Overview | Landscape | Alliance Types | Engagement

Partnership Value Statistics

The Good News � Value of Alliances Perceived

           In a 2000 study of value creation in large S&P companies, alliances were ranked as one of the top 5 critical success factors for e-Commerce companies (#1); durable manufacturing (#3); and non-durable manufacturing (#5). (Ernst & Young Center for Business Innovation and Wharton Research Program on Value Creation of Large S&P 500 Firms).

           By 2004, the top 1,000 US companies predict 30% of their revenues to be generated from alliances; Europeans estimated over 40% (Booz Allen & Hamilton, 2000).

           82% of executives believe that alliances will be one of the prime drivers of future growth for their organizations (Accenture � Dispelling the Myths of Alliances, October 1999).

           Alliances are expected to account for 16 to 25% of median company value by 2005 (Accenture, Dispelling the Myths of Alliances, October 1999).   

           Alliance activity in 1999 accounted for an average of 26% of Fortune 500 revenues (Accenture, Global Alliance Survey, 1999).

           77% of tech companies are involved in Alliances - 92% say Alliances are important to present & future growth � 63% rating them critically or very important; these companies expect 43% greater revenue growth than their non-aligned counterparts; over the past 5 years businesses involved in Alliances have grown 68% faster. (PwC �Technology Barometer�, 2001).

The Bad News � Best Practices Not Shared; Poor Execution

          Companies are not able to leverage their full potential. Only 6% were fully able to achieve their partnering goals. (Arthur D. Little, �Partnering�, 2001).

           Out of 100 alliance negotiations, 90 will fail to reach agreement; only two will survive more than four years (Accenture, 1999 Global Alliance Survey).

           Of alliances formed, 31% will fail outright, 30% will survive but not reach satisfactory objectives and less than 25% will be deemed successful by the executives measuring results (The Warren Company, 1999). 

           Pharmaceutical Industry: Co-operative Alliances / Joint Ventures / Consortia� Up to 50 percent of the potential value of the typical alliance is not being realized. Consequently, mastering the skills needed to attract alliance partners and execute alliances to realize full value, is an increasingly important competency that pharmaceutical companies must cultivate in the future. For co-operative and joint venture deals, respondents reported that... 59% percent did not fully meet expectations. Consortia represented the type of alliance where the greatest disappointments have occurred, where 90 percent have not fully met expectations (PwC, �Global Pharmaceutical Company Partnering Capabilities Survey�, 2000).

Overview | Landscape | Alliance Types | Engagement