This alliance lifecycle framework presentation was created as a tool to foster conversation and provide context on some of the questions to consider as you assess the importance and structure of a formal alliance lifecycle framework. I created this for a friend working with one of the leading Canadian consulting firms without a current formal strategy, framework or program in place for the development and management of IT channel business partner programs and relationships.

1. Alliance Lifecycle Framework Doug Adams 416-303-3708 jdouglasadams@bell.net

2. Summary Alliances have emerged as one of the key business strategies of the new economy. Clients are facing increasing market pressures and in turn are demanding more and faster responses from companies like XXX. Alliances can be a key component of a companies growth objectives. They have the potential to greatly reduce the time required in developing new products/services or enable access to fast growing emerging markets. This in turn can open the door to new client opportunities or channels to market. In some cases this can be a competitive advantage in acquiring new business This document includes a sample alliance lifecycle framework and is intended as a tool to foster conversation and provide context on some of the questions to consider as you assess the importance and structure of a formal alliance framework.

3. Alliances Lifecycle Framework Develop Alliance Strategy Identify Alliance Partner(s) Due Diligence and Fit Assessment Negotiate & Finalize Contract Terms Create Alliance & Marketing Plans Pursue Client Opportunities Continuous Development & improvement Business Case and Executive Sponsorship Alliance Management Governance Model

5. Establish a consistent framework and basis for evaluating current and future alliances

6. Identify and prioritize actions with key stakeholders

7. Create a classification of the types of relationships to better prioritize resources and financial requirements

8. SAP and Oracle are strategic alliances and core to your business.

10. Assess alliance partner strengths and growth potential

11. Are they a market leader and how do they compare to competitors

12. Compare solutions and products

13. Narrow the list of preferred alliance partners

15. Screen opportunities against strategy

16. Does the alliance partner solution map and integrate with your solution

17. Relevance of the alliance offering across industries, geographies, etc.

18. How well has the product been defined and degree of customization required

19. Compatibility in terms of target client commonality and personality

20. Financial stability of the alliance partner

21. Maturity of the solution space lifecycle

23. Obtain input from key internal stakeholders and subject matter experts

24. Identify an experienced lead negotiator

25. Prepare negotiation strategies (Consider starting to prepare for the negotiation phase as you first engage the alliance partner. As appropriate start setting expectations from the beginning.)

26. Conduct negotiations

28. Gain agreement of alliance partner and your own management

29. Plan needs to be jointly developed win-win

30. Identify ongoing support team

31. Execute quickly as there will be pressures on the alliance to exceed in the short term

33. Review business development plan – guidelines, rules and responsibilities

34. Jointly develop targeted client list

35. Develop a sales pipeline report

37. Annual FY planning and budgeting – formal process to assess and validate alliance objectives across industry, service and solution verticals

38. Gather internal views by conducting stakeholder reviews

39. Gather external views through independent alliance surveys

40. Further ad hoc assessments using key criteria under the following capabilities:

41. Executive relationship

42. Sales and marketing

43. Industry, service and solution

45. Market intelligence – Summary of the opportunity, clear definition of the target market and customers, overview of the current and projected market size and growth rate.

46. Vendor Intelligence – Vendor landscape, competition and a compelling reason why this is the best alliance partner

47. Benefits and contributions – short and long-term strategic and financial objectives, benefits, associated investments and contributions.

48. Marketing strategy – description of how you will publicize, promote, distribute, price and sell the alliance

49. Operations plan – how both parties will cooperatively and effectively execute the alliance plan

50. Risks and exit strategy – potential market changes, long take-up time possibility, exposure, termination restrictions and penalties.

52. Executing and managing the alliance plan

53. Establish relationships and linkages with the alliance partner’s marketing and sales organization

54. Developing and implementing the alliance infrastructure

55. Developing the communication process

56. Developing and maintaining executive relationships

57. Ensuring all contracts are in place

58. Ensuring all parties meet the contractual obligations

59. Producing management reports as agreed under the alliance contract

61. Considerations When Structuring An Alliance Link the Alliance to market strategy Defend XXX business interests – don’t let alliance vendor needs drive the alliance. Don’t ignore long-term and global consequences Get good market intelligence Alliances are better if market driven, (not single client focus) Prepare a business case Solicit skill and experience from within your organization constantly Look at business fit in addition to functional and technical fit Avoid creating an alliance with a pre-conceived structure in mind Find a target client first for co-development Manage expectations