Eduardo Vasconcellos
STRATEGIC ALLIANCES:Conceptual Framework
BOCCONI - USP WORKSHOP – Milano,September 24, 2009
BAGLIERI, Vincenzo SDA BocconiBRUNO, Marcos University of São PauloVASCONCELLOS, Eduardo University of São PauloGRANDO, Alberto SDA Bocconi
Eduardo Vasconcellos
Research program University of Bocconi – Italy and the University of Sao Paulo – Brazil in the area
of MOT
Eduardo Vasconcellos
MOT at University of São Paulo
Program begun in 19731500 publications207 master and doctoral thesis82 booksAgreements with Harvard, Bocconi, Columbia, Vanderbilt, Cambridge and otheruniversities
Eduardo Vasconcellos
Alliances / Partnerships
Agreements between companies in order to support the partners to reach their goals and
strategies
(adapted from Harrigan,1988)
Eduardo Vasconcellos
FORMAL
-- AGREEMENT WITHOUT INVOLVING $ AGAAGREEMENT WITHOUT INVOLVING $ AGA--NIPPON NIPPON
-- AGREEMENT INVOLVING $AGREEMENT INVOLVING $
•• WITHOUT CREATING A NEW ENTITY WITHOUT CREATING A NEW ENTITY POHANG IRONPOHANG IRON--NIPPON STEELNIPPON STEEL
•• CREATING A THIRD ENTITYCREATING A THIRD ENTITY–– ““JOINT VENTUREJOINT VENTURE””••Syngenta ( Syngenta ( NovartisNovartis--AstrazenecaAstrazeneca))••Autolatina ( Autolatina ( VWVW--FordFord))
INFORMAL – Hippel (mini mills) and Allen
Types of Alliances
Eduardo Vasconcellos
1 1 –– COMERCIAL COMERCIAL ––Pfizer Pfizer CataflanCataflan/Novartis /Novartis ZitromaxZitromaxNovartis Novartis -- ScheringSchering
2 2 –– COMERCIAL AND MANUFAT. COMERCIAL AND MANUFAT. SabSabóó//BrussBruss
3 3 –– COMERCIAL, MANUFACTURING ANDCOMERCIAL, MANUFACTURING ANDR&DR&D&E &E –– Xerox/FujiXerox/Fuji
Types of Alliances (cont.)
Eduardo Vasconcellos
ALLIANCES IN THE INFORMATIC AND TELECOMMUNICATIONS SECTORS
NIPPON ELETRIC
COMPANY
NIPPONTELEPHONE
TELEGRAFHY
MITSUBISHIGROUP
IBM
PLESSEV
MITISUIAND CO.
ERICSSON
HITASHI
RCA AT&TSONY
KOKUSAIDENWA
VENSHINHUGUES
AIRCRAFT SPERRY
FUJITSU
MOTOROLA
HONEYWELLBULL
ICL
LUCKYGOLDSTAR
RICOH
SHARP
C. ITOHNISSHO IWAI
OLIVETTI
XEROX
PHILIPS
KIOCERA
MITSUKO
CIT/ALCATEL
ITAUTELSIEMENS
GTEINTEL
MITTEL
ROLMCOSMOS 80
MCI
TOSHIBA
ALLIANCESEXISTANTES
ALLIANCESEN PROVET
FONTE: DUSSAUGE, PIERRE E OUTROS“REVUE FRANÇAISE DE GESTION” - MARS - AVRIL - MAI 1988
STET
Prof. Eduardo Vasconcellos
JOINT ACTIVITIES (EQUITY BASED)
JOINT ACTIVITIES (NON-EQUITY BASED)MARKETING-MANUFACTURING PERSONNEL EXCHANGES
IBM
ADVANCEDMICRO
DEVICES
MATRA-HARRIS INTEL
PHILIPS
RCA MOTOROLA
NATIONAL
TEXASINSTRUM.
HP VLSI -TECNOLOGY INC
ROCKWELL
VITELIC
LSI-LOGIC
ZILOG
TOSHIBA
YOKOÇAMAELECTRIC
SONY
MITSUBISHIELECTRIC
SHARP
RICON
OKI ELECTRIC
NIPPON
FUJITSU
ICL HITASHI
THONSON-CSF
SGC-ATES
SIEMENS
PLESSEY
UNITED STATES
JAPANEUROPE
FONTE: COLMEN, 1988
TECHNOLOGICAL ALLIANCES IN THE SEMICONDUCTOR INDUSTRY
Eduardo Vasconcellos
Video conference, SkypeFax, Palm, Notebooks, Data BaseTelecommunicationsInternet, Intranet
Support Technologies
Eduardo Vasconcellos
Friends, I’m sorry! This is not what you ordered, but everyone is eating fettucine until we fix the
computer.
Eduardo Vasconcellos
Mam, stay calm. Right now our state-of-the-art computers are working on eliminating or worsening your problem.
Eduardo Vasconcellos
EMBRAERALLIANCES
Eduardo Vasconcellos
Eduardo Vasconcellos
Alliances by sector
Fonte: Strategic Data Corporation; análise da Booz-Allen & Hamilton
5.539 Alliances in the U.S
Transportation 186
Communication 752
ComputerSoftware 1543
Electronic 343
BiotechnicalandMedical 1037
Energy 108
Consumption andRetail 528
Industry 427
Services 363
Financial 252
ALLIANCES ARE RELEVANT IN ALL SECTORS
Eduardo Vasconcellos
20
11
Profitability of companieswith large success in
making alliances.
Profitability of companieswith little success in
making alliances.
25%
20
15
10
5
0
Profitability of Companies and Alliances
Fonte: Levantamento da Booz-Allen & Hamilton da capacidade de institucionalização de alianças, 1997
Eduardo Vasconcellos
INTELALLIANCES
Eduardo Vasconcellos
INTELEcosystem Framework Ecosystem Framework –– MobilityMobility
Mobile End UserMobile End User
Application & ContentApplication & Content
MEU DeviceMEU Device
Service / content distributionService / content distribution
InfrastructureInfrastructure
Internet Internet IntranetIntranetHomeHome Ad hocAd hoc
Fixed LocationFixed Location RoamingRoaming
Uni
vers
ities
/Res
earc
hU
nive
rsiti
es/R
esea
rch
Cen
ters
Cen
ters
Gov
ernm
ent
Gov
ernm
ent
••ISVISV••SISI••Vertical App developerVertical App developer••SecuritySecurity••Operating SystemOperating System••Content provider/developerContent provider/developer
••Notebook ODMNotebook ODM••PDA ODMPDA ODM••Cell Phone ODMCell Phone ODM••LOEMsLOEMs -- NBNB••LOEMsLOEMs -- PDA+CPPDA+CP••MNC MNC -- NBNB••MNC MNC -- PDA+CPPDA+CP••Channel (Retail included)Channel (Retail included)
••Undergraduate /GraduateUndergraduate /Graduate••University LabsUniversity Labs••Business Schools (MBAs)Business Schools (MBAs)••Research centerResearch center
••Internet Solution Internet Solution ProviderProvider••AggregatorAggregator••Mobile OperatorMobile Operator••TelcoTelco••Digital Media Digital Media DistributorsDistributors
••Mobile operatorMobile operator••Broadband operatorBroadband operator••Cable TVCable TV••Hot spot builderHot spot builder••Equipment/solution Equipment/solution VendorVendor--WANWAN••Equipment/solution Equipment/solution VendorVendor--WLAN (AP+NIC)WLAN (AP+NIC)••Hot Spot LocationHot Spot Location
••FederalFederal••LocalLocal••Communications Communications Office/secretary/ministerOffice/secretary/minister••Science&TechnologyScience&Technologyoffice/secretary/ministeroffice/secretary/minister••Regulatory agencyRegulatory agency
••IT/IT ExecsIT/IT Execs••Small BusinessSmall Business
••TexpertsTexperts and Studentsand Students••MainstreamMainstream••Biz ExecsBiz Execs
Eduardo Vasconcellos
INFRASTRUCTUREINFRASTRUCTUREParticipation Value and
ImpactHow to manage
•Intel invests in these companies to create pilots.
•In some cases the company invests directly in the development of a concept Example: the host spot for technology, wireless broadband
Fixed OperatorMobile OperatorOperator ofbroadband cableTV Installer of hot spots WAN network equipmentsupplierWLAN network equipmentsupplierLocation (Hot Spot)
All these entities participate in the process of construction (equipment) and enabling (service) infrastructure
Eduardo Vasconcellos
Alliances and Competitiviness
Major global companies have an average of60 strategic alliances
35% of sales revenues were a direct resultof global alliances in 2002 (2% in 1980)
Price of stocks grows 1% with theannouncement of a new alliance
Study with 500 companies (1.572 alliances)Source: Sloan Management Review,
Eduardo Vasconcellos
R&D in cooperation
R&D – Individual mode100%
40%
20%
0%
80%
60%
France
JapanWestern Germany
England
United States
Source:Lewis, J.
Growth of Cooperative R & D versus Individual R & D
Eduardo Vasconcellos
Reasons for Failure
Unequal sizeUneven experience in business riskDifferent expectations regarding the returnon investment deadline Personal incompatibilities between teamsBreach of promisesConflicting styles of management – culture
(Source: K. (Source: K. HarriganHarrigan))
Eduardo Vasconcellos
Additionl Reasons for Failure
Hidden agendas
Changes in partners' strategies
Lack of a monitoring system of the healthof the partnership
Inadequate organizational structure
Eduardo Vasconcellos
Culture – JVs Finland - China
Difficult to gain the trust of the ChineseAmong the provinces Dongguan, Shenzhen andBeijing, the same law had different interpretationsand different periods of executionChinese complain that there was no transparencyon the costs of purchases of components and rawmaterialsCarrying out the contract has a different valuebetween Chinese and Finnish cultures.
Eduardo Vasconcellos
INTERNATIONAL TECHNOLOGY ALLIANCES:
The Parent-Subsidiary Relationship
IAMOT 2009. Orlando, Florida, USA. April 5-9, 2009
BAGLIERI, Vincenzo SDA BocconiBRUNO, Marcos University of São PauloGRANDO, Alberto SDA BocconiVASCONCELLOS, Eduardo University of São Paulo
THANK YOU