Microsoft: Creating Value Through Parnering, Part 1: Capgemini / Microsoft Case Study of Best Practices
In an industry such as the services sector that is driven by innovation and constant change, it is a well-established fact that partnership is a critical and necessary component of the continued success and growth of a services firm. Yet, there is no guarantee that a partnership will succeed or provide the expected benefits to each party involved. In fact, a large number of partnerships fail to meet their basic goals. The question then is, what are the key elements of an effective partnership? This question was examined with respect to the Capgemini/Microsoft alliance on the basis of certain factors that have been shown in many research studies to contribute to partnership effectiveness. Our case study highlights the following:
16 August 2005
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The value proposition of the Capgemini/Microsoft alliance, which has strengthened over time, is clearly meaningful to both partners today from both a financial and a capability perspective. Besides extending the capabilities of each company, the alliance has improved each company’s prospects with clients.
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As the alliance has become more comprehensive and valuable to the partners, the governance structure has increased in importance and detail. A more formalised approach is now taken, which addresses how each company will work together.
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Many partnerships do not learn and grow. This alliance typifies a relationship between two companies in which each has been willing and able to make necessary adjustments to work more effectively with the other. They have both learned from their mistakes and adapted their modus operandi to accommodate the other party for the good of the team. In addition, both companies have evolved together to adapt to ever-changing needs in the marketplace. This flexibility and adaptability have served this partner relationship well.
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Invariably, large global companies such as Microsoft and Capgemini face competitive tension with other companies when they form strategic alliances. These competitive pressures have the potential of impeding any alliance relationship and in some cases contribute to its dissolution.
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The goal of obtaining solid and quantifiable ROI metrics has proven to be rather elusive and a major challenge in any alliance. In the Capgemini/Microsoft partnership, it has been especially difficult to develop a common measurement and calculate a direct cause-and-effect relationship between involvement in the alliance and revenue generation. However, it is a challenge that both companies are currently addressing.
