expand their partner channel for IT/digital growth in B2B
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