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Strategic Alliances & Relationships: The Way to Profitability. Presented by: Heston Hutton AGM Strategic Development & Planning- JCCUL & MD – Centralized Strategic Services Limited (CSS). Life is a Natural Cycle - Eco System. Food Chain Food Web Water Cycle. Adaptablity of Life.
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Strategic Alliances & Relationships:The Way to Profitability Presented by: Heston Hutton AGM Strategic Development & Planning- JCCUL & MD – Centralized Strategic Services Limited (CSS)
Life is a Natural Cycle- Eco System • Food Chain • Food Web • Water Cycle
Adaptablity of Life • Naturally we bread the Air • Naturally we Consume Food • Natural we protect ourselves from Danger/Harm • Built-in Survival Mechanisms
Adaptability of Life • Naturally we work together to fulfil our needs as part of the Survival Mechanism
Adaptability of Life • Businesses are now organising itself to Natural patterns of life: • Structuring themselves to align to the natural forces as opposed to against it.... • Focusing on Value-chain systems • Creating Survival Matrix to ward off threats/danger • Forging alliances to better deal with the survival challenges
Corporate Adaptability:Build Strategic Alliances • Shared Values • Shared Vision • Shared Resources • Shared Risk • Shared Rewards
Strategic Alliances: Relationship • Shared Values: • They share common value systems • This shared value system is the bedrock of the relationship, providing the means, motivation and commitment to resolve problems with the relationship and growing the relationship.
Strategic Alliances: Relationship • Shared Vision: • The partners share a common view of the objectives, results and outcomes of the alliance. • They share a common vision of the importance of the relationship
Strategic Alliances: Relationship • Shared Resources: • Each partner commits an appropriate proportion of the resources, whether they are capital, people, knowledge, technology or other.
Strategic Alliances: Relationship • Shared Risk: • Each partner bears a fair and appropriate share of the risk in the alliance. • No partner has a disproportionate level of risk.
Strategic Alliances: Relationship • Shared Rewards: • Each partner shares appropriately in the rewards, the partners work together to create mutual wins.
The Value of Collaboration • Ability to do More with Less • Easier to Execute • Greater efficiencies • Increased Competence • Grow Market • Grow Capacity • Greater Successes/Profits
Strategic Alliances vs Mergers • A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations • Mergeris a combination of two or more corporations by the transfer of the properties to one surviving corporation
Some Strategic Alliances: Success Stories • Google & Facebook • HP & Disney • KFC & Pepsi • PUMA & Usain Bolt • JCCUL & CSS
Strategic Alliances Choice Business Solutions Limited (CBS)
Debit Card Switch • Revised Debit Card SWITCH • Improved Security Features • Stable Environment • Increased Payment Channels • Greater Capacity & Resilience
Collection Management (ICMS) • C&WJ CCU • Implemented: Oct 2009 • Prior to Implementation: 11.87% • Post Implement (6 months later): • TODAY: 6.97% • St. Catherine • Implemented:2010 • Prior to Implementation: 9.4% • Post Implement (6 months later):7.35% • TODAY: 4.3%
Microsoft Enterprise Agreement • Implemented: 2010 • # of Credit Union on Programme - 11 • Average Saving in MS licences Cost: 60%
CPD ONLINE • Implemented: 2010 • # of Credit Unions on board:25 + 4 = 29 • # of Users: 1920 • # of Courses: 300 • # of Courses completed:25,530 • Minimum Savings: 40% per employee per course
Credit Card Services • Implemented: 2012 • # of Credit Union on Programme: 3 • # of Cards distributed 150
Enterprise Telecom To establish an enterprise infrastructure to support Blackberry, email, CUG for the movement • Implementation:2011 • Approx. 200 User • Saving Averaging – 50% • Services: • CUG • Blackberry • SMS
Examining the Business Model Shared Infrastructure...Shared Fixed Cost • Real-Estate • Utilities
Examining the Business Model Shared Service Centre • Make Deposits • Make Withdrawals • Make Loan Payments • Transfer Between Accounts
Sharing Utilities Utilities Represents approx. 4% of Total Expense
Revised - Operational Model Shared Security Services • The Cost of Security, next to utility and staff cost is the one of the greater concern for businesses
People Cost • Performance Based Payment • Culture of working to pay oneself • Leverage competence – Sharing Resources
Revised - Operational Model Leverage Enterprise Web-enabled Technology Architecture
Revised - Operational Model Sharing Professional Services - Marketing
Epayment Gateway Eco System