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AIMatters Winter 2014
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The Pivot

Insights into Key 2015 Changes in the Channel
Bruce Stuart CMC, President – Channelcorp

* Channelcorp intelligence | December 2014 | Reprinted with permission *

The key issue in 2015 is the transitional and transformational changes required in vendors and partner’s business models as the IT industry (worldwide) accelerates into a long term structural shift from transactional to recurring revenue models. The "pivot” to businesses rich in cloud, SaaS or MPS (managed print services) revenues results in changes to business’s income statements, balance sheets and patterns of investment and cash flow. The pivot also increases corporate valuations.

Partner/Reseller Changes
The customer facing reseller industry will split into three types of businesses: classical, transitional and transformational.

The classical partners will do in 2015 what they did in 2014 and before. With a good tight plan and a talented ecosystem around them, they will be profitable and may even grow. But for classical partners life will be tough in 2015, and a defensive battle will rage as they attempt to retain their installed base in the face of transitional and transformational partners. In many cases longtime members of their customer base may not even consider them for cloud/SaaS focused RFPs. Lost sale analysis will be the order of the day for the classical partners.

Many visionary transitional and transformational businesses began the change in 2011/12/13. The businesses that had cash to invest accelerated the reworking and re purposing of their businesses. Growth rates of 30 to 50% will continue for these businesses in 2015 as their previously classic transactional-based model shifts into a recurring revenue/ annuity business centered on cloud/SaaS/ MPS and hosted solutions. Rather than engage in price driven defensive strategies to maintain the classical base, these businesses have embraced and invested in front of the change in the industry. They have created offensive value based strategies to maintain their base, expand share of wallet in their base and generate net new business for themselves and their vendor partners. They are also becoming more valuable per dollar of revenue.

Valuation Model Changes
Current valuation data is showing that for every one percent shift in revenue blend from the classical, transactional model to the transitioned or transformed recurring model, business valuation may increase by two to four percent. Our research indicates that a 100% recurring revenue business can be 2 to 4 times more valuable than a similar sized transactional business. This is the reward for the risk engaged in transition and transformation of reselling businesses.

Vendor and Distributor Changes
From the vendor and distributor perspective, the first challenge in 2015 is to make sure that their business, product and solution propositions provide the "right types of programmatic fuel” to feed the classical, transitional and transformational partners that currently coexist in their partner portfolios. Without the right "fuel” there will be no partner growth and existing sales levels may stall or backslide. The second challenge, especially for software vendors (or those hardware vendors that also sell software), is to figure out how to re engineer their own "classical” business models that were purpose built to drive transactions around on premise solutions in the face of the permanent and structural change that the cloud/SaaS/MPS recurring revenue model can inflict on income statements, balance sheets, investment, cash flow and corporate valuations.

Bruce Stuart is an internationally recognized expert in the IT industry. In 1989, he and Marg Stuart founded Channelcorp, which has grown into one of the most respected management consulting, strategic advisory and executive education firms in the global IT channel industry. Channelcorp is a global leader in the provision of channel economics, partner finance and channel growth consulting and strategic education to the IT industry and assists channel leaders in vendors and channel partners make lasting improvements to their organizations performance. For more on Channelcorp’s services, educational workshops, or publications, visit www.channelcorp.com or contact them at channelcorp@telus.net.

Editor’s Note:
Channelcorp has extended two exclusive offers to AIMatters subscribers:
(1) Cloud Transition Handbook (published October 2014) - $200
(2) Complete Channelcorp Library (includes 5 books & 12 white papers) - $1,500

Each offer includes 30 day complimentary access to LivePlan, a cloud based business planning tool.

To take advantage of these opportunities, visit Channelcorp at http://www.channelcorp.com/publications.php and be sure to add AIM in brackets after your name. Offer expires January 31, 2015.


Who Needs to Rebrand When You Can BOUNCE to Future Success?

Doug Hall, Director of Business Development - AIM, Inc.

How often do we think of implementing a radical structural fix when an attitude and leadership adjustment could be the remedy? Such a radical reaction may be to rebrand and/or relaunch when, in fact, our problems can be overcome with a systematic approach to improved team performance. Our personal or organizational response to crisis or a challenging situation may be equated to an object dropping to a hard surface. The results are radically different if the object is a glass ornament, an orange or a resilient rubber ball. In each case the object has a sudden loss of altitude, encounters a hard surface, and then reacts according to its nature. Shattering, thudding or rebounding are the results and this analogy can apply to our personal or organization reactions to a crisis. I’m pretty sure we would all prefer a rebound that is higher than the original point of the drop. This possibility comes alive in successful business executive and author Keith McFarland’s book, Bounce, about a fictional division VP and his management team dealing with business stagnation and threat of being sold-off or shutdown. McFarland’s systematic approach to understanding and managing an organizational rebound is the "bounce” in the book title.

McFarland’s model for "bouncing” is adapted from the classic book Resilience: Discovering a New Strength at Times of Stress, by Frederic Flach, a psychiatrist and author. Flach was a pioneer in thinking about what makes people resilient and he reasons that people, like organizations, have strong homeostatic impulses; a drive to "keep things the same.” When they encounter severe or discontinuous change, they inevitably go through a period of disintegration followed by reintegration. Flach finds that resisting this process, due to either denial or nostalgia, may leave people or organizations vulnerable to future stress and may lead to anxiety, depression, or stagnation.


McFarland proposes that life is an adaptation, a repeated disintegration and reintegration in the face of change. It is not a question of whether you or your company will need to change; it is a matter of when—and when faced with that sudden loss of altitude, you or your firm will react like a glass ornament, an orange, or a rubber ball. Leaders especially should learn how to focus on building "bounciness” into their organizations. This "bounciness” comes from leading ourselves and our teams through applying six key principles that will guide our behavior in crisis or serious challenges. In doing so, leaders can drive a team through the disintegration and full re-integration process, possibly attaining an even higher level that before the crisis.

The first Bounce Principle is to "Embrace the Bounce” by accepting the need for change and expecting to change and expecting to bounce back. The second is for the leader to "Manage the Anxiety” by absorbing the team members negative anxiety about loss/harm and converting it into a motivating emotional force for change. The third principle is to "Manage the Mental Factors” where we guide ourselves and our teams to avoid nostalgia or denial, see things as they are, and move forward with a "we control” rather than "they control” mentality. "Manage the Money” is the next principle and it entails using money and finances in three roles to help guide the team to a "bounce”, the most important being to fund the 20% of activities that generate 80% of the value. The fifth principle is to "Manage the Mission”, which avoids the customary, and usually nebulous, corporate "mission statement” and instead focuses the team on a specific mission in the military sense, i.e., "what hill are we going to take?” to reach a new and successful place. Finally the principle of "Manage the Morale” provides the leader guidance to make speedy and considerate decisions then take decisive action. The leader should see things as they are, but not despair, and support this view with the team. The leader must exhibit a measured, confident response to the crisis and difficult decisions must be made with character and fairness. Lastly the leader can’t own and control morale for the team, everybody must own their own morale and pitch in to address the crisis.

The Bounce story concludes with a successful turnaround for the fictional division. In the book, McFarland shares from his practical experiences in applying the Bounce Principles in a successful business turnaround. Apply the "Six Principles of Bounce” when you next encounter a crisis or a serious challenge and expect to rebound higher than ever.

Doug Hall is AIM’s Business Development Director, responsible for representing AIM within the AIDC industry to help grow the association and implement AIM's strategic growth. Contact Doug by email at doug@aimglobal.org, phone 425.522.3513, or visit AIM at www.aimglobal.org to learn more.

Meet Us in…Philadelphia or San Diego!

AIM Gets Ready to Hit the Road Early in 2015


PACK EXPO East | February 16 – 18
Pennsylvania Convention Center | Philadelphia, PA
AIM is proud to be a Platinum Partner for the inaugural PACK EXPO East tradeshow, which will bring together industry professionals throughout the Northeast. PACK EXPO East features top-tier processing and packaging suppliers and allows plenty of time to engage with individual suppliers and peers.

It’s everything PACK EXPO – now in the East! Come by plane, train, or automobile to meet industry leaders…did you know nearly one-third of the top CPG companies in the U.S. are located within a 200 mile radius of Philadelphia? Be sure to stop by the AIM Booth as well!!

Special discounted registration is available until January 21st. To register, or for more information, visit PACK EXPO East now.


AIM Summit 2015 | April 13 - 15
San Diego, California
Who can resist the sunshine of Southern California in the spring? Or the opportunity to co-locate with RFID Journal LIVE! 2015? Not AIM!

Plans are currently underway and details are being finalized, so watch for an announcement in January and mark your calendar now! AIM Summit 2015 promises to be one you won’t want to miss!


RFID Journal LIVE! | April 15 – 17
San Diego Convention Center | San Diego, CA
RFID Journal LIVE! is the world's largest and most important event focused on radio frequency identification and related technologies. Now in its 13th year, LIVE! features more than 200 exhibitors from around the world. The conference program, which feature more than 100 sessions—including more than 50 new end-user case studies—is comprised of preconference seminars, the main conference (keynotes and tracks) and post-conference master classes and workshops.

AIM is proud to return to LIVE! as an Association Sponsor and will host a significantly expanded AIM Pavilion. To learn about AIM Pavilion opportunities for your organization, contact Mary Lou Bosco by email or call the AIM Office at 724.742.4473. Visit RFID Journal LIVE! 2015 for registration or additional information.


AIM Twitter Flying High

Since its launch earlier this Fall, AIM Twitter continues to gain ground and we expect to see it soar even more in 2015!


Currently, AIM has 70 followers and we’re asking members and partners throughout the AIDC industry to help us break the 100 mark to coincide with the new year!

In addition to creating a way to better connect and engage AIM members and partners around the globe, AIM Twitter offers the most up-to-date AIM to communications on hot topics, AIDC industry news, and keeps you informed on the latest from AIM committees, alliances, and members’ individual achievements.

Being a part of the AIM Twitter family can also raise your profile – for you and your organization! Follow AIM and we’ll follow you back!!

For those who don’t regularly tweet (AKA unregistered users), or are not yet comfortable with this aspect of social media…never fear!

If you’re interested in AIM, you can still access the AIM Twitter page here or at https://twitter.com/@AIM_Inc_ without having your own Twitter account. You will still have the ability to read any dialogue posted to the AIM Twitter account and as an AIM member, will have the option to submit messages and news for AIM to post and share with Twitter followers around the world!!

Hope to see you soon @AIM_Inc_!

Committee Connection

Mary Lou Bosco, AIM Chief Operating Officer
Jayne Gaston, AIM Member Relations Coordinator
Steve Halliday, RAIN RFID Alliance President



This regular feature in AIMatters is designed to keep you up-to-date on the work of the various committees within the association. All AIM members are eligible to join committees and we encourage every member to participate in the great work being done to enhance and support our industry.

To receive information specific to a committee’s work, offer ideas for new topics or projects, or get involved with a committee, contact AIM Committee Connection today.

AIT Alliance (AIT) | AIM North America
Chair – Bob Fudge, Evanhoe & Associates
Following the success of their first Alliance-sponsored conference in September 2014, several members traveled to Capitol Hill to meet with legislators and spread the good news about the collaboration and plans for 2015.  The Alliance is currently evaluating, with the support of the OSD, options for topics, speakers and venues for future events.  Along with their dedicated lobbyist, the group is working to develop their 2015 legislative strategy.  Today, the AIT Alliance stands strong with 16 active members.  Individuals interested in providing input or joining the Alliance’s efforts are encouraged to email AIT Alliance for membership details or visit the AIT website.

Healthcare Committee | AIM North America
Chair – Ardi Batmanghelidj, Innovatum
Several Healthcare Committee members represented AIM North America at the UDI Conference in Baltimore this past October.  The committee presented two sessions:
  • Technologies Available to Support the UDI Rule
  • How to Achieve & Maintain Compliance
The Healthcare Committee has begun strategic planning and goal setting for 2015 that will allow them to efficiently and effectively address the leading topics on the healthcare horizon. To learn more, or share your ideas, connect with AIM NA Healthcare Committee.

Internet of Things (IoT)
Chair – Denis Bishop, Lowry
The AIM IoT Committee has been busy this fall with their latest project! Members have been hard at work with creating a collegiate-level Internet of Things course syllabus! In 2014, the IoT Committee has strove to pursue and define the areas of IoT that currently have the greatest need. A well-defined course syllabus for professors teaching about the IoT has proved to be a necessity in today’s market. The finished product will create a welcomed document among Universities and Colleges alike, nationally and abroad. Although this project is nearing to completion with each IoT Committee meeting, members are still welcoming content input and IoT expertise to the syllabus! The AIM IoT Committee invites you to join their efforts to further IoT education and attend their meetings! Be a part of forming this course and other IoT projects on the second Thursday of each month from 9:00 – 11:00 AM ET. We look forward to seeing you on the call! For more information, contact Jayne Gaston at jayne@aimglobal.org.

RAIN RFID Alliance
President – Steve Halliday, High Tech Aid
Let it RAIN! The RAIN Alliance continues to grow with several potential members set to join in January as their new financial year rolls round.

The Alliance has been working hard in the past few months with four workgroups formed at the last member meeting getting to grips with their topics:
• Awareness
• Messaging
• Education
• Developers Forum

Each of these groups has their own area in the member’s only forum where the latest versions of the documents they are working on are available for all members.

We have also been hard at work on our web site (www.RAINRFID.org) where we have improved the compatibility across various browser platforms and made the Member Directory more easily readable and searchable.

Members of RAIN have also been featured as recent conferences. Steve Halliday was a speaker at the recent Internet of Things Global Conference in Washington D.C. and the Alliance had a booth as well as several speakers (RAIN, FEIG, Smartrac, and Secure RF) at the recent IDTechEx IoT Conference in Santa Clara CA.

A member only conference call in October gave the members the opportunity to keep up to date on the activities of the Alliance. Another call is being scheduled for early in 2015. Details will be sent out soon.

The next face-to-face member meeting will be held in The Netherlands on February 23rd close to the EuroCIS show. Logistics details have been sent to members for the meeting.

If you are involved in passive UHF RFID then you need to be involved with the Alliance. Membership forms are on the web site or you can contact Steve Halliday at RAIN by email (steve@rainrfid.org) or phone (+1.412.726.3515).

RFID Experts Group (REG)
Chair – Don Ertel, CDO Technologies
The RFID Experts Group is busy wrapping up their 2014 projects and is looking forward to a brand new year of white papers, scintillating presentations, and industry forming projects! The fall brought great things to AIM’s REG Committee and to all of its work groups. Read on to learn about the great things happening in RFID Experts Group and how YOU can be a part of them!

REG Material Handling
The RFID Experts Group Material Handling work group is still looking for AIM member participation on their latest white paper, "Best Practices; RFID, Lift trucks, Warehousing & Distribution”. This white paper is well on its way to completion but there is still time to share your expertise and help to create this document! The work group’s next meeting will be held in the New Year on Wednesday, January 14th 2015 at 9:30 – 10:30 AM ET. If you are interested in joining this work group’s efforts to form the best practices for RFID in Lift trucks, Warehousing & Distribution, contact Jayne Gaston at jayne@aimglobal.org to be brought up to speed on the project!

REG Innovation in RFID
The Innovation in RFID work group is the perfect place to come for conversation, debate, and idea-sharing on all things RFID! Have a white paper, presentation, or project on RFID that you’d like to pursue but need a group to share their expertise? Want to hear about the latest innovations being brought to forefront of the industry? Then the Innovation work group is the place for you! Members share their ideas on where the industry is going and present project ideas for the RFID Expert Group to pursue. Come and join the discussion on Tuesday, January 13th 2015 at 3:30 – 4:30 PM! Contact Jayne Gaston at jayne@aimglobal.org for information on how to join in the conversation!

REG HCI
The Healthcare Initiative work group is in the process of wrapping up their Device Test Protocol document and will be publishing it in the New Year! Members have been working hard to collect and review feedback for this document and are looking forward to having it completed! The work group still would like for AIM members to join in with REG members in providing them with feedback and support! The next HCI meeting will be conducted on Wednesday, January 21st, 2015 at 9:00 – 11:00 AM ET. For more information on how you can have a hand in the completion and revision this document, contact Jayne Gaston at jayne@aimglobal.org. Be on the lookout for this important document to be published early in 2015!

REG Data Content
The Data Content work group has held several editing sessions for their document, "Data Content and Structure in Passive RFID Tags”. While this work group does not hold regularly scheduled meetings, they are looking to finished and finalize the document early in 2015. The next editing session will be held on Wednesday, January 7th at 2:00 PM ET. Please help the RFID Experts Group complete this document and move it towards publishing! Contact Jayne Gaston at jayne@aimglobal.org. for the latest version of the document and for more information on the project.

Technical Symbology Committee (TSC)
Chair – Kevin Berisso, University of Memphis
The members of the TSC have been working hard to review the feedback for the Han Xin Code and Ultracode from their time of public review in 2014. The committee will be finishing up their reviews of the feedback this December and will move the two projects on to finalization by the end of the year. In the New Year, the committee hopes to make them available and to move onto new and exciting projects in the realm of Technical Symbology! For more information on how you can get involved with the TSC in 2015 and for meeting information, contact Jayne Gaston at jayne@aimglobal.org.


Happenings

Items of interest & value for AIM members

Welcome New Members!!!
We’re pleased to welcome these new members to the AIM family! Be sure to click on their name to learn more!

ComponentSoft, Inc.
Reboulet & Associates, LLC
RFID Center of Excellence – University of Pittsburgh
RFMicron
Tönnjes ISI Patent Holding GmbH

Thanks to all the AIM members who made referrals! If you know an individual or organization that would benefit from being part of AIM’s global network, make an introduction or contact AIM Membership to refer a candidate.


Industry Event Partnerships
AIM is pleased to partner with leading industry events in the coming months. Check out these options to connect and increase recognition for your organization!

Pack Expo East
February 16 – 18, 2015
Philadelphia, PA


IPC APEX EXPO
February 24 – 26, 2015
San Diego, CA


RFID Journal LIVE!
April 15 – 17, 2015
San Diego, CA




Check out the wealth of knowledge at the AIM Store!!
Want to keep abreast of the latest trends in the AIDC world, or maybe learn something new? The AIM Store has exactly what you’ll need. From Specifications and Standards to White Papers and Presentations/Webinars, the best resource is right at your fingertips. Even better – many of the items are FREE to AIM Members!! It’s a win-win! Shop the AIM Store today!!

Happenings will be a regular feature of AIMatters. If you have an item of interest or want to share news or recognition highlights from your organization, just submit your information to AIMatters – Happenings.

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