Managing Strategic Alliances and Partnerships

Dr. Kathleen McGroddy-Goetz, Managing Principal, IBM Engineering and Technology Services

The Importance of Alliances & Partnerships

Opportunity for mutual successPenetrate new market

Customer access Credibility

Enhance offering Adjunctive technology

Ability to influence Standards Define new market

Challenges

Preconceived notions Putting each other in a box

Cultural clashesNavigating internally

“One throat to choke”Credibility in the marketplace

Are you here to stay?Threat of competition

By partner With other potential partners

Planning for Success Start the relationship

Find synergies, common goals, and differentiating value Gain executive support with key influencers Be persistent

Manage the relationship Ownership Define roles and responsibilities Communication – build trust

Grow the relationship Highlight early successes Constantly look for new mutual opportunities Make it personal

Medtronic, Inc. Cardiac Pacemaker

Programmer

Long term relationships

The Challenge Medtronic required a

platform to communicate with its line of programmable cardiac pacemakers

The customer selected IBM because of our advanced skills and technology base

The Solution Access to IBM expertise

and technologies IBM's ability to supply

components at a very cost competitive price

IBM Value PropositionSystem Integration: ThinkPad® technology as

a motherboard reference design

Custom-designed medical-grade power supply

IBM custom-designed pen and touch screen system

15-inch LCD display Thermal chart recorder in a

magnesium case Customer Benefits

Ease of use Increased market share Allowed customer to focus

on their core business

Medtronic, Inc.Medtronic, Inc.

Sharing common goals

Unique value that differentiates

"The stunning deal between IBM and the University of Pittsburgh Medical Center is not only a landmark for those two organizations but a new standard for the type of forward-looking, precedent-setting relationship that should begin to characterize the new ways the IT customers and vendors regard each other, " says Bob Evans, editorial director, InformationWeek.