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Chanimal Alliance Presentation

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How to create killer alliances (and make more money with your alliances than without)

How to create killer alliances (and make more money with your alliances than without)

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    Chanimal Alliance Presentation Chanimal Alliance Presentation Presentation Transcript

    • “ How to Create Killer Alliances that Help You Dominate Your Market!” Ted Finch President, Chanimal Marketing www.chanimal.com Chanimal Presents…
    • Overview - Contents
      • Background
      • Main Take Aways
        • Why setup alliances
        • The Acid Test for all alliances
        • How to determine the best alliances
        • Process to leverage alliances to dominate your market and make a ton of money
      • This is a pragmatic “Crash Course”
        • Time to get crashing!
    • Background – Chanimal
      • Chanimal – The Ultimate Resource for Software Marketing at www.chanimal.com . Celebrating it’s 10 th year anniversary
        • Short for “Channel Animal,” Ted Finch – 22 Years of professional marketing
      • As co-founder and VP, built world’s largest high-tech product launch service company from 13 to over 4,000 people while executing the launch of over 400 products for over 150 companies (Microsoft, IBM, Adobe, HP, WordPerfect, Intel, Ashton Tate, Sony, Citrix, Autodesk, ATI, plus more)
      • Published Netscape Navigator & AOL. Helped inaugurate .dot com era.
      • Wrote marketing plan, helped finance & form Red Storm Entertainment with Tom Clancy (Press release on USS Nuclear Sub Cheyenne, ABC, CBS, NBC)
      • Former VP Marketing at Goldmine, VP Marketing at Harcourt, Sr. VP Marketing at Motorola (sat on Marketing board), VP at $130 billion GE. Acquired five times
      • Speaker at dozens of conferences and events, quoted in over 100 trade publications & high-tech books, produced, “How to Finance a High-Tech Start-Up” Video
      • Has setup over 120 formal alliances
    • Define “Alliances”
      • Anyone you can work with (align) that will help you meet your objectives.
        • Types include
          • Associations & organizations.
            • SIIA (software association)
            • SoftwareCEO (forums for answers, SU for information, membership for content, templates, industry best practices, etc.)
          • User Groups / Birds of a Feather (BOF)
            • Collaborate on similar challenges, market development (VRML)
            • Hiring locations
          • Standards committees (technical and legal)
            • Influence direction (i.e., Blue Ray) – multiple vendors forming camps
    • Define “Alliances”
      • Some types can be “progressive” (start as one type, move to another)
        • Alliances with other non-competing companies
          • Making another product complete, part of chain (i.e., rendering engine, OS or platform support)
        • Affiliates
          • Informal. Send leads back and forth – tit for tat
          • Formal. Refer each other’s products—make a referral fee
        • Reseller or integrator
          • More formal. Make a margin, higher than referral fee
        • OEM
          • Resell in mass, integrate with it, sometimes private label
    • Why Setup Alliances?
      • Defensive strategy
        • Hard to rip you out when you are integrated with other applications
      Standing Alone Intertwined (roots & branches) Hurricane Fran & GE - Example
    • Why Setup Alliances?
      • Proactive strategy
        • Operating System (Windows, Apple, Linux, OS/2)
          • Get developers to write to the OS
          • The more developers (alliances—both have advantages) you recruit, the greater the advantage
          • OS/2 – poor alliances=non-existent
        • Platform
          • Game consoles (Sony, Nintendo)
          • Set-tops (Motorola (applications, games, network))
    • Why Setup Alliances?
      • Part of the Build, Buy or Align strategy
        • Fills holes in your product roadmap
          • Sony Vegas - Video editing
            • Rendering engine is OEM (as with Adobe, Avid & others). Too specialized to create from scratch.
            • Bundle application for poor titling (ships with Boris)
          • Sony Sound Forge
            • Ships with 3 rd party (alliance) plug-ins to add new features quick
          • Windows XP
            • Still ships with Hyper Terminal from Hilgraeve
    • Why Setup Alliances?
      • Build, Buy or Align strategy
        • Compliments your products and fills holes in your end-to-end offer
          • Motorola set top. Needs other components to have any value.
            • Network interface cards, Dslams, head end equipment, fiber optics
            • Video content (Aggregators)
            • Games content (plus had to support set top platform)
    • Why Setup Alliances?
      • Product Management
        • Complete holes in your product roadmap
        • Bundles, OEM, Cross-product promotions
      • Sales
        • Compare resellers, share sales leads, joint sales calls, cross-train sales teams
      • Marketing Communications
        • Joint events, direct mail, banners/links, press release, newsletters, ads, roadshows
    • Why Setup Alliances?
      • CEO/CFO
        • Find or become an acquisition target
        • Most of my companies that were acquired--first formed an alliance with their prospective buyers
    • Case Studies
      • Lotus – roadshow alliance led to two acquisitions
      • Goldmine – built new channel quick, got acquired
      • HRW – missing “complete product” – alliance fixed
      • Metrowerks – filled a hole, got acquired
      • Motorola – put it all together, garnered market share
      • GE – formal alliances to become industry standard
      • Singing Software – alliances help find customers
      • Chanimal.com – 27 alliances for cross leads
    • Lotus Software
      • Problem
        • Microsoft Office was changing the landscape
        • Had 123 and Freelance – missing word processor & database
      • Solution
        • Were on a national road show with four other vendors
        • Ended up acquiring two of them
          • Ami Pro (from Samna) – 1 st Word Processor for Windows
          • Approach – Windows database
        • Created Lotus SmartSuite
      • Results
        • Gave Office a decent run for its money
        • Successfully acquired by IBM
    • Goldmine Software
      • Problem
        • Microsoft Outlook was being release for FREE
        • Goldmine PIM and lower-end Contact Manager was going to dry up (hard to compete with free)
        • Needed to move up the food chain (SFA (now CRM))
        • Didn’t have feature sets
        • Didn’t have the right kind of resellers who could integrate
      • Solution (all within 2 months)
        • Quickly formed an alliance team and struck out for alliances
        • Opened API’s and formed a developer program
        • Partnered with Microsoft, Compaq, ESRI, US Robotics and others
        • Recruited developers to support Goldmine
        • Went on national SFA roadshow to 13 cities with partners to recruit new VARs
      • Results
        • Recruited over 800 new VARs & SI’s in six weeks. Topped out at 2,300.
        • Ended up with over 50 development partners writing for Goldmine
        • Revenues increased dramatically
        • Were acquired by Bendata (60% for $80 million, rest in public stock)
        • Now known as FrontRange Solutions – one of the top CRM’s with over 1.5 million users
    • HRW
      • Problem
        • Multimedia course work required over 5 PC’s per classroom
        • Knew education (2,000 textbooks), but didn’t have the complete solution (first time)
        • Product was not selling as expected
      • Solution
        • Formed formal alliance with Dell (has strict req. for alliances). HRW would give their presentation, then turn it over to the Dell sales rep to show how to finance the PC’s.
        • Continued alliance strategy. Formed alliance with Smithsonian for ancient history content, alliance with CNN for current event content, alliance with National Association of Science Teachers—to pre-view and screen appropriate web content for inclusion in text books.
      • Result
        • Alliances “completed” and enhanced their product offerings
        • Actually started selling multimedia history program!
        • Had competitive advantage with unique content unavailable else ware
        • Secretary of Education, Riley, spoke on their behalf, on their stage, at National Science trade show. Tons of positive press and leads .
      * All information above is derived from public information
    • Metrowerks
      • Problem
        • Stock was at an all time low
        • CEO was in jeopardy of loosing job
        • Needed to change things up quick
      • Solution
        • Formed an alliance with chip vendors, including Motorola
        • Discovered Motorola was loosing $500 million a year in lost sales because their dev tools weren’t ready in time
        • Metrowerks could solve this problem quickly
      • Result
        • Metrowerks was acquired for $100 million (1/5 th the cost of one year’s loss)
        • CEO did loose his job…to retirement on $10 million in CASH!
    • Motorola
      • Problem
        • Advanced set top box was only part of the end-to-end solution for telcos
        • At the mercy of price competition
        • Did not have all the pieces to leverage it’s advanced capabilities
      • Solution
        • Re-assigned team member to alliances
        • Struck alliances with content providers to support the platform, with network providers, head end equipment, etc.
        • Created a business model to learn all the prices for end-to-end solution
      • Result
        • Able to provide content and support to make their product “the” most profitable set top available
        • Discovered ways to save cost else ware—by recommending lower cost “other” products
        • Started winning every early deployment worldwide, dominated the space, won a $1.3 billion dollar deal
    • GE
      • Problem
        • New division, like all GE mandates, to dominate in #1 or #2 position
        • Created middleware application (like “Windows”) for the security space
        • Could get no traction if couldn’t gain support
      • Solution
        • Converted a product manager into alliance manager
        • Created a quick start process to recruit alliance partners
        • Started pulling in alliances one after another
      • Result
        • Lined up 22 different alliance partners
        • Provided credibility and support to the middleware positioning
        • Record sales for the division
        • Division President was promoted
    • Singing Software
      • Problem
        • How to find people who want to learn to sing
        • No publication targeting beginners
        • Mass market approach is too expensive
      • Solution
        • Find alliances who already sell to people who may want to sing. Target vendors:
          • Microphones, sound cards, music software, headsets, keyboards
        • Find teachers who will recommend and sell
          • Alliance with associations, teacher referral services
    • Chanimal.com
      • Problem
        • How to provide leads for “Micro Consulting” without having to spend valuable time prospecting
        • How to get the expertise and service for areas I not the expert in, or don’t have time to learn or executed (rep firms, international, pr activity, product mgt training, etc.)
      • Solution
        • Chanimal Alliance Program
      • Results
        • 27 alliances (formal and informal). Share leads with a reciprocal lead program. Share information, content and network for marketing, product mgt, sales expertise.
        • Increase credibility for everyone in the group and increase our ability to help our clients
        • Absolutely smashed with business (helping up to 15 companies at a time, often having a waiting list).
        • The entire alliance group benefits
        • I eat my own dog food
    • When To Setup Alliances
      • When you want to:
        • Expand your reseller channel
        • Fill holes in your product roadmap
        • Get pulled into major sales opportunities
        • Fend off a competitive attack
        • Disrupt your competitors supply chain (form a “better” alliance)
        • Gain domain expertise on new markets
        • Establish an industry standard
        • Get new leads from new markets
        • Access free or discounted ad space, or trade show space
        • Get free PR
        • Increase credibility by your association
    • Too Small For Big Alliances?
      • Big companies NEED smaller companies
        • At a $33 billion company. 43 hours in one week in meetings (little time to get real work done)
        • Often have fewer resources than smaller companies to setup new initiatives.
        • Often have “lifers” and don’t know other options to grow their own business—never seen it done differently. They appreciate help
        • Have the budgets, but not always the resources (limited headcounts)
        • Can’t always setup new campaigns as fast
        • Need proof of concept (Intel – Virtus (highlighted product in Intel roadshow))
        • Microsoft, Compaq, Intel, Sony, GE (hardware needs compelling software)
      • Smaller companies can leverage larger companies
        • The “sponsor” often gets a free ride (paid for by larger companies)
        • Leverage the brand equity to increase credibility and get more prospects and resellers to pay attention.
    • How Formal?
      • The Chanimal Alliance Kit contains information that can be used for formal or informal alliances
      • The difference is usually determined by
        • A) Whether or not a formal agreement is signed
        • B) Whether you create and follow-through on a formal plan of action.
      • Informal, casual alliances work well also…just not as proactive and don’t drive for measurable results
    • Now…What Do We Do?
      • Now that we see why to setup alliances
      • Now that we see the results
      • How do we setup our own alliances?
        • What is an effective process?
    • Process to Form Alliances
      • Three steps:
        • Setup alliance program
          • Use the Chanimal Alliance Kit
        • Recruit alliances
          • Find contacts and schedule initial meetings
        • Leverage alliances
          • Maximize results with a plan of action
    • Chanimal Alliance Kit
      • Contains
        • Introduction
        • Alliance Plan of Action ( NEW )
        • Chanimal Alliance Worksheet
        • Chanimal Alliance Meeting Presentation
        • Sample Meeting Agendas
        • Chanimal Alliance Pick-List of Action Items
        • Generic NDA
      • Included as part of this course
    • Who Should Initiate and Run?
      • Have started in sales, product management, between executives, at trade shows
      • Small companies
        • The president (add 10 more titles)
        • Sales, Marketing, Product Mgmt
      • Larger companies (know who to ask for)
        • Alliance Manager (dedicated)
        • Business Development
        • Product Management (know holes in product line)
    • How To Get Bandwidth
      • Small or large companies often don’t have the bandwidth for strategic initiatives
        • Already have full-time jobs
      • How do you get the bandwidth to
        • Define your program & research best alliances
        • Find and contact the right people
        • Manage the ongoing relationship
      • You may need help
        • Even if just temporary help to set up the program
    • Secret Weapon – “Interns”
      • Used multiple interns and a rag-tag team of newbies to launch Netscape Navigator
        • Recruited out of Duke University (one was a Rhodes Scholar)
      • I use interns to setup alliances (since ’92)
        • Can setup the program, find the contacts, setup the meetings, help manage the process
      • Benefits
        • Inexpensive (typically $8.00/hr)
        • Highly motivated and bright
        • Eager to do “real” marketing (lots of projects)
        • Project based (get to do homework assignments)
        • Follow directions well, execute to completion
        • Avg 1-2 hours of my time per 10 hours of theirs
        • Have own laptops, setup on $30/mo Vonage for calls
      • Must have a detailed plan of action for them to follow
      • Currently working with 7 different interns simultaneously that work for companies I am currently “micro consulting” with (meet on the phone 1-2 times per week)
      • http://www.chanimal.com/html/marketing_intern.html
      • Intern article, job description & recruiting locations
      • Takes 1 hour to post position – NOW is the time!
      • 1 week to find and interview
      • Little risk, they execute well
    • Chanimal Alliance Plan of Action
    • Chanimal Alliance Plan of Action
    • Interns Must Have A Detailed Plan
    • Time Frames
      • Depends on bandwidth allocation. Assume intern:
      • Setup
        • 1 to 2 weeks to re-purpose the Chanimal Alliance kit, identify categories, prospects, find contacts
      • Recruiting
        • Allow 1 month to find priority contacts, setup appointments, have initial meetings to lock up alliances
      • Leverage alliance
        • Ongoing. First activity: plan of action
        • Leverage resellers immediately
        • Ongoing joint promotions
    • Alliance Program Setup
      • Determine who will take the lead
      • Decide objectives
      • Complete Chanimal Alliance Worksheet
      • Re-purpose agendas
      • Populate sample PowerPoint
      • Have an NDA agreement
      • Move to recruiting stage
    • How To Pick Alliances
      • Is there a hole in your product?
        • What feature could you add NOW that would make you more compelling?
      • Who is a non-competitor that is targeting the same market?
        • Their resellers can also sell my product (account mgmt)
        • Can I find out what promotion pulls the most leads for them?
        • Can we work on something together (saves time for both, both can leverage)?
        • Can we both do market development (making the market larger—more aware) together, better than alone?
      • What alliances do my competitor’s have?
        • Can I disrupt their exclusivity?
        • Can I create an even stronger alliance—and starve them out?
      • Does it make sense to work with my competitors?
        • Legislation to enlarge our market
        • Via associations to educate the entire market (again, market development)
    • Acid Test
      • Must create the business case for you and a potential alliance that answers this question:
      • Can we make more money
      • together, than separately?
      • I s it enough money to justify the alliance?
    • Alliance Program Setup
      • Chanimal Alliance Kit – Review
      • Many alliances become the channel (recommend, resell, OEM and even acquire)
      • Alliance Spreadsheet
        • Looking for alliances that “complete” or compliment your product (use the same resellers/affiliates)
        • Create categories
        • Find top brands in each category & prioritize by market share
        • Create business case for each category
          • Can leverage resellers, trade show booths, joint road shows, increase brand reputation by association, etc.
        • Find contacts at each company
    • Chanimal Alliance Worksheet
    • Chanimal Alliance Worksheet
    • Chanimal Alliance Worksheet
    •  
    • Elements of Alliance PowerPoint
      • Agenda
      • Introductions
        • Personal
        • Company presentations
          • Positioning, market, products, pricing, distribution, promotions
      • Business case presentation
        • Why we should form an alliance (joint business case)
        • Acid test – make more money together
        • Our alliance process (initial meeting, meet w/teams, plan of action)
      • Discuss potential alliance agreement
      • Plan of action
    • Recruiting
      • Do NOT start until you have done the following:
        • Identified a compelling business case for you
        • Identified an even more compelling business case for THEM
        • Determined potential ways you might work together
          • Split this out to appeal to product mgmt, sales and marcom
            • You may have different initial contacts at each company
      • Initial contact – who to ask for (hint: looking for the evangelist)
        • Small company
          • President
          • Head of sales
        • Large company (titles may be VP, Director or Manager)
          • VP preferred – have obligation to think strategically (don’t have to execute, so don’t think of the work—think of the benefit)
          • Alliance manager
          • Business development manager
          • Product manager
          • Sales manager
    • Which Groups to Engage?
      • Executive Management
        • Approval to engage
        • Need buy in
      • Product Management
        • Integrate the roadmaps
        • Know the holes in the product
      • Sales / Business Development
        • Joint sales calls
        • Reseller & customer contacts
      • Marketing Communications
        • Joint promotions
        • FREE or inexpensive exposure
    • Initial Call
      • Purpose:
        • Find the right contact
        • Make the initial business case pitch to the right person
        • Explain how you might leverage each other
        • See if it makes sense and you have enough of a reason to proceed to a formal alliance meeting
        • Setup the time for the meeting (either then, or via e-mails)
        • Might involve a single person, or the 4 primary groups
          • Executive management, sales, product mgmt, and marcom
    • First Meeting
      • May be in person
      • Usually by phone
      • Follow agenda
      • Review Alliance PowerPoint
      • Review options from pick-list
      • Agree to engage (informal or formal (agreement))
      • Assign a point person within each company
      • Setup the respective department meetings
      • Plan of actions dictate the rest
    • Key To An Effective Alliance
      • The alliance is formed based on mutual value.
        • Plan of actions: if team can’t execute, no deliverables = no value
      • It is sustained through a good and fruitful working relationship .
    • Four Legs of a Stable Alliance
      • Management
        • Buy in on “More Revenue Together,” mandate team collaboration
      • Sales
        • Share sales leads, joint calls, client and reseller databases
          • Dell & Harcourt
      • Marcom
        • Joint events, catalogs, mailing list, PR, ads
        • Intel Inside (joint ads, events, etc.)
      • Product Management
        • Complimentary don’t compete, align roadmaps, integrate, share market data/industry reports
    • Sales Meeting
      • Sample Meeting Agenda
      • [Company Name] & Acme
      • Sales Alliance Coordination Meeting
      • Meeting Duration: about 2 hours
      • Introductions: 25 minutes
        • 5 minutes for personal introductions (sign NDAs)
        • 10 minutes each Sales Department organization presentations
      • Allied-Force Sales Strategy Presentations: 60 minutes
        • Compare resellers and distributors
        • Compare major customers
        • Discuss ways to work together
          • Joint sales calls
          • Share sales leads
          • Review pick list
          • Other
      • Deliberations: 30 minutes
        • Discuss tactics & create high-level plan of action
        • Schedule next meeting
    • MarCom Meeting
      • Sample Meeting Agenda
      • [Company Name] & Acme
      • Marketing Coordination Meeting
      • Meeting Duration: about 2 hours
      • Introductions: 25 minutes
        • 5 minutes for personal introductions (sign NDAs)
        • 10 minutes each Marketing Department organization presentations
      • Allied Force Marketing Strategy Presentations: 1 hour
        • Compare databases
        • Joint e-mails/newsletters
        • Access to teacher database
        • Online initiatives
        • Joint ads
        • Events (trade shows, regional)
        • Banner ads
        • NFR copies
        • Evaluation units
        • Direct response
        • Access to alliances
        • Coupons
        • Bundle opportunities
        • Other items to consider
      • Deliberations: 35 minutes
        • Discuss tactics and create high-level plan of action
        • Schedule next meeting
    • Product Mgmt Meeting
      • Sample Meeting Agenda
      • [Company Name] & Acme
      • Product Management Coordination Meeting
      • Meeting Duration: apx 2 hours
      • Introductions: 25 minutes
        • 5 minutes for personal introductions (sign NDAs)
        • 10 minutes each Product Management Department organization presentations
      • Product Management Alliance Strategy Presentations: 60 minutes
        • Review areas to integrate the products (development, coupons, etc.)
        • Review each other’s product roadmaps to ensure no divergence
        • How to joint promote (product wise). Examples:
          • Add coupons to each other's package
          • Demo or trial versions
          • Possible OEM options
        • Other
      • Deliberations: 30 minutes
        • Discuss tactics for executing
        • Create high-level plan of action
        • Schedule next meeting
    • Alliance Meeting Pick List
      • Marketing
        • Compare databases
        • Joint e-mails/newsletters
        • Access to prospect database
        • Online initiatives
        • Joint ads
        • Events (trade shows, regional)
        • Banner ads
        • NFR copies
        • Evaluation units
        • Direct response
        • Access to alliances
        • Coupons
        • Bundle opportunities
      • Sales
        • Compare resellers
        • Joint sales calls
        • Share sales leads
      • Product Management
        • Add coupons to each other's package
        • Possible OEM – either in our box or yours
        • Integrate roadmaps
        • Combined features
    • Remember These Items
      • The alliance MUST pass the acid test to justify effort
      • Engage company on all legs (1. executive, 2. marketing, 3. sales and 4. product mgmt) whenever possible to maximize return
      • Connect all four groups to their counterparts (sales to sales, etc.)
      • Ensure each group has a meeting to review the alliance and create a plan of action with dates and deliverables
      • Project manage each plan of action to ensure deliverables are met
      • Key: Convert the best alliances from utility relationships to personal relationships to maximize success and reduce competitive inroads
    • Expectations
      • Form alliances and realize these benefits:
        • Fill holes in your roadmap – sell more product
        • Recruit hundreds of resellers through alliances relationships
        • Fill a hole in an alliance partners product, or end-to-end solution – get acquired
        • Get free both space at a trade show (that you didn’t know about)
        • Cut your direct mail cost in half by combining the mailing with an alliance partner
        • Increase chances of a friendly acquisition—either way (if desired)
        • Double your capabilities – split the work with your alliances
        • Get more PR and credibility through your relationships
        • Make it harder for customers to “rip you out” if integrated with alliances
        • Discover an alternative channel – your alliances may sell your application for you
        • Get free exposure by being highlighted in an alliance roadshow
        • Plus much more…
      • What’s holding you back? Go for it!
    •  
    • “ How to Create Killer Alliances that Help You Dominate Your Market!” Ted Finch President, Chanimal Marketing www.chanimal.com Chanimal Presents…