The Navision Dealer Channel (Solution Centers)

Historically, one of the most unique aspects of Navision Software is its dealer channel. There has been no up-front fee to becoming a Navision dealer. Further, there has been no cost (other than travel) to become trained as a dealer. However Navision has put their dealers through the ringer in many ways. For starters, all Navision Solution Centers must have office space, equipment, financial strength, and proven capacity to provide long-term support. The company has long required dealers to have five personnel trained in the Navision product. These personnel must be tested and certified. If they fail the test, their dealership can be revoked. In 1998, Navision fired 30% of their dealer channel for not passing the test – a very aggressive move.

If a dealer’s installation engagement becomes troubled, Navision will send a rescue team out to rescue the installation – at no charge to the dealer. The dealers actually work together with Navision corporate as a true Partnership. To control the Partners, Navision code is time locked. Each year, customers and dealers receive new unlocking keys in order to have continued use of the software. It is a clever but effective approach to controlling the dealers and protecting against software piracy. Further, all dealers automatically have access to and rights to modify the product source code. Customers can purchase source code as well.

Although it is not really legally enforceable in the U.S., Navision has attempted to protect the territories of their dealers by limiting the number of dealers they pursue in given territories. Interestingly, the cost of becoming a dealer is minimal, but Navision shares to a small degree in the revenue dealers generate in rendering installation and customization services. It is believed that this approach comes close to establishing a single virtual company that can target and serve end users, rather than the typical approach that sets the dealer up as the customer.

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