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The Modeling and Management of Alliances: Workshop Takes Deep Dive into Three Models for Collaborative Business

Posted By Noel B. Richards, Tuesday, March 12, 2019

A preconference workshop delving into three different alliance models caught the attention of over a dozen pre-conference attendees at the 2019 ASAP Global Alliance Summit in Fort Lauderdale, Florida. Co-facilitators Ard-Pieter de Man, CSAP, PhD, Vrije Universiteit Amsterdam, and Dave Luvison, CSAP, PhD, Loyola University Maryland, instructed on the horizontal “sharing” model, the diagonal “specialization” model, and the vertical “allocation” model in the session “Building Your Collaborative Business Model.”

The two discussed how the sharing model is an alliance focused on sharing customers and information in order to generate more revenue for each partner, typically with a 50-50 split of this revenue. The specialization model is more about leveraging certain strengths or unique skills of each partner so that each can gain something they did not have before, resulting in the ability to increase revenue with new or improved products. Lastly, the allocation model works to reduce risk by delegating tasks that are a weakness for one company to a partner that expresses excellence in that specific area.

Once the co-facilitators established a baseline understanding of these alliance models, best management practices for each model and the hybridizations between them became apparent. “The bigger question is how you should manage these models, as not every model should be managed the same way,” Luvison pointed out.

The workshop co-facilitators also instructed on how to determine which specific framework is right for your alliance, based on the goals and purpose. The specific models are incredibly fluidconstantly moving, changing, and molding to specific needs, they said. Luvison and De Man then brought up the three things that need management across the boardincentives, relationships, and accountability. Additionally, they shared the idea that 70 percent to 80 percent of the problem in alliances is convincing people internal to the company rather than the partner.

After examining various methods of managing each type of alliance model, they encouraged the audience to split into groups and discuss best management practices. Though these practices may differ across alliance types, all group participants agreed upon the importance of consistent, fluid, and open communication among partner.

Also central to the discussion: as models adjust and change over the lifespan of the alliance, it is critically important that the alliance ensure that the partners are aligned and “on the same page.” Recognizing the scope and scale of each partnership and communicating about the alliance with the appropriate groups of people, notably the C-suite, is also fundamental to success. If one partner sees the alliance following a sharing model while the other recognizes it more as an allocation model, problems will arise. Ensuring and maintaining a mutual understanding of what model the alliance takes is vitally important.

“You’re half the battle. Getting your own organization on board with the alliance is quite important, so do this first, then get the partner on board,” said Luvison.

Once there is a clear mutual understanding of the model the alliance is founded upon, partners must turn inward and ensure consistency understanding within the company. This helps empower teams to deal with issues as they arise, they concluded. Though there are additional complexities in managing each model an alliance assumes, if self-awareness and open communication is pursued, the alliance and the companies involved will benefit across the board.

Noel B. Richards is a staff writer for ASAP Media. Stay tuned for more of the ASAP Media team’s comprehensive on-site coverage of 2019 ASAP Global Alliance Summit sessions on this blog, and in the weekly, monthly, and quarterly Strategic Alliance publications. 

Tags:  alliance  alliance model  allocation model  Ard-Pieter de Man  Dave Luvison  Loyola University Maryland  partner  sharing model  specialization  Vrije Universiteit Amsterdam 

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Partnering the Future: Our Community’s Ahead-of-the-Curve Thinkers Pave the Path Forward

Posted By Michael Leonetti, CSAP, Monday, March 11, 2019
Updated: Saturday, March 9, 2019

Want to know what the future holds for your organization? Go to an ASAP conference or read ASAP Media publications. It’s been that way since the first ASAP Global Alliance Summit in 1999—but two decades later, at the 2019 Summit in Fort Lauderdale, Florida, it feels different. As the future of business rapidly unfolds before us in this partnering everywhere world, it seems our thought leaders are on the cusp of just about everything.

Last fall, I kicked off three conferences in three months on two continents, each time ticking off essentially the same list of trends that now are accelerating alliances and transforming how we partner. On Tuesday, March 12, I welcome alliance management’s best and brightest at the Summit’s opening and my list of game-changing topics remains pretty much the same:

  • Artificial intelligence (AI) software learns to learn
  • Internet of Things (IoT) on the edge
  • Public cloud innovation
  • Cyber security, distributed trust, blockchain, data protection and privacy (in particular, Europe’s General Data Protection Regulation, or GDPR)
  • Med tech, organ on a chip, and bio printing
  • Agile partnering and agile technologies
  • Consumers and their tools (social media) and immersive customer experience (CX)
  • Amazon and Alibaba

For alliance managers in biopharma, I also added the volatility of the Affordable Care Act (ACA) in the US—and healthcare costs everywhere; the co-pay accumulator and the consolidation of patient access; the inevitable convergence of e-services; the role of gene therapy as an economic change maker; digital therapeutics; and new antibiotic discoveries.  

Then, each time after I ticked off this list—at the ASAP BioPharma Conference in September, at the October ASAP Tech Partner Forum, and in November at the ASAP European Alliance Summit—I found myself sitting back in wonder, listening as speaker after speaker boggled my mind. Heading into spring at this month’s Summit—and heading into summer at the June 19, 2019 ASAP Tech Partner Forum in Santa Clara, California, hosted by Citrix Systems—the ride gets even wilder, and more relevant, current, and provocative.

We’ve had CEOs onstage talking about combining Cambridge, Massachusetts, life sciences and Silicon Valley technologies into software-based, FDA-approved therapeutics that replace pills. A global alliance manager who manages a $5 billion public-private partnership dedicated to accelerating the innovative medicines pipeline. Chief alliance officers from software, artificial intelligence, and robotics companies that are partnering at light speeds to automate everything they can, from clerical work and automobile driving to marketing, sales, and even alliance management itself.  

I was amazed to hear in an IoT session the back-and-forth between speakers and audience about regulatory efforts, like GDPR, to stick the data privacy genie back into the bottle. “What about privacy?” ChromaWay’s Todd Miller asked the panelists.  Scott Smith, founder of Fathym, surprisingly replied:

I think people will eventually give up privacy. Go back 100 years, when we all lived in small villages. We lived with no privacy whatsoever. I think that today's privacy issue grows out of [Orwell’s] 1984 and the ‘70s when we were concerned about Big Brother and the CIA, but I think in comparison with human history, today's concern over privacy is an anomaly. I think we’d be shocked at what they already know. … I was sitting next to a 20 year old when Snowden came out. She said, "I thought everyone already knew this.”

There’s a reason we’re so on top of things in the ASAP community: We’re in the middle of it. We didn’t have to do a dissertation on it (though we do have a plethora of PhDs in our ranks). We’re seeing, hearing it, living it every day. That’s why we build our leadership muscle—the topic of the Q4 2018 Strategic Alliance Quarterly cover story. We’ve got to be strong and flexible to pave the road to the future through our partnerships.

Ready for our next mind-blowing workout? Join me and attend at least one of the next three events already on the calendar in this year—the March 11-13, 2019 ASAP Global Alliance Summit, the June 19, 2019 ASAP Tech Partner Forum, and the September 23-25, 2019 ASAP BioPharma Conference. You’ll return to your daily tasks with profound new insights—and a brain that’s just bulging with newfound leadership muscle.

Visit http://asapsummit.org for the most up-to-date agenda for March 11-13, 2019 ASAP Global Alliance Summit, and register for the event, at. See the ASAP Media team’s comprehensive before, during, and after coverage of the 2019 Summit in Strategic Alliance publications and on the ASAP blog.

Michael Leonetti, CSAP, is president and CEO of ASAP and executive publisher of ASAP Media and Strategic Alliance publications. A previous version of this article appeared in Q4 2018 Strategic Alliance Quarterly.

Tags:  Agile partnering  Alibaba  alliance management  alliance managers  Amazon  Artificial intelligence (AI)  bio printing  blockchain  customer experience  Cyber security  distributed trust  GDPR  healthcare  Internet of Things (IoT)  Med tech  organ on a chip  Public cloud 

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Covey Got It Just Right: ‘Sharpen Your Saw’ in 2019—Because the Faster Partnering Moves, the More Learning and Professional Development Matters

Posted By Michael Leonetti, CSAP, Saturday, March 9, 2019

We recently did some research into ASAP’s Certified Strategic Alliance Professionals. Going back to 2010, we found that fully 90 percent of CSAPs—nine out of every 10 recipients—remain active members in the association. That tells me that that CSAPs are leaders who think seriously about our profession, who want to ensure this is an enduring profession, and who can do the hard, heavy lifting it takes to be at the top of their game.

In other words, our CSAPs are still reinvesting, following the late Stephen Covey’s advice: “We must never be too busy to take time to ‘Sharpen the Saw.’”

Covey’s seventh habit of highly effective people borrows from ancient wisdom traditions as well as modern insight into the importance of renewal. It reminds us to take regular breaks in our personal lives, and to periodically re-sharpen the skills and knowledge that keep us on the forefront of our profession. This essential saw-sharpening only happens when we engage deeply in the alliance management community and participate in its events.

Just how sharp does the learning get? Check out our Strategic Alliance publications’ coverage of the November 8-9, 2018 ASAP European Alliance Summit in Amsterdam—and join me in Fort Lauderdale, Florida, for the March 11-13, 2019 ASAP Global Alliance Summit, “Agile Partnering in Today’s Collaborative Ecosystems.”

Both of these international events exemplify how our community collectively sharpens the saw—how we continually reflect, reexamine, and renew the content of our learning. ASAP events are an eye-popping confluence of brilliant and diverse people—typically a 50/50 mix of ASAP veterans and newcomers. Our content gets richer and more nuanced with every conference as it updates tried-and-true alliance management fundamentals with the bleeding edge of practice.

The alliance lifecycle—as presented in the ASAP Handbook of Alliance Management: A Practitioner’s Guideremains very relevant “blocking and tackling.” But—as we push across industry boundaries and into ecosystem partnering, agile practices, organizational collaborative capability, and even partnering process automation—it’s obvious that so many things around the alliance lifecycle must be agile. One partnership may skip lifecycle steps two, three, and four; another alliance might start at one, continue through three, and then go to market.

We’ve talked for years about partnering going beyond alliance management. Now we’re in the “perfect storm” as the partnering everywhere model comes to life. Ecosystem partnering is everywhere—in technology, in life sciences, even in jewelry, where open innovation networks fuel innovation for Swarovski, as I learned last fall in Amsterdam. Classic channel partnerships are in decline, cloud partnerships are accelerating, and the whole field of partnering is getting much larger, much more complex.

Look at digital therapeutics—I’ve been predicting at ASAP conferences that IT companies would be the healthcare partners of the future. Now we have life science member companies partnering with big data and analytics and launching therapies approved by the US Food and Drug Administration that are primarily software based, while tech companies’ business models evolve to be able to deliver safe, reliable healthcare-related services. In telecom, 5G speeds will create new networks and mobile capabilities that we’ve never seen before—requiring partners we’ve never seen before. And artificial intelligence—what organizations and processes will become our partners in the future because of the advances of AI, and how will that again change the complexity of our alliances? 

Amidst this perfect storm, ASAP is a perfect conduit for everyone who leads collaborations to learn how to do it better and evolve “the how” every day in practice. So sharpen your saw. Invest in your community through ASAP, and invest in yourself through ASAP’s professional development events and publications.

Stephen Covey got it just right: “‘Sharpen the Saw’ means preserving and enhancing the greatest asset you have—you.”

Visit http://asapsummit.org for the most up-to-date agenda for March 11-13, 2019 ASAP Global Alliance Summit, and register for the event, at. See the ASAP Media team’s comprehensive before, during, and after coverage of the 2019 Summit in Strategic Alliance publications and on the ASAP blog. 

Michael Leonetti, CSAP, is president and CEO of ASAP and executive publisher of ASAP Media and Strategic Alliance publications. A previous version of this article appeared in Q1 2019 Strategic Alliance Quarterly

Tags:  5G  agile practices  alliance lifecycle  alliance management  artificial intelligence  ecosystem partnering  healthcare-related services  mobile  organizational collaborative  Partnering  Professional Development  telecom 

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Building ‘Leadership Muscle’: Get Your Organization Ready for the ‘Partnering Marathon’

Posted By John M. DeWitt and John W. DeWitt, Thursday, March 7, 2019
Updated: Wednesday, March 6, 2019

Welcome to the new partnering race—where everyone is running as fast as they can, frantically trying to catch up to the customer.

Nina Harding, channel chief at Google Cloud, asked an important question at the October 2018 ASAP Tech Partner Forum in San Jose, California: “So how do you work with your partners when the customers are ahead of the ecosystems?” This is indeed an important question, given that “every single thing we do is new,” according to Pear Therapeutics Founder and CEO Corey McCann. He added, in a keynote at the September 2018 ASAP BioPharma Conference, that risks associated with new ventures “conspire to make partnerships not successful.” Stuart Kliman, CA-AM, partner at Vantage Partners, characterized the current playing field as “one of significant and ongoing change, which is driving new forms of collaboration, new kinds of alliances.”

Being successful on such a competitive playing field requires alliance practitioners to build their “leadership muscle,” the focus of the Q4 2018 Strategic Alliance Quarterly cover story, “Building ‘Leadership Muscle’: Are You and Your Alliance Management Organization Ready to Run the ‘Partnering Marathon’?” Building leadership muscle means giving your leaders the strength, flexibility, and endurance to withstand the breakneck pace of modern collaboration.

Why do you need this muscle? No matter your industry, regardless of the specific drivers, it’s almost certain that:

  1. Your company is “remixing” its build-buy-partner strategies;
  2. Partnering activity, especially nontraditional partnering, is exploding for your company;
  3. Your alliance organization faces an overwhelming workload;
  4. Your partnering strategy and execution require new thinking, skillsets, and tools.

If your company and its partners are evolving to catch the customer, then you should (or already will) be rethinking, reorganizing, and relearning:

  • Rethinking. Alliance leaders must continuously rethink partnering strategy and models in the context of disruption and new competitive threats, which are all-but-continuous now.
  • Reorganizing. If you aren’t thinking proactively about how you are organized and aligned to overall company strategy, you can be sure someone else is—and soon you will be thinking about it too, only reactively.
  • Relearning. Alliance executives require new skills and cross-industry knowledge for the new partners and ecosystems they interact with. Many alliance processes and practices require radical rethinking and streamlining if they are to remain useful for managing at the accelerating pace and exploding scope of partnering activities today.

“When all these things are changing around you, you can’t keep doing business as usual,” said Brandeis professor, consultant, and author Ben Gomes-Casseres, CSAP, PhD. “This means very often a change in company strategy [and] if the organization’s strategy is changing, then the alliance organization should change with that. That is fundamental.”

See the Q4 2018 issue of Strategic Alliance Quarterly to learn more about how alliance leaders are rethinking, reorganizing, and relearning while they build “leadership muscle.” John M. DeWitt is copy editor and contributing writer and John W. DeWitt is editor and publisher for ASAP Media and Strategic Alliance publications.

Tags:  alliance  Ben Gomes-Casseres  channel  collaborative  Corey McCann  cross-industry  Google Cloud  leadership  Nina Harding  partnerships  Pear Therapeutics  Stuart Kliman  Vantage Partners 

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From Amsterdam to Fort Lauderdale: A Tale of Two Summits (Part 1)

Posted By John W. DeWitt, Wednesday, March 6, 2019

It’s interesting how “business ecosystems”—a biology metaphor—first became widely used terminology in the digital arena of software and technology—not in the life sciences. Same with “agile”—a development approach popularized by software startups morphed into a general teamwork and business management approach, now being adapted to collaboration within and among organizations of all types. Both of these terms took center stage in a number of presentations last November at the ASAP European Alliance Summit in Amsterdam—and will be spotlighted again next week in Fort Lauderdale, Florida, at the 2019 ASAP Global Alliance Summit, organized around the theme of “Agile Partnering in Today’s Collaborative Ecosystems.”

You’re not alone if you think that “agility” and “ecosystems” are relevant topics—but you aren’t quite sure what “agile partnering” and “ecosystem management” actually mean. These emerging concepts are being defined, researched, and tested in the real world by practitioners across the ASAP community. Their learnings became the agendas of these two conferences—creating definition and clarity, building new capabilities, sharing case examples and new practices, and exploring new models for partnering. 

Ard-Pieter de Man, CSAP, PhD—an alliance management consultant and professor of management studies at the School of Business and Economics of the Vrije Universiteit Amsterdam—has been on a tear about the topic of ecosystem management:

  • Managing ecosystems—which de Man freely acknowledges is a contradictory notion—is the theme of a panel discussion next week at 2019 Summit, where de Man will be joined by senior partnering leaders from three very different fields: Harm-Jan Borgeld, PhD, CSAP, PhD, head alliance management, Merck KGaA, Darmstadt, Germany; Ken Carpenter, senior director, global partner qlliances, JDA Software; and Sally Wang, vice president alliances and partnerships, International SOS.
  • De Man discussed his hot topic in-depth in an article he authored for the Q4 2018 issue of Strategic Alliance Quarterly that includes findings from interviews with 12 executives involved in ecosystem management.
  • In January, he elaborated on the potential alliance management implications of ecosystems and emerging ecosystem management practices in several posts he contributed to the ASAP Blog.
  •  November 8 at the ASAP European Alliance Summit, he discussed “Ecosystem Management vs. Alliance Management: What’s the Difference?”

Back in December, I caught up with de Man on Skype to ask about how he might describe ecosystem management—and how different audiences, in industries and sectors other than technology, might apply the concept to their collaborations. (For more of my conversations with De Man, see articles in December 2018 Strategic Alliance Monthly and Q1 2019 Strategic Alliance Quarterly).

“It’s much like orchestration,” he said, borrowing yet another metaphor popularized by tech. He continued (including a term from astronomy that also pops up in ecosystem conversations): “A lot of public-private initiatives involve more complex constellations with numerous partners. I did presentation last Friday for the city of Amsterdam. They have a lot of challenges. I introduced the ecosystem concept to them and they found it really useful because they’re always working with a lot of different partners. And it looks like many of these public [sector] challenges are going to be addressed by multi-partner alliances. You can’t necessarily call them ecosystems, but they have characteristics of ecosystems. Speed is getting important. You might think, with the public sector involved, that things may slow down—but that’s no longer acceptable.” He went on to say, “Alliance capability is very valuable to have, and probably a qualifier if you want the ecosystem play. But you also have to develop new capabilities—the bar has been raised over the last couple of years.”

Next week in Fort Lauderdale, De Man and his Summit panelists plan on “bringing in the experience that people have now working in such an ecosystem environment,” he explained. “Each will discuss their issues: How is ecosystem different than alliance management? What are the different approaches, different competency profiles, do you hire different people? What is the same or similar? How do you think it will develop over the coming years?”

Learn about De Man’s panel discussion and other seminal sessions at the 2019 ASAP Global Alliance Summit, and register for the event, at http://asapsummit.org. See the ASAP Media team’s comprehensive before, during, and after coverage of the 2019 Summit in Strategic Alliance publications and on the ASAP blog. 

Tags:  agile partnering  agility  alliance capability  Ard-Pieter de Man  ASAP Global Alliance Summit  collaboration  ecosystem management  ecosystems  multi-partner alliances  public-private initiatives 

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