IDC’s Annual Alliance Survey Highlights the Need for Better Alliance Management and Performance Tracking

FRAMINGHAM, MA – JULY 17, 2002 – IDC's annual survey of alliance professionals reveals that companies are investing in alliances and that they are seeing incremental revenues as a result of those investments. More than 90% of survey respondents report that their alliances account for at least 5% of their company's annual revenues.

 

"Getting alliances 'right' is critical as companies build and expand the scope and scale of their solutions to meet increasingly complex business challenges," said Nicole Gallant, research manager for IDC's Software Strategic Alliances program. "As companies increase their alliance activity, the stakes are also raised for how companies select alliance partners, implement agreements, manage relationships, and assess the success of those alliances."

IDC's survey also reveals that while companies are investing in alliances and generating incremental revenue, the critical activity of tracking performance is a challenge for the majority of companies surveyed. A vendor's ability to accurately track and manage alliance performance has implications for a company's ability to manage and predict ongoing and future revenue flows, which, in turn, has implications for a company's ability to accurately and effectively allocate alliance investment.

Alliances will bring the highest rewards to organizations that focus on management basics and provide the resources required to execute, manage, support, and measure alliances. IDC believes companies that invest in executing on alliances in favor of quick revenue hits or landing "big fish" alliance partners will have a more sustainable competitive advantage in the longer term.

To learn more about alliance best practices, IDC surveyed alliance professionals in leading software companies about alliance management strategies — what works best and how that success is measured — as well as some of the biggest challenges these alliances will face in the upcoming year. IDC's recently published third annual report, Strategic Alliances 2002: Winners, Innovators and the Next Generation (IDC #27478) provides findings of this survey and explores what leading software vendors are doing with their strategic alliance partners to maintain competitive advantage and capitalize on business opportunities.

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About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

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