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AEC TSBU Alliances & Contracts
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Farhan Chishti Manager, Alliances & ContractsTelecommunication Systems Business Unit
2
Born and brought up in KSA BE (Computer Science) First division, pursuing MBA Certified – IBM, Microsoft, Cisco, VMware, CA, Nexans, Expand,
Communications skills… 10+ years Channels and Alliances experience 2 years - Account Manager – ACP Juffali (Systems Integrator) –
IBM, Symbol, Cisco, Lexmark, Casi-Rusco, Pelco, Identix & Eltron – report to Sales Manager
3 years – Mindware (Regional IT distributor) – Country Channel Manager – Foundry, Juniper, Nexans, CA, 3Com, Expand Networks – report to Country Manager
2 years – Computer Associates (US Software vendor) – Country Channel Manager report to Country Manager and then VP
6 years and counting – AEC – Manager, Alliances & Contracts –Excellent working relationships and contacts within the regional ICT circle
Likeable personality, team player, Extreme desire to prove myself…
About Me
AEC & Alliances
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AEC Mission statement:
“To continuously improve our commitments to diversity by aligning our business strategies with end customers’ priorities, creating long-term partnerships, harnessing opportunities, acquiring new capabilities, creating job opportunities and investing in our people and community at large”
Our Mission
“An alliance is a contractual arrangement in which two or more parties are interdependent and working collaboratively toward a common objective and each partner contributes resources and capabilities, whilst sharing in the risk, governance and value of the relationship”
What is an Alliance?
Our Alliance Principles:
Align exclusively or non-exclusively with Market and Technology Leaders
Selectively pursue industry, technology or capability focused relationships with terms that will positively impact our ability to provide services to our clients
Enable ourselves with the knowledge, skills, capabilities and commercial rights related to our alliance partners’ products and services that give us the ability to deliver a differentiated and more complete solution to our clients
AEC Alliance Principles
Benefits of the right alliance?
o Increase revenueo Reduce costso Knowledge Transfero Grow existing marketso Catalyst for Diversificationo Enter new markets & key accountso Open opportunities in new domainso Expand solution and service offeringso Create competitive advantageo Build partner to partner relationships
What are Alliances meant to do?
“At AEC, alliances are essential to our No. 1 goal - helping our clients innovate to become effective government organizations and high-
performance service providers”
Types of Alliances
Outsourcing - (Subcontracting)Relationships with local and regional subcontractors for supply of manpower and/or implementation & installation services
Distributors - (Supplier)Supply chain relationships with distribution companies for material and service procurement & fulfillment
Tactical Alliance - (Opportunistic)A one-off relationship that we leverage on a opportunity-by-opportunity basis, with or without using some form of a stand-alone teaming agreement
Vendors - (Technology)Tier 1 and Tier 2 relationships with hardware, software and networking vendors for supply of their products and services
Strategic Alliance - (Long-Term)A go-to-market relationship formed by a definitive strategic teaming agreement, where the intent is to pursue multiple clients and opportunities
Various categories of alliances at the business unit…
Types of Alliances
Outsourcing• Afaq• Desam• Elite Networks• ESE• S3• Nesma• SALEC• Globinet• ICS• Arab Vision• AlRasim• ……..
Distributors• Aptec• Redington• Mindware• Westcon• Secureway• Logicom• Global Distribution• FVC• AlJammaz• UNITRAC• TechAccess• Comguard• AlMasa
Tactical Alliance• GeoTech• GDC4S• GDIT• Bharti AirTel• Mahindra Satyam• Thales• G4S• Latifia• Samama• MIS• NEC• Nesma• SNC• APD• Muzoon• L3 Wescam• CNL• Milestone• …….
Vendors• Cisco• Alcatel Lucent• Huawei• HP• VMware• EMC• VCE• Oracle• CA• Dell• SAP• Microsoft• VCE• Fortinet• Riverbed• F5• ……..
Strategic Alliance• Agfa• Cisco• InterSystems• SAP• HP• EMC• VMware• VCE• Huawei• Edarat
Some examples of relationships with global technology players and key local and regional partners and suppliers
What’s in it for everyone?
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Value for AEC
Partners’ products and services compliment and extend AEC’s technology and business capabilities
Partners help AEC deliver the best specialized skills and tailored or packaged solutions for each individual client’s needs
Strong relationships and dedicated support can help AEC reduce project execution risk for its clients
ROI on alliances: Incremental Sales: Engagement wins as a result of leads from an alliance partner or
as a result of a specific joint AEC/partner initiative Assisted Sales: Engagement wins that were positively influenced by specific actions
taken by an alliance partner or by the investment in the alliance itself Direct Revenue: Resale and System Integration compensation revenue Cost Avoidance: Investments from 3rd parties to fund offering and capability
development (e.g. free hardware/software, demo equipment, technical support, training)
Practice Sales/Revenue: Sales/Net Revenue generated at a client engagement due to the alliances partners’ technology playing an integral role in the solution
What’s in it for AEC?
Value for the Partner
Being represented by a financially stable, reputable and quality focused organization that is aligned with the Saudi government’s strategy of localization
Working with AEC can help reduce a Partner’s cost of sales and accelerate their sales cycle time
Investing in AEC’s integration capabilities increases the likelihood of successful implementations and satisfied clients
Increased demand generation through AEC’s offerings Local access to superior market knowledge, industry knowledge, and client
knowledge AEC can influence Multi-million Riyals in end-user technology purchases AEC acts as an extended arm for the partners’ implementation and support
services
What’s in it for the Partner?
Value for the Client
Reduced total cost of ownership Reduced time and expense in vendor / product research, evaluation and
decisions Overall reduced project risk Access to enhanced technology provider relationships and support -
including greater access to demo equipment, evaluation software, technical skills and customized training
Streamlined management and execution of the procurement process A local supplier that understands the cultural and political demographics Flexibility in logistics, payments and other transactions
What’s in it for the Client?
Alliance Management
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Analyzing and identifying potential technologies and/or companies for alliance opportunities that support strategic business growth objectives and offerings of AEC
Developing and managing alliances necessary to drive business and secure additional market share in current or new markets
Early adoption of vendor/partner service offerings, co-development of functionality and operations, being an advocate of the vendor/supplier internally within AEC
Developing working relationships with mid to large sized System Integrators, IT Distributors, Consultants and other suppliers in order to have cost effective and dependable partners for joint business opportunities
Conducting ongoing business and performance reviews with partners/vendors Planning and roll-out of sales and technical training and certification programs for AEC on
the vendors training roadmap Researching new emerging niche technology vendors that can add value to AEC's portfolio Keeping up-to-date information on the technology vendors’ roadmaps, monitoring
technology vendors relations, analyzing vendors’ market activities Leading the process of interaction with vendors and partners for RFI/RFQ/RFP
Roles & Responsibilities
Collaborating with the sales account and proposal & bid management teams during these processes
Technical and financial collaboration with vendors/partners during proposal preparation phase
Liaison with the Programs Management Office to manage the vendor/partner against the responsibilities outlined in the subcontracts and work orders
Providing feedback to the executive team and the alliance partners for the purpose of improving the effectiveness and results of the alliances
Developing and organizing programs with sales team to increase internal and external exposure to partnerships which include vendor events, seminars, conferences and trade shows
Prospecting new account opportunities with our partners and engaging the appropriate AEC account teams as required
Providing leadership in supplier relationships, escalating & resolving problems, as well as providing vendor and alliance performance feedback to management and peers as necessary
Supplier selection, order process initialization with PMO, resolution of invoicing discrepancies with suppliers, payment follow ups with AEC finance and conflict resolution for purchase orders and relevant delivery of ordered items and services
Roles & Responsibilities
What services do we bring to the table?
For Strategic Alliances
What services do we bring to the table?
Vendor Assessment, Selection
Technology research, Identify trends, Requirements analysis
For Vendors
What services do we bring to the table?
For Tactical Alliances
What services do we bring to the table?
For Distributors
What services do we bring to the table?
For Outsourcing
Relationships and Interactions: With Sales team: requirements
analysis, partner identification, partner buy-in and the entire alliance lifecycle. Sales training requirements for partnerships.
With Bid team: financial and technical proposal inputs
With ITS/E&D: liasing with partner technical teams for technical inputs and collaboration. Technical Training requirements for partnerships
With PMO: support during project implementation for re-costing, PO processing, supplier management, change order issues, payment negotiations, delivery management, conflict resolution
With AEC Leadership: alliance strategy, performance briefing, executive relationships, corporate overlap
Team Relationships
• Highly leveraged function• Key coordinating function• Lynchpin that binds the
structure together
What does Alliance Management bring to the table?
We have working relationships with them and more…… Vendors• 3M• Acer• Adobe• APC• ASCOM• Avaya• Barracuda• Blackberry• Bluecoat• Brocade• Business Objects• CA• Cisco• Citrix• Dell• Eaton• EMC• F5• Fluke Networks• Fortinet• Google• Hewlett Packard• Huawei• IBM• iOmega• Juniper• Kingston• Legrand
• Lenovo• Leviton• Lexmark• McAfee• Microsoft• Motorola• NetApp• Nokia• Oblicore• Oracle• Panduit• Polycom• Red Hat• Riverbed• RSA Security• Sage Software• SAP• SMC• SoftwareAG• SonicWall• Sophos• Sourcefire• Stonesoft• Symantec• Tipping Point• TrendMicro• VMware• Websense• Wyse• Western Digital
Distributors• Aptec• Redington• Mindware• Westcon• Avnet• Secureway• Logicom• Global Distribution• FVC• AlJammaz• Quattro Associates• Magirus• TechAccess• Comguard• AlMasa• UNITRAC
Consulting• Ernst & Young• KPMG• Deloitte• PwC• ZFP• IDC• PA Consulting• CMCS• LR Kimball• Devoteam• NexCons
Specialized• Siemens• APD• Raytheon• General Dynamics• Evanssion• Tiburon• GeoTech• Zeiss• Cassidian• Action Target• Amesys• Telenity• EADS• SITA• Intersystems• Gulf Medical• Smart Buildings• Intergraph• General Electric• Cerner• KPS• CNL• ESRI• SAIC• Secutronic• Lumension• Barco• Cryptomathic• GDC4S• Infinera
Training• Fast Lane• AlKhaleej• Executrain• ASAMI• Global Knowledge• Marcom• Learning Tree• Dale Carnegie• Spectrum
Systems Integrators
• HCL• Wipro• TCS• Mahindra Satyam• Interactive Group• Dimension Data• Accenture• GDIT
Regional • BarkoTel• GBM• Estarta• ITG• Octaware• Emircom
Local • SITE Technology• SIL• ITC• EJ Tech• Datability• Al-Elm• ISB• Abdulla Fouad• MDS• SBM• Jeraisy• EvoSys• MIS• Sariya• eSolutions Road• Samir• DDIT• S3Net Systems• SNC• Nesma• Duroob • iNet• ASACO• Premier• IntelTec• ITS2
• Globinet• ICS• Arab Vision
Contracts Management
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“Contract management is a continuous process that starts with analysis and
evaluation of the business inquiry, and carries on until contract closure, upon
fulfilment of all contractual obligations. It includes negotiation of terms and conditions and compliance with the
terms and conditions, as well as documenting and agreeing on any
changes that may take place during its implementation or execution”
What is Contracts Management?
Master Service Agreements Subcontract Agreements Teaming Agreements Reseller Agreements HR Outsourcing Agreement Consulting Agreements License Agreements Credit Agreements Memorandums of Understanding Confidentiality Agreements Purchase Orders
Types of contractual documents
Contract Lifecycle
27
Overall contracting responsibilities including Drafting Evaluation
Analyzing new law, regulation and contract trends for potential impact on business unit goals and objectives in collaboration with AEC Corporate Legal
Analyzing significant, and/or unique contract requirements, special provisions, terms and conditions to ensure compliance with appropriate laws, regulations, and corporate policies and business unit procedure
Serving as the focal point of contact for contractual matters; acting as contractual “middleman” between AEC and partners / customers, ensuring timely review and approval / reconciliation of variations
Focal point of contact for all communication with legal, finance and business team disciplines for resolution of contract issues and disputes
Developing negotiation strategy and leading negotiation team on contractual issues As needed, providing guidance on contract matters to business teams and project managers or
other operational staff Providing redlined recommendations and often negotiating directly with customers’ or partners’
legal, contracting, purchasing and sales staff until consensus has been achieved
Roles & Responsibilities
Amendments Reporting
Negotiation Execution
Renewals Termination
Maintaining contractual records and documentation and control of all contract correspondence, contact information sheets, contractual changes, status reports and other documents for all major programs and projects
Developing and implementing procedures for contract management and administration in compliance with company policy including development of standard contracting templates.
Contributing to or influencing company policies on contract management Monitoring compliance by company employees with established procedures. Working with Finance to ensure adherence to broader finance and risk requirements such as
revenue recognition, pricing and discounting policies, export controls etc.; understanding and evaluating economic impact of terms and conditions
Monitoring customer and partner satisfaction with the company’s terms and conditions and contracting practices; recommend and implement changes as and when needed
Ensuring that signed contracts are communicated to all relevant parties to provide contract visibility and awareness, interpretation to support implementation
Handling on-going issue and change management, monitoring transaction compliance (milestones, deliverables, invoicing etc.)
Ensuring proper contract close-out, termination, extension or renewal as needed
Roles & Responsibilities
Q&A – Thank you
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