WEBVTT 1 00:00:03.850 --> 00:00:05.690 Companies over the world are racing 2 00:00:05.690 --> 00:00:08.130 to adapt to a changing environment. 3 00:00:08.130 --> 00:00:10.410 Technologies are changing rapidly. 4 00:00:10.410 --> 00:00:14.300 New competitors are arising every day as a surprise. 5 00:00:14.300 --> 00:00:17.210 New market opportunities are arising as well. 6 00:00:17.210 --> 00:00:20.020 Therefore, companies have to make sure 7 00:00:20.020 --> 00:00:23.290 that they are at the forefront on multiple dimensions. 8 00:00:23.290 --> 00:00:26.170 And to do that, they need, actually, partnership models. 9 00:00:26.170 --> 00:00:28.850 This is exactly where strategic alliances come 10 00:00:28.850 --> 00:00:30.110 into the game. 11 00:00:30.110 --> 00:00:33.940 With strategic alliances, you can acquire new capabilities. 12 00:00:33.940 --> 00:00:35.580 You can increase your scale 13 00:00:35.580 --> 00:00:37.970 in manufacturing or distribution, 14 00:00:37.970 --> 00:00:40.450 and, therefore, this is a big opportunity 15 00:00:40.450 --> 00:00:42.060 to adapt to innovation. 16 00:00:42.060 --> 00:00:44.570 When you look into the number of strategic alliances, 17 00:00:44.570 --> 00:00:47.770 we see a steep growth over the last couple of years. 18 00:00:47.770 --> 00:00:50.360 Five years ago, we would have few dozens 19 00:00:50.360 --> 00:00:53.060 of new strategic alliances formed every year, 20 00:00:53.060 --> 00:00:57.210 whereas in 2020, that number was more than 9,000. 21 00:00:57.210 --> 00:00:59.480 Innovation has been the core topic 22 00:00:59.480 --> 00:01:02.480 behind the growing number of strategic alliances. 23 00:01:02.480 --> 00:01:06.390 Topics such as mobility, blockchain, AI, 24 00:01:06.390 --> 00:01:09.010 big data have been the core reason 25 00:01:09.010 --> 00:01:11.630 for the formation of new strategic alliances. 26 00:01:11.630 --> 00:01:14.070 Strategic alliances have a number of advantages 27 00:01:14.070 --> 00:01:16.140 over other forms of collaboration. 28 00:01:16.140 --> 00:01:17.960 First, speed. 29 00:01:17.960 --> 00:01:19.210 To adapt to change, 30 00:01:19.210 --> 00:01:22.020 we have to act in a very agile and quick way, 31 00:01:22.020 --> 00:01:25.920 and to form a strategic alliance can be done very quickly. 32 00:01:25.920 --> 00:01:28.100 Also, to dissolve the strategic alliance 33 00:01:28.100 --> 00:01:29.360 can be done quickly. 34 00:01:29.360 --> 00:01:31.840 Therefore, when companies want to react to change 35 00:01:31.840 --> 00:01:35.040 in a quick way, they prefer strategic alliances. 36 00:01:35.040 --> 00:01:37.800 Or when they want to pursue a risky project, 37 00:01:37.800 --> 00:01:40.280 they prefer strategic alliances 38 00:01:40.280 --> 00:01:43.180 to test, actually, if this can be successful. 39 00:01:43.180 --> 00:01:45.560 The second one is commitment. 40 00:01:45.560 --> 00:01:47.010 In a strategic alliance, 41 00:01:47.010 --> 00:01:49.900 you don't require as much investment or commitment 42 00:01:49.900 --> 00:01:52.650 as you would require in a joint venture, let's say. 43 00:01:52.650 --> 00:01:56.080 Therefore, when companies actually want to maybe test 44 00:01:56.080 --> 00:01:58.920 in the long run a joint venture or a merger, 45 00:01:58.920 --> 00:02:02.340 sometimes they prefer a strategic alliance upfront 46 00:02:02.340 --> 00:02:04.680 to test the relationship itself. 47 00:02:04.680 --> 00:02:09.150 And the last but not least important topic is flexibility. 48 00:02:09.150 --> 00:02:12.730 A strategic alliance is, in its nature, very flexible. 49 00:02:12.730 --> 00:02:15.280 Therefore, in a changing technology environment 50 00:02:15.280 --> 00:02:16.780 or innovation environment, 51 00:02:16.780 --> 00:02:19.800 you sometimes need to adapt the scope of the partnership, 52 00:02:19.800 --> 00:02:23.130 and a strategic alliance is the best example to do that. 53 00:02:23.130 --> 00:02:25.210 There are actually multiple success factors 54 00:02:25.210 --> 00:02:27.460 to make a strategic alliance a big success, 55 00:02:27.460 --> 00:02:29.800 but let's start with the strategy. 56 00:02:29.800 --> 00:02:31.550 First, companies have to know 57 00:02:31.550 --> 00:02:33.570 which strategy they are pursuing 58 00:02:33.570 --> 00:02:34.930 and how partnership models 59 00:02:34.930 --> 00:02:37.140 can help them achieve those goals. 60 00:02:37.140 --> 00:02:39.420 So you have to think about partnership models 61 00:02:39.420 --> 00:02:41.060 like a portfolio game. 62 00:02:41.060 --> 00:02:44.320 What is the portfolio of partnerships I need to pursue 63 00:02:44.320 --> 00:02:45.600 to achieve my target? 64 00:02:45.600 --> 00:02:48.460 It's equally important to choose the right partner. 65 00:02:48.460 --> 00:02:50.990 To choose the right partner doesn't only mean 66 00:02:50.990 --> 00:02:52.390 to find the right partner 67 00:02:52.390 --> 00:02:54.850 that complements your corporate capabilities; 68 00:02:54.850 --> 00:02:58.040 it also means that you have to have a fitting partner 69 00:02:58.040 --> 00:03:00.218 where you really have aligned goals. 70 00:03:00.218 --> 00:03:03.910 It also means that you have to manage the relationship 71 00:03:03.910 --> 00:03:05.230 in the right way. 72 00:03:05.230 --> 00:03:07.100 It's very much often driven 73 00:03:07.100 --> 00:03:08.760 by a good relationship management 74 00:03:08.760 --> 00:03:10.880 to make a strategic alliance work. 75 00:03:10.880 --> 00:03:12.600 And throughout that entire journey, 76 00:03:12.600 --> 00:03:14.970 you have to be very flexible in the relationship 77 00:03:14.970 --> 00:03:16.860 that you're managing with your partner 78 00:03:16.860 --> 00:03:20.580 as you have to be in respect of the corporate culture, 79 00:03:20.580 --> 00:03:24.460 how the dynamics in all organizations work, 80 00:03:24.460 --> 00:03:27.140 and you have to be flexible in the way you work together. 81 00:03:27.140 --> 00:03:30.060 Because sometimes you need to adapt to scope, 82 00:03:30.060 --> 00:03:33.060 and both parties need to be flexible around it. 83 00:03:33.060 --> 00:03:34.970 At the end, you have to keep in mind, 84 00:03:34.970 --> 00:03:37.270 it's not about getting a good deal 85 00:03:37.270 --> 00:03:39.030 to form a strategic alliance; 86 00:03:39.030 --> 00:03:42.000 it's around, "How can I maximize the value 87 00:03:42.000 --> 00:03:44.640 and how can I create maximum value 88 00:03:44.640 --> 00:03:46.357 for all the parties involved?"