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Build, Buy, or Partner

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Build/Buy/Partner: Benefits and Tradeoffs. Case Studies: Success and Failures ... Whole Product Case Study (Build, Buy or Partner) The Database Wars. Informix ... – PowerPoint PPT presentation

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Title: Build, Buy, or Partner


1
Build, Buy, or Partner
  • How To Speed Your Time to Market
  • or
  • So Many Choices, so Little Time
  • Deborah Henken, Highland Team
  • Norma Watenpaugh, Phoenix Consulting

2
Agenda
  • The Challenge of Product Management
  • Build/Buy/Partner Benefits and Tradeoffs
  • Case Studies Success and Failures
  • Situation Analysis What to do, When
  • Partner Assessment and Readiness Choose and
    Enable Successful Partners
  • Recap Build/Buy/Partner

3
The Challenge of Product Management
We need a CRM Product
My customer wont buy unless we have management
tools
We need Security features to be competitive
The product needs an analytical tool
We need a whole product solution not point
products

4
What is going on ?
  • Create competitive differentiation
  • Fill gap in product technology
  • Offer a complete solution
  • The Question
  • Build
  • Buy
  • Partner

5
Sustaining Competitive Differentiation at BEA
6
Build, Buy, Partner Benefits and
Tradeoffs
Pros
Cons
Build
Longest time to market Risk in market shifts Hig
h development costs
Highest switching costs
Most product control Own the IP Most profit oppo
rtunity
Cost Risk
Buy
Shorten time to market Own the IP
Acquisition costs Integration costs
Shortest Time to Market Conserves Resources Try
before you Buy Lowest Switching Costs Credibili
ty and access

Partner
Least Control Integration Costs Shared gross mar
gins -
Least Profit Opportunity
Time to Market Control Profit
7
Why Build Technology Leadership
  • Core business
  • Have time or can build in increments
  • Have in-house expertise
  • Pioneer in the field
  • Patentable technology
  • Need to own the intellectual property

8
Why Buy Core to business
  • Core to business
  • Need intellectual property
  • Time critical
  • Shortage of in-house expertise
  • Acquire market leadership

9
Why Partner Speed
  • Fastest Time to Market
  • Reduce Risk
  • Leap Frog Competition
  • Customize for Specific Markets
  • Customers buy best of breed

10
Which horse to pick?
11
Build/Buy/Partner Case Studies
12
Create Competitive Differentiation
Channel Wave and E.piphany integrate PRM and CRM
Network Assoc. partners with Internet Security
Systems to combat hybrid security threats
Vocent builds Voiceprint Authentication sol
utions
MarketFirst OEMs Business Objects to add
Analytics to Marketing Campaigns
HP Buys Compaq To Broaden Product Line
13
Fill Gap In Technology
BEA partners with WebGain for application
development tools
HP OEMs Canon printers
Intuit and Verisign Collaborate to Offer Website
solutions to Small Businesses
PC Mfgs buy and assemble OS, chips, storage, etc
Sun OEMs Veritas for storage management
14
Offer a Complete SolutionWhole Product
Acquisition at PeopleSoft
TriMark Insurance
Intrepid Retailing
Salemno Mftg Quality
TeamOne Integration Services
Red Pepper Mftg Supply Chain
SkillsVillage Services
Distinction Consumer Supply Chain
Campus Soln Education
Advance Business Planning
Vantive CRM
15
Situation AnalysisBuild, Buy or Partner
  • Always Start with the Customer
  • Whole Product Offering
  • Product Adoption Lifecycle

16
What are They Buying?
Whole Product Offering
Source IDC, High Performance Partnering Workshops
Frank Lynn Associates, IDC
17
Elements of the whole product
  • LAN products
  • WAN connectivity products
  • Systems integration services
  • Training services
  • Maintenance/support services
  • Server hardware
  • Client hardware
  • Software
  • Network
  • Consulting services
  • System hardware
  • System software
  • Development tools
  • Server applications
  • Application development/ modification services
  • PC/client hardware
  • Desktop applications

Source IDC, High Performance Partnering Workshops
IDC
18
Whole Product Case Study (Build, Buy or Partner)
The
Database Wars
Informix/Oracle Wars Whole Product Solution In
formix partners1200 applications and tools
partnerships Informix buys Illustra Oracle partn
ers and builds applications IBM buys Informix
Application Partners
Hardware OEMs
Consultants
Development
Database
Tools
System Integrators
19
Product adoption life-cycle
First time buyers
Time
Source IDC, High Performance Partnering Workshops
IDC
20
Buyer motivation affects product decisions
Source IDC, High Performance Partnering Workshops
IDC
21
Partnering Requirements
22
Partnering Requirements
Goal Penetrate market/win marketshare
Reason to partner Customize built product to
specific market segments, whole-product, provide
services Type of Partner SIs, VARs
Goal Moving Volume Reason to Partner Widespread
market penetration
Type of Partner Distributors
Goal Bring product to market Reason to Partner
Building own product, fill in gaps in technology
with partners Type of Partner OEM, Technology co
-development
23
Partnering Examples
Goal Penetrate market/win marketshare
ATG and PWC offer integrated solution for
Insurance Industry
Goal Technology Revitalization
Entrust and IBM enable mainframe OS with Internet
PKI
Goal Bring product to market RSA and Symbian dev
elop a small footprint version of BSAFE for
wireless OS
Goal Penetrate market/win marketshare ? Moving
to Volume Citrix launches Nfuse Elite -Industrys
first channel ready access portal server
24
Partner Assessment and Readiness
  • Enable Successful Partners
  • What to think about as the product moves from
    technical partnership to sales partnership
  • Implications for the product

25
Partner AssessmentWIN-WIN-WIN
  • ? Company stability Do they have financial
    staying power? Do You ?
  • ? Trustworthiness Is there two way sharing of
    plans, openness?
  • ? Strategic interests Are you strategic to them
    and vice-versa?
  • ? Strategic Fit Are they capable of performing
    their role and you, yours ?
  • ? Executional abilities Will they be able to
    fulfill role on time and to spec, will you ?

26
Partner Ready Checklist
27
Build, Buy, Partner Strategies to Market
  • Build Technology Leadership
  • Buy Core to business time is critical
  • Partner Fast time to market reduce risk

28
Build, Buy, Partner
Deborah Henken is President of Highland Team, a
marketing management consulting company
specializing in successful go-to-market
strategies. Her team builds revenue enhancing
strategic marketing, channel development and
awareness and demand creation programs. Highland
Team is an Authorized Implementation Consultant
of the Global Software Partnering and Alliance of
IDC, adding value to clients by accessing the
specific services, research and analysts needed
to build best practice partnering strategies and
programs. Deborah has a BS from Northwestern
University and an MBA from the Kellogg School at
Northwestern University. She can be reached at
www.highlandteam.com or dhenken_at_highlandteam.com.
Norma Watenpaugh is the Principal of Phoenix
Consulting Group, specializing in marketing for
todays challenging economy. Phoenix Consulting
Group is an Authorized Implementation Partner of
the Global Software Partnering and Alliance of
IDC, complementing IDCs research and analyst
services with practical experience in partner
strategy, program development and alliance
management. Norma has a BS in Physics from the
University of Nebraska and an MBA from Santa
Clara University. Norma Watenpaugh can be reached
at normaw_at_garlic.com.
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