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Gavin Jones, channel sales director at BT Wholesale, explores the shifting channel landscape and how partners can be ready to take new opportunities in light of the pandemic.
Some people believe that the last year will have changed life forever, while others believe we’ll soon be back to normality. Either way, there’s no denying that the communications market will never be the same.
Over a year on from the beginning of the crisis, we’ve largely adapted to a new reality, and have a better understanding of what the future might hold. We know that digital technologies have risen to the challenge of the pandemic and that, not only have we become used to communicating with family and friends through digital channels, but we’re now accustomed to doing business digitally.
A recently published report carried out between BT Wholesale and Cisco revealed a cautious optimism from the channel and suggested that, as businesses begin to take a longer term look at their technology investments, the channel itself needs to undertake its own transformation in order to take advantage of the opportunities emerging from the situation.
Continuity and resilience
Following the initial explosion of reactive demand for collaboration and communication tools for a suddenly remote workforce, digital transformation – the value and relevance of which was once doubted by many businesses – is now recognised “as an absolute necessity”.
90% of UK channel partners (CPs) agreed that transformation is back on the agenda, with most of their end-customers (95%) taking a more strategic, long-term approach to their digital needs.
As the pandemic has highlighted, not only is digitalisation critical to business continuity and resilience, it’s also the key to future success. According to the report, the most significant benefits of digitalisation are agility, flexibility, and customer experience – all of which have proven to be vital in enabling businesses to adapt to rapidly changing customer demands over the past 12 months.
From a channel perspective, however, perhaps the greatest benefit has been the opportunity to “take many businesses – that had never done anything online – online, and introduce them to new ways of working, for the very first time”. This new, digital approach to business will form the bedrock of the all-IP future, and has accelerated many digital journeys far beyond where they may have been if left to evolve naturally.
Greater support
Capitalising on such opportunities requires CPs to look more long term and focus on lasting relationships rather than on quick wins. Indeed, it’s clear that the initial knee-jerk technology adoption is being replaced with longer term thinking, so CPs must think about their customers’ entire journey. What do they actually need now? What might they need in two, three years and how can the foundations be laid? Providing that longer term counsel and not necessarily going after the biggest sale straightway, can help to create lasting relationships.
It’s not simply CPs that need to support customers in new ways, however, but they expect the same for their partners and vendors too. In fact, strong partnerships have been critical to survival during the pandemic for many. 96% of respondents claimed that their partners allowed them to remain operation during the first wave, with 84% stating that they received additional support above and beyond their expectations. Moving forward, as CPs accompany their customers on their transformation journey and look to provide more tailored offerings, greater technical and commercial support from up and down the industry will be key.
Perhaps most significantly, the change in working environment has resulted in a shift in customer needs. More than two-thirds of the report’s respondents described an increased demand for network bandwidth from their customers, and 62% saw an increase in the demand for collaboration tools. Interestingly, a third saw a reduction in procurement times, as their customers looked to adopt tools more quickly, in response to the changing situation. To reflect this, the channel sales process needs to be shorter and more concise, with the introduction of self-service portals and inclusive software APIs, for instance, making business more streamlined.
Changing times
Now, more than ever, CPs need to listen to their customers to appreciate the demands that this new normal has put on them. Working closely with them will enable them to creatively package solutions that meet their particular needs in these uncertain times. Three quarters of CPs, for example, believe their customer’s first priority will be to manage costs rather than accelerate digital transformation. A degree of commercial flexibility is necessary, therefore, in order to establish a lasting relationship.
Overall, the report’s findings show that despite the current challenging conditions, the mood within the channel is cautious optimism. If they are to effectively support and enable customers on their digital journeys, though, CPs must be flexible, and look towards the long term. For those that try to stick to the old ways, they’ll find that customers take their business and relationships to other CPs who can provide the tailored, long term advice required for future growth and success.
The past year has forced the communications market to rapidly evolve and, as things return to normal – whatever that will look like – the channel needs to evolve too.
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