Node4 Channel Director Ashley Butcher discusses the potential of new channel ecosystems to tackle business and societal challenges, and why the comms industry is innately capable of driving positive change fuelled by optimism and collaboration.
Working together to drive mutual success has long been the channel’s modus operandi – but the collaboration agenda is fast expanding into a bigger dimension with the channel’s future success likely hinging on the creation of new, multifaceted ecosystems, according to Butcher. “Given the requirement to link Net Zero planning with the supply chain, and that the ICT market is growing in complexity, the channel needs new ecosystems,” he stated. “These should be more diverse, inclusive and sustainable. They should involve traditional channel players and new actors like start-ups, social enterprises, NGOs and academia. They should align goals and values with the ESG agenda and be committed to reducing carbon footprints, improving social impact and enhancing governance practices.”
On the question of whether channel firms are capable of meeting these objectives, the outlook is positive, believes Butcher. “The resilience, creativity and agility of channel businesses is a positive success factor,” he added. “Despite the challenges caused by the pandemic the channel has shown its ability to adapt, innovate and support customers and communities. I am also seeing a lot of collaboration and co-creation in the channel with businesses working together to solve problems, create value and deliver outcomes. And there is enthusiasm and optimism in the channel. For example, the recent surge in investment from private equity companies.”
Technology procurement trends are also driving change, shifting from traditional hardware and software sales to more value added services such as cloud, security, IoT, AI and digital transformation. “These services require channel firms to invest in new skills, capabilities and partnerships, as well as to adopt a more consultative and customer-centric approach,” added Butcher. “Resellers and MSPs could do more to embrace industry change by adopting a growth mindset, being proactive and agile, and constantly learning and innovating. They could also leverage the resources of partners who can provide access to new technologies, solutions and markets. Resellers could explore additional revenue streams by expanding their portfolio, targeting new segments and creating new business models.”
The channel needs more diverse, inclusive and sustainable ecosystems
The implications of these changes involve both opportunities and challenges for channel businesses, observed Butcher. “Some of the barriers to positive change are inertia, complacency and resistance to change,” he noted. “Channel businesses may be reluctant to move out of their comfort zone or are afraid of losing their existing revenue streams. They may also lack the vision, strategy or resources to transform. The channel needs to embrace change as an opportunity, not a threat. Resellers and MSPs need to be willing to experiment, learn and fail fast.”
According to Butcher’s observations, resellers have varying degrees of understanding around the issues and market trends that are reshaping ICT buying preferences. “Some resellers are well-informed and ahead of the curve, while others are lagging behind and struggling to keep up,” he added. “Resellers need to invest more time and effort in researching and analysing the market, listening to their customers and anticipating their needs. MSPs with deeper customer relationships are generally selling more value added services.”
These top performing MSPs have realised their potential to meet the changing expectations of their customers by addressing big issues such as closing the skills gap and becoming more diverse and inclusive, believes Butcher. “The channel is facing a challenge in finding, attracting and retaining the right talent, especially in the areas of cloud, security, IoT, AI and digital transformation,” he stated. “The channel is also lacking diversity and inclusion which limits its ability to innovate, compete and grow.
“Addressing these issues means collaborating with the right channel providers and investing more in training, development and certification, creating a more inclusive and engaging culture, and promoting more diversity and representation in the channel.”
Butcher’s four steps to growth readiness
1. Understand customer needs, challenges and goals, and deliver solutions that meet or exceed their expectations.
2. Embrace change: Be open to new technologies, solutions and markets, and be ready to adapt and evolve.
3. Create new value propositions, business models and revenue streams, and differentiate from the competition.
4. Build strong relationships with vendors, distributors and peers.