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Home | ERN | Bugler | The Blogs | Blogroll | Advertise | Archives | Careers Partnership (October 02, 2002) - The enterprise software business is about partnership, not tools. Small and medium sized operations are not usually able to afford the costs of a firm that delivers relationships, so they buy tools. Enterprises (large companies) want far more than tools, they want and need the various bits and pieces that constitute partnership. At its simplest, partnership is the willingness and ability to understand the world from the customer's perspective. Collaboration, a prime symptom of partnership, happens when a vendor understands a customer so well that the two become better at the customer's job than either one could be alone. Innovation, the deep promise of partnership, happens when the collaboration begins to make the impossible possible. Peoplesoft, in its early years, ceded all of its relationship business to external vendors (the Big 5 consulting firms). As a result, customers bonded with the people who delivered relationships. Peoplesoft became a tool supplier to their distribution channel and lost the ability to control or predict their revenue and profitability. Like all relationships with distribution channels, things work great until times get tough. In the big company consulting downturn (related to Y2K and web consulting in 1999), Peoplesoft got caught in a squeeze that cost it market share, revenue (their first layoffs) and customer satisfaction. The fact that their current offering is years behind the market and fundamentally inoperative can be traced to the failure to develop a relationship business. Peoplesoft is hardly alone. Any software company that sees itself as a tools provider is doomed to the same fate. Building a relationship company requires the following things, in addition to up to date software and a coherent plan to manage its configuration as the company grows. Expertise Service Ethic Graciousness Commitment Capability We were inspired to detail these attributes by the following piece from hcm.blogspot.com
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