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As part of its regular coverage of telecom and IT channels, Channel Partners covers the transformation of channel business models. This blog includes entries from its ongoing coverage, including case studies of partners in transformation.

The Transformation of White Glove Technologies - Part 3

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Tommy Wald WHITE GLOVE TECHNOLOGIES
Transformation leader: Tommy Wald, CEO
Number of employees: 90
Year established: 1993
Original transactional business model: VAR
Post-transformation business model: Managed services provider (MSP), with more than half of overall revenue coming from recurring commissions.

How has your company benefited from the transformation away from a transactional business model?

The most significant impact of this transformation was that our net income grew from an average of 3.5 percent of sales to a best-in-class 15 percent. Our overall customer satisfaction and retention increased during this four-year period as well. Net income grew due to our focus on growing our monthly recurring revenue stream, as compared to one-off projects that we had to sell every month. Our business model was also much more efficient as we focused on delivering structured services and repeatable processes. We targeted and only brought on clients that fit our delivery model; this allowed us to standardize, scale and create efficiencies. We terminated clients that did not fit this standardized delivery model. Other best practices included developing key performance indicators that would monitor our gross margin productivity at every level of our operation.

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