There are plenty of reasons why value-added resellers (VARs) continue to be popular among manufacturing, retail, software and IT companies, among many others. From the customers’ perspective, the end product or service wouldn’t be the same — or would be unrecognizable — without VARs.
The only downside of being a VAR is the inability to fully control the core product companies add value to for their clients. This is a big part of the process that’s out of their hands Here’s what businesses should know about the top technology for value-added resellers and how VARs can benefit.
1. Less Stress During Installation
One thing most emerging technologies have in common is a smaller physical footprint and easier onboarding. VARs specializing in networking and on-premises solutions that adopt new technologies usually deal with site visits, appraisals, on-premises installations and other growing pains.
Communication and networking technologies are just one kind of product VARs specialize in, but they’re perfect examples of the benefits of staying ahead of and invested in new technologies. Cloud-based enterprise management and IT products sold by VARs today don’t require on-premises visits and can usually be tailored for the client remotely.
2. Better Compliance and Record-Keeping
Value-added resellers contribute quite a lot to the industries in which they operate. They improve the visual appeal, functionality or usability of each product they touch, be it hardware, software, an applied coating or a manufactured part. It can also be said that VARs complicate the supply chain. VARs can keep their side of the street clean by investing in emerging technologies emphasizing data stewardship, compliance and rock-solid record-keeping.
Blockchain is just one example. Industries subject to heavier regulations or possibilities of audits get immutable, traceable ledgers to track defects quickly, protect financial transactions, and keep smart contracts organized and enforceable.
Using technology to bring order to the bureaucratic side of doing business is important for an additional reason, especially in IT and software: global recruiting. Many companies’ talent pools now span the globe, and companies need a way to keep varying legal, financial, regulatory and payroll requirements neatly ordered no matter where their recruitment drive takes them. The top technology for value-added resellers is that which helps them expand into new markets quickly and manage distributed, diverse teams effectively.
3. Improved Cybersecurity and IT Management
VARs add value to, but also complicate, the supply chains in which they operate. Technology can help value-added resellers keep themselves from becoming the weak link in those value chains by making cybersecurity and IT administration easier.
One example is automated network management. This technology classifies and routes network activity automatically. This lessens the burden on in-house IT teams juggling back-office networks and communications, Internet of Things (IoT) devices and data streams from factory floors.
Automatic fraud detection is another example of technology for VARs that can improve cybersecurity and IT management. Companies can protect their networks and critical processes by using artificial intelligence to automatically detect activity that displays signs of impersonation or fraud.
4. Improved Reliability and Operational Savings
The IoT is an especially powerful emerging technology for VARs of all kinds.
It’s an attractive investment for VARs specializing in parts and hardware, like computer components, automotive components, finished electronics and other manufactured goods. IoT devices for resellers involved with manufacturing and product finishing provide oversight for equipment that reduces downtime and saves money on energy.
Monitoring for energy spending and engaging in predictive maintenance can save manufacturers a tremendous amount of money, including those that process and then hand off or resell unfinished goods. Using the IoT for this upkeep can save 8%-12% on maintenance expenses and as much as 40% compared to run-to-failure models.
5. Better Product Quality
Emerging technology can aid in incremental improvement, whether the reseller is involved with material products and product finishing or adds features or services to established software products.
On the manufacturing side of things, emerging technologies like automation and machine vision can substantially improve the quality and consistency of finished goods or applied finishing techniques, such as plating, painting or polishing. Machine vision technology is proving its worth by reducing errors during product inspections, improving line productivity, and reducing the cost of dealing with rejects and kickouts.
The equivalent of this ongoing quality-control mechanism for software and IT takes the form of continuous intelligence. Continuous intelligence makes the most of real-time data and high-powered analytics by continuously gathering and processing end-user information. The data provided yields valuable insights into how IT and software products are used and where clients consistently run into trouble.
In turn, this informs new product iterations more quickly than could be accomplished using conventional means like A/B testing, surveys or focus groups. It also helps VARs improve documentation, FAQs and other digital resources to avoid similar client pain points in the future.
6. Relevance
The most important way VARs benefit from understanding and applying emerging technologies is that it keeps them relevant. No matter what kind of product or service the VAR specializes in, there’s a significant chance consumers expect some emerging technological feat from it.
One example is voice control. This appears to be the future of human-machine interaction, with more than 26% of U.S. adults now owning smart speakers. VARs should understand how voice control and natural language processing (NLP) function so they can begin appraising how to incorporate these technologies into their clients’ products and further boost the value they add. Similarly, VARs that can add cybersecurity using emerging tech will cement their place in a sector plagued by threats and broken promises.
Another kind of relevance worth pursuing is the cultural kind. Consumers and decision-makers increasingly want to spend their money where it might do some good — or, at least, where it won’t do unnecessary harm. Spending money on environmental remediation technologies, carbon offsets, clean energy and LEED-inspired building techniques communicates to clients that the company is committed to good stewardship. This shows it’s likely to stick around for the long haul thanks to its commitment to sustainable technologies.
Know the Top Technologies for Value-Added Resellers
The world’s supply and value chains are more essential than ever. Many factors are beyond the control of the average VAR these days, and it makes sense to use technology to regain the upper hand.
Artificial intelligence, blockchain, clean energy, automated maintenance, advanced IT solutions and voice control are just some of the emerging technologies that should be on the radar for value-adding resellers. Being technologically conversant is now a requirement.
Emily Newton is the Editor-in-Chief of Revolutionized, an online magazine discussing the latest technologies changing our world.