Alliances and partnerships are significantly impacting today’s business environment.
Currently alliances account for as much as 15% of the typical company’s market valuation
and up to 25% within the next five years. The global value of alliances will reach
between $25 trillion and $40 trillion in the next five years. Over the past decade,
strategic alliances of the world’s top 2,000 companies have consistently produced
an annual return on investment of nearly 17% -- a 50% higher ROI than
their non-alliance activities produce (source: Forrester Research).
As interdependency among businesses accelerates, the Internet will reward those
who proactively and strategically partner and align with value chain players. These
relationships are critical to providing a complete business solution.
Successful businesses, have distinguished between Transactional Partnerships vs.
Strategic Partnerships. Transactional Partnerships are NOT Strategic Partnerships
Transactional Attributes
Short-term commitment
No sharing of key capabilities
Contract driven and does not involve control
“Arm’s Length” - no alignment of strategy nor any unison
Strategic Attributes
Long-term commitment
Linkage based on sharing equity or on shared competencies
Shared strategy founded on reciprocal relationship
Increases value in marketplace (and puts pressure on competition)
Willingness to share and leverage core capabilities
Xenatus Global enables clients to establish Strategic Partnerships. Partnerships in the New Economy Require New Mindsets.
Old Economy
“Short-term” contracts usually were less than five years
One customer support channel
Destroy competition
Know your boundaries
Limit partnerships to minimize risk
Never commence negotiations without clearly defined BATNA (Best Alternative to Negotiated
Agreement)
New Economy
Short-term contracts are at times day-to-day
Customer support both online and offline
Leverage competition
Know NO boundaries
“The more partnerships you broker, the less risky your partnerships”
Accept that there are no alternatives to some partnerships
THE XENATUS PATH TO STRATEGIC ALLIANCE SUCCESS
Alliances and partnerships are critical to providing a complete business solution.
In order to provide the most complete solution, Xenatus leads the client a five-step
process:
