Country Enablement: Russia...2010/12/17 · on Channel Partners Existing partner business will not...

© 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1 Country Enablement Russia Partner Forum

Paul Betsis GM, Russia Sales

Country Enablement: Russia

Welcome!

Moscow Russia 14 December 2010


Revaz Khetaguri, CE Russia Lead Mikhail Kristev, Director, Channels Lead

Mark Bonfoey, BMO Director of Operations Ramona Chávez, Business Functional Lead Moscow Russia

14 December 2010



  Introductions  Objectives  What is Country Enablement?  What is the Business Strategy?  What are the Impacts for Russia?  What Do You Think?  Next Steps

Agenda


Andrew Cailes Commerce Director of

Operations

Mark Bonfoey WW Partner

Organization Director of Operations

Brian Fukuhara Finance/Country Enablement, VP

Revaz Khetaguri CE Russia Lead

Mikhail Kristev Director, Partner

Organization, Russia

Paul Betsis GM, Russia Sales

Milo Schacher EM VP Channels

Givanni di Fillipo EM Sales Director

Welcome! Country Enablement Leadership


 Marco Castaldi: Russia Financial Controller

 Oleg Baikalov: Partner Account Manager

 Irina Baranova: Partner Account Manager

 Andrey Smirnov: Indirect Partner Account Manager

 Dmitry Kislitsyn: Regional Distribution Lead

 Stanislav Zorikov: VSI Manager

 Alexei Lyubimov: Distribution Account Manager

 Yury Soloviev: Distribution Account Manager

 Valery Gorban: Distribution Account Manager

 Ilya Golubinsky: Customer Operations

 Mikhail Kader: Distinguished Systems Engineer

Team Support Local Russia Team


 Bernice McHenry: Distribution Functional Lead

 Luciana Mesquita: CE SME, Distribution Process & Systems

 Kathryn Pinnick: Emerging Markets, Distribution Operations

 Ramona Chávez: Channels Functional & Partner Engagement Lead

Team Support Global and Theatre Team


  Introduction to Country Enablement (CE)   CE Business Case: Why is Cisco creating a Buy-Sell

company in Russia?

  Understand the Impacts: How is Cisco impacting you by creating a Buy-Sell company in Russia?

  Discuss the Plan: How does Cisco plan to create a Buy-Sell company in Russia?

Cisco Russia will happen Together: Cisco and our Partners

Objectives What We Aim to Achieve


Russia Enablement Primary Elements

•  Select products to be manufactured in Russia to support the local market

Establish Local

Manufacturing

•  Support the purchase and sale of locally manufactured products

•  Selling services locally

Enable Local Product &

Services Sales


Mark Bonfoey, Director of Operations WW Partner Organization


Country Enablement Overview



Scott Brown, VP Worldwide Sales Enablement

Scott Brown, VP Worldwide Sales Enablement

  Investment by Cisco in key markets to facilitate growth and new business models

  Long-term strategy to add new Cisco selling companies in select countries

  Addresses customers’ expectations for higher levels of accountability, engagement and global consistency

  Extended Cisco sales model and in-country presence to improve customer relationship and support

What is Country Enablement A Definition


Implementation of the new selling company will help capitalize on the tremendous opportunity in the country.

Mid- to Long-Term Benefits

  Bring new business models and other Cisco acquisition offerings to the marketplace

  Access to broader product portfolio through local manufacturing

Short-Term Benefits

  Better access to Cisco products and services

  Reduced delivery lead time

  Local trade

  Competitive prices for STB achieved through local manufacturing capabilities

Russia Business Strategy What are the Benefits to Cisco’s Partners?


How will Cisco Make this Transition Smooth? Planning Activities in Process

 Comprehensive Change Management Plan:   Engagement tailored to your needs   Regular communication updates and a website

for Russian partners with answers to frequently asked questions, training materials, and support information and materials

  Specific process training focused on your needs

 Defined cutover strategy:   End-to-End support will be provided within

Russia to assist with any questions or issues   Existing quotes and deals will be accounted for

and managed


Mikhail Kristev, Russia Sales Director


Russia Business Strategy Overview



Cisco’s investment in Russia is based upon market maturity, market stability and shared market opportunity.

  Russia is today one of the fastest growing large economies worldwide, with a GDP of over $1.2 trillion

  Russia has achieved a sustained period of growth and stability, introducing new challenges and inefficiencies: –  Inefficient processes –  Low investment capacity –  Low Information and Communication

Technology adoption –  Low broadband penetration

  Management of these challenges can contribute to significant market opportunity

  Cisco’s investment in Russia can increase the overall size of the addressable market for Cisco and its partners

Russia Business Strategy


Country Enablement

Long Term Strategic Country Priorities

Russia 3.0

•  Commercial model •  Logistics •  Integration of SPVTG &

Ironport, Starent, Tandberg •  Customs Union

•  CDO commitments for Phase 2

Decryption

•  DDU •  limited local buy/sell •  DDP

•  Investments in 3 key areas as a priority 1) source code inspection 2) local mfg 3) network academies

Accelerating Russian Growth

Cisco Capital

Russian Importation


This is a natural evolution: Cisco’s vision is to evolve from the current sales operation into a fully localized product and service selling company

in Russia.

Russia Business Strategy Cisco’s Vision for Operating in Russia

  Enabling a new product and service selling company in Russia to: –  Jointly grow the market in new and diverse ways –  Increase responsiveness to customer needs and demands

  The new selling company will be dedicated to the Russia market, governing order submission, importation, delivery and local tax compliance

  Cisco will provide ongoing investment , prioritizing additional business capabilities


Route-to-Market:   Current route-to-market strategy

will be retained: primarily based on an indirect model with reliance on Channel Partners

  Existing partner business will not be steered from indirect to direct. Consideration for direct routes-to-market would occur in cases where Cisco would not otherwise be allowed to secure the business

Go-to-Market:   We intend for products and services available for sale by Russia

LLC and CSIBV to be consistent with what is available today   Over time, we expect to improve orderability of many Cisco

acquisition products from Russia LLC

End User Direct Services only

Indirect

Russia Business Strategy Route-to-Market and Go-to-Market


The Core of Cisco Partner Certification and Specialization Program that is available today will continue to be

available with Russia LLC.

  Cisco will continue to recognize and reward partners based on the value they bring to the end customers

  Partner differentiation through certification and specialization will remain the same

Russia Business Strategy Channel Resale Programs


Ramona Chávez, Business Functional Lead


High-Level Impact Review



High-Level Impact Review  Contract  Products  Quote & Order  Price  Partner Programs   Local Logistics  Financing  Payments  Service Contract Management


What is Changing for Cisco Russia LLC? Impacts by Process Area

Contract

 New legal sales agreements will be created for Partners buying from Russia LLC; existing agreements with Cisco BV will continue for the purchase and resale of other Cisco products

 New billing, shipping, and customer identification numbers will be created to facilitate price, quote, and order

Products

 Russia LLC will only offer a limited set of locally manufactured products

 These products will be gradually introduced into the Russia market over the course of FY 2012

 These products will have a “fixed” configuration and will no longer be orderable from CSIBV once they are introduced as locally manufactured products in the Russian market

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Quote and Order

 Quotes and Purchase orders (Zakaz) will now be made to Russia LLC; they will be created in USD for locally manufactured products and attached services in both Russian and English

 Ordering for Russia LLC locally manufactured products and attached services will be done manually; all other products will be ordered via BV as-is

 If a Partner or Disti orders products/services from both Russia LLC and Cisco BV for a single deal, the orders will need to be separated and placed with the correct entity

 Mandatory service attach will continue to be enforced for service eligible products purchased via Russia LLC

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Price

 A local pricelist will be defined and managed for Russia LLC and will be priced in USD

 Pricing strategy will reflect competitive pricing in Russia

 Distributor price concessions will be managed as upfront discounts or a ‘standard’ price point

Partner Programs

 All Channel Incentive Programs are out of scope for locally-manufactured products through Russia LLC

 Current programs offered through BV for BV-related business will remain applicable on an as-is basis

 Partners wishing to sell Smart Grid solutions will need to be invited to and complete the ATP program

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Local Mfg and

Logistics

 Russia LLC will not sell locally-manufactured products or services to Partners outside of Russia (no cross-border delivery)

 All Partners and Distis will be responsible for local transportation and logistics. Pick up from the manufacturing plant.

 Russia LLC will manage Product Returns through manual processes and will not be operating a local finished goods warehouse

 Locally Manufactured product will have shorter lead times

Financing

 Russian Partners and Distributors with an existing credit line for purchases from Cisco BV will need to have a new credit line with Cisco Russia LLC

 All financing offerings will remain the same as today

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Payments

 Receive Invoice and Invoice Factura will be in local currency (Rubles) from Russia LLC based on the Central Bank exchange rate

 Locally-manufactured Products will be invoiced separately from Services

 Payments will be sent to Russia LLC and must be in local currency (Rubles)

Service Contract

Mgmt.

 Partners, Distributors and customers will not have online access to their Russia LLC service contracts or service opportunities in standard Cisco tools

 Cisco support will be provided for renewal opportunity visibility and necessary service contract management activities

 New and existing service contracts purchased via Cisco BV will continue to be managed following as-is processes

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Cпасибо Thank you all for your time, dedication and

hard work. All of your efforts, thoughts and feedback are much appreciated and we

thank you!

Country Enablement: Russia...2010/12/17 · on Channel Partners Existing partner business will not...

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