Alliance-Building
Scaling the Wall Between Strategy and Technology at Bain
Unlike Andersen Consulting, Deloitte Consulting, or any number of consultancies that are today counted among the ranks of technology "implementors," Bain & Co. has long preferred to limit its contact with technology companies to client-centric engagements. That's not the case anymore. In recent months, the strategy firm has been aggressively pursuing strategic teaming relationships with a variety of technology players. Consulting recently spoke with the vice president of e-commerce for Bain & Co., Steve Berez, about the firm's partnering strategy and the alliance-building organization Bainies now call BainNet.
CM: How did BainNet come about?
Berez: To us, BainNet is really about two things: speed and effectiveness for our clients. The concept is that when we work with clients on formulating strategies, and as we move into the implementation stage, clients are very often turning to us to help in selecting the suppliers and partners to do that implementation. By building relationships with technology and other types of services firms, we become very familiar with the strengths and weaknesses of various firms. By knowing them well and by having developed in some cases joint methodologies, we will be able to dispense with the kind of dance that many companies find themselves doing when they work side-by-side for the first time.
CM: Why did Bain find it necessary to establish direct relationships with these companies?
Berez: We're not endeavoring to have relationships with every category of software company. There are certain categories of software today in which the selection of the software platform precedes the selection of the implementor. So, for example, if we are thinking about a B2B exchange, it's quite reasonable to have a discussion around the choice of platforms — Oracle, Ariba, or CommerceOne — before making a choice of whether to go with a particular implementor — Andersen, IBM Global Services, or Oracle Consulting.
CM: How is the initial contact first made?
Berez: It actually depends on the company. Sometimes it begins with a call from someone at the software company saying, "Hey, given how your people are very much involved in technology decisions, maybe we should get to know each other better." In the case of i2 Technologies it had to do with the fact that their strategy group focuses on a very well-defined segment of strategy. They were frequently coming upon strategy problems that were routinely beyond the scope of problems they like to address themselves, so they talked to us about the possibility of helping out in those situations.
CM: How are these alliances different from those between technology companies and Big Five consultancies?
Berez: Well, for example, both Oracle and Siebel have alliance groups, and each of them within this year has developed strategic initiatives to partner with strategy firms. Now, those relationships are very different from the relationships that these companies often have with the implementors — where money is changing hands along with commissions. The more sophisticated firms understand that we don't partner in this way, while the less sophisticated ones will sometimes approach us as if we're a Big Five firm. So, I think it goes without saying that we don't take commissions from the members of BainNet.
Public Enterprise
At McKinsey, Success is No Longer Measured by Profits Alone
Only months after Bain & Co. announced the creation of a not-for-profit consulting company, McKinsey & Co. has sharpened its focus on the nonprofit sector with its newly formed Community Impact Network (CIN), a business group now charged with taking a more strategic and coordinated approach to nonprofit sector work.
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