The Brazilian industry is changing rapidly. Therefore, the role of VAR also needs to evolve. Those who don't keep up with their clients risk losing market share, revenue, and relevance.
For many years, the relationship between an SAP Business One VAR and its industrial client followed a relatively predictable cycle:
- ERP sale;
- Implantation;
- Support;
- Possible improvements.
Today, however, this model is no longer sufficient.
ERP remains central to business management. However, it is no longer, on its own, the main competitive differentiator for an industry.
Increasingly, what differentiates one company from another is its ability to produce better, reduce waste, increase productivity, and make decisions based on up-to-date information.
It is precisely in this scenario that many partners leave behind important opportunities within their own existing infrastructure.
Brazilian industry is entering a new cycle of competitiveness.
Pressure on the industry has increased significantly in recent years.
According to the National Confederation of Industry (CNI), digital transformation has become one of the main ways to increase the productivity of national industry, especially in the face of growing international competition.
Furthermore, investments in industrial digitization, automation, shop floor data collection, and operational integration continue to advance. This movement is primarily driven by the need to produce more by making better use of available resources.
In this sense, the National Confederation of Industry and the Brazilian Institute of Geography and Statistics point to productivity as an essential element for the competitiveness of Brazilian industry.
Similarly, data from the Monthly Industrial Survey and studies related to productivity reinforce the need for continuous evolution in the sector.
Finally, the New Industry Brazil industrial policy also prioritizes digital transformation, innovation, and increasing the competitiveness of industry.1123
The scenario, therefore, is clear:
Industrial companies that fail to evolve operationally tend to lose competitiveness.
Consequently, it will also begin to demand this evolution from its technology suppliers.
The client is not just looking for an ERP.
He is looking for a partner.
And there is an important difference between these two positions.
The supplier sells software.
The partner, on the other hand, helps the client to evolve.
When an industrial client realizes that their consulting firm isn't offering new solutions, isn't keeping up with trends, or isn't aware of the challenges of their operation, a disconnect begins to emerge.
Furthermore, when a partner doesn't talk about productivity, doesn't visit the factory, and doesn't participate in strategic business discussions, they create opportunities for other suppliers to approach.
Customers don't always switch their ERP system.
As a result, he often ends up changing the partner who accompanies him.
The greatest asset of a VAR system may lie in its installed base itself.
Acquiring a new customer typically requires business investment, time, relationship building, and resources.
On the other hand, developing new projects within an existing base tends to require significantly less commercial effort.
After all, the relationship already exists.
The client is already familiar with the consulting firm, uses SAP Business One, and has processes that can be analyzed in greater depth.
Furthermore, many consulting firms have industrial clients who use ERP systems, but still maintain several productive activities outside of an integrated digitization strategy.
These same customers often face challenges such as:
- Manual notes;
- Poor traceability;
- Excess paper used in production;
- Difficulty in measuring OEE;
- PCP working with outdated information;
- Decentralized quality control;
- Lack of real-time indicators;
- Poor integration between operations and management.
These problems are not always solved by ERP alone.
Consequently, they represent natural opportunities for projects specializing in manufacturing.
How much money is sitting idle in your wallet?
Let's do a simple calculation, consider an average recurring revenue of:
MRR by manufacturing project: R$ 6,000.00
Now imagine that your company only has 10 industrial clients with the potential for this type of evolution.
Monthly Recurring Revenue (MRR): R$ 60.000 Annual Recurring Revenue (ARR): R$ 720.000
| Industrial customers | Estimated MRR | Annual revenue |
|---|---|---|
| 10 | R$ 60.000 | R$ 720.000 |
| 20 | R$ 120,000 | R$ 1,440,000 |
| 30 | R$ 180.000 | R$ 2,160,000 |
| 50 | R$ 300,000 | R$ 3,600,000 |
Naturally, these values represent only a simulation.
Nevertheless, the exercise reveals something important: Part of the next VAR revenue may already be within the current client portfolio.
Recurring revenue begins with identifying opportunities.
The central point is not simply to offer more software.
Before that, it is necessary to understand where there are operational bottlenecks that can be transformed into valuable projects.
For example, a client might have SAP Business One functioning properly and, at the same time, still perform production reporting manually.
Another option is to control quality in spreadsheets.
Similarly, a company may have important data in its ERP system but be unable to track factory floor performance in real time.
Therefore, recurring revenue growth requires a change in business approach.
Instead of simply asking if the ERP system is functioning correctly, VAR can broaden the conversation to include the client's operational challenges.
Poorly monitored clients generate two types of losses.
The first loss is financial.
When new needs are not identified, VAR stops developing projects within an account it already knows.
The second loss, however, could be even greater.
When a client realizes that their consulting firm has stopped keeping up with their progress, other providers start to gain ground.
Normally, this movement happens silently.
First, a conversation with another supplier takes place.
Then, a side project might emerge.
Next, new services begin to be contracted.
Finally, the primary relationship may change hands.
In addition to the loss of recurring revenue, there is another asset that is difficult to recover: reputation.
Satisfied customers recommend their partners.
Frustrated customers also share their experiences — but in the opposite direction.
The new role of the SAP Business One VAR
The SAP Business One partner that will continue to grow in the coming years will not necessarily be the one that sells the most licenses.
Increasingly, it will be the one capable of generating continuous evolution within its own installed base.
This means transforming the business relationship into an ongoing journey of improvement, innovation, and value creation.
Instead of just asking:
“Is there a problem with the ERP system?”
VAR may start asking questions such as:
- How is the factory's productivity?
- How do you manage the factory floor?
- Is real-time traceability available?
- Does the PCP work with up-to-date data?
- How much time is wasted on note-taking?
- How do you measure operational efficiency?
- Is there online visibility for the production?
These questions completely change the level of the conversation.
Furthermore, they bring the partner closer to the real challenges of the industry and open up opportunities for higher value-added projects.
From maintenance to a consultative relationship.
This change also transforms the customer's perception of VAR.
When the relationship is limited to ERP maintenance, contact tends to occur mainly when there is a problem.
On the other hand, when the partner starts presenting opportunities for improvement, discussing productivity, and analyzing processes, they cease to be remembered solely as technical support.
Gradually, he begins to participate in decisions regarding the evolution of the operation.
This positioning strengthens the relationship, increases the perceived value, and consequently creates new opportunities for recurring revenue.
Use cases that may arise in the installed base.
A specialized manufacturing solution can support industrial customers in various initiatives.
Among them:
- Digitization of production records;
- Real-time monitoring of the factory floor;
- Measuring OEE and operational efficiency;
- Quality control integrated into the production process;
- Complete traceability of batches and orders;
- Internal logistics management using barcodes and QR codes;
- Advanced production planning with APS and MRP II;
- Automated machine data collection for Industry 4.0 initiatives;
- Operational dashboards for production managers.
Each of these initiatives can solve a specific problem in the operation.
At the same time, each new project increases the value delivered to the client and strengthens VAR's position as a strategic partner.
The SAP Business One platform can be a new avenue for growth.
Seeking new customers will continue to be important.
However, growth doesn't necessarily mean starting every opportunity from scratch.
In many cases, there are industrial companies within the portfolio that still only utilize a fraction of the technological potential available for their operations.
Therefore, reviewing the installed base can reveal opportunities that were invisible in the traditional maintenance and support relationship.
Furthermore, the greater the VAR's knowledge of the client's operation, the greater their ability tends to be to identify truly relevant projects.
Whoever leads this transformation will get closer to the customer.
The industrial market is accelerating its transformation.
Consequently, customers expect more from their partners.
They expect knowledge of the business.
They expect strategic vision.
They expect innovation.
And above all, they expect solutions capable of increasing productivity and competitiveness.
If VAR doesn't fill that space, another partner might.
The good news is that many of these opportunities are already within our existing client portfolio.
Therefore, perhaps the most important question is not:
“"How many new customers can we acquire?"”
Yes:
“"How much more value can we generate for the customers who already trust us?"”
It is precisely in this movement that the Recurring revenue in the SAP Business One database It can cease to be a hidden opportunity and transform into a new growth front.
Does your portfolio include industrial clients?
Perhaps the greatest opportunity for your company's growth lies not in the next customer, but in the customers who already trust you.
