With an alarming regularity, companies introduce channel schemes and incentive programs to boost business, but amidst all the hoopla that these initiatives create; vendors often defer the claim settlement process. In order to mend the gap between program completion and incentive disbursement cycle Hewlett Packard is reframing its claim settlement processes. Sameer Mathur gives DQ Channels a lowdown about HP's new initiatives devised exclusively for channel partners.

What is the role of solutions partner organization in Hewlett Packard?
The solutions partner organization division of Hewlett Packard supports categories of every business unit ranging from imaging and printing group, personal systems group and enterprise systems group. Also any issues related with channels are driven through solutions partner organization.

Sameer Mathur Head - Solutions Partner Organization, HP India

Which new initiatives is HP planning to take this year on the channel front?
Practically there are two key areas where we will lay greater thrust this year. Firstly, HP will overhaul its entire incentives and claim settlement procedure to make things simpler for partners. By the end of this calendar year all claim related procedures will be automated that will do away with the lengthy invoices and will make the incentive claiming hassle free. Now with the introduction of paperless online incentive claiming procedure not only will our partners benefit but the initiative will also lessen claim-processing burden of HP. Moreover, incentives would be paid as per the database of partners available with the distributors that would work as the fundamental bible for releasing partner payments.

While HP's business associates for consumer products are already availing the online claim settlement processes, now even commercial channel partners will be eligible for obtaining their incentive faster due to the automated process. Concurrently, the incentive disbursement cycle will also be shortened to 130 days from the date of ending of the scheme program. Furthermore, HP is making an effort to settle all past partner claims at the earliest.

Another focus area, which will hog the limelight this year, is the arrangement of continual training sessions for our channel partners. We will also re-tailor our product and technical skills training program for channel partners of B and C class cities. It has been observed that most of the training programs, which we systematize for upcountry channel partners, fail to establish an effective communication with them. The training sessions in their present avatar more often than not fail to meet partner expectations as they are done mostly in English language. But from now onwards we will restructure training programs in regional flavors for the benefit of our partners. We will also install incremental resources for these partners in the form of deploying dedicated partners to interact with them constantly.

How will you persuade channel partners to take advantage of the automated claim settlement process since Internet usage among partners is very low?
This is the dark area. We will get involved at the grassroots level with partners to encourage and convince them about the benefits of automating the processes. While it won't be any challenge influencing partners in metros and semi-metro towns but certainly we have a mammoth task ahead of us while persuading partners in upcountry cities to fully utilize these resources which have been created keeping their interests in mind. We are also working towards making HP partner portal more users friendly. The redrafted partner portal will have comprehensive information on product demo, ongoing partner programs, and technical and pricing details of the entire range of HP products.

At present how many channel partners are in HP's fold and are you looking at increasing the partner headcount this year?
The current number of channel partners working under HP's distribution umbrella is approximately 3,000 partners across the country. Of these, 1,450 partners are directly working with us and are registered business associates for our consumer and commercial divisions. The remaining 1,550 partners work with these registered partners on an ad hoc basis. Channel expansion is not the area we are keenly looking at this year. However, we might rope in tier two partners in the eastern and northeastern part of India as the volumes are touching stellar heights in these markets.

Some HP channel partners suffer on account of dead on arrival (DoA) issues, what exactly you are doing to resolve this issue? Until recently DoA issues would only resolve if a vendor representative declared it a DoA case, till then no distributor would take up the matter.
Certainly, we are working in this direction. DoA issues will be given due consideration, as partners treat this as a priority area. Henceforth, we will encourage distributor partners to keep free stocks at their premises. Currently we have 70 local service providers who are servicing partners in 175 towns across the country.

With low margin issues plaguing the partners, what is HP doing to ensure better margins for partners? What is your advice to channel partners?
Truly falling margins is the biggest concern for the partners. But perhaps there won't be any limitation to the extent of profits partners could earn if they diversify into the areas that hold maximum profitability. Seeing today's market dynamics, accessory is one of the hottest areas, which has caught the attention of youngsters and even upwardly mobile executives. Moreover, HP's accessories business is akin to that of McDonald's wherein the latter is gathering more revenue by selling french fries and vanilla ice cream than from its burgers. The same principle could be applied to IT channels as well, where partners could make PC and printers as a vehicle to move in the market while accessories will help them in earning extra bucks. Partners can exploit the accessories segment to spin their profitability graph in a constructive direction.

ANJALI CHOUDHARY

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