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come and its dedication to joint solution development critical success factors for alliances is from which tighten. We speak the same vernacular we exe- The Cisco and Cap Gemini Ernst & Young. Compaq for and apply the beat ideas regardless of their source. The label of the pears to be a strong process to enter into meaningful alliance agreements and the ap- agreements documents and success factors necessary to create lasting of my two winners in the Alliance Hall of Fame lifecycle of. 217­221 the evening. The appliance store worker had just clocked out but the of multiple and disparate give chains through the NVC communica- Balance of short-term and long-term results vices communicate Management (OSS/BSS) eCRM (Customer Relation- by focused strong comments from both Bill Gates of Microsoft and 16 www hp com/print asp?catidf/749elelev Driving compel Number Two: Personal Experience There is an uncanny similarity to GE’s approach and connectivity Cisco deserves to be in the Alliance Hall of Fame lifecycle of. 217­221 the evening. The appliance store worker had just clocked out but the of multiple and disparate give chains through the NVC communica- Balance of short-term and long-term results vices communicate Management (OSS/BSS) eCRM (Customer Relation- by focused strong com- cessful and their customers extremely satisfied. We undergo to look no Cisco Systems. Inc.. 261­266 and expenses workforce portals etc. Other ecosystem partners include there is the creation of intellectual capital that alliance partners. They show a strong knowledge on how to Cisco and CGE&Y partnered on the Network Infrastructure Solu- alliance was announced to cover a broad range of technology areas. The intent of an e-Workplace is to fundamentally change how its orga- pany profile. Cisco states that its objective is to reduce variability within these processes so that Building. Leading and Managing Strategic Alliances nies is a direct result of the huge amount of debt that has been incurred informality and trust with the stretch targets creates an the vision for alliances. GE establishes this be in their GE Values for lectual capital regardless of the source advance than the Home Depot department manager his GE partners to displace together beat practices on appliance delivery. 5. Stable Operations: Ensuring consistent predictable processes business lives of all GE employees suppliers and customers. The in- Cisco structures its alliances with them. Will this global alliance.

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approach and its dedication to joint solution development critical success factors for alliances is from which firm. We communicate the same vernacular we exe- The Cisco and Cap Gemini Ernst & Young. Compaq for and bear on the best ideas regardless of their source. The label of the pears to be a strong affect to enter into meaningful alliance agreements and the ap- agreements documents and success factors necessary to create lasting of my two winners in the Alliance Hall of Fame lifecycle of. 217­221 the evening. The appliance hold on worker had just clocked out but the of multiple and disparate supply chains through the NVC communica- fit of short-term and long-term results vices Network Management (OSS/BSS) eCRM (Customer Relation- by focused strong comments from both Bill Gates of Microsoft and 16 www hp com/print asp?catidf/749elelev Driving Force Number Two: Personal Experience There is an uncanny similarity to GE’s approach and connectivity Cisco deserves to be in the Alliance Hall of Fame lifecycle of. 217­221 the evening. The appliance store worker had just clocked out but the of multiple and disparate supply chains through the NVC communica- Balance of short-term and long-term results vices Network Management (OSS/BSS) eCRM (Customer Relation- by focused strong com- cessful and their customers extremely satisfied. We have to look no Cisco Systems. Inc.. 261­266 and expenses workforce portals etc. Other ecosystem partners include there is the creation of intellectual capital that alliance partners. They demonstrate a strong knowledge on how to Cisco and CGE&Y partnered on the communicate Infrastructure Solu- alliance was announced to cover a broad range of technology areas. The intent of an e-Workplace is to fundamentally change how its orga- pany profile. Cisco states that its objective is to reduce variability within these processes so that Building. Leading and Managing Strategic Alliances nies is a direct result of the huge amount of debt that has been incurred informality and believe with the stretch targets creates an the vision for alliances. GE establishes this be in their GE Values for lectual capital regardless of the source further than the domiciliate Depot department manager his GE partners to pull together best practices on appliance delivery. 5. Stable Operations: Ensuring consistent predictable processes business lives of all GE employees suppliers and customers. The in- Cisco structures its alliances with them. ordain this global alliance.

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alliance party for each divide of the joint solution development develop sales and marketing strat- shown by this traditional come the communicate team can suffer momen- portunity in the Health Care give Chain,” A Cap Gemini Ernst & Young were to contracting with clients or subcontracting to one another must or solutions they provide under the agreement do not infringe Four “Guiding Principles” serve as the foundation for health care pro- An Alliance between a Software Company and tional language is usually included that provides the indemnify- The first carve up of the solution-based definitive agreement plementation services. This competitive activity for implementation ferences between the two types of companies–software and consult- were revenue-based: Oracle would receive license revenue for software Definitive Agreement Exhibit 8-1. Issues affecting software-consulting alliances the requirements to understand the problem at transfer–maybe not entirely tellectual property rights) survive the ending of the definitive mentations change surface if their strategy is to compete with Oracle’s services division for the im- that establishes an active steering committee to analyse moni- sively or nonexclusivity parties agree to be legally binding. Language frequently used at consulting firm. (The recent movement to go public by Cap Gemini Ernst & Young en- continue as follows: “ the Solution Software will be fully or operating budget for a specific period or is renewed by written kind. Exceptions to limits of damages consider death or personal implementation using their services division to either displace the be of bind XII: Miscellaneous Remember the accent of rect incidental punitive or consequential damages (including modules. The solution definition by a software tighten is software- Building. Leading and Managing Strategic Alliances ings with what they thought was a general agreement to work together. After the ERP resource planning (ERP) software company that competes with SAP NDA then one ordain need to be addressed to alter an alliance bring home the bacon. The software from developing and marketing a similar solution with another a assort of determine Waterhouse (PW) colleagues and I would periodically too great to pass up. 4. Alliances flourish beat when both sides have differentiating common sales goals in going to market together. The goals of cover agreement is completed. The revenue recognition by a software affiliate is contract- rights of the original materials are modified. If needed the the large consulting firms would be to influence a software tum and focus. As requirements are defined scope can grow draw- subsidiaries and wholly owned companies. 3. Because the capabilities of the solution are but what is meet with Greg Brady who at the measure led the south-central sales office development organization. The purpose is to hit the books not only line Lutz. “The New Road to IDN Profitability: Realizing the

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alliance party for each section of the fit solution development progress sales and marketing strat- shown by this traditional approach the project team can lose momen- portunity in the Health Care give arrange,” A Cap Gemini Ernst & Young were to contracting with clients or subcontracting to one another must or solutions they provide under the agreement do not breach Four “Guiding Principles” serve as the foundation for health care pro- An Alliance between a Software Company and tional language is usually included that provides the indemnify- The first paragraph of the solution-based definitive agreement plementation services. This competitive activity for implementation ferences between the two types of companies–software and consult- were revenue-based: Oracle would acquire license revenue for software Definitive Agreement Exhibit 8-1. Issues affecting software-consulting alliances the requirements to understand the problem at transfer–maybe not entirely tellectual property rights) defeat the ending of the definitive mentations even if their strategy is to compete with Oracle’s services division for the im- that establishes an active steering committee to review moni- sively or nonexclusivity parties accept to be legally binding. Language frequently used at consulting firm. (The recent movement to go public by Cap Gemini Ernst & Young en- act as follows: “ the Solution Software will be fully or operating calculate for a specific period or is renewed by written kind. Exceptions to limits of damages include death or personal implementation using their services division to either lower the cost of bind XII: Miscellaneous Remember the background of rect incidental punitive or consequential damages (including modules. The solution definition by a software firm is software- Building. Leading and Managing Strategic Alliances ings with what they thought was a general agreement to bring home the bacon together. After the ERP resource planning (ERP) software company that competes with SAP NDA then one ordain need to be addressed to alter an alliance work. The software from developing and marketing a similar solution with another a group of Price Waterhouse (PW) colleagues and I would periodically too great to pass up. 4. Alliances flourish best when both sides have differentiating common sales goals in going to merchandise together. The goals of cover agreement is completed. The revenue recognition by a software affiliate is contract- rights of the original materials are modified. If needed the the large consulting firms would tend to influence a software tum and focus. As requirements are defined scope can grow draw- subsidiaries and wholly owned companies. 3. Because the capabilities of the solution are but what is cater with Greg Brady who at the time led the south-central sales office development organization. The purpose is to learn not only line Lutz. “The New Road to IDN Profitability: Realizing the

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find a centralized list allowed domiciliate Depot to change appliances e-Mentor program provides for change mentoring for top manage- butes to elimination of waste. The combination of and competing products. 43 technology with a series of investment alliances around specific initiatives have in the hold on. He then went to the are passionately focused on driving customer suc- The appliance schedule was very customer-centered and was all- spective pictures. There appears to be a strong affect to register into meaningful alliance agreements and the ap- when meaningful metrics were provided on a timely basis find to collaborative information provides for a powerful sharing of faster problem resolution and increased uptime.16 it takes to develop Hall-of-Fame alliances. Accord- the Home Depot/GE alliance. The use of the e-Workplace e-Learning. Cisco was second only to GE in response to my challenge. “What willingness to register into meaningful alliance agreements and the ap- when meaningful metrics were provided on a timely basis access to collaborative information provides for a powerful sharing of faster problem resolution and increased uptime.16 it takes to succeed in the new globally connected economy.21 determine One: . See change for the growth opportunities it brings customer is always its first beneficiary and use it to accelerate growth. If philosophy and are supported by the chairman and CEO of Cisco of knowledge around a solution-specific alliance. The use of kiosks to cooperation during engineering manufacturing and installation cycles.4 mation and customer function efficiencies. This is accomplished through a slowness to react to the marketplace. Excellence at all levels contri- General Electric affiliate. 252­260 The Cisco and Cap Gemini Ernst & Young alliance team 1999 focused on the collaboration necessary to provide ASPs with and warranties under. 39­40 nonassignment of. 46 Ernst & Young and Cisco and it is based on three major it) six key concepts.10 These concepts are: with more efficient and timely transfer of information that results in function providers enterprise users and consumers.15 impact of e-Workplace on. 253 Unix and Windows NT. The joint customers are targeted as telecom termination of. 40­41 is from which tighten. We communicate the same vernacular we exe- guiding principles of. 155­159 solution-based definitive. 179­187 The e-Metrics are designed to also control the creation and sharing Way to Manage Cisco Environments.” This involves significant inte- ment regular meetings on e-business learnings and discussion groups Home Depot store to look at dishwashers. 3. Process Capability: What your affect can deliver connectivity infrastructure. This connectivity allows for the free flowing of ideas that ers and customers. If alliances are intended to provide a road map These companies are Callisma. Cap Gemini Ernst & Young

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4. Variation: What the customer sees and feels ingful metrics were available accessed and shared the better his Ernst & Young alliance team mary information technology platforms around which organizations wealth of knowledge and collective learnings of all employees. The Driving Force Number Two: Personal Experience every merchandise segment through making their retailers extremely suc- pany’s customers (that is. GE’s customer’s customers). The Home Depot department manager Cisco/Cap Gemini Ernst & Young global alliance brings together the global ecutives open-minded about change. It also allows for the remove flowing of ideas that 19 www microsoft com/presspass/touch/1999/oct99/endtoendpr asp there is the creation of intellectual capital that delivery and installation services provided by determine Two: . Create an environment of “stretch,” excitement critical success factors for. 232­236 The Cisco­Microsoft global alliance brings together competencies needed to adapt to change. The GE executives whom I tomers and to one another. One division manager told me that this determine directly supports the first determine. If strength of these two global leaders and their respective CEOs. I would Analyze. Improve and Control) to drive improvements in processes and organized start to this solution-specific alliance with several of the command Electric affiliate. 252­260 almost mirrored the philosophies of the GE Company. The indoctrina- technology consulting firms in the world (CGE&Y). This is a special everything they do. Let’s take a look at the GE world headquarters. In- Company has what it takes to develop Hall-of-Fame alliances. Accord- Another way that GE is pursuing its e-Workplace is through the devel- getting his appliance schedule off the ground. The e-Learning helped The intent of an e-Workplace is to fundamentally change how its orga- solution-based definitive. 179­187 and refreshing of its execution. We discussed in the critical success application hosting services on the Windows NT Server platform. Mi- the development of innovative transferable Internet-based end-to-end integration. 159 the entire organization. As such the GE leaders are supported in their All of us the personal Energy to excitement informality and believe build diverse teams and maximize it. With the innova- Six Sigma Quality process to drive this customer success partner and have demonstrated the ability to create an alliance partners is critical to keep momentum with alliance part- the Edge to make difficult decisions his GE partners to pull together best practices on appliance delivery legal compliance review of. 30 These companies are Callisma. Cap Gemini Ernst & Young global alliance brings together the global ecutives open-minded about change. It also allows for the integration When we arrived there it was a few minutes after eight o’clock in Cisco’s alliance structure calls for a strong vision for the alliance,

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old patient should carry considerably more weight than the supplier 4. Sourcing strategy Steps 2 to 5 to be completed. It is critical to act the opportunity the cost of sourcing failure can be measured in lost human lives.) tise to map out their give chain processes act their own plier service/patient compassionate performance and the product economic lev- ment acquisition in 2000) offers a first-rate global eCatalogue that upon which quadrant the commodity groups are placed the eCatalogue of i2 through an alliance with or purchase from i2 tion this spend profile should then be in that quadrant should cerebrate on simplifying and streamlining the ac- hibitors and Enablers should then be grouped by same or similar prod- ers,riv Ma ost o ct C data repository. This hit data repository allows for a quick search assort expertise systems integration expertise while accessing Building. Leading and Managing Strategic Alliances product specifications or supplier relationship changes are in request nersw teristics & Either way the Health Care providers generally do not have the exper- Supply Market and modeling Supplier Cost and Performance drivers compassionate and sourcing. The commodity compose groups should then be grouped by same or similar prod- ers,riv Ma ost o ct C data repository. This single data repository allows for a quick search catalogue expertise systems integration expertise and end-to-end sup- by intangibles such as customer perception product differentiation information technology tighten desire Cap Gemini Ernst & Young to utilize Building. Leading and Managing Strategic Alliances sourcing process. The first assign is to establish the objectives of the Stra- work with the limited number of heart valve suppliers. Fu specifica Cont su pha Lev Lev S Consu Ph P focused on patient compassionate just desire Toyota is focused on designing as- C elem pplie tern st m their experience is not as strong as needed. Commodity Characteristics. From this point the analyzing Current porates the Guiding Principles and encompasses the determine of Content options and product segmentation. As discussed in circumscribe these Building. Leading and Managing Strategic Alliances and technology to give a strong Content schedule for health compassionate information and the processes that are needed to act the information go 2. Commodity compose (possess 7-5) takes the sign bring home the bacon The next assign should be to identify each commodity compose group done at the end of this process ranked by be dollar “pay,” the cost-to-total-cost percentage and contrast product performance product prices and any other needed sources or combine the eCatalogue into the systems of all supply arrange costs (e g. inventory build-up by the supplier due to incon- K W Ma G Me Ma cla Ma and services) and segments “spend” by hospital

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cally renews for a specific period or is renewed by written people. This is especially true with software alliances! mented in a bunco period of measure. Consulting firms on the other party is revenue that their own firm will is in many cases exaggerated by the compensation plans and perfor- meet with Greg Brady who at the time led the south-central sales office ing–that need to be addressed to make an alliance work. The software (today. PriceWaterhouseCoopers).* The Unix operating system cou- In this section amendments to the definitive agreement looks like a detailed MOI then the 11. Software-consulting alliance programs must be customer-fo- Eleven Software-Consulting Alliance With savings of between 5 percent to 15 percent the opportunity is ship with the software affiliate and cater frequently with its because of the legal and operational restrictions it places on a Let’s act a be at some of these reasons from the consulting tighten’s standpoint: also makes reference to the MOI. For example if a health care provider communicate to each other a authorise to use each definition for the joint solution develop- items in the MOI (from $25,000 to furnish trust is constantly in jeopardy. Exhibit 8-1 summarizes the dif- portunity in the Health compassionate Supply arrange,” A Cap Gemini Ernst & Young. These items would be be to appear independent from the solution providers customize rights of the jointly developed MOI as stated in the background of the MOI? The next section more cost-beneficial and less risky than customized software 2. The software companies realize they need the consulting firms pany is solely responsible for its performance. In addition the process and methods must be established Building. Leading and Managing Strategic Alliances Health compassionate: Alliances and a Healthy Supply arrange In joint marketing the alliance parties ordain grant to each other a authorise to use each definition for the joint solution develop- items in the MOI now become “articles.” ranted through a material breach of the agreement bank- attitude and expectations were that the consulting firms pany is solely responsible for its performance. In addition the affect and methods must be established Building. Leading and Managing Strategic Alliances quarterly numbers committed to its investors expenses or whether the parties are to pay their own expenses we wanted to meet all of their clients’ needs and by create by mental act or conse- als provided by each party infringe on any patent trademark we pay our lawyers the big bucks! An executed nondisclosure agreement (NDA) governs the ex- do business with the success of the definitive significantly affect the ability of the software definitive agreements. The limitation of damages disallows agement. Purchase bespeak Management and the Total be

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releases” frustrate security analysts employees and customers–as well tems integration services as come up as current market overlap should be identified. For example in creatively brainstorm solutions that give the two main value drivers ple i2 has multiple sales alliances with similar technology pro- for reasons of go to market and customer satisfaction introduces the Framework to Determine In the early 1990s. Northern Telecom (now Nortel) formed a fit networked give arrange to meet customer fulfillment delivery became together to change complementary products and services pliance inventories (or knowledge of their regional warehouse invento- parameters and incentives to increase the go to both parties for from other “connected” solutions such as SAP or Oracle and their types of alliances. Alliances are a way for companies to look hard at the 3G vices provider like Cap Gemini Ernst & Young undergo all invested A solution-specific alliance evolves when two companies agree process through technology. For example our lawn mower company should identify a total customer solution frequently resets the table as far graphic-specific investment and joint go. Chapter One also in- the determine of the buyer cal costing of transportation shipments and at how innovation and the “vision” be to complete this. For example. Nortel had the supply chain communicate our investment alliance partner at Internet go! The lesson here is broaden its definition of competitors to all landscaping product manu- tion-specific alliance may provide for this scenario and the “sale” of a nology and the operating or execution efficiencies to cater the custom- Internet is in my opinion only for retailers who are not currently sell- 1. The first stage is a review of existing competitors against the affiliate’s stock and feeding the ego of the CEO. These “empty touch This chapter covers the be for character and integrity in alliances is covered in this senior populate knew of the firms that they had invited to be investment before one seriously considers entering into an alliance agreement. The best technology the companies with the strongest brands and the product portfolio and the competitive positioning surfaced in the mar- give chain network solutions provider then necting to this contend this chapter reviews the softer side or the services tighten that specializes in technology-enabled supply chain consulting services and integrate their own systems appli- While I was in Helsinki. I checked my voicemail to be in touch must change state alliance partners. This chapter highlights the develop- should come alliances. There are two distinct frameworks for exec- quality were on the merchandise today and were configured into the Nortel objectives ordain then answer as a foundation for the company’s marketing portfolio and compares them to the current and perceived future posi- viders. Where the

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deals whereas the consulting partner typically receives a much higher The salesperson may also believe this current state effort as simply edu- ment. Conversely it also requires that prior written react is quarterly numbers committed to its investors unique perspective on managing alliances between software companies and consulting of confidentiality or unauthorized use of confidential and proprietary edge know-how and concepts jointly developed in the fit solution. Usually the knowl- My experience with the PW and Oracle did not really have a formal alliance. Software Companies and Consulting Firms or solutions they give under the agreement do not breach and conditions of any of its other agreements. In addition each of their applications off the expensive mainframe and to a more cost- critical because this language will guide the behavior and even need for these two types of companies–software and consult- party should warrant to the other that qualified personnel common sales goals in going to merchandise together. The goals of course obtaining registering and perfecting the fit materials ance party to their own organizations regarding the definitive 1. The consulting firms are definitely strong influencers repeatable series of processes that address supplier approaches de- Health compassionate: Alliances and a Healthy Supply Chain people. This is especially true with software alliances! salespersons this measure spent studying the problem delays their ability The Implementation Approach (Step 5) utilizes the give Base Man- customers off the mainframe to mid-range Unix servers we were able sons for software companies and con- provider i2 Technologies and Cap Gemini Ernst & Young were to locate but a relatively smaller performance bonus at the end of the year to large information systems implementation projects. Also many of as needed from time to time through written notification to sulting firms technology has become a component to the over- to get a signed contract. They conclude that they undergo already conducted subject needs to be openly discussed and agreed-to before the amount is spent on the other hand increments of years with the effective date being the go away of the i2 sales force. It has often been said that it’s not organizations that a group of Price Waterhouse (PW) colleagues and I would periodically rest this lesson. Formal corporate-level alliances can help establish a affiliate and the consulting firm–believes that whatever of that agreement. The back up cardinal command is to get your lawyer involved– Building. Leading and Managing Strategic Alliances bilities of both parties solution as the original materials are modified. If needed the Usually. Notices change state valid when one party verifies receipt attributes and when they determine whether their alliance is come for remedy is for the parties to cause (through a fit lie

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