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Partner Development
We think that the single most important
thing for partner-focused executives to do is to force
themselves to understand the perspective of the person on the
other side of the table. Partnerships only work when
both sides have an incentive, when both sides think that
they'll win more business.
Partners should either increase the sales
and marketing reach of a product or increase the value of the
solution set. On the one hand, it's easy to see why so
many companies want to have IBM or Accenture promoting their
product. Since there aren't a tremendous number of firms
with broad sales reach, executives quickly find out that the
firms with extensive sales channels are selective, difficult
to reach, and ferocious negotiators for vendor concessions.
A second channel is a bit harder to quantify but is based on a
more synergistic approach. By combining two
complementary elements, the win rate of the overall solution
can be significantly improved. Peers, or even smaller
vendors, can them be material contributors in a more strategic
relationship.
Once the partner contract is signed,
however, the work has only just begun since both companies
have to work to get deals signed. Product codevelopment
or integration may be required, with all of the asset
allocation decisions that go along with development.
Marketing programs have to be developed, partner sales forces
have to be educated, and "rules of engagement" have to be
drafted.
We assist in the targeting of partnership
candidates, initial contact and ongoing relationship building,
negotiation and signing, and long-term partnership development
and building.
ISV Channel Development
One of the greatest
potential channels for many young technology firms is the
outright licensing of technology for embedded use within
another product or product line. Due to the size of the
contracts, while the large contracts may take an extended
period of time to sign, the revenue contribution can be
substantial.
Due to our experience and understanding of
the broader technology market, we can help plan the right plan
of approach, communicate value propositions to channel
candidates, and negotiate terms and conditions. Since we
understand M&A processes, we can also ensure that young
companies don't accept provisions that virtually give away the
core intellectual property which could make an acquisition
unnecessary.
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