Menu
​Avoiding insolvency - How can the channel stay afloat?

​Avoiding insolvency - How can the channel stay afloat?

Adaptability becomes a key element of surviving in an increasingly competitive channel.

With the ongoing threat of insolvency looming large over the channel, resellers and distributors must take new steps to help insulate themselves against the threat of financial collapse.

“There have been too many resellers and distributors going under in recent times,” Channel Dynamics co-founder and CompTIA director of A/NZ community channel, Moheb Moses, said.

“But it needn’t come to that, as there are a number of processes companies can implement to greatly reduce the likelihood of ending up in that dire situation.”

Moses said a key element of surviving in an increasingly competitive IT channel is adaptability.

With a number of “major shifts” in the channel taking place during the past decade and, with the rate of technological innovation set to increase further, adaptability and flexibility are seen as “critical assets” for channel players to survive and thrive in the years ahead.

Looking ahead, Moses believes that IT firms face a number of challenges when undergoing business transformation, citing the importance of meeting such challenges “head on”.

“Cash flow and other financing challenges can occur when a business is looking to transform itself, so any changes should be fully costed to ensure that the necessary collateral is in place, including contingency funds, to ensure that the business transformation doesn’t put the entire operation at risk,” he explained.

“Companies must ensure they don’t neglect their existing business while pursuing new opportunities. If customers feel their level of care and support has declined, businesses could lose the income they were counting on support the new opportunity in its infancy.”

For Moses, having a business transformation roadmap can help organisations to avoid such a scenario.

“By creating a transformation roadmap, everyone can be across where the company is heading, what the rate of change will be, and what the ultimate objectives are,” he added.

“This can go a long way to alleviate confusion and uncertainty, as well as identify whether aspects of the diversification plans have the potential to hurt existing parts of the business.

“This lets decision-makers identify them early and address them before problems escalate and things get out of hand.”

Given the rapidly transforming landscape within the IT sector, Moses believes it’s equally important for companies to stay up to speed and ensure that staff do not fall behind when it comes to product and services training.

“Having a skills gap can be the death of a business, so companies must ensure that their staff are kept up to speed with emerging tech,” he said.

“This can also have the added bonus of equipping staff to identify new opportunities to grow the business that are not currently being exploited, which could pay a handsome dividend.”

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Channel Dynamicscomptia

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments