Creating Profit Through Alliances - business models for collaboration E-book | Page 8

hold. I therefore introduce three adjusted strategies for differentiation: creating customer relevance, having a unique product and – for the short term – achieving cost advantages. Chapter 2 introduces the concept of alliances from a resource perspective. What competences do you need to successfully execute your strategy? Alliances are compared to other sourcing methods, and the process of forging an alliance is described step by step. With reference to the definition of a partnership, ten types of alliances are presented. Chapter 3 elaborates the three strategies for differentiation introduced in Chapter 1. Exploring how the ten types of alliances contribute to these strategies, the focus is on the added value of an alliance compared to direct investment. Two further aspects are described: additional value drivers such as market dominance and recurrent turnover, and the value of participating in a network. Chapter 4 delves deeper into the financial structure of each type of alliance. Ways of splitting revenue and costs and of allocating intellectual property rights are detailed for various situations. You can read this as a sort of cookbook for your own situation, and I suggest you treat it accordingly: if you do not need a dessert, just skip the corresponding recipes. Finally, Chapter 5 addresses some of the legal aspects of forging an alliance. Most types of alliances can be arranged through a contract or a new legal entity, 6 that is, a joint venture. A practical arrangement for intellectual property rights is suggested and complicating factors are discussed, such as a partnership between two companies significantly different in size. And, finally, termination clauses should not be omitted. In my research I found that there is hardly any case material available about the way alliances are structured financially. It therefore gives me great pleasure to include cases of 14 different companies that were open and kind enough to disclose their working methods. In addition to these companies, I had off-the-record interviews with alliance managers of Oracle, Ebay, Cisco, Alcatel-Lucent and Thales. I regard this book as a working document. It will therefore be available as a PDF document and ebook, with only a limited edition in print. It is likely that a new edition will be published in 2012, and I would therefore welcome further input in the form of new models and cases. The downloadable version of the book will have a broad margin for „virtual‟ sticky notes. These can offer brief examples, suggestions for further reading, links to Internet sites or even corrections. All readers are invited to share their knowledge. This way the book can also serve as a discussion document. Alfred Griffioen January 2011 If you have any comments or additions, please email these to alfred.griffioen@ allianceexperts.com and I will post them as sticky notes in the document within a few weeks.