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+. Background. Microsoft : leading software companies developing, manufacturing and licensing software products Accenture : global management consulting, technology and outsourcing company helping its clients be high-performance businesses and governments

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  2. Background • Microsoft: leading software companies • developing, manufacturing and licensing software products • Accenture: global management consulting, technology and outsourcing company • helping its clients be high-performance businesses and governments • In 2000, Microsoft and Accenture see the need of advanced and reliable technology, forming Joint Venture called “Avanade” Background Motives & Fits Design & Structure Performance Problems & Success Factors

  3. Motives & Fits For Microsoft: • Access to the customers of enterprise market • Innovation • healthcare, oil and gas, digital marketing, client-focused CRM solutions and cloud computing For Accenture: • E-commerce • Reducing operation costs • Improve collaborations • Provide flexibility for its global work force Background Motives & Fits Design & Structure Performance Problems/ Future Problems & Success Factors

  4. Motives & Fits Avanade: • Consulting industry, focusing on developing and implementing information technology solutions • Mission • design, develop and implement high-end e-commerce and enterprise platforms Advantages for both: • Customer satisfaction • Easy communication between consulting and the IT-part • Closer relationship • Profit Sharing Background Motives & Fits Design & Structure Performance Problems/ Future Problems & Success Factors

  5. Alliance Design • Joint venture • deliver enterprise class business solutions on the Microsoft platform • Financial and Intellectual capital investment • Accenture’s Point of View • Access Microsoft R&D • Cost effective Microsoft innovation for better customer reliability and satisfaction • Microsoft’s Point of View • To access enterprise market • Develop skills and expertise of Accenture Background Motives & Fits Design & Structure Performance Problems/ Future Problems & Success Factors

  6. Alliance Structure • Avanade was built with a $ 1billion capital investment • Started with a 50-50 share between Microsoft and Accenture • At present, Accenture holds 80% and Microsoft 20% Background Motives & Fits Design & Structure Performance Problems/ Future Problems & Success Factors

  7. Avande’s Performance • 5,100 projects • 1,600 clients • more than 110 cross-industry and industry-specific solutions • Unique access to Microsoft products, resources and skills • Maintain more than 40 delivery centers worldwide • Operating in 24 countries and keeps more than 10,000 professionals. Background Motives & Fits Design & Structure Performance Problems/ Future Problems & Success Factors

  8. Avanade’s Performance • In 2007 • generated revenue of $593 Million. • In 2010 • approach the $1 Billion mark in annualized sales. • Presented with the 2010 Microsoft Enterprise Partner of the Year • For the sixth time and third consecutive year Background Motives & Fits Design & Structure Performance Problems/ Future Problems & Success Factors

  9. Possible Problems • Exclusivity • Avanade is highly dependent on Microsoft • Software problems can lead to low performance and customer satisfaction • Accenture subcontracts its services to Avanade • If Avanade encounters problem with Microsoft: • Accenture will also be affected Background Motives & Fits Design & Structure Performance Problems & Success Factors

  10. Success Factors • Commitment to excellence • Distinctive assets • Business intelligence • Industry expertise (Accenture) • Deep technical expertise (Avanade) • Product expertise (Microsoft). Background Motives & Fits Design & Structure Performance Problems & Success Factors

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