Partner Marketing - Advantages and Disadvantages

Transcription

1 Partner Relationship Management Therese Cory Teresa Cottam Chorleywood Publications Presentation to BCS BISSG 09/04/2003 1

2 What is PRM? What is a partnership definition of partners: people who get together to achieve a common purpose the deeper the alliance, the greater value-add the partners can generate between them - greater potential for profitability, new growth opportunities. partner to deliver product; Together reach NEW markets neither could reach otherwise. Large companies becoming a collection of collaborators - collaborative enterprise.. Customer focused - process centric, partner dependent. extending the boundaries of the enterprise. 2

3 Types of partnership ranges from flirtation / short term relationship/...marriage one project / loose reseller arrangement../ value-add / joint venture... permanent - acquisition/merger! Failure gets more costly.. Lucent-Alcatel merger did not materialise. Different types of partnership necessitate different strategies 3

4 4

5 Comparison of depth of alliances Loose Value-add Strategy tactical, simple, non exclusive, operational Infrastructure and support no integration collaboration added value none or minimal partial risk/ responsibility/investment reseller owns customer, returns faulty goods direct to vendor; some expectation of failure some investment in partner skills examples reseller-preferred supplier OEM/cross licensing/integration possible evolution no shared goals, but could develop into closer relationship if suitable joint goal is identified partner/technology partner Development of Collaborative or co-operative relationships: Shared Goals or complementary goals 5

6 When to partner - or do it yourself employee skills available assets superior processes cost differentiated offering protected niche.. Partnering creates a larger virtual organisation, more advantageous to capturing market share. Business goals and information must be shared. Primary provider may reduce working capital, some of this carried by partners. 6

7 Reducing strategic and business uncertainties How do the business objectives of the participants mesh with one another? Is there a size/power differential? Is the relationship a business-to-business or supplier-to-buyer one? Are the participants sharing a common business goal, or simply links in a supply chain? Are some partners likely to put their own immediate needs first? What information do participants need to understand their partners better? How will working with new partners assist / create new problems for participants? Could differences in work habits and culture endanger partner management? Does the contract provide for an exit strategy? 7

8 Once the decision to partner is made... Decide what type of partnership is appropriate Select best approach - management and operations Identify skills needed Identify data needed Some solutions are people intensive, others depend heavily on IT 8

9 The Roots of PRM Methodologies with business focus supply chain management, value stream creation Information management document management, CALS Software groupware, concurrent engineering ALL DEPEND ON: data management, networking, storage 9

10 People and Data Information in people s heads or on bits of paper Estimated that 80% of a company s knowledge is not written down at all 16% is available on computers but is unstructured ( s, ppt presentations) 4% is in structured form, analysable, shareable (database, information systems) 10

11 So what is PRM? A new market sector, promising huge revenue growth A management concept, good practice, business processes, all supported by IT Wide range of product types and solutions AT ITS MOST STRATEGIC, PRM IS A MISSION CRITICAL TOOL 11

12 Management: reducing operational uncertainties What functions must be performed by each partner? What information do they need and when? Are all processes understood, including human roles? Need mechanisms to: measure criteria for success/ascertain performance remunerate partners 12

13 Examples of product concepts Intranet/extranet with shared tools Extension of supply chain Extension of CRM Closed e-marketplace/private exchange Electronic bonding BUT..You cannot automate a partnership, only support it! 13

14 Examples of commercial software products - ALLEGIS Shared extranet built around a database Range of shared applications and tools Role-based access permission/security Workflow and activity management OLAP reporting 14

15 Tools to support function Finding and recruiting partners - risk management, profiling, online registration Motivating and managing - training and certification, joint business planning, market development funds, lead management Supporting joint sales and marketing - on-line product catalogues, targeted communications, searchable knowledge base, pricing Assessing performance and success - ROI, analytics, customer feedback, SLAs Accounting and remuneration tools 15

16 Other product examples Supply chain extension - PeopleSoft CRM extension - Siebel Private exchange - Webridge People productivity and data management - Intraspect Electronic bonding - PartnerCommunity 16

17 Critical success factors Usability! Language and currency support Links to legacy systems Supporting best practice, not enforcing new practices Lessons learned from failed data warehousing, CRM and other large projects 17

18 CISCO Ecosystem Example of partner matrix Two tier reseller structure Developed in-house with aid of consultants In EMEA, 90% of products are sold through channel, 10% through direct salesforce Emphasis on increasing partner skills Partners have same tools as salesforce 18

19 Telecoms industry - New imperatives New types of partnerships and partners Participants contrasted in business, culture, size New revenue sharing models, e.g. MVNO ordering bandwidth if you are an ISP ordering a local loop from the incumbent 19

20 20

21 Example: Bureau Service/Outsourcing Applies to billing, mediation, interconnect Alternative to software licensing Revenues more predictable for suppliers Enforces ongoing supplier/customer interaction Strict SLA criteria/risk sharing 21

22 Example: Peering between ISPs (example from William Norton, Equinix) Decide on case for peering Identify counterpart Contact and qualification Discussion and negotiation Business case and Decision BUT.. It could all fail because of personality clash! 22