Changes to the Channel: Rebranding around Digital Transformation

By Pino Vallejo

Rebrands happen. And more often than not, they are based on well-informed considerations and good intentions. But there’s no denying that a move this significant inspires curiosity at best and reservations at worst. When a technology partner lets its channel know that it’s going to rebrand around digital transformation, there might be some initial alarm before the excitement can set in. So how can you get your partners on board?

Get the Facts Straight

In today’s digital business environment, if an organization isn’t actively evolving, they’re passively setting themselves up to fall behind. This is what digital transformation is all about. It’s a journey of continued growth to ensure that your organization secures its present market position as well as a path forward that leverages technology in innovative ways. Above all, it should enable constant modernization in an ever-changing environment.

The facts and figures behind rebranding and digital transformation underscore the importance, as evidenced from “The ‘Front Line’ of Digital Transformation,” a 2013 study from Capgemini Consulting and MIT Sloan Management Review. This study of more than 1,500 executives and managers found that 78 percent of respondents believe that achieving digital transformation will become critical to their organizations within two years. But, three years ago, the most frequency cited obstacle to digital transformation was a “lack of urgency,” and only 38 percent said that this was a top item on their CEO’s agenda.

Today, according to “Digitally Transforming or In Digital Denial?”, a 2016 report on the state of digital business from Progress, 96 percent of business decision makers surveyed say digital transformation must be a priority – right now Fifty-five percent of that group said not pursuing digital transformation could potentially mean financial losses in a year or less. There’s no better time than the present for vendors and their channel to embark on digital transformation together.

Be Open with VARs

To really understand the rationale behind a digital transformation rebrand and set expectations, vendors must openly communicate with their VARs and be prepared to answer any of their questions. That will alleviate any tension that could arise in the vendor-VAR relationship. Partners must be included in the process. Digital transformation is a journey, not a destination, and along the way it’s important to have partner buy-in and feedback, which helps to drive adoption and support in the market.

Some questions a vendor might hear are:

What the do you even mean by ‘digital transformation’? Read the previous section and you’ve got this one covered.

Are there any new products that will be introduced? This is a very reasonable question from a VAR, and the right answer from a vendor is that any new products will present opportunities to open up new markets and expand business initiatives in ways that weren’t possible before. VARs want to have the best possible portfolio of solutions to offer, so they need to know the ins and outs of what a rebrand means to them, especially if products are unproven immediately following a rebrand. Open communication along with ongoing feedback ensures that the partner community understands not only the rebrand but the overall strategy and how it helps them.

Will this rebrand disrupt our portfolio? Vendors that have the right solutions for digital transformation should be able to say that the transition will be seamless. VARs shouldn’t be expected to deal with gaps caused by a vendor’s shift – that’s just not fair to them and could lead to a broken partnership. The bottom line that vendors should always respect is that VARs need to choose partners that align with their business model and objectives. Changes to a VAR’s portfolio should be frictionless. They need to be put first, and they should feel secure in understanding what any changes mean for them.

Maintain the Support System

We’re here for you. That’s the key message that vendors need to convey to their channel partners during and after a rebrand. A partnership that lacks support is destined to crumble.

As soon as rebrand is imminent, a vendor should begin to prepare a framework for its channel partners to help guide them and get ahead of their questions. Understand that a VAR is going to move at its own pace, depending on where they’re at in their own digital transformation efforts. Respect each VAR’s go-to-market goals. What a vendor needs to do is provide support, training and tools to enable and empower its channel. This builds trust and fosters mutual growth as partners help each other transform along the way.

At the End of the Day, Everyone Wins

Digital transformation doesn’t happen overnight. Neither does a strong relationship between vendor and VAR. A rebrand around digital transformation acknowledges that customers’ digital expectations have changed – a fact that no one can deny. To maintain a positive relationship with its channel, a vendor must be ready to explain the rationale behind and importance of its rebrand and clearly lay out its plans for its VARs to see. The main message to drive home is that the tools and technologies that will be born from this shift in focus will help VARs and customers address today’s business challenges and are foundational to pursue the digital goals of the future. At the end of the day, a vendor and its channel should grow together, learn from each other and embrace the digital future.