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Huawei’s Strategy for Partnering Success (Part One): Tapping into the ASAP Community’s Best Practices, Professional Development, and Tools

Posted By Genevieve Fraser, Monday, March 5, 2018
Updated: Saturday, March 3, 2018

Decades before Greg Fox, CSAP, assumed his current position as vice president of strategic alliances at Huawei Technologies, headquartered in Shenzhen, Guangdong, China, he held senior strategy, channels, sales, alliance management, marketing, product management, and business development positions at Citrix, Cisco, Novell, and HPE. For the past two years, Fox has lead Huawei’s efforts to build information and communications technologies (ICT) industry-leading alliance management competencies and global partnering capabilities. Today, Huawei Technologies is the largest telecommunications equipment manufacturer in the world.

 

“Having a strategic alliance background has provided a competitive edge with prospective partners. In fact, strategic alliances are quickly becoming a core part of the Huawei culture and an embedded part of our business strategy,” Fox stated.

 

“And with Huawei’s global market leadership in key markets involving carrier, consumer, enterprise and now cloud, many companies want to do business with us for mutual business advantage. It is a nice problem to have, but that makes it ever more important that we do partnerships the right way, and we set them up for the long-term,” he explained.

 

Given the magnitude and scope of their current level of partnerships, Huawei has developed a tier-one companywide process called Manage Alliance Relationship (MAR) that focuses exclusively on managing the alliance relationship process. This includes traditional 1:1 alliances, as well as managing one to many and many to many partnerships.

 

As Huawei has adopted many of ASAP’s best practices and tools for partner evaluation, recruitment, and on-boarding, the alliance management organization has created many templates within the MAR process. These templates and tools are actively used in every current or prospective strategic partnership and have afforded Huawei a competitive edge in cultivating its growing portfolio of partnerships.

 

“We have a straightforward approach outlined by a five-step process to executing mutually profitable partnerships and as we follow this, we feel that we can improve the odds of success and ensure that all parties profit,” Fox said.

 

“The first step involves partners agreeing on a common set of objectives and a strategy for achieving them and being clear on what all sides get from the alliance. Next, partners must write out a business plan, including determining who is our customer, why will they buy from us, and what is our expected ROI [return on investment]. Third, partners must install governance structures that assign key responsibilities, clarifying who is responsible for what, and which has an identified sponsor who is senior enough to mobilize resources and change course if things go off track,” he said.

 

“Step four involves creating proper incentives for both the direct sales force and indirect channel, with compensation designed to get all parties to make the alliance a priority. And finally, every partnership should be flexible, and alliances must be reviewed quarterly to help leaders respond to changing business conditions,” Fox explained.

 

The five steps are not performed once and then set aside. Instead they are done in an iterative loop, where processes are refined, and targets regularly adjusted as needed, based on every changing competitive environment.

 

To learn more about Huawei’s partnering efforts, see Part Two of this blog as well as Genevieve Fraser’s Member Spotlight in the Q4 2017 issue of Strategic Alliance Magazine. Greg Fox also co-presented, with Andrew Yeomans, CSAP, of Merck Serono, the January 18, 2018 ASAP Netcast webinar “Building the Engines of Collaboration Inside and Beyond the Borders of Mainland China.”

Tags:  alliance management  business development  channels  Cisco  Citrix  cloud  governance structures  Greg Fox  HPE  Huawei Technologies  manage alliance relationship  marketing  Novell  partnerships  product management  sales  strategic alliances  strategy 

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ASAP European Alliance Summit To Provide ‘Extensive Content’ to Expanding Number of Participants

Posted By Cynthia B. Hanson, Wednesday, November 2, 2016

What was just around the corner begins tomorrow, one of Europe’s most advanced educational business opportunities the 2016 ASAP European Alliance Summit. Held at London’s exquisite Royal Garden Hotel near Kensington Gardens, “The New Ecosystem for Partnerships” is being jointly sponsored by the Association of Strategic Alliance Professionals and Thought Leader Global.

The number of attending alliance managers and partnering practitioners is expected to double as compared to last year, providing ample opportunity to network. “This year’s ASAP European Alliance Summit is highly international and diverse with more than 100 participants confirmed so far,” said Ariann Ignati, operations manager at Thought Leader Global, which is known for arranging business media and events for senior management in multinational enterprises. “We have extensive content and presentations from the life sciences, IT, manufacturing, and many other industries,” including energy, smart cities, biopharma, engineering, chemical, and consumer goods.

An international contingent of around 30 progressive business thinkers from more than 15 countries will provide some of the most cutting edge information in their industries during two streams of programming. Presenters will cover the topics of cross-sector alliances, joint ventures, innovation, and ecosystem partnering; discuss in-house case studies; delve into the impact of the cloud, Internet of Things, and digital systems, among other topics. Session topics range from Google’s “An Alliance Built on Culture” to Facebook’s “New Partnership Models in a Digital Landscape,” Siemens Technology to Business’s “Innovation, Disruption and Partnerships within the Startup Ecosystem,” Ipsen’s “Developing an Onboarding Process for Alliances/Partnerships,” Janssen Business Development’s “Making your Alliance Global: Having a Global Approach for Managing Alliances,” and many more. Click here for an expanded list of of session and speaker information.

Sessions will be provided by heads of alliances and joint ventures, corporate partnering experts, and business development specialists, as well as alliance, JV, and partnership departments from companies such as IBM, Bayer, Facebook, Takeda, Philips, Johnson & Johnson, Cisco, Renault Nissan, Google, Deutsche Telekom, Unilever, GE Oil and Gas, Shell, DONG Energy, Sanofi, AstraZeneca, Syngenta, Huawei, Ericsson, Servier Monde, Janssen, Oracle, the Novo Nordisk Haemophilia Foundation, and New Generation Leader.

“It’s a critical time in alliance management as it adapts and grapples with the changing landscape of the emerging multi-industry ecosystem,” said Michael Leonetti, CSAP, president & CEO of ASAP. “This is an opportunity to jump in and hear from some of the biggest movers and shakers in their industries on how their companies are breaking from the pack to collaborate in innovative and adaptive ways as the Internet of Things impacts their partnering.”

Leonetti plans to attend the Summit, opening the event by making himself available to anyone interested in finding out how ASAP membership and best practices can enhance your business practices. Those who arrive early will have the opportunity to take the ASAP Certification of Achievement-Alliance Management (CA-AM) Prep Workshop on Wednesday, Nov. 2.

For more information and an expanded list of offerings, go to: http://www.strategic-alliances.org/?page=eurosummit

Tags:  2017 ASAP European Alliance Summit  alliance  alliance managers  cloud  cross-sector alliances  digital systems  Ecosystem  ecosystem partnering  innovation  Internet of Things  joint ventures  partnering  Partnerships  Thought Leader Global 

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How to Manage Mega-scale Partnering in the Era of the Internet of Things from the Vantage Point of Schneider Electric

Posted By Cynthia B. Hanson, Thursday, January 28, 2016

When it comes to Schneider Electric, the company operates in a seemingly unlimited world of opportunities for establishing connections. Its partnering mantra seems to be “think globally and act locally, globally, and everywhere in between.” 

Now add the Internet of Things, and Schneider is broadening its scope to partner in complex and creative ways with some of the biggest companies in the world, such as Cisco Systems, Microsoft, and IBM Corporation. That’s the topic Anthony DeSpirito, CSAP, managing director, strategic accounts at Schneider Electric, is scheduled to address during the panel discussion “Capturing the Value of the Internet of Things” March 1–4, 2016, at the ASAP Global Alliance Summit “Partnering Everywhere: Expert Leadership for the Ecosystem,” at the Gaylord National Resort & Convention Center, National Harbor, Maryland, USA. The discussion will focus on generating revenue from the complex partnering and business models driven by IoT. Other participants scheduled for the panel discussion are Nancy M. Green, global practice lead, healthcare strategy & thought leadership, at Verizon  Enterprise Solutions and Joan Meltzer, CSAP, smarter cities go-to-market leader at IBM Analytics, IBM Corporation. 

Schneider currently manages more than $30 billion in energy for 4,500 clients in 147 countries. The company integrates solutions in large numbers of physical structures, such as electrical and SCADA systems (data acquisitions and control systems for power or water treatment systems), and has access to vast amounts of data about the physical environment. The information is then provided to an analytics platform that turns physical data into information that allows partners, such as Verizon and IBM, to make better-informed decisions. 

Such complex, mega-scale strategic alliances require large teams and significant investments of time for planning. Schneider has 14 alliance managers. Key components need to fall into place for mega-partnership to fly: “Alignment is absolutely critical at the executive level,” DeSpirito pointed out during a recent interview.

 

For example, Schneider’s alliance with IBM to provide cutting-edge cloud services for the utility industries required the fundamental first step of having problem-solving meetings at the executive vice president level. “Once they agreed, it … cascaded throughout the organizations. Now the sales areas have agreement, and there is a cadence of communications between the two teams doing workshops and basic education. Now we need to bring discipline and cadence through quarterly business reviews,” he explained.

 

The early-stage, innovative ADMS cloud-based service solution could radically change the utility industry if it gains regulatory approval because it could provide services to utilities that can’t afford ADMS as a stand-alone product. Electrical power plants use a distribution management software system called DMS that allows them to be efficient in production and distribution. Schneider’s system is ADMS, where “A” stands for Advanced. The system is “much more customizable, much more efficient, and allows a utility to become more productive,” he says. If a proof of concept with ADMS that is underway in Canada is successful, “we anticipate it will move into production, … which should manifest itself in lower operation costs, cheaper electric, and allow us to go to smaller utilities,” he explained.

 

From a partnering standpoint, this is a brand new business model, and also an example of the complex alliance management planning often required in large company alliances, DeSpirito added. “This is not just buying and selling software and space in a data center.”

Tags:  ADMS  alliance management  alliances  Cisco Systems  cloud  DMS  electrical and SCADA systems  IBM Corporation  IoT  Joan Meltzer  Microsoft  Nancy M. Green  Schneider Electric  Tony DeSpirito  utilities  utility industry  Verizon Enterprise Solutions 

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Five Future Channel Trends to Plan for in the New Year

Posted By Jay McBain is CEO of ChannelEyes, Guest Blogger, Tuesday, January 5, 2016

As we kick off 2016 and prepare for the March 1-4 2016 ASAP Global Alliance Summit “Partnering Everywhere: Expert Leadership for the Ecosystem,” at the Gaylord National Resort & Convention Center, National Harbor, Maryland,  outside Washington, D.C., I wanted to share some of my observations on the ever-changing technology channel.

We are witnessing a changing of the guard from a channel perspective. Fewer companies will fit the traditional reseller or solution provider label, as many have transformed (or born into) a recurring revenue business model around managed services, cloud, SaaS integrations, line-of-business, and vertical specialists.

The channel topped out at roughly 1,000,000 companies worldwide in 2007, employing more than 10 million people. In addition, hundreds of thousands were employed indirectly at vendors, distributors, associations, and media organizations. The deep recession of 2008 had a major impact and hasn’t bounced back the way most of us expected. While the broader economy is trending back up to 2008 levels, the channel continues to slide.

What is happening out there?

1. The channel is shrinking at an alarming rate: Recent reports from CompTIA and IPED show a current North American technology partner base of 160,000 companies (600,000 worldwide). It may sound like a healthy number, but it is down 36 percent since 2008 and continues to face 10 percent to 15 percent annual attrition for the foreseeable future.

Keep in mind the 160,000 includes a much broader audience than just resellers—it includes all kinds of consultants, coaches, etc. A more accurate number, including people who directly influence and resell hardware and software products, is closer to 75,000 (with half of those selling enough product profitably to sustain a business). Your future channel and alliance partners will be smaller in number, but more focused, specialized, and effective.

2. The channel is getting younger—much younger: Todd Thibodeaux, CEO of
CompTIA, kicked off his ChannelCon keynote with several pieces of research. First, an estimated 40 percent of the entire channel will retire in the next 10 years. Yes, 4 in 10. Second, those retiring will be replaced by millennials. In fact, in 10 years, 75 percent of the channel demographic will not have been alive when IBM introduced the PC (and the channel as we know it) in 1981.

This generation grew up on computers and will be pursuing different business models than the traditional reseller models we have today. They will look more like vendors, with in-house development teams, software products, and intellectual property. In the future, strategic discussions with partners will be less about incentives and education and more about integrations and co-marketing.

3. The channel is small business, and getting smaller: Much of the attrition that I mentioned above has come from within channel companies. They are doing more with less. The average channel partner has eight employees, and 97 percent of them have fewer than 50.

With the rapid growth of freelancing (think oDesk and Elance), offshoring (Fiverr), and rapid software development (Mechanical Turk), many companies are outsourcing their own functions, such as marketing, operations, finance, and custom development. Vendors are looking at opportunities to help their partners with these functions and keep them focused on (selling and) delivering solutions for end customers.

4. Vendor numbers are exploding: The above trends have an interesting side effect—the number of vendors in the marketplace is growing at a surprising pace.

Channel companies are leveraging their deep industry knowledge with unique integration skills (across dozens of vendors’ APIs) and creating products and specific intellectual property to deliver niche solutions.

At one time it was called “value add,” but today partners are incorporating these ideas into new companies and products and then going to market themselves. These products have narrow addressable markets, and the need to find resellers will continue to grow.

I predict that in 10 years, the number of vendors will outnumber the amount of pure-play resellers. Start thinking about future competitive threats and how to manage co-opetition moving forward.

5. Influencers and connectors are becoming more important: Without naming names, our entire channel ecosystem boils down to a small number of individuals who connect large amounts of like-minded people. You probably know many of them!

For example, the North American IT channel has roughly 100 people that will get you one degree of separation from anyone else. These super-connectors are very different from one another—some are media, some run associations, others are vendors or distributors, others make a living on making connections for you.

Some things are clear: The amount of noise and clutter will not stop growing. People buy from people they like. Economic scarcity is evolving into information scarcity. The network effect will drive winners and losers in the next 10 years. Start thinking about your network—do you have the right mix of influencers and connectors to drive your channel sales?

Seventy percent of all IT dollars are now being spent outside of IT by people that vendors and channel partners don’t know all that well. Sales, marketing, finance, HR, operations, and development teams are rapidly deploying technology, and it is forcing the channel industry to get smarter.

These trends are reshaping the channel, not replacing it. As with every other threat in the past 30 years, the channel will come out stronger, more nimble, and better able to serve evolving customer needs.

Happy New Year!
 

Guest blogger Jay McBain is CEO of ChannelEyes information technology services

http://channeleyes.com. He will be presenting the session “Five Future Channel Trends That You Need To Be Planning For Todayhttp://www.strategic-alliances.org/page/sum16sessions, at the March 1–4, 2016, ASAP Global Alliance Summit “Partnering Everywhere: Expert Leadership for the Ecosystem,” at the Gaylord National Resort & Convention Center, National Harbor, Maryland, USA.

Tags:  channel partners  Channel Trends  ChannelCon  ChannelEyes  cloud  CompTIA  connectors  influencers  integrations  IPED  Jay McBain  line-of-business  manged services  revenue business model  SaaS  technology channel  Todd Thibodeaux  vendors  vertical specialties 

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In business, as in nature, it’s all about ecosystems

Posted By Riikka Pyykkö | Head of Alliance Coordination, CA-AM, Tieto, Friday, August 7, 2015

Blog entry was written by Riikka Pyykkö and was seen on http://perspectives.tieto.com/ Tieto’s blog page.  

 

Summer is a good time in the Nordics to write and think about ecosystems. We all see and hear the nature's ecosystem full and alive. 

The word ecosystem has entered the everyday business language. We mention business ecosystem when we speak about the future of business and customer interaction. Why is that? Why do we have business ecosystems on our agenda right now? What is the difference between a business ecosystem and a value chain?

 

A fundamental business change 

The maturation of technologies, like social, mobile, analytics, cloud, 3D printing, bio- and nanotechnologies, is rapidly shifting the competitive landscape. No industry will be immune to disruption - the change is led by the consumer centric industries, such as retail and banking, but the trend is quickly flowing into B2B services as well. The changes around us are going to enable much better customer solutions than today. Consumer is in the focus when new solutions are created.

 

Emerging technologies create an environment that is connected and open, simple and intelligent, fast and scalable:

To read complete blog click here.

Tags:  analytics IBM Institute for Business Value  B2B  Business Ecosystem  cloud  Riikka Pyykkö  Tieto 

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