Partner Packaging Playbook

A SAP Global Cloud Channels Publication

Introduction

As a SAP cloud re-seller you’re with us to bring your expertise and value to the small to mid size
business segment. We’ve researched and interviewed the demands of this market segment and they
are demanding packages. They want affordable and predictable outcomes with both technology and
service expertise that drives their business.

What we also found in our research is for this to be profitable for a re-seller there should be specific
steps followed from end-to-end to create, deliver and refine packages. This playbook outlines how you
can organize your business model and the key methods to commercialize your own package.

You’ll find each chapter of the playbook explains the concept and then lays out an example to follow.
There are also 5 minute video summaries of each chapter available.

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Executive summary
The Partner Packaging Playbook aims to…
• Introduce the concept of Solution Packaging for cloud solutions

• Upskill Partners in how to:

I. Define a Solution Package
II. Design a Solution Package
III. Build a Solution Package
IV. Sell a Solution Package
V. Continually refine and optimize a Solution Package

- This playbook has been designed as a standalone resource for Partners

- It references, and can be read in conjunction with, other SAP support and materials

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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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1. An introduction to Solution Packaging
A package is more than just a collection of services, it is a single targeted
product
A Package is…

A single product... A clear commercial offering with a single proposition

targeted at a specific customer type

The commercial offering will comprise of multiple

…combining multiple goods & components that all contribute to the same core value
services proposition

The components of a package are carefully selected and

More than just an upsell tailored to respond to the core requirements of the target
opportunity market

A package is a pre-determined ‘out of the box’ product

A standardized, repeatable that can be sold to multiple customers with minimal need
offering for alteration

A package is a pre-determined and standardized product that can be sold to multiple clients

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1. An introduction to Solution Packaging
In an enterprise software setting, a Partner-led ‘Solution Package’ combines a
highly pre-configured solution with pre-determined additional services
• An enterprise software ‘Solution Package’ will combine pre-configured Example Solution Package components
content with a suite of pre-determined additional services
Core Optional
- The composition of the package and the nature of the services will bundle add-ons
be tailored to the needs of a target customer type
Solution Services
- Solution Packages are Partner-led and Partner-built, as Partners Bespoke
are best placed to understand the needs of their specific customer configurations Training
base (see Chapter 2)

• Pre-configured content allows Partners to cater to customer configuration

Consulting
requirements upfront, thus removing the need more bespoke configurations
High level of pre-
configuration
• Additional services in a packaged offer represent more than just a cross sell (c.40-80%)
opportunity – they are an opportunity for Partners to pass on their expertise Support
to customers
- “Customers value the more comprehensive service and consultancy
made possible with packages.”
Forms & Reports
CEO, Partner - USA Basic SAP Solution

• To ensure repeatability, Solution Packages will be SAP solution-specific

Solution Packages confer significant benefits to both partners and their clients

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1. An introduction to Solution Packaging
For clients, Partner-led Solution Packages offer a cost-effective integrated
solution
Solution Packages offer clients…
• A Partner-led Solution Package offers an alternative to
Faster implementations
customers for whom a traditional approach is less attractive,
particularly for mid-market GB and SME customers “We went with a pre-configured ‘off-the-shelf’ package as we
needed the solution to be deployed as rapidly as possible.”
• These are often, though not exclusively, smaller customers Retail sector client
who have different requirements to enterprise-grade customers
Improved HR processes
• Smaller GB clients will often have less mature internal “A pre-configured solution along with training and
processes, meaning Partner expertise can be leveraged make consulting would have been highly valuable. It would have
improvements allowed us to review our process and align them to best
practice with the support of an expert Partner.”
• Benefits Solution Packages offer GB clients include: Software sector client
‒ Faster implementation
Additional support
‒ Less technically complex solutions
“A pre-configured, along with support and training could
‒ Lower cost solutions
have reduced the amount of help we needed from the
‒ Higher touch service partner.”
‒ An opportunity to refine internal HR processes Logistics sector client

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1. An introduction to Solution Packaging
However, package requirements tend to vary by client size and maturity

Small/Less Complex Customers Mid Market/Multi-national/Systems in place

Less mature systems and processes that can be Some developed systems and processes that will
HR processes
adapted to the package require bespoke pre-configuration

Pre-configuration c.80% c.40%

potential should be pre-determined in offering should be pre-determined in offering

Additional services Likely to require a clearly defined ‘out of the box’ Focus on support and consulting as value-added
potential solution, with further additional services as required services that SAP cannot provide

Typical Solution Highly pre-configured solution with further add-ons Less pre-configured solution, with fixed cost
Package offering available change management services

Less complex customers should be targeted with a low-cost, rapidly deployed solution with pre-configured best practice. Typically
mid-market customers place more emphasis on service & support, and required higher levels of configurability

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1. An introduction to Solution Packaging
The pre-determined components and dimensions of a Solution Package will
vary according to the target customer type
Example packages
• Solution Packages will be formed of a highly
pre-configured solution and pre-determined Pre-configured Pre-determined Pre-configured Pre-determined
content and additional services solution services solution services
BPO
Pre- Pre- Training
• Different customer types will require different configured Solution configured
levels of pre-configuration and service types solution upgrade mgmt solution
and coverage (60%) (40%)
Training
& Partner IP & Partner IP Forms &
Forms & Reports
• Partners will have to ensure that their Reports
proposition matches the needs of the target
customer group (see Chapters 2 and 3) Example small Example mid-sized
business package business package
More-pre-configuration Less pre-configuration
More additional services Fewer additional services

Applicability Smaller customers Mid market

NB: Services may be purchased as ‘add-

ons’ for more basic implementations

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1. An introduction to Solution Packaging
Partners also benefit, as pre-determining package components controls cost
and reduces implementation length and complexity…
Partner packaging benefits
• As well as benefiting the customer, Solution Packages offer significant
benefits to partners
Increased solution pre-configuration
• Solution Packages have a higher level of pre-configured content than
traditional solutions, which reduces the consultant workload required
- “Using packages means our implementations are faster but also
less prone to unexpected issues arising.”
Chief Commercial Officer, Partner - Australia & Pacific
Faster Less complex
implementations implementations
• Reduced consultant workload will reduce implementation cost

• Increased use of pre-configurations will also reduce the technical

complexity, and therefore the risk, of the solutions implemented Reduced cost Reduced risk

• The lower cost and time burden of implementation will allow Partners to
deliver a greater volume of implementations with a stable resource pool

Faster and simpler implementations will reduce cost and risk

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1. An introduction to Solution Packaging
…which offers an opportunity for margin uplift and/or improved commercials
Value-based approach: improve margins
Margin % Assumes fixed implementation price of $38,500
• Solution Packages can have a significant positive commercial impact for
80%
Partners
60%

• The reduction in implementation cost can significantly improve margins if 40%

68%
existing pricing is maintained 20% 49%
30%
- This helps increase the value of each implementation project 0%
Standard Configure & Care
40% pre- Out80%
of the Box
– “Our packaged offer achieves significantly higher margins than our 0% pre-configured pre-
configured configured
conventional implementations.” Cost to partner per
implementation: $27k $20k $12k
Chief Commercial Officer, Partner – Asia & Pacific

Volume-based approach: reduced prices

• Alternatively, pricing can be reduced to make the package more
Price Assumes fixed margin of 30%
competitive whilst maintaining margin
$40k
- This favours a transition to a volume based sales approach $30k
– “We are able to focus on volume through offering packages.” $20k $35k
$10k $26k
CEO, Partner - USA $16k
$0k
Standard Configure & Care
40% pre- Out of the Box
0% pre-configured configured 80% pre-configured

Solution Packages offer Partners more pricing flexibility to pursue either value or volume based sales approaches

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1. An introduction to Solution Packaging
Where prices are decreased, Partners can reduce the implementation - annual
contract value ratio, they become more compelling to clients

Reported implementation ratios

• Feedback from partners and customers has shown a high
degree of price sensitivity among customers in the Lower GB “Through packages, we are “I think the industry average for
segment achieving a 1:1 subscription to SuccessFactors is 3x. ”
deployment ratio.” Partner
Partner
• The ratio of implementation cost to annual contract value
therefore becomes an important metric for customers during
the purchase decision Implementation Packages Conventional
– “We find the high cost of implementation, which is cost as a implementations
often several times the annual contract cost, very multiple of 1x 2x 3x 4x 5x
frustrating.” annual contract
value
Professional Services sector client

• Partners offering packages have demonstrated an ability to “Packages allow us to operate at a 2:1 “Our implementation cost five times the licence
significantly reduce their implementation ratios implementation to price ratio.” fee, which we weren't impressed with.”
Partner Software sector client

Evidence of partners from the ecosystem suggests Solution Packages can reduce the implementation - annual
contract value ratio to below 3X

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1. An introduction to Solution Packaging
To maximise package attractiveness, a number of pricing models can be
employed

Package Payment model options

• Pricing is key to ensuring both clients and Partners benefit from
Solution Packages

• Although a Solution Package is a product, it does not have to be a One-off Single upfront payment suitable if only no
one time purchase, so pricing models including ongoing payments payment additional services are delivered
can be used

• Partners should look to reflect the package’s components in a

One-off &
Single upfront payment combined with annual
modular pricing structure ongoing
subscription fee
payment
- The pricing structure should leave room for ‘power-ups’ to be
sold on to the client where possible

Ongoing Upfront payment is amortised to facilitate a

• Partners should consider which pricing model is best suited to the single annual fee
payments
target market (see Chapters 2 and 3)

• More advice on package pricing can be found in SAP’s Business

Model Improvement materials and the Partner Edge portal (see p.58)

Partners will need to create simple but modular commercial pricing structures that appeal to their target market

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 1. An introduction to Solution Packaging
A Partner-led Solution Packaged can be built and launched by employing a
simple 5-stage process
How to form a Solution Packaged offering
1 2 3 4 5
Design and test the Take the package to Refine & iterate the
Stage Define the package Build the package
package market package
• Analyze commonalities • Identify typical • Identify which • Identify what sales & • Create a standardized
in current customers to requirements of target implementations marketing channels can review process for each
identify a target market market to form the basis services can be be used to reach target implementation project
of a package proposition standardized customers

Key • Analyze the size and • Review and iterate the

activities Define your
opportunity target
of the • Leverage past • Identify what additional • Identify and utilise the prackage after each
marketcustomer experience to create services can be sold as resources required to implementation
targeted IP products take advantage of these
channels
• Consider competitive
• Use IP to consolidate
dynamics • Test proposition
pre-configured
feasibility through market
implementation services
research
& additional services into
a single package

Package iteration

The following Chapters will lay out the actions required to complete each stage

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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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2. How to define the package
The first step to building a successful Partner-led package is clarity on what
the target market should be…
Identifying target customers

• Defining a target market is critical to defining a successful package

• Clarity of target market allows Partners to specify and differentiate their

Client size
packaged product to suit the requirements of the target clients

• To decide on a target market, Partner’s should analyze the existing

customer base and pipeline to identify commonalities in:
- Client size
Target
- Client industry verticals
- Client locations Client industry Client location

• Partners will then need to ensure that packaged offers cater to the
requirements of the target market

Identifying a clear customer profile will help Partners target the package effectively

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2. How to define the package
…then assess the attractiveness of the target market
Assessing market attractiveness: Key considerations

• For a package offering for the target market to be commercially

viable, there will have to be: Are there significant
- A significant number of businesses within the target
How large is the target market? numbers of prospective
market customers?
- Commonality of requirements among target customers
- A lack of established packages in the market
Can a package be
Does the target market have designed that is specific to
• Partners will need to consider: common and specific solution industry / geography
I. The size of the target market requirements? requirements?
II. Whether the target market has common solution
requirements
III. The competitive environment
Are there any package Is there significant
offerings currently available to competition in the market?
the target market?

Once the attractiveness of the target market has been established, a package can be designed and tested

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2. How to define the package
We outline a worked example package definition process
EXAMPLE DESCRIPTION
• As a reference case, we lay out the proposition definition process for a hypothetical UK-based Partner, Partner Inc.
• Partner Inc. has delivered several implementations to the UK Further (FE) / Continuing Education colleges1
EXAMPLE PROCESS:

Assess the size of the target Review target market common

Identify target market Research competitor offerings
market requirements
• Partner Inc. reviews its existing • Partner Inc. carries out secondary research • Partner Inc. reviews its past experience with the target • Partner Inc. conducts market research
customer base on the UK FE market market looking at competitor SuccessFactors
- Partner Inc. finds that there are Partner offerings
• Partner Inc. notes that c.40% of its c.400 FE colleges in the UK • Partner Inc. interviews current clients in the UK FE
projects to date have implemented sector • Partner Inc. also researches software
Process

SuccessFactors Employee Central solutions targeted at the UK education

for UK Further Education colleges • The Partner notes that, at a high-level, software sector
requirements are relatively standard across the
industry • Partner Inc. concludes that there are no
packaged offers targeted specifically at
UK FE colleges

Target market identified – UK FE Number of prospective clients identified Common requirements identified No established competitor packages
colleges Client A Client B identified
Outcome

requirements requirements
• Tax templates • Tax templates Competitor
• Role-based • Role-based package
configurations configurations
c.400 UK FE colleges • Training • Training

Notes: 1. Further / Continuing Education colleges are adult education facilities that offer a range of typically vocational courses and diplomas

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2. How to define the package
Proposition definition checklist

Activity Completed?

1 Review existing customer base to identify target market

Assess the number of prospective customers in the target

2 market segment

High level review of target customer requirements to ensure

3 commonalities exist

Research competitor offerings to ensure

4 a gap in the market exists

 For additional support on proposition development and business model strategy, SAP delivers workshops and training packs, as well as the SAP
guide to Business Model Improvement
- More information can be found on p.58
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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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3. How to design and test the package
To design a successful Solution Package, first identify the target market’s core
requirements by asking a series of key questions
Leveraging past experience
• Once a target market has been identified, analyze the chosen markets
typical requirements What is the target market?
- Partners should look at what SAP solution-specific pre-
configurations can be made (SAP RDS information packs can
provide guidance here – see p.59) What implementations have been
- Partners should also look to decide which services and delivered to clients in the target market?
extensions can be pre-determined

What were the common requirements of

• To identify the target market’s requirements, Partners will have to ask target market clients?
themselves a number of key questions (see right)
- These questions will require Partners to review and draw upon
past project experience Are common requirements pre-
- There may be some gaps in knowledge of client requirements configurable?
where research will have to be carried out (see p.23)

Do any competitors already offer packages

• Identified requirements will then need to be matched with practicable
pre-configurations and services
that respond to these key requirements?

A successful Solution Package’s components will directly respond to the requirements of the target market

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3. How to design and test the package
Designing a compelling proposition requires Partners to leverage knowledge of
the target market as IP
Using Partner IP to form an initial proposition
 Relevant experience from prior projects can be leveraged as IP
Solution Services
• Partner IP will then inform:
- What pre-configuration types the client will need Training
Bespoke configurations
- What additional services the client is likely to want
- What further support they client may need
Extensions Consulting
 This will allow Partners to decide what components should be included
in the package proposition
- Partners should also consider the anticipated pricing of the Pre-configured Support
product
content

 While the basic solution remains SAP, the pre-configured content could
either be SAP’s RDS or the Partner’s own methodology Basic solution Forms & Reports

 Additional IP can be added through extensions and the service wrap

Key
- This helps differentiate their offering on grounds such as quality
Partner IP SAP IP
and breadth of additional services

The initial proposition lays out what the component parts of the package will be

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3. How to design and test the package
When the initial proposition has been designed, market research can be used
to test for product feasibility and client buy-in
• Once a packaged proposition has been defined, it needs to be tested to ensure
Market research tools
sufficient appetite for the proposed product exists amongst target clients
Activity Description

• To test product feasibility, Partners will have to answer the following questions:
- Does the proposed packaged concept appeal to the target market? Customer Invite relevant customers to take part in a focus
focus groups group to discuss the proposed proposition
- Does the proposed package respond to key target market needs?
- Do other solution packages aimed at the target market exist?
- If so, is the proposition differentiated from existing products? Online video discussion for target market
Webinars
participants
- Is the product’s proposed pricing appropriate?

Market Brief survey sent to target market participants

• Partners can use a variety of tools to test customer buy-in (see right)
research and/or current customers (external providers
- These tools can be used to help instil a learning and continuous improvement survey can be used)
mindset in the sales function
- The SAP Business Model Innovation template can be used to help instil a Build a demo environment to share with
continuous improvement mindset (see p.59) Package demo prospective customers via focus groups or
webinars

• Findings from the market research and can then be used to enhance the proposition
to ensure it best meets customer requirements

Findings from market research should then be used to refine and iterate the proposition and its component parts and
instil a learning mindset in the sales function
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3. How to design and test the package
Before moving to the next phase, Partners will need to consider the cost and
organizational requirements of building the package
• Whilst packages deliver significant benefits (see p.xx), building a Solution Package will require a significant Partner investment

• The building of individual components will require a large number of consultant hours

• Consultants will have to:

- Design, document and potentially build the necessary pre-configurations (see p.34)
- Design and document standardized additional services (see p.39)

• Use of consultants to build the package will entail an opportunity cost, as any consultant allocated to the package will not be able to deliver implementations

• Partners will have to calculate the estimated cost of the package build
- As part of this process, Partners may also need to build a business case estimating the revenue the package will generate
- Partners will have to ensure that the organization is fully committed to these costs before committing the necessary resources

• To ensure the package build process is efficient, the Partner will have to commit to a clear project plan, with well-defined goals and milestones with named owners
- Organizational alignment to the project plan will be key to ensuring success

Building a Solution Package requires a significant investment of money and/or resource, so Partners will have to
ensure organizational buy-in before proceeding
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3. How to design and test the package
Worked example

EXAMPLE PROCESS:

Identify target market

Leverage Partner IP Test proposition feasibility Ensure organizational buy-in
requirements
• Partner Inc. reviews all relevant past • Partner Inc. reviews its past experience with • Using an external market research provider, • Partner Inc. calculates the cost of building
implementation projects the target market a short survey on HR software requirements the proposed package
is sent to all UK FE colleges
• Partner Inc. notes that UK based FE • Partner Inc. notes that FE college’s lack of HR • A roundtable discussion is held for all
colleges tend to have: sophistication and industry-standard • The results suggest FE colleges require employees to discuss the package
processes will suit a highly pre-configured fewer bespoke configurations than was proposition
Process

- Complex employment structures, solution initially anticipated

including members of staff with multiple • The feasibility of the package product is
job roles & contract types • Partner Inc. notes that FE are likely to require • The results also suggest most FE colleges agreed on
specific additional services: have limited interest in a support offering
- Strict onboarding checks including - Data Migration
criminal background checks - Training • The level of pre-configuration in the
- Support proposition is increased, whilst Support is
- Unsophisticated historic databases removed as an additional service

Key target market requirements identified Proposition identified Proposition refined Organizational buy-in achieved

Solution Services Solution Services

Outcome

Solution Bespoke config. Solution

Bespoke config.
upgrades upgrades
Pre-configured
Pre-configured Training Training
content
Record Complex Strict content
complex org data onboarding Basic solution Support Basic solution Support
structures migration checks

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3. How to design and test the package
Package design and testing definition checklist

Activity Completed?

Review relevant past implementations to identify the target

1 market’s key requirements

2 Leverage IP to form an initial proposition

3 Use market research to test the proposition

Calculate the cost of building the package and ensure

4 organisational buy-in

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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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4. How to build the package Pre-configured solution
implementation

Successful Solution Package will combine repeatable pre- Additional services

configurations and services that are well-suited to client needs Packaged offer

Key considerations for package construction

• What configuration requirements are common to all target clients?
Solution with pre-
• What solution components are well-suited to pre-configuration?
configurations
• What pre-configurations will deliver real value to clients?

• What service requirements are common to all target clients?

Additional services with pre- • What additional service requirements are well-suited to standardization?
determined IP • What additional services is the Partner an expert in delivering or supporting?
• What additional services will deliver real value to clients?

• Is the package standardized and easily repeatable?

Packaged offer
• Will the package facilitate faster and cheaper implementations in the future?

A clear consideration value and repeatability of individual package components, will ensure the package is tailored to
target market requirements
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4. How to build the package Pre-configured solution
implementation

Package productization will help create an effective, client-targeted Additional services

value proposition Packaged offer

A productized Solution Package is…

• Productization is the process of converting tools or
services into distinct and differentiated commercially The package’s productized component will
viable products Coherent
form a singular proposition

• Both a package’s component pre-configurations and

additional services can be productized
Higher levels of pre-configuration reduce
Cost effective
consultant time required per implementation
• The key to productization is ensuring the product created
is commercially viable and that the value of the implicit
IP is captured
Well-targeted packages will cater to the
Differentiated
specific requirements of target markets
• To leverage the full economic benefit of the benefit of
productized packages, the pre-configurations and
services must be easily repeatable
- Package repeatability will reduce the length, cost
A package is developed to conform to specific
Standardized criteria, with limited need for configuration,
and risk of future implementation projects
& repeatable meaning it can be rolled out at volume

Productization ensures packages can be implemented at volume without needing to be re-built each time

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4. How to build the package Pre-configured solution
implementation

To build a productized package, Partners will have to select and Additional services

build the components part for both pre-configurations and services Packaged offer

Process for building a productized Solution Package

Solution Additional services
Select appropriate add- Build pre- Select appropriate Build additional
on pre-configurations configurations additional services services
• Identify what components of the • Codify the process for building • Identify what additional services • Codify the steps required to
solution can be pre-configured each pre-configuration can be standardized deliver the additional service
in question
• Document the steps required
• Identify what pre-configurations • Document the pre-configuration • Identify what additional services
meet client requirements process meet client requirements • Document any specific
agendas, syllabuses etc.
required
• Ensure proposed pre- • Train consultants in how to • Assess ability to deliver additional • Train and enable consultants
configurations will deliver value build the pre-configurations services to deliver the standardized
to clients additional service

• Ensure proposed additional

services will deliver value to
clients

The package construction process will be explained in more detail on pages 30-38

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4. How to build the package Pre-configured solution
implementation

To select the appropriate component pre-configurations, identify Additional services

where general pre-configurations can be applied… Packaged offer

Generic package pre-configurations

Potential for pre-
Component Description Example pre-configuration
configuration

Generic Minimum configuration required to ensure a usable and

 Automated loading scripts
configuration functioning solution

Industry Industry-specific onboarding background

Configuration for industry vertical specificities 
configuration checks

Location-specific annual leave and

Localisation Configuration for regional specificities 
holiday entitlement rules

Customer-
specified Configuration according to customer specific needs  Company reporting policies
configuration

The target market’s industry vertical and geography should offer opportunities for significant pre-configuration

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 Pre-configured solution

4. How to build the package implementation

Additional services

…then decide on where specific content can be pre-configured Packaged offer

Specific package pre-configurations

Potential for pre-

Component Description Example pre-configuration
configuration

Process & Configuration of standard system processes and Template for stock management process

workflows customer-specific workflows workflow

Documentation Materials (such as reports and user guides) to support Industry/geography-specific regulatory

& templates the usage of the solution reports

Role-based Setting up user roles and defining access permissions Retail-specific edits and access rights

permissions accordingly for store managers

Provisioning & Delivery of software and minimum installation required

 Some potential for cloning
installation to provide a functioning solution

Most core implementation services offer opportunities for pre-configuration

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4. How to build the package Pre-configured solution
implementation

The following test can then be applied to ensure the identified pre- Additional services

configurations will deliver value to clients Packaged offer

Test to ensure pre-configurations deliver value

Specificity to
Does the proposed pre-configuration cater to specific client
client
requirements?
requirements

Specificity to
Does the pre-configuration cater to industry / geography
industry /
requirements?
geography

Rapid Will the pre-configuration speed up the implementation

implementation process?

Reduced Will the pre-configuration reduce the complexity of the solution

complexity for clients?

Will the pre-configuration help embed best practice in client

Best practice
processes?

NB: SAP recommends speaking to at least 5

companies to validate a product’s value

The more of the above criteria delivered by the package, the more valuable it will be to clients

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4. How to build the package
Once the appropriate pre-configurations have been identified, codified and
diligent documentation and consultant enablement will be required
• To actually build specific pre-configurations, Partners will have to:
Pre-configuration build process
- Design and codify the pre-configuration process
- Diligent document the steps required to build the pre-
configuration
- Hold training sessions to ensure all consultants are enabled in Codify pre-configuration process
the pre-configuration process

• Proper documentation may include:

- Instruction manuals Document the pre-configuration process
- Videos (these can be facilitated on JAM, Vimeo, Dropbox etc.)
- Process maps
- Standardized settings
- Standardized master data
Train and enable consultants
• Rigorous documentation will reduce cost and increase ease of customer
experience due as milestones can be clearer and more transparent

Rigorous documentation and enablement will ensure consultants are able to repeat standardized pre-configurations
in a cost-efficient way
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4. How to build the package
SAP Standards for Package Documentation

• Packages include a technical and services component – and can include multiple technologies and/or multiple services.
• When documenting the combined package it is necessary to speak about all the individual pieces as one unit.
• Review your value proposition and the business problem(s) you are solving to work towards a single set of assets that documents the scope and value together.
• SAP standards for package documentation include the following:

Delivery Documentation Marketing and Sales Materials

GTM Plan (any format)
Package Scope Description including: Industry / LOB Value Proposition,
Package Scope & Services Provided Package Fact Sheet (1 page pdf)

Customer facing Presentation (ppt)

Pricepoint of Packaged Solution (“starting from x€” or T-shirt size offerings)
Customer facing 2 Minute Video

Social Media Content / Teasers

Implementation time of Packaged Solution (“ starting from x weeks”)
Reference / Testimonial (Video Preferred)
Packaged Solution Additional Documentation (Scripts, Config Guides, Basho Email
Project Schedules, Process Diagrams)
Package Highlights Recorded Demo

Solution Whitepaper

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4. How to build the package Pre-configured solution
implementation

Once the pre-configurations have been built, assess what additional Additional services

services are well-suited to productization Packaged offer

Suitability of additional services to productization

Example standardized
Service Description Suitability for productization
service

Fixed price classroom Training packs, interactive

Administrator training, ‘training the trainer’, user training,
Training
training templates and documentation
training with standardized  learning and bundled
content classroom/virtual training courses

Documentation, training and

Solution Management of solution upgrades to ensure clients are Standardized upgrade consulting bundles associated
upgrade & provided with full information and training (where required) release documentation  with solution upgrades can be
change on new updates shared with clients replicated across current
customers

Standardized integration
Integration with current SAP on-premise, cloud and Script / API based integration
Integration
third party solutions
plug-ins (only applicable  can be used
to some solutions)

Services that are well suited to productization can be standardized and replicated for multiple clients

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 Pre-configured solution

4. How to build the package implementation

Additional services

Some additional services will be less well-suited to productization Packaged offer

Suitability of additional services to productization

Example standardized
Service Description Suitability for productization
service

Ongoing support bundles can

Technical Access to Partner be developed based on time
support
Ticket-based technical solution support
knowledge base () allowances, PAYG or a
combination

Business Standardized change

Process realignment, change management and support for Specific process redesign
Process
digital transformation strategies
management process for () methodologies
Consulting ensuring timesheet

Dependent on format and

quality of customer data,
Cleansing, preparation and migration of company data
Data Migration
onto the new solution
N/A  though some standard
templates and procedures
could be utilized

Process-driven services such as training or update management will be better-suited to productization than more
technically complex services such as data migration
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4. How to build the package Pre-configured solution
implementation

When suitable additional services have been identified, Partners Additional services

need to consider whether they are well suited to delivering them Packaged offer

Well-placed
The partner has direct experience in delivering the service
to deliver

May be well-
The partner can easily build or hire expertise in delivering the
placed to
service
deliver

Not well-
The partner has no experience relevant to delivering the service placed to
deliver

Direct or relevant experience in delivering a particular service is key in determining whether a partner is well-placed
to deliver it as part of a package
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4. How to build the package Pre-configured solution
implementation

Then, as with the package’s pre-configurations, a test can be Additional services

applied to ensure additional services add value Packaged offer

Test to ensure additional services deliver value

Specificity to
Does the proposed additional service cater to specific client
client
requirements?
requirements

Specificity to
Does the additional service cater to industry / geography
industry /
requirements?
geography

Rapid Will the additional service speed up the implementation

implementation process?

Reduced
Will the additional service reduce client workload?
workload

Will the additional service help embed best practice in client

Best practice
processes?

To merit inclusion in the packaged product, additional services will have to add value in one or more of the above
ways
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4. How to build the package
Once the appropriate services have been identified, Partners will need to map
and document the required processes and enable consultants

Example service build - training

• To build individual additional services, Partners will have
to:
- Codify the steps required to deliver the additional Define training agenda
service in question
- Document the steps required
- Document any specific agendas, syllabuses etc.
required Codify and document training process
- Train and enable consultants to deliver the
standardized additional service

• Where possible, Partners should also built the relevant Create training full syllabus
systems architecture to deliver the service
• For example, for integrations Partners should
look to pre-built the required APIs
Deliver consultant training on how to
deliver training to clients

Codifying additional services should facilitate fully standardized approaches and processes

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4. How to build the package Pre-configured solution
implementation

The productized Solution Package formed must facilitate more rapid Additional services

and less technically complex implementations in the future Packaged offer

Productization value chain

Component Value
• Once the package has been created, Partners will have to
Target market-specific offering ask the following questions:

Standardized products
- Does the Package ensure component pre-
Helps GB customers who are unclear on best practice and
configurations and services are easily repeatable?
unsure of their requirements

- Does the package reduce the length of

Reduces need for complex bespoke configurations implementations?
Rapid and repeatable
implementations - Does the package optimise the cost of
Speeds up implementation process implementations?
- Are the right tools and resources being
used to ensure cost is minimised where
Faster and simpler implementations require fewer possible?
consultant hours
Lower cost
implementations
Reduced consultant requirements decreases cost

Standardization must reduce both the cost and time requirements for future implementations

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4. How to build the package
Worked example
EXAMPLE PROCESS:

Identify pre-configurations Build pre-configurations Identify additional services Build additional services

• Partner Inc. reviews the target market’s • Partner Inc. codifies the process for • Partner Inc. reviews client additional • Partner Inc. maps the processes required to
key requirements building the pre-configurations identified service requirements deliver training and solution upgrade
management
• Consultants identify the following pre- • The processes is then rigorously • Partner Inc. assess whether the identified
configurations: documented services can be standardized • The key steps identified are reviewed and then
- Functionality to manage documented
Process

employees with multiple job • Partner Inc. then holds training sessions • Partner Inc. assess their ability to deliver
roles for headcount and for all its consultants to enable them to the required pre-configurations • Training is delivered to consultants on how to
payroll build the package’s pre-configurations deliver standardized services
- Criminal background test • The following additional services are
administration for onboarding identified as being viable package
- Geography-specific tax forms components
- Training
- Solution upgrade management

Pre configurations identified Consultants enabled to build package Package additional services identified Standardized additional services built
pre-configurations
Outcome

Payroll & Background Solution upgrade

headcount checks Tax Training management

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4. How to build the package
How to build a proposition checklist

Activity Completed?

1 Evaluate high-level target market requirements (see Chapter 2)

2 For the solution, identify which components can be pre-configured

3 Identify what pre-configurations will deliver value to target clients

4 Build the pre-configurations

5 For additional services, consider which services can be standardized

Assess what additional services are likely to be universally

6 valuable to target clients)

Assess Partner capabilities to identify what additional services

7 can be delivered

8 Build the service offer

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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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5. How to take the package to market
A ‘Go-to-Market’ strategy specifies which customers will be targeted and how
targets will be converted into sales
 Once the package has been built, it is essential to ensure that a plan is in place to
Key components of a successful GTM
allow the product to be marketed successfully Component Description

 A ‘Go-to-Market’ strategy (GTM) lays out the actions a company will need to take Markets • What markets do you want to pursue?
to reach customers and achieve a competitive advantage
See
- A successful GTM will lay out the steps required to target customers, use Chapter
sales & marketing to generate leads and convert leads into wins • What industry do you want to target? 2
Customers • What customer types should you target within
 To create a successful GTM strategy, Partners will need to: your chosen industry?
- Identify a target market and customer type, as well as a product that will See
match their needs (see Chapter 2) • What package are you selling & how is it well-
Product Chapter
suited to your target market?
- Identify the channels and messaging required to reach target customers 3

 A successful GTM strategy should help: • Where do your target customers buy?
Channels
- Reduce the length of the customer acquisition process • How can you promote your packages to them?
- Reduce the average cost of customer acquisition
- Enhance the customer experience • How do you communicate your key unique
Positioning
selling points to customers?

An effective GTM strategy should reduce the length and cost of the customer acquisition process

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5. How to take the package to market
Developing a GTM strategy builds on the package development work set out in
Chapter 2
GTM strategy formation: key activities
 A consistent GTM strategy has two core components:
1
- A clear and targeted proposition (see Chapter 2)
- An effective and efficient use of the appropriate sales & marketing channels Identify target market
See
 A properly developed GTM strategy should be based on actionable answers to the Chapter 2
2
following questions:
Define value proposition
- What markets and prospective customers should be targeted?
- What is the value proposition?
3
- How can Partners express a compelling value proposition? Review existing GTM tools &
- What tools will be used to reach target customers? methodologies
- What is the correct balance of sales vs marketing?
4
 The answers to these questions will help streamline their sales & marketing
Identify and utilise new GTM
- This may require the leveraging of new resources (see p.48)
tools & methodology

An effective GTM strategy will emphasize differentiation and specialism

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5. How to take the package to market
Organizational alignment now becomes cross-team execution

 Partners will have studied their target market and their requirements (Chapters 2 and 3) and ensured organizational alignment as part of the
package design process (see Chapter 3)

 Now resources and personnel will then need to be leveraged to ensure the built solution moves from development to marketing & sales efficiently

 Ensure that the resources used (both personnel and systems) match customer expectations
- The focus of the sales cycle here is not impressing customers with features and technical complexity but working towards a strong
relationship of delivery and execution on solving real business issues
 This phase will commonly require the following activities and tools:
- Product marketing: Handing off the technical documentation to graphical, multi-media and/or simpler sales tools for your internal teams
and the market will ensure the core messages are getting to your target market

- Digital marketing: This is the key driver to lowering your customer acquisition cost (see next slide and the Chapter 7for SAP tools
available to help with this topic)

- Channel and partner optimization: Review existing sales channels and tools and identify barriers to sales effectiveness and how they
can be addressed

- Account management: a designated individual to monitor customer satisfaction with the solution once sold (can be an existing
salesperson or a new role)

Strong GTM strategy execution is essential to reducing the cost of customer acquisition

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5. How to take the package to market
A range of sales & marketing tools can be used to increase sales volume
Key GTM tools
Tool Description
• Product promotion using electronic and social media
Digital marketing • Facilitates mass marketing to relevant individuals sourced by tracking  New GTM strategies can be enhanced by
online activity investing in additional sales & marketing tools
and resources
• Videos introducing the partner brand and packaged product
Demand generation

Video marketing
• These can include customer testimonials or live event videos
 Additional channels can aid both the demand
• Videos offering solutions to common target client issues can help generation and demand conversion process
Problem solver videos
establish a Partner as a ‘thought leader’ in the target market
Content creation / online • Creation of online blogs and self-help guides that respond to target  Utilizing automated and digital sales and
‘How to’ guides customers’ key concerns and requirements marketing channels helps reduce the burden on
conventional sales teams
• Attendance and/or stalls at key SAP & industry events gives an
Industry & SAP events
opportunity to interact with multiple prospective customers
• Software tracking who has visited Partner websites. This can help provide  This creates a more streamlined sales process,
IP address tracking which reduces cost of customer acquisition
potential leads the sales function can target
• Web-based seminars for prospective customers answering questions on
Lead conversion

Customer webinars
common software issues and introducing the product
‘Live chat’ website • Website function that allows customers to ask questions about the
function product and receive automated responses in real time Increasingly automated demand
Vendor Relationship generation will help streamline the
Management software • Software that creates automated business cases for prospective sales
(VRM) sales process

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5. How to take the package to market
Use of a wider range of digital sales tools will decrease the burden on sales
functions
Example ‘Push’ vs. ‘Pull’ sales promotion strategies
 A targeted GTM strategy that utilizes additional tools and resources
where possible should help streamline the sales process Push Pull

Lead / demand Manual lead gen. Online demand gen.

 The use of more sophisticated demand generation techniques generation through cold calling via digital & marketing
should facilitate the shift from a push based marketing approach to
a pull based marketing approach (see right)

Lead nurturing Direct leads to online

Follow-up calls
 Rather than relying on the sales function to both generate and content
convert leads through cold calling, demand generation can become
increasingly automated

Lead capture Presentations to Online presentations

 This helps the sales function focus on converting leads into sales, individual leads to multiple leads
which drives down the cost of customer acquisition

 The sales function will need to be trained and enabled in how to use Lead Sales negotiations Sales negotiations
pull-based marketing tools conversion

A pull-based GTM is often essential in the mid-market space

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5. How to take the package to market
Worked example
EXAMPLE PROCESS:

Review existing GTM tools & methodology Identify and utilize new GTM tools & methodology
• Partner Inc. maps out its existing GTM strategy • Partner Inc. holds a workshop to discuss possible new GTM tools

• Partner Inc. holds a workshop to assess the effectiveness of each stage of the as-is GTM • Partner Inc. initiates digital marketing campaign using an external provider
process, including the effectiveness of existing sales tools
- It estimates the current Customer Acquisition Cost (CAC) of a typical project • Partner Inc. creates a video introduction for its FE package on its website
Process

• The workshop reaches the following conclusions: • It hosts a Webinar for FE college HR leads to discuss solutions to common HR issues
- The lead generation process relies on the sales function making high volumes of
untargeted cold calls
- Sales function is unclear on how best to present the value proposition of Partner Inc. to
prospective leads
- The Partner has no online presence beyond its website

Issues with current GTM identified Transition from ‘push’ to ‘pull’ GTM approach
Outcome

‘Push’ ‘Pull’
GTM GTM
Reliance on Lack of clear Lack of approach approach
cold calls for value online
lead generation proposition presence

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5. How to take the package to market
Go-to-Market checklist

Activity Completed?

1 Identify the target market (see Chapter 2)

2 Define the value proposition (see Chapter 2)

3 Cross-team execution and role definition

4 Review existing GTM tools & methodologies

Identify and utilize new GTM tools and methodologies to move

5 to a pull-based sales & marketing process

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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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6. How to refine and iterate the package
Once the package has gone to market, review each package implementation
project post-completion to identify ways to optimize the product and GTM
 The Partner-led Solution Package will need to be continually optimized
to maintain a competitive advantage
- Pushing the level of pre-configuration will embed value,
decrease the time to implement and enhance the cost
effectiveness or margin opportunity for future projects

 Each implementation should therefore be used as a learning

opportunity
- Carry out formal reviews after each implementation project to
identify major learnings
- Collate the learnings from each review and use them to iterate
and improve the product proposition

The continuous improvement loop should allow Partners to further standardize the product

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6. How to refine and iterate the package
Worked example
EXAMPLE PROCESS:

Identify learnings and improvements to the Use learnings to iterate and refine the
Implement a project review process
product product
• Partner Inc. agrees to hold a workshop after each • After the first package review session, Partner Inc. • Once the iterations have been identified, Partner Inc.
implementation project identifies the following improvements: build

• The workshop gives all employees who worked on a - Further pre-configuration of UK specific annual • Holiday & annual leave pre-configurations are designed
particular implementation to discuss what aspects of the leave an d holiday entitlement rules and documented
Process

implementation went well and what did not - Consultants are trained in how to build the
- Solution upgrade and change management pre-configurations
• The workshop is used to identify which components of the
package are working well, which are not and where further • A set process form update management delivery id
pre-configurations or additional services can be added designed and documented
- Consultants are trained in how to build the
pre-configurations

Instigate a review process Identify improvements Build improvements into product

Outcome

Solution Services
Bespoke config. Solution
Holiday & annual upgrades
leave pre- Pre-configured
content Training
configurations
Holiday & Update added Update
annual leave management Basic solution management
requirements

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5. How to take the package to market
Refine & iterate checklist

Activity Completed?

Implement a post-project review process, where possible

1 improvements and alterations are identified

Form a Package Optimization Committee that meets once a month

2 to review and refine the package

3 Build the iterations identified by the committee

Maintain a dialogue between the sales and consulting

4 functions, to make sure both needs are considered

Review wins and losses every six months with the Partner
5 Business Manager (PBM) and discuss the business plan and
current market trends
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Chapters

1. An introduction to Solution Packaging

2. How to define the package

3. How to design and test the package

4. How to build the package

5. How to take packages to market

6. How to refine and iterate the package

7. Appendix

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7. Appendix
Summary checklist

Activity Completed?

1 Review existing customer base to identify target market

How to define a

Assess the number of prospective customers in the target market

proposition

2 segment

High level review of target customer requirements to ensure

3 commonalities exist

Research competitor offerings to ensure a gap in the market

4 exists

Review relevant past implementations to identify the target

1
How to design and test a

market’s key requirements

2
proposition

Leverage IP to form an initial proposition

3 Use market research to test the proposition

Calculate the cost of building the package and ensure

4 organisational buy-in

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7. Appendix
Summary checklist (continued)

Activity Completed?

1 Evaluate high-level target market requirements (see Chapter 2)

2 For the solution, identify which components can be pre-configured

3
How to build a proposition

Identify what pre-configurations will deliver value to target clients

4 Build the pre-configurations

5 For additional services, consider which services can be standardized

Assess what additional services are likely to be universally

6 valuable to target clients)

Assess Partner capabilities to identify what additional services

7 can be delivered

8 Build the service offer

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7. Appendix
Summary checklist (continued)
Activity Completed?

How to take the package

1 Identify the target market (see Chapter 2)

to market 2 Define the value proposition (see Chapter 2)

3 Cross-team execution & review existing GTM tools & methodologies

Identify and utilize new GTM tools and methodologies to move to

4 a pull-based sales & marketing process

Implement a post-project review process, where possible

1 improvements and alterations are identified
How to iterate and refine the

Form a Package Optimization Committee that meets once a

2 month to review and refine the package
package

3 Build the iterations identified by the committee

Maintain a dialogue between the sales and consulting

4 functions, to make sure both needs are considered

Review wins and losses every six months with the Partner PBM
5 and discuss the business plan and current market trends
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5. Appendix
SAP resources and the BMI approach
Business Model Development and Innovation approach
 If Partners require further assistance with package creation, SAP has a number of
resources available
Test & Verify
- Partners have access to the Partner Edge Portal, which contains all
relevant information and training packs for Partners
- A Partner JAM group can also be accessed

 SAP offers numerous workshops and training sessions and materials for Partners
- SAP RDS training packs offer guidance for pre-configuration
Analyze & Evaluate &
 Partners can also access materials outlining SAP’s Business Model Innovation Improve Decide
(BMI)
 BMI reduces the complexity of a company to its core elements and their
interrelations, specifying the core business logic and other aspects relevant
for its competitive advantage. It describes how value is created, delivered
and captured
 The BMI helps educate Partners in how to refine and improve their Challenge &
operating business model and strategy Change

Contact your Partner Business Manager if you want more details.

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5. Appendix
Partner JAM group
Collaboration room

 A Partner JAM group can also be accessed

 The JAM group acts as a collaboration space for Partners

 It also houses relevant Partner training and marketing & sales enablement materials

 The group can be found at:

https://jam2.sapjam.com/groups/about_page/xuXgMdJ4DYtHvWvesPK2nw Learning resources

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