Connecting with Others:The Ins and Outs of Strategic Alliances

By Paul TerlemezianTwitter: iFiveAlliances

http://ifivealliances.ning.comiFive Alliances, LLC

Greater Women’s Business Council

August 5, 2009

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Please ask me a question about

strategic alliances

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Paul Terlemezian, Founder of iFive Alliances, LLC - 2003

• 2008 President ASTD Atlanta, 2009 Board of Directors

• TAG (Technology Association of Georgia) Leadership Council, 2009 BOD

• TAG WLS (WorkPlace Learning Society Founder and Current Chair– 2008)

• ASAP (Association of Strategic Alliance Professionals) Affiliate Chair- Southeast Chapter

• Guest Speaker (Atlanta IT Alliance, Institute of Management Consultants, Vistage, Managing Your Business as an Asset (TAG) , C-Level Enterprises, 2008 Supplier Summit, BrainTrust, LearnTrends)

• DEC, IBM (Catapult Division), KnowledgeWare (Sterling Software), Caliber, Media1st, iLearning

Summary Background

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Today’s Outline

1. Differentiation via Alliances (Go to Market = Attitude; Imagination)

2. The Sixteen Types of Alliances and When to Use Them (Power = Choice; Impact)

3. The Eight Success Factors to Assure the Success of an Alliance (Tools = Confidence; Integrity)

4. The Six Methods of Finding the Best Alliance Partners for Your Business (Success = Execution; Implementation)

5. Alliances Business Plan (Accountability x Relevance = Sustainability;

Income)

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Differentiation

1. Capabilities

2. Risk Mitigation

3. Terms and Conditions

4. Convenience

5. Intangibles

6. Price

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Differentiation Model

Prospect Your Offering

Installed Competitor

Potential Competitor

Prospect Expressed Interest

Capabilities

Risk Mitigation

Terms and Conditions

Convenience

Intangibles

Price

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Getting Your Foot in the DoorWhich Door? Three Choices

• Front Door – To win new business when you have a 3 to 1 advantage

• Side Door – To win new business when you have an alliance and combine to create a 3 to 1 advantage.

• Back Door – When you have an alliance with a company that is:– Already doing business with your prospect– Willing to include your offering as part of their

existing offering

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The Eight Success FactorsTrusted Partners, by Jordan D. Lewis

1. A priority mutual need2. Interpersonal relationships3. Top executives are involved4. Mutually agreed upon objectives5. Safeguards6. Commitment7. Willingness to evolve8. Continuity is evident to clients

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Sixteen Types of Alliances

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Strategic Alliances

Other Party Interest

Decision Role Wallet

Product

(traditional)

Price Dependable Customer

Process

(consultative)

Total Cost Consultant Client

New Value

(collaborative)

Profit Expert Client

Added Value and Awareness

(strategic)

Differentiation Market Maker Third Party

Copyright 2009 iFive Alliances, LLC

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Sixteen Types of Alliances

1. Awareness2. Added Value

4 TypesAwareness Value Add & awareness

Value Add

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Sixteen Types of Alliances

Control

Investment

Awareness

Added Value

Value Add & Awareness

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Sixteen Types of Alliances

Control

Awareness

AGENT

Value add & awareness

VAR

Awareness

DIRECT

Value add & awareness

ACQUISITION

COLLABORATION

Value add

SELLING

PARTNER

INTERNET

Value add

JOINT VENTURE

Investment Awareness

SPONSOR

Value add & awareness

INTEGRATOR

Awareness

RETAIL

Value add & awareness

FRANCHISE

LEAD SOURCE

Value add

CONSORTIUM

DISTRIBUTOR

Value add

OEM

Copyright 2004, iFive Alliances, LLC

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Six Methods for Finding Alliance Partners

1. Compelling Events (Triggers)

2. Discipline of Market Leaders

3. Whole Product

4. Customer Learning Curve

5. Segmentation

6. Good to GreatCopyright 2004, iFive Alliances LLC

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Compelling Events (Triggers)

What have they been for your customers?

Who knew about them before you and your competitors?

How can you help those that knew?

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Discipline of Market Leaders, Treacy and Wiersema

1. Operational Excellence – the lowest cost, most readily available product

2. Product Leadership – Simply the best

3. Customer Intimacy – The best for you, dear customer

What’s your brand?

Are you willing to expand via alliances?

Why would the partner want to do this?

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Whole Product

In Crossing the Chasm, Geoffrey Moore writes:

“There is a gap between the marketing promise made to the customer – and the ability of the shipped product to fulfill that promise. For that gap to be overcome, the product must be augmented by a variety of services and ancillary products to become the whole product.”

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Customer Learning Curve (CLC)

The Customer Learning Curve, Hellman and Burst

Learning about

Deciding to buy

Purchasing

Experiencing success

Continuing to buy

Which of the eight steps in the CLC will provide alliances?

(Need, Awareness, Access, Motivation, Purchase, Use, Value, Loyalty)

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Segmentation

•Heterogeneous market into homogeneous segments

•Separate marketing programs for each segment.

•Measurable, large, reachable, responsive, stable

•Geography, economic factors, existing loyalties, industry, company size, intended use of product

Good To GreatBy, Jim Collins

First who – then what!

22This picture was drawn by Erika Aoyama on February 17, 2003.

“Trust is Mightier than the Pen”Paul Terlemezian, frequently since 2003

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Alliances Business Plan

1. Goal (How much revenue and in what defined interval)2. Strategy (How it will be accomplished)3. Success Factors (From Jordan Lewis)4. Tactics (Three to Five per Success Factor)5. Responsibility (Who will execute each tactic)6. Measurement (Include intervals and review meetings

with predefined dates and agenda)7. Rewards (Commissions, Co-ops, Overrides, Tangibles)8. Contingency Plan (If… then… predetermined)

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The Secret to Financial Independence

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