befi june 10 suppliers hartmann

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Outsourcing, Partners

and Suppliers !

Founder Institute Berlin, 06/10/11!

Philipp Hartmann"

Rheingau Ventures!

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Intro Make or Buy

Do’s and Don’ts

Case Studies

Summary

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People have been partnering since the verybeginning of everything.!

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http://www.flickr.com/photos/tomroids_photos/!

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For businesses, partnering has led to theexistence of large multi-national conglomerates.!

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http://www.photocase.com/de/user.asp?u=125349!

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Yet, these extremely diversified corporates dochange from time to time.!

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New, highly specialized companies havedeveloped since the early 90s.!

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And continue to prosper… as we speak!!

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http://www.flickr.com/photos/draggipage/!

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Intro  Make or Buy

Do’s and Don’ts

Case Studies

Summary

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MAKE OR BUY – a common concept behind all

outsourcing and partnering decisions.!

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… and what is simply SUPPORT.!

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Some common business functions.!

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Advertising

Public Relations

Customer Support

Accounting

Sales

Engineering

Strategy

Human Resources

Quality Assurance

Design

Legal

Payment

Banking

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And the typical MAKE OR BUY matrix.!

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High!

Mid!

Low!

Low! Mid! High!

A"

B"

C"

TransactionComplexity"

Service"

Specificity "

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Intro  Make or Buy

Do’s and Don’ts

Case Studies

Summary

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Intro  Make or Buy

Do’s and Don’ts

Case Studies

Summary

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23

So what should you DO?!

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1. Assess how important each function is for your

business !

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2. Find out what is CORE to your business!

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3. Define SUPPORT functions!

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4. Compile lists of potential suppliers!

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5. Evaluate your potential partners!

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Some more thoughts on this particular point. !

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Ask any agency out there – their self-conception

will be similar…!

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… “Yes, we are the market leader” – “Yes, our

approach is unique” – “Yes, we only deliverhighest quality”…!

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… but how do I filter though all this…!

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http://www.flickr.com/photos/skoop/!

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… ?!

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Some ideas.!

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37

And now back to point number…!

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6. Get things going!

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And since things do change…!

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7. Re-evaluate constantly!!

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Additionally…!

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8. Think about penalties!!

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http://www.flickr.com/photos/59984930@N03/!

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And…!

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9. Look for alternatives before you cancel a

partnership!!

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Of course there are some DONʼTS.

"

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A pretty obvious one for starters…!

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1. Never give away your CORE business!!

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As this stuff really takes time to build…!

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2. Donʼt think short-term oriented!

!

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And, as a critical mind…!

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3. Donʼt become dependant on one single

supplier!!

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Intro Make or Buy

Do’s and Don’ts

Case Studies

Summary

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And now for some real life examples.!

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Welcome to…"

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http://www.flickr.com/photos/sickboyphoto/!

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… India.!

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Back in 2008, we started developing the software

for one of our startups.!

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We thought our briefing was concise and self-

explaining.!

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Controlling mechanisms were quickly found.!

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But the whole thing went down the drain.!

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New scenario, late 2010.!

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Same situation – different location…!

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http://www.flickr.com/photos/31002906@N05/!

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… Romania.!

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… but no disaster.!

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Why?!

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Personal buy-in & trust.!

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Oh… and some help of our old friend...!

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http://www.flickr.com/photos/59984930@N03/!

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… at least in the beginning.!

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Case III – fade to black – welcome to…!

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http://www.flickr.com/photos/e_calamar/!

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… a typical Rheingau incubation.!

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Here some standard functions that we usually

hand over to suppliers. !

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Advertising

Public Relations Customer Support

Accounting

EngineeringHuman Resources

Quality Assurance

Design 

Legal

Payment

Banking

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And here some topics that we like to cover

internally.!

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Key Accounting Business Intelligence

Software Architecture

Online Marketing

Strategy Customer Relationship Management

Controlling 

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And varies with each business model.!

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83

Intro Make or Buy

Do’s and Don’ts

Case Studies

Summary

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Intro Make or Buy

Do’s and Don’ts

Case Studies

Summary 

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Letʼ recap.!

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What we should have learnt…!

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http://www.flickr.com/photos/mowls/!

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Everything else is just SUPPORT!!

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There are many fish in the sea – find the ones

you really want to be working with!!

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http://www.photocase.com/de/user.asp?u=47955!

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Use technology to control, optimize, and

enhance your partnerships!!

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http://www.photocase.com/de/user.asp?u=36533!

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Rethink existing partnerships and donʼt be

blinded by short-term success!!

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http://www.photocase.com/de/user.asp?u=112234!

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So, in the end…!

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http://www.photocase.com/de/user.asp?u=148206!

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… you can become a happy nerd!!

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Some final remarks.!

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Think entrepreneurial.!

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Take on challenges.!

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Please, do not stop at developing ideas.!

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Realize them.!

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Thanks.!

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Contact me.!

ph@rheingau ventures com