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Growing Profitable Strategic Alliances in a Complex Global Economy Case study in managing co-opetitive alliancesThe Conference Board
October 20, 2011
Hotel Intercontinental, New York, NY
“Alliances have become crucial to many companies in this competitive global economy and yet more than half of them fail. This session will identify and discuss key elements critical to the development and management of successful alliances.”
—Managing an alliance ecosystem
—Fostering trust with partners
—Partnering with competitors
Presentation Abstract
2 Copyright © 2011 CA. All rights reserved.April 17, 2023
—CA Technologies Overview −Market dynamics, technology alliance program
—Cloud−Mapping to CA’s Alliance strategy
—VCE alliance: Market and corporate drivers, objectives, CSF’s−Ecosystem: Building trust in a co-opetitive environment
−Increasing strategic relevance
Presentation Agenda
3 Copyright © 2011 CA. All rights reserved.April 17, 2023
#1 Management Software Vendor*
$4.5 billion annual revenue and strong profit
Customers in virtually every country, including a majority of theForbes Global 2000
~$500 million and ~5,000 people annually designing and supporting software
30+ years in business managing complex heterogeneous environments
Ranked among top 50 Greenest US companies
CA Technologies leads the way globally
*Source: Forrester Research, Inc., “Who’s Who in IT Management Software 2.0” by Jean-Pierre Garbani and Thomas Mendel, August 12, 2010
CA Technologies is an IT management software and solutions company.
Our products enable customers to automate, manage and secure IT environments and deliver more flexible IT services.
CA Technologies makes agility possible.
Partnering Taxonomy
Global Service Providers/Outsourcers CSC, EDS
Systems Integrators: Accenture, Deloitte
Service Providers - traditional, cloud, SaaS. PaaS
Technology Alliances: Microsoft, Cisco, SAP, VMware…
Technology Integration Partners: An ecosystem of low to medium touch technology partners that deliver integrated add-on products to enhance CA’s solutions and align to meet CSU needs
OEM/Resale/M&A
Volume Channel
5 CA CONFIDENTIAL - Internal Use Only
Charter: To develop market-changing, global technology-
based alliances which provide material impact to market
share, competitive differentiation and revenue for
CA and its partners.
Technology Partner Stratification
Strategic Alliances
TechnologyAlliances
Platform Partners
Technology Partner Program
Strategy alignmen
t
Revenue opportun
ity
Sponsorship
Scope Scale Feasibility
Commitment
Benefits, investment
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CEO Priorities
Apply innovationCan we drive growth and competitive differentiation through innovation?
Maintain cost efficienciesCan we support continued cash and profit generation?
Build/maintain a positive public reputationCan we grow our market share through a positive image?
CIO Challenges
Business Expectations have never been higher
CEO priorities of ‘return to growth” drive new implications for CIOs
Increase business impactCan you explore new ways to serve the business?
Increase business impactCan you explore new ways to serve the business?
Improve quality of serviceCan you meet the performance demands of the organization — cost efficiently?Improve quality of service
Can you meet the performance demands of the organization — cost efficiently?
Manage riskCan you see risk to control it?
Manage riskCan you see risk to control it?
Reduce IT costsCan you embrace innovation for competitive differentiation and reduce costs?
Reduce IT costsCan you embrace innovation for competitive differentiation and reduce costs?
Provide transparencyCan you see and resolve risk and performance issues in your business?
Provide transparencyCan you see and resolve risk and performance issues in your business?
CEO priorities of “return to growth” drive new implications for CIOs
CIO ChallengesCEO Priorities
Grow through innovationCan we drive growth and competitive differentiation through innovation?
Maintain cost efficienciesCan we support continued cash and profit generation?
Attract and retain new customersCan we grow our market share through a positive corporate image?
Increase speed and agilityCan you find new ways to serve the business by delivering services faster and more cost effectively?
Mitigate riskCan you see and resolve risk and security issues transparently for your business?
Reduce IT costsCan you embrace innovation for competitive differentiation and reduce costs?
CA Technologies VSA Overview Copyright © 2011 CA. All rights reserved.
8
CIO’s are living with a “new normal”…but enterprise IT needs a game changer
Recession
New Normal
Demand Shorter Cycle Times
TransformativeMarketOpportunity
Consumerization of IT
Collapse Cycle Times
IT Budget
Business Demand for IT Services
Public
Private
IaaS SaaS
PaaS
Cloud: the “IT Light Switch”
Use Computing power . . .
−On demand
−Only for the time you need it
−Give it back when you are finished
−Pay for metered usage
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Customers choose different paths to cloud
Do It Yourself Tools
Converged Stacks
Turnkey Solutions
Service Provider Solutions
CUSTOMER CHOICE
CA’s mission: To provide exceptional value to our customers around cloud, no matter how it is acquired
Application Modernization
Mobility
Collaboration
SAP, Oracle, MS Dynamics, PeopleSoft, Siebel, CA Clarity
Virtual Desktop, Workspace Management, Mobile Applications
Cisco QUAD, SharePoint, Exchange, Unified Communications, Knowledge Management
Drive Adoption – Lower TCO – Migrate Application Workloads
“Converged Stacks” form the basis for private clouds
SaaS
Middleware
Database
Virtualization/ Operating System
Cloud Computing/ SaaS
Applications
Enterprise Data Center/Private Cloud
Cloud creates additional complexity; requires a new management model
Top 5 challenges of cloud computing
Management of hybrid world
Performance monitoring
Reliability/service assurance
Automating service delivery across platforms
Security
Middleware
Database
Virtualization/ Operating System
Public Cloud
SaaS Infrastructure
SaaS Applications
Virtualization / Operating System
Database
Middleware
Servers Storage Networking
Applications
All trademarks, trade names, service marks and logos referenced herein belong to their respective companies
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Market sizing
13 Copyright © 2011 CA. All rights reserved.April 17, 2023
Global Launch: Breakout Innovation and New Market Entry
“CA Technologies and VCE announced a global strategic alliance to deliver integrated private cloud solutions for VCE Vblock™ Infrastructure Platforms that help customers increase agility, reduce risk and lower costs…”
May 4th Press Release
Intranet/Extranet Presence
EMC World, May 9-12, Las Vegas, NV
Customer ROIReduces deployment cost & risk
Shared customer base
Complementary offerings
Provisional balance sheet for a technology alliance
Shared competitors
“Startup” – like operating
model
Sales & marketing alignment
Competitive roadmap from
other participants
Matching speed, direction
Channel scope
Leveraged investment
Trust, aligned execution & governance
Revenues & margins
Assets Targeted outcomes Liabilities / challenges
Plan of Record Set, staff, measure, interlock, govern
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Strategy: Provide a portfolio of solutions for enterprises and service providers which directly impact economics, risk and time to market for Vblock-based services. Create market changing dynamics with partner/competitors.
Objectives: 1 – Revenues2 – Wins vs. HP, IBM3 - Demonstrate first to market innovation
Measures: 1 – Sell with and sell through revenues by geo2 – Competitive wins vs. parent company offerings 3 – Routes to market
Tactics:
1 – Assymetrical investment2 – Level the playing field vs. parents’ competitive roadmap3 – Establish references to create self sustaining momentum
Dependencies:
1 – Alliance management and funding
2 – Marketing and development funding
3 – Sales & RTM enablement
SWOT, gap analysis, solutions roadmap
Committed business plan, shared incentives
Market assessment, steering committee gates,
exec sponsorship
Aligned operating plans, contracts,
partner enablement
Balanced scorecard, GTM
interlock
Gates
Staffing, risk mgmt,
governance gates
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Offset weaknesses with strengthsThe Power of the Portfolio
Source: CA Global Analysis TeamDisclosed at CA Investor Day 29 July 2011 *As a percentage of 60% cross sell
Lead ~20%*
Service & Portfolio Management
Virtualization and Automation
Lead ~20%*
Security ManagementService Assurance
Lead ~40%*
Lead ~20%*
60% of CA’s transactions are
cross sells
CA VCE Parent A Parent B Parent C
Product A Parity / second source
Weak - Preferred
Product C Weak Weak Preferred
Product Cap
Strong - Limited -
Product Sec
Strong Strong
Product SA Strong Emerging
Product N Strong Emerging -
Solution V Entry Entry
Solution I Entry Entry
RTM A Strong Strong Strong Strong Weak
RTM U Strong Limited Weak Strong Strong
RTM F Weak Strong Strong Strong Strong
ISV 1 S Strong Limited Limited Limited Limited
Alliance Compete/collaboration mappingRequires clear communication and Rules of Engagement
18 Copyright © 2011 CA. All rights reserved.April 17, 2023
Lead / collaborate
Proceed with caution / RoE
Compete
Concede
Risks and Mitigation
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Pro
babi
lity
of O
ccur
ence H
igh
> 7
5%Lo
w<
25%
Impact (Deadlines, Costs, Quality, Revenue)
Low High
Med
ium
25
%-7
5%
1
2
3
4
6
5
7
1. Alliance participant buys competitor
2. Alliance participant develops competitive offering
3. Joint Venture is disbanded
4. …
5. …
6. RTM expansion not realized
7. …
8. …
9. Enablement
10. Fail to align GTM
Medium
89
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Alliance virtual team structure
– Strategy– Governance– Contracts– Alliance Launch– RTM Enablement – Portfolio Leverage
– Reference Architecture
– Field Technical Enablement
– Sales & Pre-sales Interlock
– Engagement Support
– Solutions Strategy– Product Management– Engineering Interlock– Portfolio Leverage
– Launch and Integrated Marketing
– Communications, Events– Field Enablement– Collateral– Launch Mgmt – AR/PR
GSPs GSIs Solution Providers Direct
BU Solutio
ns
Alliance Marketi
ng
AllianceProgra
m mgmt
Field
– Solutions mgmt– Solutions marketing
– Channel enablement
Post Contract Roles: Alliance through Launch
Invest-ment
Review
Strategy /
Market req’mtsdefinitio
n
Devel. & product mgmt
PRD and roadmap
Launch
Sales
Partner sales
RTMAuthEnab
le
Enable
Enable
Lead organ. / partner
Inter-dependency
Alliance governanceEMT/GM
Alliance / strategy
** * *
Development
Design Build Release
Marketing
** **
Sales
RTM
Partner
1. Shared interests are the cornerstone− Maintain interlock across sponsors, functions & geos
− Build trust through honesty, communication and performance
− Focus on the shortest path to first wins
2. Set clear, objective metrics, roles, boundaries and governance
3. Have frank discussions early and often− Level match, identify areas of sensitivity/contention, anticipate
challenges
− Pre-emptive conflict resolution and re-focus on intersecting interests. Focus on the issues, but don’t forget individual perspectives & bias.
− Test boundaries and admit fault.
4. Never assume the situation will remain constant− Competitive pressures will mount
− When the facts change, change the plan
− Evolve the relationship
Managing co-opetitive alliances
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Questions?
End of presentation
FY’12 Summary of Operational Metrics
Metric
Measure
Source
Market Influence
# partner press releasesGSI demand
pull
CA website, All. Mkg, corporate commun.
Team, GSI offerings
Partner Monetization
OEM Royalty Revenue to
CA
SAP tracking for SKUs
Bookings from resold
products
Bookings by SKUs
Influence Bookings from Joint
selling/marketing
SFDC, w/tech partner
specified
Partner Satisfacti
on
Partner satisfaction
scoreAlliance
expansion
Annual survey QBR scorecards
Amendments, HC
Technology Enablement
Certifications (product and
program)
Day 0 support for new releasesIn Prime process
Beta customers
Solutions SKU’s
In Prime processAdvance funding
Beta customers
25 CA CONFIDENTIAL - Internal Use Only
Corporate
GoalsAccelerate Growth Delight
Customers
Thought &
Technology
Leader
14,000People Cascaded goals throughout
organization
AlignmentAlliance PlanStrategy Creation
Execution with
Partner(s)
Market-Driven Strategic Alliance Development
PartnersMutual InterestsBusiness ArrangementSponsors
OWNER: Alliance MgrCO-Owner EMT Sponsor
DESCRIPTION: Define Strategy, Objectives & RationaleDefine Alliance Impact including Market Positioning, Competitive Advantage, Revenue Impact, RisksDetermine Metrics for SuccessDefine EMT SponsorshipGain EMT Approval
PartnersPartner resource allocation & business case Joint execution plan developed
OWNER: Alliance MgrCo-Owner: EMT Sponsor
DESCRIPTION:Deliverables & TimelineVirtual Team establishedPartner Message (win-win)Required BudgetQuarterly reporting and metrics for successInternal linkages to Sales, Mktg, and R&D (op plans, cascaded goals)
Partners:AgreementsRoadblock & Resource issuesMilestones
OWNER: Alliance ManagerCo-Owner: EMT Sponsor
DESCRIPTION:Execution Management and Governance of specific project plansRoadblock & Resource IssuesSpecific Execution with Sales, Mktg, & R&D
CA Corporate Strategy and CSG Strategy Defines Alliances
Alliance ideas generated by Corporate Strategy, CSU’s
OWNER: CSU GMCO-OWNER: EMT, SBD
DESCRIPTION:Alliance Partner SelectionDevelop Win-Win scenario & Big PlaysDevelop thesis for alignment to Strategy, Sales/Revenue, Market Impact, and Feasibility
CA’s most strategic alliances executed as clearly defined programs with deliverables, executive sponsorship, committed resources, and
objective measures for success.
Go/
no go
Go/
no go
Go/
no go