Country Enablement Brazil Partner Executive Forum...2013/08/13 · Forum Meetings Invites to Executive Forum 90 Day ICA Notification Go LiveInvites 12/8 60 Day ICA Notification ICA

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Country Enablement Brazil Partner Executive Forum

13 August 2013

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

Introductions

About Country Enablement

Expected Outcomes

November and Beyond

Benefits

High Impact Process Changes

Country Enablement Brazil Timeline

Reminders

Eduardo



• Schedule: 1:30 pm- 4:00 pm

Includes breaks

Snacks and beverages provided

• Parking Lot: Questions that cannot be answered will be put in the “parking lot” for follow-up

• Action Items: Will diligently track and follow-up

• Open Dialogue: We want to hear from you! Please speak freely so we can hear your comments, concerns and questions

Please introduce yourself as you ask questions

Meeting Logistics

Eduardo


• Be aware of the steps needed for December 2013

• Understand Country Enablement from a high level and beyond November plans

• Learn about business impacts

• Be informed of next steps

Eduardo


• Contracts

• Processes

• Follow-up

• Pre- Post

Enablement Support

• Benefits of Country

Enablement

• Inform, Listen, Adjust,

Educate

• Execute and Support

• Assess Impacts

• Business Processes

• Gather feedback Insight

Engage Enable

Minimum

Disruption Coordinated

Planning

Timely

Communication

Partner

Confidence

Cisco Confidential © 2010 Cisco and/or its affiliates. All rights reserved. 7

Swati


Country Enablement will create an enhanced

route to market for Partners in Brazil by:

8

• Protecting and growing your market share

• Improving Ease of Doing Business for you and your customers

Enhance “no touch” customer experience

• Increasing efficiencies

Speed acquisition integration

Improve reporting functionality

• Accelerating time to market

• Providing greater scalability


Country Enablement is

…a Cisco initiative to establish new business models and competitive

differentiation while maintaining our current go-to-market strategy.

It involves setting up new legal entities in targeted high-growth

countries, such as Brazil.

These entities allow the competitive sale of Cisco products, services,

and solutions.

9


Contributing

to

Brazil’s

transformation

With World Cup And Olympics, Cisco Bets

Big On Brazil - Forbes

Source: forbes.com

Image via Cisco Cisco is betting big on Brazil. With the 2014

World Cup and the 2016 Olympic Summer Games coming to

Brazil, US - based Cisco is investing $545 million over the next

four years. According to one report, Cisco plans to capitalize

on the global attention on the world soccer championships and

the [...]

Cisco Investment Package

Announced: April, 2012

Venture

Capital

Investments

Local

Manufacturing

Innovation

Center

Intellectual

Property

Agreements


Aimee


Enhanced Route to

Market for

Channels in Brazil:

Country

Enablement

Strategic Manufacturing Node

Routers &

Switches,

WAP

UCS IP

Phones

STB /

EMTA

Local

Manufacturing

Competitive

Pricing

Faster

Speed to

Market

Reduced

Cycle Times

Enhanced

Partner

Experience

Selection

Available

Dec 8 Future


1-Tier

Partner

End user

INC.

1-Tier

Partner

End user

CE Brazil

Distributor

As-is with Importation

As-is Local Manufacturing Manual

R$

$

R$ R$

To-be with Importation (no change)

To-be Local Manufacturing Automated

1-Tier

Partner

End user

INC.

$

End user

CE Brazil Type

5 Entity*

R$

*CISCO COMÉRCIO E SERVIÇOS DE HARDWARE

E SOFTWARE DO BRASIL LTDA

1-Tier

Partner

$

R$

$

Distributor

Distributor

Distributor


Order (Manually Split)

Non-locally

manufactured

Products

Locally Manufactured

Product

Cisco Inc

subsidiary

Cisco

Brazil

Channels continues to import from Inc and resell to customers for

all products not manufactured in country

• Product +TS for imported products

• Standalone Software Sales (SW)

• SW Subscription Sales **

Legal Contracts,

US$ Pricing

T&C’s, Customer

PO, SO

Selling only Product locally in country -50% of all Cisco products

• Product +TS for locally mfg products

• Stand-alone TS local and imported products

• Advance Services (AS-S, AS-T, AS-F)

• Service Sales to support SW

• XaaS (Increased automation – TBD)

Legal Contracts,

BRL Pricing

T&C’s, Customer

PO, SO

** SW Subscription doesn’t have separate service SKUs (i.e. there are not separate services sold to support software subscription sales).


Selling both Product

manufactured locally

in country, as well as

those imported from

out of country

Order

Both locally and non-locally

manufactured products


Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 Jun-14 Jul-14 Aug-14

Pro

du

cts

Brazil December 8 Go Live

AIR-CAP2602

AIR-CAP1602

AIR-SAP-2602

AIR-SAP1602

Cyprus

(November 25)

B and C Series (CTO)

(March)

Routers and Switches Available at Go Live

• CISCO1905BR/K9

• CISCO2911BR/K9

• CISCO2911BR-V/K9

• CISCO1905BR-SEC/K9

• CISCO2911BR-SEC/K9

• WS-C2960-24TC-BR

• WS-C2960-24PC-BR

(Aug16)

• WS-C2960S-48LPS-BR

(Nov 6)

Future Products:

• Additional routers and switches

• IP Phones

• STB/ EMTA

WAP UCS


Our goals are to:

• Inform you of changes and gain your feedback, ideas and support

• Determine impacts and/or potential updates to scope, processes, timeline

• Create scalable and meaningful pre- and post go-live support

• Shape and support mutual business expansion and success

Transforming the order-to-fulfillment processes and systems will mutually benefit

Cisco and Cisco’s partners in Brazil.

Working together, we can create a better experience for our customers and drive

sales growth.

We look forward to continuing on this journey with you!


Marcio


• Products manufactured locally would transact in Brazil Reais (Quoting, Ordering and Invoicing)

Competitive Edge • Market opportunities for required indigenous products (Public Sector, Service Providers) • Better customer delivery experience with shorter lead time, delivery cycles and inventory availability by Distributors • Ease of product returns

Grow Top Line

• Cost of local manufacturing lower than imported products

• Brazilian government Basic Productivity Plan (PPB tax benefits gains ~10-22% based

on product nature, nationalization requirements and contract manufacturing costs

Localized Cost Structure

Competitive

Localized

Grow

Marcio


2-3 weeks compared

to 4-6 weeks for

imported products

Drive growth and

market share

Local pick-up. No

international logistics

and importation

Lower

street price

for partners

and

customers

Increase

speed to

the market

Public

Sector

preferential

treatment

for bids

Lower

logistics

efforts

Lower price

means

lower

financing

needs

Post

November

1905/K9

2911/K9

WS-C2960-

24TC-BR

WS-C2960-

24PC-BR

WS-C2960S-

48LPS-BR

Additional

Products TBD

Routers

Switches

Locally

Manufactured

Products

Available at Go-Live

Marcio


Reggie


• Initial Steps to Allow Ordering in November

• Internet Commerce Agreements (ICAs)

• Legal Agreements

• New Bill-To-IDs

• Pricing, Payment Processes and Taxation

• Quoting and Ordering

Reggie


Internet Commerce Agreement/Click-to-Accept

Legal Contracts

New Bill-to-IDs

Reggie


Pricing Payments

Price Lists

• New Global and Local Price lists

• Currency Adjustments

Quote Protection

• Existing policies remain

• 30-days (products)

• 60-days (services)

Taxation

• Estimated taxes Credit

• Lines of credit

Payment Processing

• Wire transfer

Programs

• Products (Locally manufactured and imported)

• Services

Reggie


Data Migration

Open Quotes

Existing Contracts

Dual Ordering

INC/Brazil only orders

Standalone service ordering

Service Renewals

Zero-day grace period

(retroactive renewals)

Only through Brazil

Service

Contracts

today

Contract with install

site outside of BR

• A single contract with

multiple install sites

• Contracts remain the same

Contract with install

site in BR

• New contracts will be created

with Brazil BIDs

Reggie


Initial Steps for Ordering on December 8

• Internet Commerce Agreement • Legal Sales Agreement • Bill-to-IDs

Pricing, Payment Processing and Taxation

• Price Lists • Price Protection • Credit • Taxation • Programs

Quoting and Ordering

• Data Migration • Dual Ordering • Service Renewals

Reggie


Doug


Continued Support and Feedback

Successful Adoption of

CSCC/CCW

Acto What is Needed Resources

Frequently Asked Questions (FAQs)

Training Sessions/Feedback

Price List

CE Brazil Website

What do I need to do to be ready for Country Enablement?

Doug


Partners/

Distributors

Sent

Awareness

Communications

Trainings

Executive

Forum

Meetings

Invites to

Executive

Forum

90 Day ICA

Notification

Go Live

12/8

60 Day ICA

Notification

ICA Click to

Accept

Notification

Regional

Trainings

Get Ready

Notification

Go-Live

Notification

Post Go-

Live Touch

Base

Regional

Trainings

Training

Invites

Partner

Surveys

FY 2013 FY 2014

Q4 Q1 Q2

May June December November September August July October

En

gag

em

en

t A

cti

vit

ies

Doug


Questions?



Where do I find out more?

• Country Enablement Brazil Webpage

• If you need further clarification from Cisco, please

contact [email protected].

http://www.cisco.com/web/ordering/cilcs/brasil/index.html

mailto:[email protected]

Thank you.


Brian Cheng

Partner Engagement

Lead

Meet the Country Enablement Brazil Team

Doug Lavanchy,

Director, Americas

Sales Enablement

Ops

Aimee Fuller

Director, Operations

Business Readiness

Bernhard Kretschmer

Director, Field

Operations

Vic Northrup

VP, Sales Ops

GSCO US EC&C

Mark Bonfoey

Director,

WW Biz

Enablement

Reggie Ledesma

Business Ops Mgr,

Americas Services

Enablement

Stephanie Sunahara

Project Manager,

Americas Services

Enablement

Margot Meskin

Change

Management Lead

Program Manager

Gira Raff

Program Manager


**Note: These high level impacts may change as L2 and L3 reviews

are in progress. These slides will be finalized by 8/12/2013


Route-To-

Market

Cisco Brazil will align with existing Cisco Route to Market policy and will

establish a contractual relationship with Customers, Partners, and Distributors.

All Routes to Market are in scope.

Programs

Channel Incentive Programs and Sales Enablement Programs (Trade-In, Try

and Buy, Demo, etc) for locally manufactured products will not be offered

through Cisco Brazil at go live.

Channel Booking Neutrality internal sales program will be supported by CE

Brazil.

Eligible Partners

Product Availability

Doing Business with Cisco

Pricing Quoting & Ordering

Delivery of Products/ Services

Invoicing & Payments Services


Products

Cisco Brazil will sell only locally manufactured products and services with

Install-sites/Performed-at locations in Brazil at go-live.

Products not locally manufactured will continue to be available for sale from

Cisco Inc. (as is today).

Acquisitions

Strategy

Acquisition offerings available and orderable from Inc (US) / BV (NL) by

Brazilian Partners, Distributors and Customers will continue to be purchased

through Inc (US) / BV (NL) (as-is today).

Eligible Partners







Customer

Data

New billing, shipping, and customer identification numbers will be created to

facilitate price, quote, and order of locally manufactured products from Cisco

Brazil.

Existing billing, shipping, and customer identification numbers will be kept in

order to support the sale of non-locally manufactured from INC.

Data will be updated and migrated at Go-Live.

Eligible Partners







Legal Sales

New sales agreements will be established between Brazilian Partners,

Distributors and Customers and Cisco Brazil for business of locally

manufactured products and services.

Existing Cisco Inc sales agreements will be retained and amended to exclude

buying of locally manufactured products and services as per Brazilian price list

offerings.

Legal sales agreements will be in English but, if required, will be translated and

made available in both languages.

Brazilian Partners, Distributors and Customers will need to accept a new

Internet Commerce Agreement (ICA). ICAs will be in in Portuguese for direct

customers and 1-Tier partners; and in English or Portuguese for 2-Tier partners

and Distributors.

A new Indirect Channel Partner Agreement (ICPA) for Rest-of-World will be

released referencing the new Cisco Brazil entity. It will be available in Brazilian

Portuguese.

Eligible Partners







Indirect Tax

Indirect Taxes will be assessed on the supply (and returns / cancellations) of

goods and services in compliance with local tax rules and regulations (Federal,

State and Municipal).

Product and/ or Service Sales Order will not include local indirect tax. Applicable

Local indirect tax will be determined and applied upon invoicing.

Quotes are not required to state indirect tax.

When Indirect Tax is to be applied on the invoice, it will be stated on the quote

that the customer will be charged for it on the invoice.

Global Price List will include Non Recoverable Tax and Domestic Freight. Whole

Sale Price List will include non recoverable tax and domestic freight

(exclusion/inclusion will be based upon opt-in/opt-out decision).

Indirect tax cost will not be embedded in the Brazil price list.

Eligible Partners







Partner

Pricing

Non-standard discounts will be negotiated for Cisco Brazil business.

Contractual, promotional and non-standard discounts will be applied as

appropriate.

Distributors will be able to apply contractual and non-standard discounts in the

Brazil price list. Distributors will now be able to negotiate discounts.

Channel Booking Neutrality is in scope.

Two new pricelists (GPL and WPL) will be created for Cisco Brazil in local

currency for all locally manufactured products and services sold by Cisco Brazil.

Existing price list entitlements will be retained for partners, distributors and

customers. Cisco will continue to publish changes and notifications for price

lists for Cisco Brazil as is done today for Cisco Inc.

Cisco Brazil will be able to notify its Brazilian distributors of changes to the new

Brazilian price list in the local currency (BRL) for manufactured products and

services.

Eligible Partners







Product and

Service

Quoting

Product and / or Service quotes will only be created for Brazilian Partners,

Distributors and Customers with whom Cisco Brazil has Legal Sales

Agreements.

Product and / or Service quotes will be presented in Portuguese.

Product quotes and Service quotes will be presented in the local (Brazilian)

currency as is today.

Quotes will no longer include freight as a separate line item, and are not

required to state indirect tax.

When Indirect Tax is to be applied on the invoice, the quote will state that the

customer will be charged for it on the invoice.

Product Quotes, Service Quotes and a combination of product and service

quotes sold through Cisco Brazil may only include bill-to, ship-to, install site and

end-customer locations in Brazil.

Eligible Partners







Purchase

Orders

Purchase Orders are required for purchases of products and services from

Cisco Brazil.

Purchase Orders may be in English or Portuguese, and the currency will be

presented in BRL Reais.

Sales Order

Capture and

Booking

Product and / or Service Sales Orders will be captured, booked and managed in

alignment with existing Cisco booking policies.

Cisco Brazil will only create quotes for products and/or services to Brazilian

partners, distributors and customers with whom Cisco Brazil has legal sales

agreements.

These customers/partners must have a bill-to, ship-to, install site and end-

customer in Brazil.

Product and/ or Service Sales Order will not include local indirect tax. Applicable

Local indirect tax will be determined and applied upon invoicing.

Eligible Partners







Order Status

Product and Service Sales Orders acknowledgements and notifications will be

sent from Cisco Brazil to Brazilian customers, partners and distributors and will

be provided in either English or Portuguese subject to local compliance and

customer type.

User experience for both internal and external audiences for product and

service sales order entry and management will be in either English or

Portuguese dependent upon customer type and preference.

Change

Orders &

Cancellations

Product and Service change orders and order cancellations will be managed in

alignment with existing Cisco policies subject to local compliance.

Eligible Partners





Invoicing & Payments

Services


Importation

Nota Fiscal and other trade compliance transport documents will be used to

support movement of goods within Brazil and will comply with the Brazil

requirements.

Cisco Brazil will continue to be responsible and be the importer of record for the

importation of spares into Brazil.

Receiving

Products &

Services

Cisco Brazil will offer both Cisco Routed (Opt-In) and Partner Routed (Opt-Out)

delivery options for locally manufactured products.

Cisco will coordinate the shipment of product from the Contract Manufacturer to:

a Cisco designated location in Brazil in case of Opt-Out

Customer ship-to location in Brazil in case of Opt-In

Cisco Brazil will transfer title and risk of loss to Brazilian partners, distributors

and customer on an Opt-In/Opt-Out basis.

Eligible Partners







Customs There are no changes. Business will continue to operate as it does today.

Reverse

Logistics

Cisco Brazil will be capable of approving and accepting finished goods returns

(RMAs) for sales it has rendered to Brazilian Partners, Distributors and

Customers. Brazilian Partners, Distributors and Customers will be required to

provide an original sales order reference. This includes Returns for Credit,

Returns for Replacement, DOA, visual Defects.

Stock Rotations from Brazilian Distributors will be returned to Cisco Brazil at Go-

Live and beyond. Brazilian Distributors will not be required to provide an

original sales order reference.

Brazilian Partners, Distributors and Customers will be responsible for shipping

to a Cisco designated returns location.

Eligible Partners







Invoicing

Sales Invoices will be issued by Cisco Brazil in its own name. The invoice will

accompanied by the Nota Fiscal Electronica (NFE). Invoice format and content

will comply with Brazilian regulations. (e.g. invoice must specify product type

and/or service type, description and quantity, and Indirect Tax must be stated

on the invoice). Sales invoices will be issued to customers in conjunction with

the Boleto for customer payment.

Sales Invoices will be generated in English or Portuguese subject to local

compliance.

Service Invoices will be issued separately from products based upon the terms

and conditions of the deal subject to local compliance.

Technical Service Invoices will be issued based on the terms & conditions of the

deal/agreement, which may include invoicing for the full amount (lump sum) or

Periodic Billing subject to local compliance.

Advanced Services may be invoiced upfront, periodically (i.e. monthly,

quarterly), upon milestone completion or upon completion of services subject to

local compliance.

Local (Leg 2) Taxes will be systematically applied on Cisco Brazil Sales

Invoices, as per local country rules. Invoices will reflect the current tax rate,

which may vary from the tax stated on the Quote (if applicable.)(if applicable).

Eligible Partners







Collections

Cisco standard payment terms remain as today.

Disputes, cancellations, service terminations, and adjustments will be managed

per existing Cisco policies and in compliance with local requirements.

Payments must be remitted in BRL currency in alignment with the Sales Invoice

that was sent.

Payments for products and services sold through Cisco Brazil may be paid in

the local currency by check, money, money order or wire transfer. Cash

application team will manually apply to customer account based upon customer

application instructions.

Credit Brazilian Partners, customers and distributors with an established credit line

with INC will be able to leverage.

Eligible Partners







Service Sales

Model

Service agreements for services sold by Cisco Brazil will be owned and

managed by Cisco Brazil.

Partner Branded, Cisco Branded and Co-Branded service sales will be

permitted.

Service Renewals for Brazilian Partners, Distributors and Customers will be

quoted, managed and sold by Cisco Brazil when the purchasing and install site

are within Brazil. Cisco Brazil will be responsible for the renewal of services

originally purchased through INC.

Changes to service agreements, such as site moves etc., will be managed

through existing policies subject to local compliance.

Mandatory

Attach

Mandatory service attach will be required for Brazilian partners listed under "Full

Entitlement" Service Programs (e.g. Shared Support or Co-Brand Foundation

Bridge programs) for all service eligible products that require mandatory attach.

There will be no mandatory attach of service for partners under the "Selective

Entitlement" Service Programs for all service eligible products. (i.e. Cisco

Service Partner Program (CSPP)

Eligible Partners






Services


Eligible Partners






Services

Standalone

Services

Standalone Service Sales (TS and / or AS) for Brazilian Partners, Distributors and Customers will be

quoted, managed and sold by Cisco Brazil. Note: Inc will be allowed to sell TS as attach to new product

sales with Install-sites in Brazil.

Warranty Standard Warranty for products sold by Cisco Brazil will not change. Note: Standard Warranty is typically

defined by product family. CE Brazil will leverage standard warranty offered by Inc (US) / BV (NL).

Spares

Cisco Brazil will source spares from the Local Manufacturer to support Cisco Brazil sold product.

Cisco Brazil will source spares from Inc/BV to support Inc sold product in Brazil. Cisco Brazil will be the

importer of record.

Service

Invoicing

Service Invoices will be issued separately from products. Technical Service Invoices will be issued based

on the terms & conditions of the deal/agreement, which may include invoicing for the full amount (lump

sum) or Periodic Billing subject to local compliance.

Subscriptional Advanced Services may be invoiced upfront, periodically (i.e. monthly, quarterly), upon

milestone completion or upon completion of services.

Cancellations

As-is: Cancellation of services will be required for approved product returns (for credit). Cisco may choose

to cancel service for other relevant scenarios.

Credit for service cancellations may be prorated.

Documents

Country Enablement Brazil Partner Executive Forum...2013/08/13 · Forum Meetings Invites to Executive Forum 90 Day ICA Notification Go LiveInvites 12/8 60 Day ICA Notification ICA