advanced guide how to develop external partnerships for...

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Advanced GuideHow to Develop External Partnerships for Innovation



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INTRODUCTION. External Partnerships: A New Innovation Model for a New Type of Marketplace 2

PART ONE: FOUR MODELS OF EXTERNAL PARTNERSHIPS 3

Framework. Four Models of External Partnerships 4

1. Venturing. Real-Life Examples and Tips for Better Venturing 5

2. Academia. Real-Life Examples and Tips to Work with Universities 7

3. Joint Collaborations. Real-Life Examples and Tips to Co-develop Innovations 9

4. Open Innovation. RealLife Examples and Tips to Develop Open Collaborations 11

PART TWO: IDENTIFY YOUR IDEAL EXTERNAL PARTNERS 13

Starting Out. Things to Consider Before You Begin 14

Partnership Tool #1: “Give and Get.” How to Identify Ideal Partners Based On Your Business Needs 15

Instructions. Tips For Using the Tool 16

Give and Get Partnership Tool Worksheets 17

Filled-In Example. How One Company Might Use This Tool 19

Partnership Tool #2: Partnership Scorecard. How Can You Tell a Good Partner from a GREAT One? 21

Worksheet 22

Instructions. Tips for Using the Partnership Scorecard 23

Suggested Roadmap. How to Roll Out an External Partnership Program 24

PART THREE: RESOURCES TO LEARN MORE 25

Google This. Search Terms to Help You Learn More 25

PART FOUR: TOOLS AND WORKSHEETS 26

Tool Worksheets. Distribute These Throughout Your Organization 27

What’s Inside…

1IBM CEO Study, “Leading Through Connections: Insights from the Global CEO Study” (2013)



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IntroductionExternal Partnerships: A New Innovation Model for a New Type of Marketplace

Partnering involves the sharing of resources to help ignite innovation efforts for both parties involved.*

If you’re not partnering, you’re in the minority.

An IBM CEO study showed that extensive partnering is providing the edge CEOs need to take on radical innovation.

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• 70 percent of CEOs aim to partner extensively to innovate.

• Only 4 percent of CEOs plan to do everything in-house.

• Outperforming companies rely more on external partnerships than underperformers do.

In today’s marketplace, we’re faced with an explosion of technology and customer needs. An organization’s R&D/innovation team cannot be expected to keep up and single-handedly produce what’s needed to stay ahead for the future. Many organizations have realized that their internal R&D and innovation teams can no longer work in isolation. These companies (and there’s an increasing number of them) have experienced success with the new paradigm in innovation—external partnerships and collaborations. Leading innovators like IBM, Proctor & Gamble, and General Electric are embracing external partnerships for faster, and more effective innovation.

“Not-Invented-Here” is not so important. The not-invented-here syndrome, where companies shun outside thinking, is an outdated, and more importantly, dangerous strategy. It’s becoming increasingly impossible to acquire all the skills and R&D you need to succeed under one roof.

Partnerships come with a variety of advantages. There are a number of benefits that organizations can realize when they use external partnerships. These include:

> Reduced development costs> Access to new skills and assets> Access to new geographic and customer markets > Reduced risk/investment> Faster time-to-market> Fresh thinking and new perspectives

There is more than one way to partner. There are several different models to adopt if you want to develop external partnerships for your company. This guide will help you understand the different forms a partnership can take, and offer some concrete steps on how to move forward.



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There are many ways you can partner with third-parties and tap into the capabilities of firms outside of your own. Partnerships are not restricted to organizations—in fact, new network technologies such as social media have allowed access to groups of individuals and “communities” you can tap into.

This section of the guide focuses on four of the most important ways —venturing, academia, joint collaborations, and open innovation—you can develop external partnerships.

We’ll bring to life these four models with examples of leading innovators, as well as practical tips and techniques that you can use in your organization.

PART ONEFour Models of External Partnerships



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FrameworkFour Models of External Partnerships

1. venturingInvest in small and nimble organizations with cutting-edge ideas and technologies.

2. academiaTurn to universities for the latest research and freshest thinking.

3. joint collaborationsPartner with firms with complementary assets to co-develop innovations.

4. open innovationDevelop or access an open marketplace to share research, technology, intellectual

assets, and ideas. Crowdsource ideas from individuals by harnessing the wisdom of crowds.

On the following pages, you’ll read about the ways in which companies utilize these four models, along with tips that you can employ right away.

While there are a multitude of ways in which you can partner, here are four broad models of external partnerships you can use to inject new thinking into your innovation efforts.



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1. venturingLook to small and nimble organizations with cutting-edge ideas and technologies.

Many large organizations use a venturing strategy as an effective way to develop partnerships. Start-ups often have cutting-edge ideas and technologies, yet few have the resources or backing to fully realize the potential of their ideas. By partnering with promising new enterprises, larger firms gain access to nascent ideas and technologies before they become mainstream. Here are some examples of how innovators play in the venturing space:

IBMIBM looks for fresh ideas (and grows its business) by partnering with venture capital firms and the start-up companies they fund. Rather than simply invest directly in the new enterprises, IBM provides them with the technology infrastructure that they need to get off the ground and develop ideas. IBM wins by tapping into entirely new customers and gaining access to some breakthrough ideas. The VCs win because they mitigate their risk by sharing investment with IBM. And the start-ups win because they gain invaluable support from one of the world’s largest corporations. Visitwww-1.ibm.com/businesscenter/venturedevelopment/us/en/.

BMWBMW is a forward-thinking company that looks beyond selling cars for highways to a broader goal of improving

“personal mobility.” Their partnership with innovative new enterprises enables them to experiment and test ideas for the future.

One trend they are testing are peer-to-peer marketplaces. They have partnered with ParkatmyHouse, an online parking marketplace that connects homeowners who have driveways with drivers who want a cost-effective place to park. BMW i Ventures, a venture capital company set up by BMW Group, saw ParkatmyHouse as a possible solution to improve urban mobility and hence invested in this promising startup.

SalesforceOver the past few years, Salesforce has spent over $4 billion buying over two dozen companies. Examples include the acquisition of Buddy Media, which helped Salesforce gain social media and advertising campaign capabilities and ExactTarget, which adds an email-marketing platform to their portfolio.

Salesforce’s CEO, Marc Benioff, uses venturing as a way toobtain top talent—“The greatest acquisition we’ve made is the talent—the innovators that are coming into our company, the ideas, the entrepreneurs—have really impacted us.”

Central Intelligence Agency (CIA)In-Q-Tel is the CIA’s very own venture-capital arm. IQT, asthe group is known, “identifies, adapts, and delivers innovative technology solutions to support the missions of the CIA and the broader U.S. intelligence community.” Since In-Q-Tel was founded, in 1999, the firm has leveraged more than $3.5 billion in private-sector funds to support technology for the CIA and the intelligence community. In-Q-Tel has invested into more than 200 companies, beating traditional VC investors to technologies such as the mapping software that’s become Google Earth. Visit www.iqt.org.

General ElectricGeneral Electric invests $150 million every year in GE Ventures towards projects in energy, health, software, and advanced manufacturing. Their goal “is to become the global partner of choice to accelerate growth and commercialize innovative ideas that will help make the world work better—to build, power, move and cure.”

GE recognizes that this type of partnership is beneficial for both parties. Startups benefit from GE’s resources and expertise, and in return GE has the ability to stay ahead, find new markets, and get to market quicker.

An example is GE’s $37 million investment into SolarEdge Technologies, a promising company that makes systems that boost the electricity production of solar panels.

On the following page, we offer some helpful tips for you to consider in order to find better ventures.



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Organize an “inventor fair.” Invite inventors or start-ups to come share their innovations and learn more about what your organization can do for them. You can also consider inviting other strategic partners (for instance, vendors or suppliers).

Identify the appropriate stage of the start-up you require. Identify the development stage of companies you’d like to begin targeting. Keep in mind, early-stage companies have access to more cutting-edge, yet nascent technology. Later-stage enterprises have an evolved business model in place and might need help with industry adoption: licensing, distribution, marketing, customer acquisition, etc.

Subscribe to VC and private equity trade publications. Keep on top of the latest happenings in the industry. Here’s a list of just a few:

> www.vcjnews.com> www.nvca.org (National Venture Capital Association)> Venturewire Professional (a publication by Dow Jones)> www.vfinance.com (a comprehensive listing of VC firms)> A VC: Blog of the well-known venture capitalist Fred Wilson (avc.blogs.com/a_vc/)

Balance your venturing opportunities. Balance your “venture portfolio” with an appropriate mix of short-/long-term, high-/low-risk investments.

Visit the Patent Office website at www.uspto.gov. Search for registered patents in an area that’s relevant to you. The results will clue you in to what research is being done, and more importantly, who’s doing it.

Identify a VC directory. You can find many online listings of international venture capital firms. These firms have access to numerous start-ups with promising ideas and technologies. Google the term “VC directory.” The results will surprise you.

1. venturing (continued)If you think venturing is a valid strategy for your organization, here are some simple tips to get you going. Use the check boxes to indicate the tips relevant to you. Use the blank spaces at the bottom of the page to write in your own.

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2. academiaTurn to universities for the latest research and freshest thinking.

From science and technology to language and literature, experts in any given field are working at universities to find break-throughs and better understand our world. See how organizations are turning to the arena of higher education to explore new ideas while providing funding and support to exciting research initiatives.

Novartis The name “Novartis” is derived from the Latin novae artes, meaning “new skills,” which is perfectly in line with the company’s immersion in the world of academia. Its $4 billion flagship research center is located in Cambridge, Massachusetts, amidst the thousands of great minds at MIT, Harvard University, Boston University, Boston College, and numerous other world-renowned institutions. Novartis is able to tap into the human capital at these institutions for help with research projects, giving students valuable career opportunities and giving Novartis access to a dynamic world of research.

Ford In 2013, Ford partnered with the University of Michigan to research into developing batteries for electric vehicles that will make them more efficient and affordable. Developing efficient, cost-effective, and sustainable batteries for electric vehicles is a complex challenge that all car manufacturers are facing. For Ford, partnering with an academic institution allows for suppliers and manufacturers to work with materials scientists and engineers to together find breakthroughs in battery development.

Microsoft Microsoft provides research grants and support to New York University’s Center for Advanced Technologies (CAT) to further the development of breakthrough technologies for both the center and for Microsoft. CAT’s goal is to foster growth and innovation by developing technologies and licensing them to companies and governments. Microsoft’s hand in the center’s research gives it access to breakthrough—yet practical—technologies intended for widespread use and adoption.

El Bulli El Bulli is a restaurant located in Spain and has famously been named “Best Restaurant in the World” many years in a row. The owner, Ferran Adrià, shut down the restaurant in 2011 to focus on creating innovations in food and to reinvent the whole concept of dining.

Adrià recognized that academic institutions could be a source for innovation and therefore created a Global Ideas Challenge Competition with five top business schools. Students submitted business plans that creatively reinvented the concept of dining. One of the winning submissions was from Harvard Business School, where the team put forward ideas for developing radical innovation processes such as 3D technologies, ultraviolet light, and bioluminescence in dining.

Samsung While developing the technology behind its signature liquid crystal display screens, Samsung worked closely with researchers at Kent State University in Kent, Ohio. Kent State had an established Liquid Crystal Institute where Samsung could turn for information and innovations in the field of LCD technology. As a matter of efficiency, it made business sense for Samsung to partner with Kent State and license its research and technologies.

On the following page, we offer some helpful tips to partner more effectively with academia.



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Publish jointly. Consider working on research papers or joint publications with a university. You’ll not only partner on the latest thinking, you’ll also help fulfill the university’s need of getting published.

Create an internship program. The top research students can benefit from short-term internships at your organization, and you can tap into their minds and innovative thinking.

Sponsor a student contest. Invite ideas from a broad spectrum of students on a specific topic.

Reach out to your local universities. You can help build local talent and expertise. Think about offering a grant or scholarship fund with local schools to gain access to top talent.

Turn to academic journals and publications. Read the latest research around a particular topic. A subscription to services such as Project Muse and JStor will give you access to a variety of top journals. You’ll find out which universities are doing research on which topics, and will learn about breakthrough developments in a specific research area.

Choose joint R&D vs. a sounding board model. You don’t have to partner with academia to jointly conduct R&D—you could simply work with them to get feedback, discuss ideas, and brainstorm trends. For example, Shell’s innovation team taps diverse sources to broaden its reach. It organizes workshops at different locations around the world to generate ideas about topics like stranded gas and remote operations. Professors and academicians from the leading local universities are invited to such workshops.

2. academia (continued)If you think academia is a world that is ripe for innovation, here are some simple tips to get you going. Use the check boxes to indicate the tips relevant to you. Use the blank spaces at the bottom of the page to write in your own.

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3. joint collaborationsPartner with firms with complementary assets to co-develop innovations.

In joint collaborations, firms with complementary assets come together for a common cause. These partnerships allow them to combine the best of their skills, resources, or technologies. By capitalizing on each other’s strengths, they co-develop innovations that would have been difficult or impossible to achieve on their own.

GlaxoSmithKline and McLaren (different industries)GlaxoSmithKline, a British pharmaceutical company, and McLaren, a manufacturer of high-performance vehicles, joined together in a unique partnership to align the high-tech innovation capabilities of McLaren (particularly in Formula 1) to GSK’s strengths in manufacturing, R&D, and nutritional research.

GSK was able to learn from McLaren’s Formula 1 “Mission Control,” which is a unit that uses predictive analytics to direct decision-making to drivers. They used it to develop a similar system to improve and accelerate decision-making around issues such as wholesaler stocking and inventory management.

They also worked together to develop two formulations of Lucozade and Maxinutrition after GSK discovered that drivers lose more than 3kg of perspiration during an F1 race. It is essential that the driver retains 1 liter of fluid to effectively drive during the race. One is a “hydration formulation” for pre-race hydration and the other is a “race formulation” to enhance endurance during a race.

Although GSK and McLaren are in different industries, they were able to partner together and leverage each other’s strengths to develop innovative solutions for their companies.

Microsoft and Makerbot (related industries) 3D printing is marked as one of the biggest trends of the next few decades. Microsoft have partnered with Makerbot, a leading and innovative 3D printing company, to help facilitate the adoption of 3D printers and keep their company ahead of the game.

This partnership means that Makerbot’s 3D printers are now available for purchase in Microsoft stores, hence increasing their distribution, and it has allowed Microsoft to grab market share in the growing 3D printing market space.

Diageo and SABMiller (competitors)Diageo, the world’s largest distiller, and SABMiller, the world’s second-biggest brewer, have partnered together to work on sustainable barley production in Africa. It is estimated that agricultural production has the potential to grow from US$313 billion to $1 trillion by 2030 in Africa, and both parties are working together on innovative solutions for sustainable production.

MAC Cosmetics and Rihanna (individual) Leading beauty brand MAC Cosmetics partnered with pop-star Rihanna to develop a line of cosmetics for their stores. Rihanna has been called their “creative partner” in this partnership to together work on developing four different color collections. Not only will this initiative add a new line of fresh products to MAC Cosmetic’s portfolio, but it has also turned Rihanna into a “beauty entrepreneur,” making it a win-win situation for both parties.

Marks & Spencer and Oxfam (charity) Marks & Spencer, a British supermarket chain, partnered with charity organization Oxfam as a way to achieve its sustainability goals. They invented “schwopping,” a clothes drop in stores that allows for customers to donate unwanted clothing before doing their groceries. This has resulted in 10 million garments being collected for Oxfam, which supports people living in poverty.

Hilton and Global Soap Project (non-profit) Hilton Worldwide partnered with non-profit organization Global Soap Project to reduce waste and address disease prevention by repurposing and redistributing hotel soap. As part of the partnership, the Hilton uses more than 3,900 of its properties to donate partially used soap. This is an example of two organizations coming together to develop an innovative solution to a problem.



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Analyze your product or service portfolio. Identify those that would benefit the most from a boost from an external firm.

Get specific. With joint collaborations, it’s best to be extremely detailed about why you need to develop a partnership. You will create a more focused search rather than spread the net too wide.

Start a “eureka” network. Get in touch with other business leaders you know, and use it as a forum to share ideas and innovations. It could become the beginning of a fruitful collaboration.

Target associations. Industry associations are a great place to start looking for specific partners. However, don’t limit yourself to your own industry—think beyond your industry (refer to the GlaxoSmithKline and McLaren partnership on page 9) as you can leverage the strengths of organizations outside of your industry.

Conduct a “Dream Partner” brainstorm. Call for an ideation session where the challenge is to generate a comprehensive list of potential partners for your company. Be provocative and challenge people with questions like these.

> Who would be our dream/ideal partner?> Who would we have to partner with in order to make our competition jealous?> What markets or customer segments should we target that we do not currently? Who’s the BEST firm to

give us an IMMEDIATE foothold there?

3. joint collaborations (continued)Here are some tips to get you moving forward if you’re considering joint collaborations. Use the check boxes to indicate the tips relevant to you. Use the blank spaces at the bottom of the page to write in your own.

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4. open innovationDevelop or access an open marketplace to share research, technology, intellectual assets, and ideas.

Here, companies develop an open-collaboration model using the Internet as a gathering place to share their innovation treasure chest for all to see. The goal is to dramatically increase the possibility of partnerships by developing an online marketplace of their intellectual assets and also using the Internet to harness the wisdom of crowds. New network technologies such as social media have allowed access to groups of individuals and “communities” you can tap into to crowdsource ideas.

Procter & GambleProcter & Gamble’s “Connect + Develop” program is one of the pioneers of open innovation. Developed over a decade ago, the program has reached its goal of 50 percent of innovations coming from external collaborations. Other companies and entrepreneurs are invited to submit ideas, solutions, and technologies to P&G. For example, Swiffer Dusters was developed using a hand-held duster originally created by a Japanese company. Connect + Develop is a central part of P&G’s innovation strategy. More than 2,000 agreements exist between P&G and external entities, including governments, universities, and even competitors.

IBM alphaWorksalphaWorks is an open-source initiative that offers external software developers direct access to IBM’s emerging technology. Programmers can visit the alphaWorks website and download technologies at their earliest stage of development. In this model, IBM greatly increases the distribution of its nascent products, finds new usage ideas, and also collects in-use evaluation data.

Eli Lilly Eli Lilly developed an e-business venture called InnoCentive. Companies contract with InnoCentive as “seekers” and post their R&D challenges online. Scientists register as “solvers” to review online challenges and submit their solutions.

NASA Over the last century, governments have traditionally managed the innovation process themselves. However, government agencies such as NASA realize that in order to tackle some of the complex challenges in the world, they need to work together with stakeholders outside of government.

On the following page, we offer some tips to develop your own open network.

As part of NASA’s Open Innovation Program, NASA has collaborated with a number of organizations including the World Bank, Microsoft, and Google, on a project called

“Random Hacks of Kindness.” This growing initiative involves a community of over 5,500 innovators in over 30 countries who develop practical, open source technology solutions to solve real-world problems during hackathons. An example of one of the thousands of solutions that have come out of this is Bushfire Connect, an online bushfire crisis service that alerts Australians on bushfires.

Hackathons and contests are becoming increasingly popular methods for crowdsourcing ideas and solutions.

UnileverUnilever is asking customers, stakeholders, entrepreneurs, inventors, and the general public to submit ideas for a next-generation sustainable shower. Submitted ideas will then be voted on by the public, and winning ideas will win cash prizes. Unilever recognizes the potential of crowdsourcing to find solutions to complex challenges. There has not been radical innovations in the shower for many decades, and they hope to reinvent the shower by minimizing its environmental impact, whilst enhancing the user experience.



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Read. Pick up a copy of the book Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business by Jeff Howe to read up on crowdsourcing.

Create a website with a catalog of your organization’s works-in-progress. Invite the public and other organizations to comment, give feedback, and even rank the work.

Develop a smaller advisory board. If the openness of P&G and IBM makes you uneasy, you’re not alone. There are many organizations that are extremely hesitant about openly displaying their IP. If so, you can adopt a smaller, more personal approach to collaboration that can be just as effective. Consider creating an advisory board with executives from those organizations you’d like to partner with. This can act as a forum for sharing ideas and inspiration across different industries.

Create a “calendar of challenges.” Map out the questions or issues you’d like answered in the upcoming months. This should serve as the fuel for your open network, and should include ideas or problems you’re willing to share with the public (or with a select group of external firms).

Consider innovation “middle men.” Many service providers act as innovation brokers; they connect businesses that seek new ideas or solutions to their innovation challenges with those who can supply answers. Here are a few select companies:

> NineSigma links companies with scientists at university, government, and private laboratories.

> Yet2 calls itself an “online marketplace for intellectual property.”

> YourEncore Inc. connects corporations with retired scientists with many years of experience under their belt.

4. open innovation (continued)Considering an open innovation model? Here are some useful tips. Use the check boxes to indicate the tips relevant to you. Use the blank spaces at the bottom of the page to write in your own.

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Explore. Visit innovative platforms such as Quirky (www.quirky.com), Kickstarter (www.kickstarter.com), and Threadless (www.threadless.com) to explore different ways organizations are using crowds to create innovations.



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Regardless of which of the four models (described in the previous section) you employ, you need to strongly focus on execution. For most companies, there’s a big difference between a grand vision and the reality on the ground. By staying focused on results and execution, you can make a meaningful, lasting difference in your organization, and ensure that you’re driving innovation not just from internal R&D, but from the outside as well.

PART TWOIdentify Your Ideal External Partners



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The following are some important things to keep in mind as you consider blending external partnerships into your innovation model. They will be consistent themes throughout the following pages and are invaluable in helping you develop a plan for your organization.

There isn’t a single way to approach partnerships. The models we’ve described in the previous section are not mutually exclusive. In fact, as you may have realized, companies that have sophisticated partnership strategies like IBM and Microsoft use a blended approach, and take advantage of all of the four models outlined.

Patience is key. Remember, solidifying a partnership doesn’t happen overnight. Deals take time, effort, and initiative. The good news is that an increasing number of organizations are warming up to the idea, and you’ll find many motivated potential partners in your search.

Are you collaborating internally? Many companies find the cultural challenge the most difficult to overcome when they attempt external partnerships. This is because they can barely collaborate with internal teams, let alone a third party. It’s important to note that partnering is more of a discipline than an initiative. Consider starting small. Begin by having your internal teams collaborate on a project. Create a cross-functional team that crosses traditional boundaries in your organization, and iron out the challenges they face in this new environment.

Do your cultures mesh? A signed deal is only one side of the coin. For a partnership to be truly effective, it’s critical that you share the same vision, goals, and culture as your partner. A shared understanding is the most critical driver for successful partnerships, and it breeds trust and understanding.

A note about legal and IP concerns. As you develop a partnership with an external firm, you may be thinking about how to protect your IP, and when your legal team should enter the negotiation process. There’s no easy answer. If you time it too early, you’ll slow the process down and affect the trust you’ve built with your partner. Wait too long, and you might hurt your interests in the long-term. The best thing you can do is meet with your lawyers before you approach potential partners. Get an understanding of the boundaries. How much can you commit to partners while still protecting your IP? What are the red flags you should look out for? Know the answers to these questions and you’ll be more effective.

Starting OutThings to Consider Before You Begin

Think about “give and get.” As you begin a partnership strategy, it’s critical to think about two things:

1. What can you “give” to a partner that is valuable? What strengths or assets do you have that you can offer to potential partners?

2. What do you want to “get” from a partnership? What are the fundamental qualities you need from an external partner to meet your innovation goals?

When you have a thorough understanding of these issues, you’ll have a better idea about who to approach and how to begin the conversation.



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To jump-start a partnership initiative, you must first define its goals and the parameters around which you’ll struc-ture a deal. Use the following tool to frame a partnership discussion with key members of your organization. In the end, you’ll have a “partnership brief” against which you can evaluate future partnership ideas.

This tool will help you identify:1. What can you “give” to a partner that is valuable?

What strengths or assets do you have that you can offer to potential partners?

2. What do you want to “get” from a partnership? What are the fundamental qualities you need from an external partner to meet your innovation goals?

Why use the tool?This tool will help you:

> Get a consistent understanding of your strengths and needs before you target potential partners.

> Focus your approach to target the most appropriate partners.

> Develop a “partnership brief” that clearly lays out what you’re willing to offer and receive in a partnership.

Partnership Tool #1: “Give and Get”How to Identify Ideal Partners Based on Your Business Needs



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Filled-In ExampleGive and Get Partnership Tool

give What can you give to a partner that is valuable? What strengths or assets do you have that you can offer to potential partners?

OUR PARTNERSHIP ASSETS NOTES PARTNERSHIP IDEAS

Intellectual Assets:

Number of patents/Proprietary technology/ Other IP

Full “Innovation”/R&D pipeline to leverage

Developed (or in-development) solutions to existing market problems

Employee skill sets (rare, specialized)

___________________________________

___________________________________

We have strong R&D specialty and funding in electronics.

Resources and Infrastructural Assets:

Strong R&D facilities, skills, and resources

Large, committed budget for innovation

Strong relationships with key suppliers

Efficient, low-cost production processes

Committed/dedicated team for partnership

___________________________________

___________________________________

$200 million through 2020

These assets are something we should really highlight.

JW’s team has innovation as a full-time responsibility.

Market Assets:

Strong brand name, excellent reputation

Strong presence in key markets (geographic markets, customer segments)

Marketing expertise

Distribution expertise/access to many distribution channels

Strong CRM practices, large market share

___________________________________

___________________________________

We have the market presence in the US that other companies could leverage.

European/Japanese compa-nies with strong R&D that need help in the US market. These could include:

> XYX

> YYT

> PQR

In this example, Company X is a large consumer packaged goods company that has lost its edge in R&D. Company X used both the “Give” and “Get” worksheets to identify potential partners, and what they can work together on.

How to use the toolWe recommend this tool be used by a small team that’s in charge of igniting the partnership efforts within your organization. Once you’ve made an initial decision, share the tool with a larger group (including senior management), to validate and gain consensus. Also make sure that you’ve checked in with your legal team so you’re prepared for red flags early as you begin to approach partners.

Included in the following pages are detailed instructions for using the tool, and a filled-in example so you can see what the finished worksheet looks like. Use these instructions and examples as a guide, and customize this tool for your own organization.



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getWhat do you want to get from a partner? What are the fundamental qualities you need from a partner?

REQUIRED PARTNERSHIP ASSETS NOTES/DETAILS PARTNERSHIP IDEAS






___________________________________

___________________________________

We need access to cutting-edge technology that will give us competitive advantage. Specifically, we need help in plastics molding and sealant technology.







___________________________________

___________________________________

Our R&D team is already stretched, and can’t take on any more projects.

Investigate partners who have well-developed production pro-cesses that we can leverage. Cost is going to be an issue, so efficiency will be key.

We’ve heard XYZ has an espe-cially efficient manufacturing process.

Market Assets:



Marketing expertise



___________________________________

___________________________________

We need a partner that can bring name recognition to this project.

Explore partners who require co-licensing or co-branding opportunities. Companies like QWERTY and DWT have already approached us and we can explore these options further.

P

P

P

P



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___________________________________

___________________________________








___________________________________

___________________________________




Market Assets:



Marketing expertise



___________________________________

___________________________________



> XYX

> YYT

> PQR


1 In this column we list a number of assets you can think about as you begin your partnership strategy. They are grouped under three major categories:

> Intellectual assets (patents, skill sets)

> Resources and infrastructural assets (budgets, teams)

> Market assets (brand name, distribution)

2 Under each category we’ve listed a number of specific assets you should consider using as a springboard. Your team should fill in other specifics that may be more relevant to your organization.

After you’re done, you can focus on the second “GET” worksheet.5

Instructions Tips for Using the Tool

3 Use the notes column to jot down your thoughts and list the specific assets for your company. You should be as detailed as possible so you can be clear with potential partners.

4 In the final column, list potential partners.Based on the assets you’ve specified, which organizations could you partner with for a successful collaboration? What will that collaboration be about?

Two worksheets are included in this guide. On the first, you will think about what you can GIVE in a partnership, and on the second, you will concentrate on what you want to GET out of a partnership. Which potential partners show up on both lists? Those are the companies you should consider targeting for partnerships.



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___________________________________

___________________________________








___________________________________

___________________________________




Market Assets:



Marketing expertise



___________________________________

___________________________________



P

P

P

P



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Give and Get Partnership ToolWorksheet #1


OUR PARTNERSHIP ASSETS NOTES/DETAILS PARTNERSHIP IDEAS






___________________________________

___________________________________







___________________________________

___________________________________

Market Assets:



Marketing expertise



___________________________________

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get What do you want to get from a partner? What are the fundamental qualities you need from a partner?







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Market Assets:



Marketing expertise



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Market Assets:



Marketing expertise



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> XYX

> YYT

> PQR




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Market Assets:



Marketing expertise



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Partnership Tool #2: Partnership ScorecardHow Can You Tell a Good Partner from a GREAT One?

Now that you know what to “give and get” from a collaborative relationship, how will you decide if a potential partner is right for you? Regardless of which assets you identify as your strengths and needs, or which organizations you identify as potential partners, you need an objective method to evaluate prospects and prioritize your efforts.

This Partnership Scorecard will help you evaluate each potential partnership quickly. Partners that score high using this tool should be a high priority since they meet most of the criteria that make an ideal partner.

Why use the tool?This tool will help you:

> Understand the factors that go into the making of an ideal partner.

> Evaluate potential partners using consistent criteria.> Identify high-medium-low priority-partners.

How to use the toolWe recommend that you hand this Scorecard to all teams/individuals who are assigned to look for potential partners. Ask them to use the scorecard every time they meet a prospective partner.



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Partnership ScorecardEvaluating potential partners

NAME OF POTENTIAL PARTNER: __________________________________________________________________

PARTNER APPEAL

PARTNER EVALUATION CRITERIA LOW MEDIUM HIGH NOTES:

1. Complementary Assets How appealing are the skills, resources, and assets this organization brings to the table? How aligned is it with our needs?

________________________________________________________________________________________________

2. Common Vision How closely does this organization share our goals and expectations regarding the partnership? (e.g., Time-to-market, sense of urgency, strategic priority, etc.)

_________________________________________________________________________________________________________ ________________________

3. Management/Team Commitment How committed and dedicated are the people from this organization to make this partnership a success?

________________________________________________________________________________________________

4. Business Viability How attractive is this organization’s prospects for the long haul? How solid are their long-term growth predictions?

________________________________________________________________________________________________

5. Partnership Track Record How successful/experienced is this organization with past partnerships?

________________________________________________________________________________________________

DECISION TO PURSUE THIS PARTNER FUTHER:

yes no maybe

Potential ways to partner with this organization________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

InstructionsTips for Using the Partnership Scorecard

(need to discuss further—use notes below)For each criteria, ask your team to think about how attractive this partner is. Ask them to mark an “X” against the LOW, MEDIUM, or HIGH boxes.

You may assign a number score for each rating. For example, use low (0), medium (3), high (5). The higher the score, the better the potential.

Ask your team to make an overall rating of the partner.

LOW priority: Scores LOW on many/all criteria. This partner goes to the bottom of your to-do list.

MEDIUM priority: Scores average. This partner is a “nice-to-have” and requires further discussion to see if it’s worth pursuing.

HIGH priority: Scores HIGH on many/all criteria. This is a “must-have” partner.

We list five important criteria by which you can evaluate a prospective partner. You may consider adding some of your own, depending on your needs.

2 3

4

1



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PARTNER APPEALPARTNER EVALUATION CRITERIA LOW MEDIUM HIGH NOTES:


________________________________________________________________________

2. Common Vision How closely does this organization share our goals and expectations regarding the partnership (e.g., time-to-market, sense of urgency, strategic priority, etc.)?

________________________________________________________________________________________________


________________________________________________________________________

4. Business Viability How attractive is this organization’s prospects for the long haul? How solid are its long-term growth predictions?

________________________________________________________________________


________________________________________________________________________

6. Other________________________

________________________________

________________________________________________________________________

7. Other________________________

________________________________

________________________________________________________________________

DECISION TO PURSUE THIS PARTNER: yes no maybe

Potential ways to partner with this organization:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Partnership ScorecardEvaluate Potential Partners

NAME OF POTENTIAL PARTNER: __________________________________________________________



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DEFINE

Use the four models and accompanying “Give and Get” tool to clearly articulate what you can offer and need from external partners.

MOBILIZE

Develop a “partnership task force” that is responsible for fostering collaboration.

MEASURE

Review progress and results to see if your partnership strategy is meeting objectives.

Suggested RoadmapHow to Roll Out an External Partnership Program

> Agreement with key stake-holders on the appropriate partnership models to pur-sue (venturing, academia, joint collaborations, open networks)

> Agreement with key stake-holders on what to “give” and “get” from partnerships

> A qualified list of high- potential partners and a clear understanding of how and why you want to part-ner with them

> Assigned resources

> Definition of role and responsibilities

> Goals, timelines, and tactics to meet objectives

> Finalization of joint- development projects with external partners

Improvements in some of these key metrics:

> A reduction in development time

> A reduction in development costs

> Acquisition of new skills or assets

> Access to new geographic and customer markets

> Faster time-to-market

AC

TIVITIES

OU

TPU

TS

)!!

If you’re looking to successfully develop a model of external partnerships, you need a methodical approach that focuses on execution, like the one presented below.



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Want to learn more about external partnerships? There is a lot of information in the public domain that can provide additional insight. Here, we provide some direction to make your search easier.

You can always get more practical advice and a clear approach to all your innovation needs at www.futurethink.com.

PART THREEResources to Learn More

Google ThisSearch Terms to Help You Learn More

Here are some Web search terms that can get you better results:

collaboration innovationinnovative partnershipsjoint development innovationopen collaborationVC directoryopen innovationcrowdsourcingcloud technologies



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On the following pages you will find the two worksheets of the “Give and Get” tool, as well as the “Partnership Scorecard.” You can distribute these worksheets within your organization, and print them out for brainstorming or strategy planning meetings.

PART FOURTools and Worksheets



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OUR PARTNERSHIP ASSETS NOTES/DETAILS PARTNERSHIP IDEAS






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___________________________________







___________________________________

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Market Assets:



Marketing expertise



___________________________________

___________________________________



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get What do you want to get from a partner? What are the fundamental qualities you need from a partner?







___________________________________

___________________________________







___________________________________

___________________________________

Market Assets:



Marketing expertise



___________________________________

___________________________________



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PARTNER APPEALPARTNER EVALUATION CRITERIA LOW MEDIUM HIGH NOTES:


________________________________________________________________________

2. Common Vision How closely does this organization share our goals and expectations regarding the partnership? (e.g., Time-to-market, sense of urgency, strategic priority, etc.)

________________________________________________________________________________________________


________________________________________________________________________

4. Business Viability How attractive is this organization’s prospects for the long haul? How solid are their long-term growth predictions?

________________________________________________________________________


________________________________________________________________________

6. Other________________________

________________________________

________________________________________________________________________

7. Other________________________

________________________________

________________________________________________________________________

DECISION TO PURSUE THIS PARTNER: yes no maybe

Potential ways to partner with this organization:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Partnership ScorecardEvaluate Potential Partners

NAME OF POTENTIAL PARTNER: __________________________________________________________



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Notes

advanced guide how to develop external partnerships for...

Documents