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Lets Get Together

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Submitted By IAmCassafia
Words 2251
Pages 10
Part 4: Organisational Processes
BOSS Magazine article
Let’s Get Together

Source: B. Head, “Let’s Get Together,” Boss Magazine, September 14, 2001, p. 52.

The strategic alliance is redefining competition in the new networked economy. But to make the most of collaboration, you need to pay attention to age-old issues like trust. It took Siebel Systems six years to rise from start-up to star. By 2000 the software company was raking in $US1.8 billion annual revenues and ranked third on Fortune's 100 fastest growing companies list. This status came from forging alliances where it made sense and where it could. Siebel, founded in 1993, was early to market with e-business software, but being first wasn't enough. Siebel needed to fight off rival start-ups by developing critical mass fast; and that demanded the support of seasoned partners to help break into international corporate accounts. Today the company refers to its web of alliances with hardware companies, software companies, consulting firms and service providers as a "partner ecosystem".

Siebel's is not an entirely benign ecosystem, though; it is inhabited by some of the most dangerous corporate predators in the IT sector - companies such as Microsoft, Cisco, Compaq and IBM. These are companies that compete and yet collaborate, and even while they collaborate they compete. Siebel's ecosystem is the tense model with which millennial management will have to come to grips.

Dean Blomson, vice-president of consulting firm Cap Gemini Ernst & Young, says mergers and alliances in the networked economy are "the structural response to the digital era". Technology has catalysed the alliance trend on two fronts. First, technology has delivered the information and communications infrastructure, plus transport systems that can support global business. Second, technology is prompting change at such speed that

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