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‘If You Are Looking for Answers, You Are in the Wrong Session’: Finding the Value of IoT in the Brave New World of Mega-Multi-Partnering

Posted By Cynthia B. Hanson, Monday, June 27, 2016

Solving the challenge of partnering in the Internet of Things has become a major puzzle for even the most skilled alliance executives. It’s a complex Rubik’s Cube of possibilities with multiple cross-industry, interlinking combinations. 

Take, for example, Joan Meltzer, CSAP, IBM alliance executive for Twitter and former smarter cities go-to-market leader at IBM Analytics, and a 36-year veteran at IBM Corp.; Mary Beth Hall, director of product development for IoT at Verizon, where she has worked for the past 20 years; Tony DeSpirto, CSAP, managing director of strategic accounts at Schneider Electric.  These seasoned alliance leaders manipulated the Rubik’s Cube in a panel discussion moderated by Jan Twombly, CSAP, president of The Rhythm of Business, entitled “Capturing the Value of IoT” at the March 1-4 2016 ASAP Global Alliance Summit“Partnering Everywhere: Expert Leadership for the Ecosystem,” held at the Gaylord National Resort & Convention Center, National Harbor, Maryland. Here are some snippets from their provocative conversation: 

Joan: If you are looking for answers, you are in the wrong session. We are all good at managing our jobs one-on-one. If there is any area that companies can’t do it alone, it’s IoT. It’s very complex. We still need the discipline of alliance management and strategy, and we still need to think value creation and capture to put out the whole value chain—it’s how the partners are going to make money. 

Tony: Schneider Electric is focused on the industrial IoT. We are in the infrastructure of everything. What we are struggling with now is how do we make money in IoT? We see value in data, but it needs to be processed through analytics. How to value the partners you have is part of the equation.  

Mary Beth: Verizon has been a Telecom business for the last 20 years and is now shifting to a technology company. I am managing our ThingSpace platform [designed to simplify the development and launch of IoT applications]. How many people have an Apple watch or app for phone tracking health? That’s one example of how Verizon is making money. Think about a smart sneaker, a sensor in a sneaker that tracks cadence and whether you are hydrated. How do we proliferate that? Is Nike willing to allow us to put partners in their ecosystem that were competitors? Fitbit and MyFitnessPal are allowing potential competitors into that space. We as thought leaders in that space need to adapt to that. How do we do that? There’s not one player at the table any more, there are six or seven, and that is really changing the way we market things. 

Tony: We in this room are unencumbered by that to a certain degree. As alliance managers, we have an ability and obligation to seek out these new business models. Thinking of how we will make money in two or ten years, the ideas are not going to come from executive management. They are going to come from peers in the room. You need to say “yes,” and figure out how it will be done. For most executives, it’s an uncomfortable thing to turn that “yes” into a repeatable model. 

Joan: It’s like sitting at a table with an elevator and escalator company, and working with them together. The elevator manufacturer is about maintenance. With IoT, the elevator can connect with the escalator, and that’s a new revenue stream. The functionality evolves into our revenue stream. 

Mary Beth: We need to put it together for the customer. That is some of the challenge we have seen at Verizon. Partners and customers require treading on new ground for partnership models with the unique needs of customers in mind. For example, there is a winery on the West Coast. They need to be able to fertilize the ground. We are helping provide data for the soil. It’s not a hard thing for us as technologists, but it is for farmers who are not used to be in that data space. And they can in turn sell it to other wineries. 

Tony: How many of your companies have IoT initiatives? Our senior leadership is thinking about how they can make their numbers today, so it’s all the more incumbent upon us to blaze that trail and show them where that value is. The fundamentals of partnering don’t change. It’s still basic blocking and tackling. The people you are talking with might change, and the executive management of a company might need more partnering intelligence. 

Mary Beth: In terms of driving change at Verizon, I am in the product role. When the product was fully ready for customers, we would launch. Now we can’t do that. We’re moving from a command-and-control leadership to a more servant leadership. I’m in the product and new business group, and you’re going to see some cool stuff coming out of Verizon that you haven’t seen before.  

Joan: You need to figure out the whole chain to deliver the solution. We started to see that in the cloud. But there is a gap in the solution where we don’t always have access to the marketplace. 

Mary Beth: Sometimes it’s about looking at a new market in a new way. Putting things together in new ways to get leadership to buy into it. Show them a little bit of what it looks like. 

Jan: The fundamentals of partnering are the same, but how do you keep the same with six to seven partners? How do you make sure everyone is getting the value? 

Tony: The concept doesn’t change. I believe that when you try to get six to seven people to agree, it won’t happen. There will always be someone who will win and lose because of the complexity. When things are tough, I go back to the fundamentals, like let’s get together at least once a quarter. 

Mary Beth: We had to break the barrier between legally what we felt we could do and what the market was asking for. We said “We are going to open everything up, we are breaking down barriers.” We put in governance around the partners in that space, and they are partners that are reselling that service. But the complexity in IoT is still there. We are desperately trying to simplify it. We are not there yet. 

Joan: We are all about repeatability, but you have to have assets that are repeatable. With smart cities, we are able to package things up and periscope it. I expect the same thing to happen with IoT. But you may not be able to resell that solution. I hope next year we will be able to talk about repeatability because none of us can afford to be in an on-and-off business. 

Tony: We need to get our leaders out of the comfort zone. That’s what we get paid for. 

Joan: You need a really solid project manager who will require everyone to come together. Ask what’s hot? Healthcare, the automotive industry, airplanes—anything with asset management is very hot. 

Tony: With the industrial portion of manufacturing, the technology on the factory floor is 30 to 40 years old. That’s slowly opening up. There is money to be made in the data that is involved in manufacturing. That is a data rich environment. 

Mary Beth: Simplify the complexities with your partners, be innovative, and finally, don’t be afraid to go after something you think is there. 

Tags:  2016 ASAP Global Alliance Summit  alliance executive  Alliance Managers  data rich  IBM  innovative  IoT  Jan Twombly  Joan Meltzer  Mary Beth Hall  partnering  Partners  Schneider Electric  The Rhythm of Business  Tony DeSpirto  Verizon 

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Spring 2016 Issue of Strategic Alliance Magazine: Comprehensive of the 2016 Summit, Certification’s Impact on Your Career, and an In-Depth Look at Bridging Cultural Differences

Posted By Cynthia B. Hanson, Friday, May 6, 2016
Updated: Wednesday, May 4, 2016

The Spring 2016 issue of Strategic Alliance Magazine, formerly called the Q1 issue, introduces readers to some new and exciting features that were added to programming at the March 1-4 2016 Global Alliance Summit, “Partnering Everywhere: Expert Leadership for the Ecosystem,” held at the Gaylord National Resort & Convention Center, National Harbor, Maryland. This issue’s cover story highlights one of these innovative new offerings: An intensive two-hour session of Cultural Roundtables, where participants explored cultural aspects of a region in relation to business acumen, with the focus this year on China, Latin America, and India. The roundtables are certain to become a regular feature at future ASAP conferences and summits.

 

The issue also includes nine pages of photographs and news from the Summit, including coverage of an outstanding conference keynote address by Intel’s Jonathan Ballon “Partnering: The Connective Tissue of the Internet of Things.” The keynote was followed by the 2016 Alliance Excellence Awards Ceremony, which included several new awards given to outstanding companies and individuals for their contributions to ASAP.  Among the recipients was Jan Twombly, CSAP, of The Rhythm of Business, who was presented with the Guiding Light Award for many years of exceptional volunteer contributions to ASAP programming.

 

Four captivating “ASAP Quick Takes” talks are also covered: Anne Nelson of IBM Watson on What is Watson Teaching Us About Building a Partner Ecosystem;” John Bell of Johnson & Johnson Consumer on “Creating Partnering Opportunities thought Open Innovation;” Marcus Wilson of HeathCore, Inc. on “The Alliance Professional as Intrapreneur; Lawrence Walsh of the 2112 Group on “Seeing Around Corners is a Masterful Move on the Partnering Chessboard.” The talks were accompanied by a new, lively session “Quick Take Roundtables,” which allowed participants to zero in on a topic of choice from 26 offerings led by industry leaders and ASAP members.

 

In the Up Front column “Every Day We Write the Book,” ASAP President and CEO Mike Leonetti describes ASAP’s new chapter in the evolution of alliance management.In chapter one, ASAP’s early days, we defined the need for professional alliance management,” he writes. “The second chapter was figuring out this function with repeatable process—and thereby dramatically improving alliance success rates. Now we have to improve the speed and reach of partnering to make it an organizational capability. That’s chapter three.”

 

In this issue’s Your Career feature, I interview several alliance managers on their “Aha” moments when obtaining CSAP and CA-AM certification: How it has boosted their confidence, contacts, and abilities. There’s also another thoughtful and practical Eli Lilly & Co. Editorial Supplement that offers advice on how to build an effective ethics and compliance program with an alliance. Finally, in The Close, we hear from the late, great Peter Drucker in “What Would Drucker Say?”a stark reminder for us all of the relevance today of the crystal ball predictions and sage advice of one of America’s most renowned business gurus. Which is why we think this issue of SAM belongs not only in company coffee klatches, but also in corporate boardrooms.

Tags:  alliance management  Anne Nelson  ASAP Alliance Excellence Awards  ASAP Global Alliance Summit  Eli Lilly & Co.  HealthCore Inc.  IBM Watson  Intel  Internet of Things Group  Jan Twombly  John Bell  Johson & Johnson Consumer  Jonathan Ballon  Larry Walsh  Marcus Wilson  Mike Leonetti  Peter Drucker  The 2112 Group  The Rhythm of Business 

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It is Time to Think Differently - Taming the Complexity of IoT Partnering

Posted By Jan Twombly, CSAP and Jeff Shuman, CSAP, PhD | The Rhythm of Business and SMART Partnering, Wednesday, May 4, 2016

The Internet of Things (IoT) is upending partnering “best practices.” One practice is clear: no company succeeds alone. It takes an ecosystem.

This is partnering at a scale, scope, and speed unprecedented until now. It requires creativity and bold experimentation. Companies must learn quickly, iterate strategies, manage complexity, and try new models for value creation, delivery, and capture.

“We know how to partner. We’ve been doing it for 20 years.” These are deadly words when said about partnering for the Internet of Things. The fundamentals of partnering may still apply – or not – but businesses that until now have been relatively un-digitized are discovering tremendous opportunities to rethink their operations and economics. This necessitates partnering:

  • Across industries and sectors
  • With many more companies for any given industry solution
  • At a greater speed to assemble and reassemble the right partners for each customer scenario
  • With agility, shifting from orchestrator to participant, sometimes with the same customer
  • In conjunction with “Everything as a Service” business models

Innovate and Experiment

Companies that succeed at building the partnering ecosystem required for the IoT take a page from design thinking: Start with the experience of the end customer and play that back to solution development. Those that succeed think similarly about the partner experience, making it easy to engage and drive down transaction costs. They do not lock onto any specific business or partnering model; rather they experiment and learn which of the assumptions you’ve made are valid and which are invalid and need to be iterated.

Instead of copying what competitors consider “best practices,” companies that remake their partnering capabilities for today’s connected world look for other inspiration. For example, Médicins sans Frontières (Doctors without Borders) assembles teams of medical and logistical professionals when conflict breaks out or there is an epidemic. The network has the ability to quickly assemble and then disband when the work is done because it knows what each partner considers valuable and works to ensure that value is received, thus maintaining willingness to participate and contribute value.

Companies throughout the ecosystem, regardless of their role or roles, must be willing to take some risks and fund experimentation to determine what is repeatable and scalable, both in the business and partnering models and in how partnering operations are carried out.

Connective Tissue or Achilles’ Heel

At the ASAP Global Summit in March keynote presenter Jonathan Ballon, Vice President of Intel’s Internet of Things (IoT) Group made it very clear that IoT is a massive opportunity to create and realize tremendous economic value; transforming industries; changing products, services, and solutions, and disrupting business models. He also emphasized that partnering and alliances are the connective tissue required to realize this value. The SMART Partnering Alliance of The Rhythm of Business and Alliancesphere argues that success in the ecosystem partnering required by IoT is not happenstance – it takes careful design. If your company’s partnering capability is insufficient for the task, partnering might be your Achilles’ heel – the exposed and unprotected weak spot of your organization. Alliance professionals have a duty to provide their executives with a roadmap across the new partnering landscape.

Over the next few months, we’ll be publishing a series of blog posts and white papers that explore what is different about partnering in the IoT - and how to apply design thinking – what we call Partner By Design to evolving partnering practices for the connected ecosystem era and everything as a service business models.

Missed the Summit Keynote? Read a Summary and Perspective on it from SMART Partnering.

ASAP was given permission by ASAP Corporate Member, EPPP, and guest bloggers Jan Twombly, CSAP and Jeff Shuman, CSAP, PhD of The Rhythm of Business and SMART Partnering to reprint the contributed blog. 

Tags:  alliance professionals  alliances  Alliancesphere  business model  ecosystem  Intel  Internet of Things  Jonathan Ballon  partner  partnering  SMART Partnering Alliance  The Rhythm of Business 

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‘Recognizing Great Behavior’: Winners of 2016 ASAP Alliance Excellence Awards Receive Honors and Accolades for Innovative Problem-Solving at ASAP Global Alliance Summit

Posted By Cynthia Hanson, Thursday, March 3, 2016

“When we share and highlight best practices and learn from each other, part of the success worth recognizing is great behavior,” said Mike Leonetti, CSAP, ASAP president & CEO, emphatically as he presented the 2016 Alliance Excellence Awards during the awards ceremony at the ASAP Summit, “Partnering Everywhere: Expert Leadership for the Ecosystem,” at the Gaylord National Resort & Convention Center, National Harbor, Md. USA. In addition to the awards categories recognized in years past, ASAP introduced new honors at this year’s event.

 Warm applause turned into a standing ovation that swelled the room as Leonetti presented the new ASAP Guiding Light Award to Jan Twombly, CSAP, ASAP chairman of programming, for her exceptional and exemplary “good behavior,” leadership, and volunteerism. Leonetti noted that Twombly, president of The Rhythm of Business, for the past six years has invested literally hundreds of hours of time each year as a volunteer driving program development for the annual Summit as well as annual biopharma conferences for the past four years.  

 The new ASAP Chapter Excellence Award was awarded to the ASAP New England Chapter. Accepting the award was another ASAP luminary volunteer, Becky Lockwood, global board member and two-time president of the New England Chapter, for “going above and beyond alignment with ASAP’s vision. The New England Chapter continues to deliver excellence in everything they do for ASAP,” said Leonetti. In turn, Lockwood praised the suite of companies who have supported her efforts over the years, saying success would not have been possible without their volunteer time.

Leonetti then announced the winner of two ASAP Content Awards, first to Eli Lilly and Company and David Thompson, CA-AM, chief alliance officer, for their long history of devotion to ASAP from the early days of the association. Eli Lilly and Company's contributions include offering workshops, extensive volunteer time, and Lilly’s consistent editorial content in, and support of, Strategic Alliance Magazine. The second Content Award recognized Xerox and head of corporate alliances and ASAP chairman emeritus Russ Buchanan as well for countless hours of volunteer time “spreading the excellence we have been generating over the years,” and Buchanan’s colleague Candido Arreche, global director of portfolio & management for Xerox worldwide and a black belt in Six Sigma quality methodologies, for his dynamic ASAP workshop teaching style. 

The awards ceremony then announced and honored the finalists and recipients in multiple Alliance Excellence Award categories. 

The Alliance Program Excellence Award is presented to “organizations that have instilled the capability to consistently implement and manage alliance portfolios and demonstrated consistent success of those alliances over time.” This year’s award went to Bayer for its Alliance Capability Enhancement Project, now in its fourth year. The project was lauded for, among other things, its strong emphasis on collaborative capability and cultural development, deal-making and efficiency, new IT infrastructure, processes, and pilot programs. 

The goal was to “move the culture from an inward focus to a partnering mindset” commented Joseph Havrilla, senior vice president and global head of business development and licensing for Bayer Pharmaceuticals. This was accomplished through: 

  • Senior management engagement
  • Creating awareness within the organization and recognition and value of the importance of partnership, including pushing data out showing that a significant part of revenue came from partnership
  • Providing training to give people tools and techniques to manage partner conflicts and timelines

 National Instruments won the Innovative Best Alliance Practice Award, given to a company for “individual alliance management tools or processes that have made an immediate and powerful impact on the organization and/or the discipline of alliance management.” National Instruments received the award for outstanding achievement of a best practice with their innovative and highly accessible partner directory that allows customer to search across the partnering ecosystem and access in-depth profiles of partner capabilities, certifications, ratings, and reviews from partner customers. Implementation included the creation of more advanced search functions, markets, keywords, mapping, and other kinds of tools. As a result, the number of National Instruments partners grew very quickly from 600 to 1,000-plus over short time.

 This year’s Individual Alliance Excellence Award, which is presented for “excellence in planning, implementation, and results of a single alliance. … between two companies or multiple organizations,” went to International SOS and Control Risks. Their nearly seamless alliance has changed the way the market perceives support and assistance of business travelers and expats. Previously, Control Risk was doing pandemic planning, and SOS was doing security planning. The unique co-opetition through formation of a joint venture has resulted in significant benefits for both the companies and their clients in terms of crisis management, most recently during the Ebola crisis, Arab Spring concerns, and AcelorMittal Mining evacuation of 130-plus employees from Liberia.

 “The goal was to eliminate completely any competition, to merge and put them together into one. Obviously not an easy task by any stretch of the imagination,” said John Maltby, director, group strategy of alliances at Control Risks. “We took a year to design this alliance and structured it around distribution.” It works to completely eliminate the competition because “when it boils down, we are trying to operate safely in a difficult environment,” he added. “The alliance balances out quite complementary capabilities.”

 There were no submissions this year for the Alliance for Corporate Social Responsibility Award. The seven-member awards committee is chaired by Annlouise 

Tags:  alliances  ASAP Chapter Excellence Award  ASAP Content Awards  ASAP Guiding Light Award  Bayer  Becky Lockwood  Candido Arreche  collaboration  Control Risks  David Thompson  Eli Lilly & Company  International SOS  Jan Twombly  National Instruments  partner  professional development workshops  Russ Buchanan  The Rhythm of Business  Xerox 

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What’s an Alliance Manger To Do When a Blockbuster Biopharmaceutical Product Is Built on a Shaky Alliance Foundation?

Posted By Cynthia B. Hanson, Friday, September 25, 2015

What do you do when you have a blockbuster product, but a few key alliance building blocks are missing and the cornerstones are misaligned? “Blockbuster Product, Fragile Alliance: Leading the Drive for Change” answered this critical question in a dynamic presentation given by Christine Carberry, CSAP, senior vice president of quality, technical operations, program and alliance management at FORUM Pharmaceuticals and chairman of the ASAP Board of Directors, and Jan Twombly, CSAP, president of The Rhythm of Business, Inc., and a member of the ASAP executive and management committee, at the 2015 ASAP BioPharma Conference. Twombly agreed to delve more deeply into the topic with a few key questions during an interview after the conference.

 

What are the signs of a fragile alliance?

Your alliance is achieving revenue targets and its clinical milestones. But any bump in the road such as a regulatory hiccup, can cause significant problems. The attorneys are always involved, its tit-for-tat, and people describe being ambushed in governance committee meetings. So you have a fragile situation because you have a relationship between the partners where they don’t trust each other and don’t feel they are working in the best interest of the alliance. Whenever you don’t have that solid underpinning, you might have external success but not the foundation to deal with the inevitable problems.

 

Why should an executive care as long as your blockbuster alliance is achieving its objectives?

The question from most people in the room is, “My executive realizes we have a fragile situation, but how willing are your governance committees to deal with the hard work of establishing or re-establishing that foundation when you are making your numbers?” The implications of not moving the alliance forward because you don’t have the underlying foundation can be significant. I have seen situations where there were delays upwards of a year with things that really didn’t make sense, disagreements where it would always come back to haunt you. A blockbuster product generates over one billion a year, so there is big money at stake, and if left unaddressed, you are likely to be leaving value on the table. Biopharma products have a reasonably definite lifecycle, and every day you don’t move forward, you are losing a day of market exclusivity because your patent has a finite life, and once your patent expires, generic drugs can come into the marketplace. You also might be creating an opening allowing competitors to get ahead, costing market share. You need to convince the people who should be enrolled in improving the collaboration that there is a significant risk being posed to the alliance when you don’t have that foundation to tackle problems in a collaborative way. You need to get at the root cause—because it is really important for the alliance manager to enroll senior level management and the governance committee to address them. If you don’t address them when things are going well, you won’t be prepared when something negative happens. It’s important to have strategies for raising awareness. That is really the key.

 

What strategies can an alliance professional use to improve the situation?

An absolute prerequisite is that leaders from each partner agree that change is necessary and urgent—and that it starts with them.  You then need a champion to use the core alliance skills of influence, getting people on board, bridging differences, convening the right people, facilitating the right kinds of conversations, and leading people to the conclusion that the status quo is not acceptable. Then you have to move quickly. It can be as simple as rechartering your governance committees, getting them to think about how they act and behave, and asking how it makes them feel—that’s all of the soft stuff you know you  need to do, but people resist.

Carberry and Twombly’s presentation also recommended the following practical steps: 

  • Re-examine governance—Structure, membership, performance standards; rethink the decision making process
  • Re-examine work allocation—project team structure, responsibilities, membership; is collaboration being forced where it isn’t necessary?
  • Establish new behavioral standards—recharter revamped teams/committees and hold them to it
  • Have an aligned and current vision and strategic plan (the “North Star”) and use it to build a “one-team mentality”
  • Meet more frequently and have more face-to-face meetings—eliminate updates and focus on, discuss, debate and decide formats
  • Launch a branded “Campaign for Exponential Success”—leadership, communication, awareness and understanding, accountability at all levels

Tags:  alliance manager  biopharma  Blockbuster product  Christine Carberry  collaborative  FORUM Pharmaceuticals  governance  Jan Twombly  market share  marketplace  partners  performance standards  recharter  The Rhythm of Business 

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