Managing Strategic Alliances and Partnerships Dr. Kathleen McGroddy-Goetz, Managing Principal, IBM Engineering and Technology Services

The Importance of Alliances & Partnerships  Opportunity for mutual success  Penetrate new market  Customer access  Credibility  Enhance offering  Adjunctive technology  Ability to influence  Standards  Define new market

Challenges  Preconceived notions  Putting each other in a box  Cultural clashes  Navigating internally  “One throat to choke”  Credibility in the marketplace  Are you here to stay?  Threat of competition  By partner  With other potential partners

Planning for Success  Start the relationship  Find synergies, common goals, and differentiating value  Gain executive support with key influencers  Be persistent  Manage the relationship  Ownership  Define roles and responsibilities  Communication – build trust  Grow the relationship  Highlight early successes  Constantly look for new mutual opportunities  Make it personal

Medtronic, Inc. Cardiac Pacemaker Programmer Long term relationships  The Challenge  Medtronic required a platform to communicate with its line of programmable cardiac pacemakers  The customer selected IBM because of our advanced skills and technology base  The Solution  Access to IBM expertise and technologies  IBM's ability to supply components at a very cost competitive price  IBM Value Proposition System Integration:  ThinkPad® technology as a motherboard reference design  Custom-designed medical- grade power supply  IBM custom-designed pen and touch screen system  15-inch LCD display  Thermal chart recorder in a magnesium case  Customer Benefits  Ease of use  Increased market share  Allowed customer to focus on their core business Medtronic, Inc.

Sharing common goals

Unique value that differentiates "The stunning deal between IBM and the University of Pittsburgh Medical Center is not only a landmark for those two organizations but a new standard for the type of forward- looking, precedent-setting relationship that should begin to characterize the new ways the IT customers and vendors regard each other, " says Bob Evans, editorial director, InformationWeek.