October 5, 2016
Based upon Gene Slowinski and The Alliance Management Group
Open Innovation is necessary to achieve success during early stage technology commercialization.
* How to implement the “want, find, get, and manage model”
- You have to know what you want, then how to you find it, then how do you get it contractually and then how to manage it to success.
How do you structure a relationship between two firms (or two individuals) to be successful?
Alliance Framework (gold standard for planning/structuring a deal).
Define your success as:
- Get to an agreement that is profitably implemented or
- Walk away as friends without reaching a bad agreement
** disengage quickly if you realize that this is a bad deal.
- 8 weeks to know you will not do a deal
- Implementers (and champions) are part of the planning process. –
- Determine how and why alliances can go bad.
Failures of alliance success:
- It is unclear whether internal parties are aligned.
- Mismanagement and lack of communication between parties:
- Create go/no-go decision points:
- Internal, alliance framework will be put together by a team and will present your view of the deal. Every functional head will have the opportunity to make comments on the deal structure. Can I get one deal structure out of this?
- Presentation to external company: We can move forward with the deal, we cannot move forward with this at all, or we agree enough to negotiate the rest of the agreement