Magazine Article | August 1, 2003

A Final Note

The formula for a successful channel business has stood the test of time. To grow your business, you need to adopt emerging technologies, integrate complementary technologies into total solutions, and target burgeoning vertical markets.

Business Solutions, August 2003

Sherlock Holmes once remarked to his assistant, Watson, "You see, but you do not observe." Much like Watson, the channel often struggles to notice what is right in front of it. I wrote about this subject in my first column as managing editor in April 1998. I explained that most channel companies are so busy looking for the next sale, installing technology, and servicing customers that they don't step back to see the big picture. The larger picture shows you that end users want total solutions to business problems. They don't want to buy the different parts of the solution from multiple VARs and integrators. End users want one channel company to turn to for business needs. Seems obvious, right? Well, even today plenty of channel members still haven't realized the value of total solutions. Peter Drucker, the famous business strategist, says that those who focus on the obvious tap into the people's greatest need - and profit from it.

Helping The Channel See Here at Business Solutions, we believe it is our mission to help VARs and integrators to better "observe" the undeniable truths about the technology and the channel. The need of total solutions is one truth. But, there are more. Here are a few observations that I've made over the last 10 years of writing for Business Solutions:

  • Services are a key part of the total solution. Your customers' needs don't end once the products have been installed. Many of the VARs and integrators that we've written about, like Symetriq, focus on services. Symetriq's president and CEO, Kojo Benjamin Taylor, was able to grow his business to $5 million in one year by focusing on network monitoring services.
  • Target key vertical markets in need of your solutions. Business Solutions has featured an endless list of VARs and integrators who have profited from pursuing opportunities in healthcare, financial, government, and other hot markets. One such example is Retail Management Solutions. The company is focused on providing point of sale solutions for the pharmacy and grocery markets. Company President Brad Jones believes this targeted approach is key to gaining referrals and winning new customers in these verticals.
  • Add new technologies to your offerings. Howard Jenkins, founder and executive VP of Youngstown Systems Company, could be considered a risk taker for adding RFID (radio frequency identification) to his technology solutions. After all, this technology is still considered to be in the early phase of adoption in many markets. However, a Business Solutions article showed how Jenkins has tapped into a niche for RFID in the automotive market. He's been so successful that RFID now accounts for 35% of his sales.

New Perspectives On The Channel
Business Solutions technology editors Jackie Mauriello, Carly Rohrer, and Dan Schell are all intimately familiar with subjects like these. They write about emerging technologies, integrating technologies, and vertical markets in every issue. Starting next month, you can look forward to alternating columns from Jackie, Carly, and Dan. They'll share their insights on the technology and the channel. I'm confident you'll learn a lot from their perspectives. Pay attention to their thoughts and think hard about what changes are necessary for your channel business' future success. A final thought, again borrowed from Drucker, "We were all born to see, but meant to look."