Closed innovation
Innovations are developed exclusively, internally by companies themselves
- If we discover it ourselves, we will get it to the market first
- The company that gets an innovation to the market first will win
- If we create the most and the best ideas in the industry, we will win
Open innovation
Multiple external sources are used to drive innovation; the company doesn’t rely only on their own internal knowledge
- We don’t have to originate the research to profit from it
- Building a better business model is better than getting to the market first
- If we make the best use of internal and external ideas, we will win
Masterclass alliances
Organization network of skills. Nowadays alliance structures have become part and parcel of our lives. On average organizations enter into 15 alliances annually.
Value of alliance capabilities
Firms with superior alliance capabilities create more shareholder value
Five elements a alliance capability consists of
- Know-how: deep understanding of the subject of alliances.
- Supportive process and structure: having the right tools and mechanisms in place.
- Mindset: a perspective that enhances the development of relationships.
- Bench-depth: having sufficient managerial talent.
- Learning: mechanisms by which alliance skills are recognized and transferred.
Success rate of alliances
Learning by doing is effective for the first alliances, but soon after that a structural approach for alliance management is required.
Guidelines for building an alliance capability
- Identify alliance management as a separate functional area in your organization (like marketing and finance)
- Create a community of alliance practitioners (exchanging experience)
- Disclose existing knowledge and information and build on it
- Support managers with practical tools
- Build up your partner’s alliance capability
4 types of alliances
- Functions
- Tools
- Control and management processes
- External
The alliance process
- Partner selection
- Joint business planning
- MOUP - Memorandum of understanding and principles
- Implementation/alliance plan
- Evaluation
How to create a collaborative culture?
- Sharing attitude: encourage learning behavior and cooperation
- Fail often, fail early, fail cheap and learn
- Embrace collaboration from top to bottom (top management is key)
Reasons for following an Acquisition Strategy
- Defensive to maintain market position; perhaps gaining economies of scale
- As a part of a strategy to develop new products (when firm does not have internal capability)
- As a part of a strategy to develop new markets
- As a part of a strategy of diversification
Reasons for alliances
- Offer complete solutions (broader package)
- Reach more customers, stakeholders, civilians and serve them better
- Fulfill you societal or business targets better
- Increase flexibility and reduce risks
- Efficiency/scale or learning
Alliance capability research
- Experience with alliance
- Knowledge of alliances
- Management tools
Traditional research
- Alliance structure
- Type of contract
- Fit between partners
Recommendations on partnership management
- Structural aspects
- Relational aspects
