What is Horizontal Solution?

1. Introduction

A horizontal solution serves many industries. It addresses common business needs. These solutions offer broad functional utility. They do not target specific niche requirements. For example, a customer relationship management (CRM) system helps diverse businesses. An IT security platform protects data for various sectors.

A manufacturing resource planning (MRP) system optimizes production for many factories. These solutions simplify channel sales for partners. They offer wide applicability within a partner ecosystem. Effective partner enablement helps partners master these tools. Companies often offer these through a robust partner program. Deal registration systems track partner contributions for these solutions.

2. Context/Background

Historically, software often focused on specific industries. Vertical solutions met very narrow needs. As technology evolved, common business functions emerged. Companies needed tools for sales, marketing, and finance. Horizontal solutions filled this gap. They allowed vendors to reach a larger market. This approach greatly expanded the reach of channel partner networks. It made partner relationship management more efficient.

3. Core Principles

• Broad Applicability: The solution works across many industries. It solves common problems for diverse businesses.
• Scalability: It can grow with businesses of different sizes. Small and large companies can use it effectively.
• Standardization: The core features remain consistent. This simplifies implementation and support.
• Integration Potential: It connects easily with other systems. This creates a more complete business environment.
• Partner Accessibility: It is easy for channel partner companies to sell and support. This boosts co-selling efforts.

4. Implementation

1. Identify Core Needs: Understand universal business challenges. Focus on functions like CRM, ERP, or cybersecurity.
2. Develop Foundational Product: Build a robust, general-purpose solution. Ensure it has essential features for broad use.
3. Create Partner Program: Design a partner program that supports diverse partners. Include tiers and clear incentives.
4. Develop Partner Enablement: Provide training on the solution's core value. Offer resources for sales and technical teams.
5. Establish Deal Registration: Implement a system to protect partner leads. This tracks contributions and prevents channel conflict.
6. Support Through-Channel Marketing: Offer materials partners can use. Help them promote the solution to their customers.

5. Best Practices vs Pitfalls

Best Practices (Do's)

• Focus on core value: Highlight universal benefits.
• Provide strong partner enablement: Equip partners to succeed.
• Maintain clear deal registration: Protect partner efforts.
• Encourage specialization: Partners can add industry-specific layers.
• Offer tiered support: Match support to partner investment.

Pitfalls (Don'ts)

• Over-customization: Trying to be all things to all people.
• Ignoring vertical needs: Failing to see where partners can add value.
• Poor partner enablement: Leaving partners unprepared to sell.
• Complex pricing: Making it hard for partners to quote.
• Lack of deal registration: Creating channel conflict.
• Inadequate partner relationship management: Neglecting partner communication.

6. Advanced Applications

1. Platform Expansion: Building an ecosystem of add-ons. Partners create integrations or extensions.
2. AI-Driven Insights: Adding AI to provide cross-industry analytics. This enhances the solution's value.
3. Managed Services: Partners offer the horizontal solution as a service. They handle deployment and ongoing management.
4. Embedded Solutions: Integrating the solution into other products. This creates new offerings.
5. Global Rollouts: Adapting the solution for international markets. This requires localization support.
6. Verticalized Wrappers: Partners build industry-specific layers. They tailor the horizontal solution for niche markets.

7. Ecosystem Integration

Horizontal solutions touch many POEM lifecycle pillars. During Strategize, companies plan broad market appeal. Recruit focuses on partners with diverse customer bases. Onboard ensures partners understand the general use cases. Enable provides tools for selling across sectors. Market supports through-channel marketing campaigns. Sell is where co-selling efforts shine. Incentivize rewards partners for broad adoption. Finally, Accelerate helps partners expand into new segments. This complete view strengthens the partner ecosystem.

8. Conclusion

Horizontal solutions are vital for many businesses. They address common needs across diverse industries. These solutions empower channel partner networks. They provide a foundation for growth and innovation.

Effective partner relationship management is key. Strong partner enablement ensures partner success. Companies use deal registration to manage partner efforts. This approach builds strong, scalable partner program structures.