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.
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
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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.
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.)
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.
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