Alliance Skills Mastery SeriesGo to Market Through Partner

Ecosystems

Leslie Sutherland, SpeakerPast President, ASAP, SV/NorCal ChapterMarketing Practice Lead, PhoenixCG

Norma Watenpaugh, ModeratorChair ASAP Best Practices CommitteePrincipal, PhoenixCG

Membership organization for alliance professionals• Source for best practices• Networking opportunities• Professional development• Professional certification

www.strategic-alliances.org

• Founded in 1999• 1800 members worldwide• 7 Regional US chapters• 5 European

Association of Strategic Alliance Professionals

ASAP Skills Mastery Education SeriesDec 8 Dec 10 Jan 14 Feb 11 Mar 11 Apr 8 May 13 Jun 10 Jul 13

CA-AM Prep

Collaborative Innovation &

Value Creation

Social Media & Partnering

Alliance Negotiations

Metrics & Governance

Joint Business Planning

Effective Collaborative

Selling

Partner Eco-system

The Six Week Alliance

All Day Workshop

1-1/2 Hr Webinar

1-1/2 Hr Webinar

Half Day Workshop

1-1/2 Hr Webinar

1-12 Hr Webinar

Half Day Workshop

1-1/2 Hr Webinar

Half Day Workshop

•Skills mastery to manage an ongoing alliance•Scenario-based preparation for CA-AM certification exam

•Creating strategic value•Sources of Innovation•Win/Win Value propositions•Operationalizing value creation•Measuring value delivery

•How to strengthen partner relationships and promote partner performance through web.20 and social media

•Experiential workshop in negotiating WIN/WIN partnerships•The perfect pre-nup

• Aligning metrics with objectives•Balance score card approach•Lagging and leading indicators•Cadence of Governance, accountability & incentives

•Aligning alliance strategy to business objectives•Components of a business plan•ROI & business modeling

• Defining and aligning to rules of engagement•Developing joint account plan and sales campaign•Managing and resolution of channel conflict•Managing joint pipelines

• Ecosystem Strategies•Going to Market•Portfolio Mgmt•Managing competition within the ecosystem

• Stages of alliance lifecycle•Tools and templates to define and manage an alliance initiative in 6-weeks

$495 Member

$695 Nonmem

$25 Member

$49 Nonmember

$25 Member

$49 Nonmember

$149 member$195 nonmember

$25 Member

$49 Nonmember

$25 Member

$49 Nonmember

$149 member$195 nonmember

$25 Member

$49 Nonmember

$149 member$195 nonmember

http://www.strategic-alliances.org/chapter/svnorcal/alliancemanagementeducationmoreinfo/

Go To Market Through Partner Ecosystems

Fuel for Going to Market via Partners

“Leading companies will succeed not by battling competitors, but by

creating “blue oceans” of uncontested market space ripe for

growth. Such strategic moves—termed “value innovation”—

create powerful leaps in value for both the firm and its buyers,

rendering rivals obsolete and unleashing new demand.”-- W. Chan Kim and Renee Mauborgne –2005

Impact• Exponential growth in the theory and practice of go to

market via partnering• Ecosystem Lifecycle

– More to it than just a go to market model– Governance & Metrics, Execution Capabilities– External Influences: M&A, Economic Changes

Ecosystem TopographiesHub and Spoke• One-to-many

relationship• Whole product• Industry or Geo

Coverage

Value Network• Many to many relationships• Whole solution

Value Chain• Sequential relationships• Process Partners

Discovery Development Manufacturing FDA Approval Commercialize

EDS

EMC

Xerox

Sun

Microsoft

SAP

Cisco

Alliance Ecosystem Construction

Vendor

OLD Alliance Construction

Source: IDC 2004

BusinessProblem

Vendor

Vendor

Vendor

Vendor

NEW Alliance Construction

Build the ecosystem around the customer problem

"If you're not serving the customer or supporting the folks who do, then we don't need you.“ – Sam Walton, Walmart

Hub and Spoke: Business Objects• One-to-many

– ISV’s/OEM’s/VAR’s– SI’s & Alliances– Training Partners

• Show me the money– ISV/OEM sales were really server sales– VAR revenues grew 600% in 2.5 years– Alliances accounted for 50% of partner

revenues• Partner value proposition: service

revenue• Partner relationships were competitive

Hub and Spoke• One-to-many

relationship• Whole product• Industry or Geo

Coverage

Traditional Value Chain

Evolution• Business School 101• Complexity – Grocery Delivery &

Experience

Grow Process Warehouse Transport Distribute

Value Chain: Eli Lilly FIPNet

Goals• Leveraging innovation• Distributing risk• Optimizing speed & costs• Increasing productivity

Value Chain• Sequential

relationships• Process Partners

Value Network: Cisco’s DCoF• Cisco’s Data Center of the Future• Value Prop: Holistic Data Center• Multiple Solutions

– Business Continuity– Energy Efficiency– Infrastructure Consolidation– Cloud Computing– Workforce Productivity

• Demonstrated Value: Customer, Partner, Cisco

Cisco

Emerson

NetApp

EMC

Panduit

Oracle

APC by SE

Value Network• Many to many relationships• Whole solution

Value Network: Starfish AllianceOverview• Consortium of logistics suppliers• Mission: Improve value of Rolls-Royce

Global Physical Logistics supply chain at the heart

• Five points of overlapping, yet complementary capabilities

• Regenerative capacity

Rolls-Royce

Road Transport

International Freight Forwarding

Warehousing - Inbound

Warehousing - Outbound

Packaging

Rolls-Royce Global Physical Logistics

Net Results• Improved customer experience• 99% on time delivery• 20% cost reduction, without reducing

partner profitability• Positioned logistics as a competitive

advantage

Managing Competition within Ecosystems• Value Network: EDS Agility Alliance• Purpose

– Compete against IBM– “Virtual Enterprise Software Company”

• EDS Agility Enterprise Platform– Application Solutions

• Managing Competition within the Ecosystem– Partner contributions clearly defined – Sun vs. EMC– EDS assigns one alliance exec per partner– Governance Board: members from all partners

Social Media for the Ecosystem: SAP• Community• SAP EcoHub

Go to Market Components• Strategic Fit

– What is the intent behind the ecosystem?• Value Proposition

– What is the value to the customer, partners, and you?• Resource Investments

– Cost Sharing (Product Launches & Go to Market Programs)– Center of Excellence (DCoF), Rapid Design & Validation (POC Labs)

• Sales & Marketing– On-boarding: Training, Sales Training, Rules of Engagement– Go to Market Programs

• Metrics for Effectiveness and Performance

Best Practices in Go to Market• What is the value to the customer?

– Get clear on value for the customer, the partner, and you.• What are the advantages you seek?

– Innovation? Market access and distribution? Service delivery? Economies of scale?

– Can partners meet these needs for you?• What partnering model is right for you?

– Maturity of company, industry– Competitive environment– Execution ability: more complexity = more resources– What must you own, what can you influence, what will you avoid?

• Is your executive team engaged?• Do you have a Collaborative Culture?

Go to Market Research• Sponsored by IBM, ASAP and PhoenixCG• Released 2010• What differentiated Performers vs. Under Performers?

– Performers leveraged channels in the sales model.– Performers were more likely to track strategic metrics: market share,

technology adoption rate and market share growth as well as revenue related metrics.

– Performers are more likely to be managed in Marketing or Sales organizations. Alliances managed in Business Units were more likely to be Under Performers.

– Performers Invested in Joint Offers, Increased Sales Resources and Marketing in 2009. Under Performers Decreased Investment in Sales and Marketing in 2009.

White papers on ASAP Web site◦ EDS Agility Alliance

Also at http://h10134.www1.hp.com/insights/alliances/agility

◦ Starfish Alliance◦ Eli Lilly FIPNet

Other Resources◦ Blog Feature: APC by Schneider Electric

www.phoenixcg.com/blog ◦ Summary of Go to Market Research from ASAP, IBM &

Phoenix CG email normaw@phoenixcg.com◦ SAP Community www.sdn.sap.com◦ SAP EcoHub http://ecohub.sdn.sap.com ◦ SAP EcoHub a Benchmark for Partner Marketplaces

lesliesutherland.wordpress.com/

Resources

The Six-Week Alliance – Half-day WorkshopJuly 13, 2010, 8:00 am -12:00 pm PTMember $149, Non-member $195Cisco Campus, SJC01-1-MT. RANIER 1 (34), 3850 Zanker Road, Building 01, San Jose, California 95134

Upcoming

Norma WatenpaughChair ASAP Best Practices CommitteePrincipal, PhoenixCG

Jennifer L. KulaPrincipal, Impact Business Development

Register: http://www.acteva.com/booking.cfm?bevaid=193215

Phoenix Consulting Group Norma Watenpaugh

normaw@phoenixcg.comLeslie Sutherland leslies@phoenixcg.com

ASAP MembershipLeslie Jones asapsv@strategic-alliances.org

Questions?