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Q4 Strategic Alliance Quarterly Sourcing Outtakes: The Power of the First Draft, Ever-Changing Tech Standards, Customers and the Cloud, Value vs. Discounts

Posted By Jon Lavietes, Wednesday, December 11, 2019

In our upcoming issues of Strategic Alliance Monthly and Strategic Alliance Quarterly, we will examine the changing nature of supplier collaborations in today’s business world. In a lengthy feature for Strategic Alliance Quarterly, we dive deep into how advanced digital technologies are transforming sourcing and procurement managers’ jobs such that they now need alliance management skills and practices to effectively carry out their responsibilities. Meanwhile, a feature in our next edition of Strategic Alliance Monthly explores how a company can become a preferred supplier in the eyes of its partner.

As is the case with just about every piece we put together for ASAP’s publications, there were plenty of great insights left over from our interviews with experts from the ASAP community that don’t appear in either article. Here are just a few of those nuggets.

Alliance Agreements and the Power of the Pen

Andrew Eibling, CSAP, vice president of business development and alliance management at Enable Injections, Inc., made it known several times during our conversation that he felt that, in pharma, the procurement division was generally a parking lot for nonstrategic partnerships. In other words, wind up with a procurement manager as your point of contact and odds are that you have almost zero chance of having any real influence over the partner organization’s affairs. In that discussion, Eibling noted that initial contract negotiations offered a sign of how a partner will view your organization and relationship. The goal is to agree on a contract that hews closer to the principles set forth in The ASAP Handbook of Alliance Management rather than a boilerplate supplier agreement, and the best way to ensure this is to compose the first draft for the partner’s review.

“Somebody has the power of the pen. Who drafts the agreement first? Everyone wants to take the first pass because that becomes the substrate you’re going to work from,” said Eibling. He added that an alliance agreement “tends to be more bidirectional versus what we would get from a monodirectional supplier agreement [where] you will do what’s on the schedule according to the terms we agreed to, and that’s that.”

Are We a “Standards Fit”?

An important element to assembling a tech alliance that we didn’t end up exploring in great depth in the feature was the layer of complexity added by the number of disparate standards for emerging technologies, such as cloud and IoT, competing in the marketplace. Companies putting together a smart tractor, for example, have to find partners that are not only a feature/function fit and a cultural fit but also a “standards fit,” so to speak—that is, they base their systems on technical protocols that align with your IT architecture.

“Things are moving so fast. You might get a standard out there and get everybody to adopt it, but then some new technology comes along that disrupts it all. You’ve spent all this money on standardization and it didn’t endure. That’s one of the reasons why, as a supplier, you need to know what your customers’ sourcing strategies are, and if you’re going to be compatible with the direction they are going in,” said Russ Buchanan, CSAP, vice president of strategic alliances at Xerox and ASAP’s chairman emeritus.

As an example, Buchanan talked about how companies that base their technology on proprietary standards want to be sure to avoid getting entwined with organizations that are placing their chips on open source models.

“OK Google: I’m Seeing Other Cloud Companies”

Subhojit Roye, CSAP, vice president and head of alliances at Tech Mahindra Business Services, singled out the three cloud Goliaths—Google, AWS, and Microsoft—as another potential source of complexity in constructing an alliance. One or more of those vendors may pressure the manufacturer to make it the exclusive cloud platform for the new product or service, but in many cases decent portions of the OEM’s customer base may be split among each of the three cloud leaders. The manufacturer can’t risk alienating a portion of its clients. Thus, the sourcing manager may need to stand up to a powerful market mover, something alliance managers have been doing for years.

“Suddenly, if you’re the procurement manager you have to explain to Google, ‘I’m sorry, but customers are demanding that we have to talk with all three companies,’” Roye said.

Don’t Nickel-and-Dime a Valuable Relationship

More than one interviewee stressed that lower prices are no longer the end game for sourcing and procurement managers. Overall value is the buyer’s main goal. Roye explained the situation in greater detail.

“The procurement function is becoming more and more strategic. The chief marketing officer is becoming critical. Chief customer service officer, the head of sales, and the CEO are suddenly banking on the procurement officer to say, ‘Listen, those days are gone. Don’t nickel-and-dime the vendor. Don’t ask him to give us a $10 item for $6. We’d rather get more value for $10. We’d rather pay him $12 to make sure he’s happy with us, he gives us our products on time—we don’t wind up with a screw-up on Thanksgiving or during the winter holidays—or he doesn’t switch at the last minute and go to a competitor.”

Remember, this is just what hit the cutting room floor. Be sure to check out the next issues of Strategic Alliance Monthly and Strategic Alliance Quarterly for more great insights into alliance management vis-à-vis the sourcing and procurement functions in today’s corporate landscape. 

Tags:  alliances  Andrew Eibling  AWS  Cloud  digital technologies  Enable Injections  Google  IoT  Microsoft  procurement  relationship  Russ Buchanan  Sourcing  Strategic Alliance Quarterly  Subhojit Roye  Tech Mahindra Business Services  Tech Standards  transforming sourcing  Value vs. Discounts  Xerox 

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Fascinating Mix of Case Studies Woven Into ASAP Conference Programming This Fall

Posted By Cynthia B. Hanson, Monday, September 17, 2018

Trio of conferences this September, October, November will include plenty of practical sessions with real-life examples of partnering success stories

The next issue of Strategic Alliance Magazine will include a fascinating case study on the Dutch Alliance for Data and Tax on Wages and Benefits, a complex alliance between the Dutch IRS, National Social Security Administration, and Statistics Netherland. The two alliance managers in the article will also provide details on how they formed, managed, and problem-solved the complex collaboration in a session at the upcoming 2018 ASAP European Alliance Summit: “Owning Your Ecosystem & Building the Future,” in Amsterdam, The Netherlands, Nov. 8-9 (location to be announced).  

Case studies are a powerful way to make a point, demonstrate useful tools and techniques, and highlight the best practices used to solve alliance challenges. There’s nothing quite as impressionable as a real-life alliance success story packed with examples of problem solving, effective frameworks, and cutting-edge techniques. In fact, the European Summit will kick off with a “Case Study of a Large-Scale Bi-Lateral Strategic Alliance,” presented by Christophe Pinard, director of global strategic alliance at Schneider Electric and Jean Noel Enckle from emerging solution ecosystem development at Cisco. The two speakers plan to provide their reflections and case perspectives on the dynamic, progressive alliance between the two companies. 

Their talk will set the stage for a summit where as many as 30 case studies will be tucked into sessions spanning a wide range of cross-industry topics, including

The Internet of Things (IoT), telecom, financial services, pharma/life sciences, digital ecosystems, telecom, energy, fintech, consumer goods, and other areas of interest. Presenters will include the heads of alliance divisions, CEOs, and other professionals.

A similar trend is afoot at the upcoming 2018 ASAP BioPharma Conference: “Creating Valuable and Innovative Partnerships by Driving the Alliance Mindset,” at the Hyatt Regency Boston, Boston, Massachusetts, Sept. 24-26.  Case studies are a great tool for teaching, and they will be central to the session “Let’s Make a Deal: Driving Better Contracts to Win in Clinical Genomics,” presented by Katherine Ellison, CA-AM, associate director of alliances at clinical genomics leader Illumina, Inc. Attendees will be asked to consider several of Illumina’s case studies and then delve into key areas where the alliance teams worked collaboratively with business development throughout the deal negotiation process.

Participants are asked to prepare for the session and bring their own case studies to share and discuss with peers on relevant topics, such as:

  • Methods to transform working relationships
  • Shared process models and governance structures to facilitate collaboration
  • Fit-for-purpose tools that drive internal and external information sharing
  • The merits of centralized and decentralized alliance and business development models

If you’re more interested in customer case studies on the tech side, join some of the biggest tech movers and shakers for one day, October 17, at the 2018 ASAP Tech Partner Forum: “Owning Your Ecosystem & Building the Future,” at the Four Points by Sheraton, San Jose Airport, San Jose, California. Keynote speakers Mitch Mayne and Wendi Whitmore of IBM, plans to weave some relevant alliance experience into his talk “Cyber Security Ecosystem Meets the Customer Experience,” and there will be plenty of concrete case study examples from Scott Van Valkenburgh, CSAP, vice president, global alliances leader at Genpact in his talk “Robotic Process Automation (RPA): Partnering Considerations.” Genpact has implements several successful RPA projects with Genpact’s RPA partnering strategy, and Van Valkenburgh plans to share lessons as well as customer case studies as he discusses Genpact’s launch and early RPA strategy.  

Learn more about these and other case studies, review additional sessions and content, and sign up for early bird discounts at the following links:

BioPharma Conference: http://www.asapbiopharma.org/sessions.php

Tech Partner Forum: http://www.asaptechforum.org/index.php

European Alliance Summit: https://www.asapeusummit.org/

Tags:  alliances  ASAP BioPharma Conference  ASAP European Alliance Summit  ASAP Tech Partner Forum  case studies  Christophe Pinard  Cisco  Clinical Genomics  Cyber Security  ecosystem  Genpact  governance  IBM  Illumina  IoT  Jean Noel Enckle  partnering  partnerships  RPA projects  Schnieder Electric  strategy 

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Transform or Risk Extinction (Part Two): Recognizing Value in Multiple Engagement Models

Posted By Cynthia B. Hanson, Tuesday, May 22, 2018
Updated: Sunday, May 20, 2018

This is the second of two blogs continuing my April 2018 eSAM Plus article on “Architecting for Transformation: The Next Generation Partner Ecosystem,” the title of a lively conference session led by Russ Cobb, senior vice president, growth and business operations at SAS Institute, and Norma Watenpaugh, CSAP, founding principal, Phoenix Consulting Group. The two took the stage at the A2018 ASAP Global Alliance Summit, “Propelling Partnering for the On-Demand World: New Perspectives + Proven Practices for Collaborative Business,”March 26-28, 2018, in Fort Lauderdale, Florida, USA. The drivers of seismic changes in channel partnering, Cobb and Watenpaugh explain explained, are the convergence of SMAC (social media, mobile computing, analytics, and cloud technology), the change in technology consumption, the rise of digital transformation (DX), and the Internet of Things (IoT).

Part One of this blog post concluded on Watenpaugh’s comment, “There are no simple partner models anymore. They are adopting complex, multi-faceted business models where they do all of the above.” So how to recognize value across multiple engagement models?

Watenpaugh: Companies need to recognize value across multiple engagement models in the following ways:

  • Partner programs are evolving to recognize the breadth of contribution from partners across a blended business model.
  • Incentives shift to reward behavior and customer value.
  • Vendors can no longer subsidize profitability through rebates or discounts.
  • Recognizing value, investment, commitment, volume.

Cobb: SAS has a partner program that has a precious metals taxonomy as well. What we are trying to do is have more partners because of economics—if we can get a partner to look at different ways at engaging with SAS, such as the ability to resell SAS or engage in analytic services with a revenue-sharing agreement with SAS. We are really focused on economics because of customer behavior.  The more ways we can get engaged with you partner-wise, the more commitment you will get. The ROI will go up over time. One reason we get partners to do things with us is we create commitment over time.

Watenpaugh: The cloud strategy right now is evolving and emerging. We need a flexible view of what cloud means. We need to transition to a service model. How can we help our customers fit into third-party cloud environments? We’ve got to figure out how to meet our customers where their need might be. There is a complexity of applications. No one can do it alone, so we are seeing more partner-to-partner. There are so many specializations. No company has it all. It’s becoming more and more important to get from a pick list to what skills are needed to deliver.

Some people think it needs to be more like a blockchain model. That involves the challenge of finding new partners and finding how to engage to meet the needs of customers. Infrastructure companies are challenged, and finding the right value and provision in the cloud is really a challenge.

Russ: This all comes down to if you are a channel or IT partner, what is your unique value proposition? You need a very crisp value proposition. So what is the road ahead in ecosystem evolution?

  • Industry trends in cloud, digital transformation, and IoT are driving disruption and opportunity in the market
  • Non-traditional partners offering access to the line of business
  • Vendors will be required to think more holistically about the capabilities of the partner ecosystem
  • Vendors must create relevance to business outcomes or become commodities
  • Creating a compelling partner experience

Check out Part One of this blog post as well as the May 2018 issue of eSAM Plus for other topics addressed in Watenpaugh and Cobb’s session as well as ASAP Media’s coverage of other sessions at the 2018 ASAP Global Alliance Summit. 

Tags:  blockchain  business models  channel partnering  channel partners  Cloud  complex partnering  digital transformation  IoT  Norma Watenpaugh  partner ecosystem  partner models  Phoenix Consulting Group  Russ Cobb  SAS Institute  SMAC  value propositions  vendors 

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Transform or Risk Extinction (Part One): ‘Become the Yoda to Our Channel Partners’

Posted By Cynthia B. Hanson, Monday, May 21, 2018
Updated: Sunday, May 20, 2018

This is the first of two blogs continuing my April 2018 eSAM Plus article on “Architecting for Transformation: The Next Generation Partner Ecosystem,” the title of a lively conference session led by Russ Cobb, senior vice president, growth and business operations at SAS Institute, and Norma Watenpaugh, CSAP, founding principal, Phoenix Consulting Group. The two took the stage at the 2018 ASAP Global Alliance Summit, “Propelling Partnering for the On-Demand World: New Perspectives + Proven Practices for Collaborative Business,” March 26-28, 2018, in Fort Lauderdale, Florida, USA. Cobb and Watenpaugh provided a frank tutorial on seismic changes in channel partnering. The drivers, they explained, are the convergence of SMAC (social media, mobile computing, analytics, and cloud technology), the change in technology consumption, the rise of digital transformation (DX), and the Internet of Things (IoT).

Watenpaugh: We need to become the Yoda to our channel partners. They need our support in areas like: how to sell to the line of business, the C-level, how these products integrate together to make a solution. The ability to manage the customer experience is going to be primary. I don’t think we’ve gotten it mastered. To enable our partners, we need to know that:

  • The trusted advisors role requires in-depth knowledge of customers’ businesses
  • The ability to manage the customer experience is key
  • Digital transformation and IoT require a more verticalized approach and expertise

Russ: I agree. This is an area where we need to put the greatest emphasis. IT is a commodity, if you think of the tech itself; you cannot create a lasting competitive advantage simply on IT advancement. This was going on almost a decade ago. The tech is going to get quicker and quicker. We are a company that is very proud of our products. We build lots of different products and product market segments. You need to ask, what unique value propositions do you have that are relevant to your customer? If you are not there, you are not going to win these conversations over time because you will not be able to provide the most value.

IoT, in particular, is very specific to your customer. We had some false starts in IoT with our partners. Now, we are trying to determine at an industry level, what is the value proposition were going to provide? You have to get really concrete about what that is. You want to add value to them not only on a cost basis but also on an innovation basis.

Watenpaugh: There are no simple partner models anymore. They are adopting complex, multi-faceted business models where they do all of the above.

Check out the May 2018 issue of eSAM Plus for other topics addressed in Watenpaugh and Cobb’s session as well as ASAP Media’s coverage of other sessions at the 2018 ASAP Global Alliance Summit. Stay tuned for Part Two of this blog post, in which Watenpaugh and Cobb discuss how to find value in complex partnering business models.

Tags:  business models  channel partners  complex partnering  digital transformation  IoT  Norma Watenpaugh  partner models  Phoenix Consulting Group  Russ Cobb  SAS Institute  value propositions 

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Q1 2018 Strategic Alliance Magazine: The Changing Face of Data Security in Multi-partnering; Insights from Genpact’s Donna Peek; Global Alliance Summit Preview; Happy 20th, ASAP!

Posted By Cynthia B. Hanson, Monday, March 12, 2018
Updated: Saturday, March 10, 2018

Is your company risking underinvestment in data security during a time of major digital transformation? That’s one of the big questions posed in the 2018 Q1 Strategic Alliance Magazine, which is packed with information on emerging security trends that impact today’s evolving multi-industry, multi-partnering ecosystem. “The amount of digital disruption that is occurring—whether in IoT sensors, new business models, the amount of data being produced every day, and the introduction of the cryp­tocurrencies—is creating unlimited opportunities for threat factors … that bad actors can attack,” remarks Steve Benvenuto, senior director in the global security part­ner sales organization at Cisco Systems.

Adding to that challenge: “At the current churn rate, about half of all S&P 500 companies will be replaced over the next ten years,” according to Innosight management consulting company. Risking a security breach in the present climate could be the straw that breaks the camel’s back. The package of articles provides insights on implementing and maintaining secure systems, especially in light of evolving multi-industry, multi-partnering business models. Citing the US government’s 2017 release of its first “Guidelines and Practices for Multi-Party Vulnerability Coordination and Disclosure,” the articles delve into a range of related cutting-edge topics:

  • Evolving blockchain technology, a promising new framework for supply chain security
  • Case studies on innovative new supply chain models in the pharmaceutical, automotive, shipping, food, and other industries, as explained by NetApp’s Ron Long, CSAP
  •  “Digital Transformation > Changing Business Models > the Impact on Security in Partnering,” what alliance managers need to know to stay abreast of the change, through the eyes of Philip Sack, CSAP, of CollaboRare & the Digital Leadership Institute
  • A behavioral scientist’s perspective on why CEO and company leaders tend to underinvest in security
  • Ideas for onboarding company culture and security protocols for an easy transition on the digital transformation wave

Companies need to carpe diem in this unprecedented, fast-evolving era of digital transformation, adds Donna Peek, CSAP, vice president of global alliances at Genpact, in this issue’s Member Spotlight. “Alliances have never been more strategic and collaboration skills never more vital to corporate success,” says Peek, a highly experienced alliance manager and member of the ASAP Board of Directors. She then provides readers with best practices and solid guideposts necessary for maneuvering today’s obstacle course of disruptions and digital transformation drivers.

The security package is not the only highlight of this issue: 2018 is ASAP’s 20th anniversary since its creation in 1998, a notable milestone that shows the foresight of its founders and value of its mission. Personal accounts and insights into the association’s evolution are provided by ASAP’s President and CEO Michael Leonetti, CSAP, as well as early thought leaders Robert Porter Lynch, CSAP, and Ard-Pieter de Man, CSAP. “[D]espite the indelible mark we’ve made in business—al­liance management is an essential function and capability in a wide array of leading companies and industries—we still need to roll up our sleeves today with the same bold­ness and vision that our founders had two decades ago. This is a call to action to all of you who are a part of this remarkable journey,” writes Leonetti in his Up Front column.

This issue then provides a synopsis of what’s to come at the 2018 ASAP Global Alliance Summit, “Propelling Partnering for the On-Demand World: New Perspectives + Prov­en Practices for Collaborative Business,” to be held March 26-28 in Fort Lauderdale, Florida, USA. After providing perspective on the first Summit in 1999, during an era of boom boxes and floppy disks, the articles gives readers agenda highlights, previews of four plenary talks, workshop information, and a who’s who of finalists for the 2018 ASAP Alliance Excellence Awards

Tags:  alliance managers  Best Practices  blockchain  breach  collaboration  data security  digital transformation  Donna Peek  Genpact  IoT  multi-industry  multi-partnerhing  NetApp  Phil Sack  Ron Long  Strategic Alliance Magazine  supply chain 

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