Innovation Management a Key Way Top Alliance Performers Create Corporate Value
SAN JOSE, Calif. – May 7, 2013 – Top alliance managers manage alliances with a bigger-picture, broader-term view than their peers in order to create more corporate value, according to a recently released survey of high performance go-to-market (GTM) technology alliances.
The survey, conducted by Phoenix Consulting in conjunction with the Association of Strategy Alliance Professionals (ASAP), included a total of 186 alliance managers from 95 companies in 23 countries, and was a follow-up to the initial benchmarking survey conducted by Phoenix Consulting in 2010. The goal of the research was to understand both how alliances contribute to corporate value, and to understand what high-performing alliances were doing that set them apart from the pack.
Alliance Success Measured Through Innovation, Not Just Revenue
Almost all of the alliance managers in the study measured revenue generation. However, according to Phoenix Consulting president Norma Watenpaugh, alliances that had exceeded performance expectations were more likely to focus on a broader range of measures in addition to revenue—particularly innovation pipeline management.
“Interestingly, the highest performing alliances took a more strategic approach in that they measured the capacity to create future revenue and gain market share,” said Watenpaugh. “Alliances that don’t take this longer view eventually falter because managing the innovation pipeline is ultimately what keeps the revenue pipeline healthy.”
The survey also revealed that high performers measured other value more often than the rest of the pack, such as solution integration, the creation of new products and solutions, the creation of new business value for customers, incremental innovation and the creation of new business models, as well as speeding time to market and accelerating market development.
Furthermore, the high-performing group worked to a longer ROI horizon—18-24 months, vs. 12-18 months for
“Partnered innovation can take the form of new solutions and applications, new delivery and consumption models and even whole new solution categories and market ecosystems – perhaps transforming entire markets” saidTom Halle, senior director of global alliances at Savvis.
“The results of the new survey affirms that innovation is valued at the executive level and reveals that many companies are taking a longer-term approach to alliances in combination with a near-term results orientation. This furthers the assertion that a predominant dollar-tomorrow approach isn’t an alliance best practice,” said Nimma Bakshi, president of ASAP’s Silicon Valley chapter.
Copies of the 2013 ALLIANCE BEST PRACTICE RESEARCH survey is available here.
About Phoenix Consulting Group
Phoenix Consulting Group partners with our clients to optimize collaborative business relationships. We help companies accelerate revenue, tap new sources ofinnovation and open new markets through effective alliances and partner ecosystems.
PhoenixCG stays on the forefront of collaborative best practices through active leadership in advancing standards in collaborative business practices and professional certification. Our consultants combine strategic perspective with practical professional experience ensuring we deliver actionable recommendations that have real world relevance.
The Association of Strategic Alliance Professionals (ASAP) is the only professional association dedicated to elevating and promoting the profession of alliance management. Founded in 1998, the organization provides professional development, networking and resources for cultivating the skills and toolsets needed to manage successful business partnerships. Active global members include AbbVie, AstraZeneca, CA Technologies, Capgemini, Cisco, Citrix, Dell, Eli Lilly and Company, IBM, the Janssen Pharmaceutical Companies, Microsoft, Motorola, Novartis, Quintiles,Sanofi, SAS, Schneider Electric, Symantec, USAA, Verizon, VMware and Xerox. A complete list of global members is available at http://www.strategic-