partnering strategies - classiccmp · 1467_07_2000_c1 © 2000, cisco systems, inc. 2 partnering...

1© 2000, Cisco Systems, Inc. 1467_07_2000_c1

Partnering PartneringStrategiesStrategies

Relationship Building to WinRelationship Building to Win

Steve HarmonSteve HarmonCisco Systems - Sr. Manager, Strategic AlliancesCisco Systems - Sr. Manager, Strategic Alliances

170 W 170 W Tasman Tasman Drive, San Jose, CA 95134Drive, San Jose, CA 95134Phone: 408-853-9143, Fax: 408-526-8092Phone: 408-853-9143, Fax: 408-526-8092

SharmonSharmon@@ciscocisco.,com.,com

21467_07_2000_c1 © 2000, Cisco Systems, Inc.

Partnering PerilsPartnering Perils

“

”

Managing strategicpartnerships with no specificwhole product in view is nota bad strategy, it is dreadful

Geoffrey A. MooreInside the Tornado


Shared DestinyShared DestinyShared Destiny

SharedVision

Short-Term“Win-Win”

Long-Term“Win-Win” Chemistry

NewBusiness

NewNewBusinessBusiness

EcosystemsEcosystems


AgendaAgenda

• Alliance Strategy• Alliance Management• Challenges• Examples


Alliance StrategyAlliance Strategy

5© 1999, Cisco Systems, Inc. Course Number1467_07_2000_c1


Strategies for Creating GrowthStrategies for Creating GrowthOpportunitiesOpportunities

• Increasing Primary Demand• Alliance Breakaway• Entering New Tornado Markets

– Inflection Points• Technology• Regulatory• New Buyer Groups


Tornado MarketsTornado Markets

StreamingMedia

Optical

Wireless

VoIP

StorageArea

Networks


Strategic Growth Tool-setStrategic Growth Tool-set

JointMarketing/

Sales/OEM

Alliance/JV

Investment

Acquire

Strategic ValueStrategic Value

Com

mitm

ent

Com

mitm

ent


Cisco StrategyCisco Strategy


EcosystemsEcosystems

•• Dynamic alliance linkagesDynamic alliance linkages•• Focus on horizontal business modelFocus on horizontal business model•• Shared knowledge accelerates multi-Shared knowledge accelerates multi-

partner solution integrationpartner solution integration•• New solutions delivered to marketNew solutions delivered to market

fasterfaster


Strategic Alliances ValueStrategic Alliances Value

Value was created bydeveloping interoperabilityand links between differenttechnologies

Value is now created by linkingbest-of-breed alliances todevelop ecosystem solutionswhich rapidly accelerate marketadoption

Cisco Is Uniquely Positionedto Create and Manage These LinksCisco Is Uniquely Positionedto Create and Manage These Links


Customer ValueCustomer Value

• End-to-end solutionoffering• Faster time to market• Best-of-breedsolutions from industryleaders• Reduced total cost ofownership


Alliance ValueAlliance Value

• Wider audience reach• Faster time to market• Increased revenue,decreased costs• Higher customersatisfaction

14© 2000, Cisco Systems, Inc. 1467_07_2000_c1 14© 2000, Cisco Systems, Inc. 1467_07_2000_c1

AllianceAllianceManagementManagement


ObjectiveObjective

• Leadership role in partneringvision and direction

• Success is determined bymarket impact of entirepartnership lifecycle

• Create lasting/long-term value


StrategyStrategy

•• Leading proponent ofLeading proponent ofpartnering objectivespartnering objectives

•• Process leadership toProcess leadership toAlliance peers beyondAlliance peers beyondtransaction and throughtransaction and throughpartner lifecyclepartner lifecycle

•• Provide businessProvide businesssuccess metricssuccess metrics


Why Alliances Why Alliances Why Alliances

ComplementaryProduct or

Technology

ComplementaryProduct or

TechnologyTime-to-Market

Time-to-Market

InvestmentScale Relative to

Return

InvestmentScale Relative to

Return

RiskReduction Or

Learning

RiskReduction Or

Learning

Joint SolutionSet Fit

Joint SolutionSet Fit

HighBarriers to

Market Entry


AllianceAllianceFramework CriteriaFramework Criteria

Market EnablingTechnology and

SolutionsDevelopment

StrategicFit

Joint InvestmentInfrastructure

CollaborativeBusiness

Development

PartnershipRevenue

Commitment

Alliance Framework:Building Sustainable

Competitive Advantage


Measuring SuccessMeasuring Success

• Expansion of marketand resource coverage

• Growth in new andemerging markets

• Customer, alliance,and field satisfaction

• Revenue growth


ChallengesChallenges



ChallengesChallenges

Lack of NewInitiatives andEvolving Goals

Misaligned or Poorly Understood Goals

Organizational Structure to Implement

Lack of Short-Term Wins

Focusing on Each Other Instead ofCompetition or the Customer

Too Great of Cultural Gap

Too Much Imbalance



ExamplesExamples



HP RelationshipHP Relationship

Fill Out Solution Delivery Model

Fill Out Solution Delivery Model

Better Understanding ofCustomer Problem andExecutive Positioning


Partner to PursueNew Markets

Partner to PursueNew Markets

FutureTechnology Sharing


IPNetworks Expertise


New Services PackagingNew Services Packaging

Critical AccountPenetration

Critical AccountPenetration




Operating StructureOperating Structure


Motorola RelationshipMotorola Relationship

Knowledge about WirelessKnowledge about Wireless

Leverages Core Investment inPacket Technologies and Technical

Support Infrastructure withMaximum Upside

Leverages Core Investment inPacket Technologies and Technical

Support Infrastructure withMaximum Upside

Block VerticallyIntegrated Competitors


Global Integration PartnerGlobal Integration Partner

Knowledge aboutIP and Packets

Knowledge aboutIP and Packets

New World NetworksServices Business

New World NetworksServices Business



Support in Financingif Critical

Support in Financingif Critical

Global Logistics CapabilityGlobal Logistics Capability

Overcome Patent Barriers to Entryand Lead on Contractual Liability

Overcome Patent Barriers to Entryand Lead on Contractual Liability


Cap Gemini Ernst & YoungCap Gemini Ernst & Young

Fill Out SolutionDelivery Model

Fill Out SolutionDelivery Model

Preempted CompetitiveTake-Out and

Assure Capacity

Preempted CompetitiveTake-Out and

Assure Capacity

Strong SPLOB/EMEA andeBusiness US Presence

Strong SPLOB/EMEA andeBusiness US Presence





Early Access to NewTechnology for Practice

Development

Early Access to NewTechnology for Practice

Development

Global Cisco Demand Creationand Customer Base

Global Cisco Demand Creationand Customer Base

New Services PackagingNew Services Packaging


SummarySummary


Partnering Critical to Success

Delivering on Customer Needs

Win-Win Strategy


In the 80’s it was companies that had effectiveinternal product development.

In the 90’s it was companies who could mixinternal development with the ability to

effectively acquire and integrate.

In the new millenniumIn the new millenniumit will be thoseit will be those

companies that can docompanies that can dothe above andthe above and

effectively partner.effectively partner.John ChambersCEOCisco Systems

partnering strategies - classiccmp · 1467_07_2000_c1 © 2000, cisco systems, inc. 2 partnering...

Documents