Dr. Russell F. Henke -- Business Consultant


Case #8 -- New Approaches to Growth & Partnering

A small business unit (SBU) within a far larger, mature international software vendor company has begun to enjoy success in marketing Windows-based products. The European-based SBU is growing rapidly by using a different selling paradigm than the parent company: value-added-resellers and far lower price points. However, the SBU’s products on Windows still incorporate legacy software code controlled by U.S. parent company headquarters, whose mainframe development philosophies, schedules and platform mix are incompatible with the desktop world.



An experienced outside business consultant is asked to assist. Realizing that the necessary metamorphosis at headquarters will take far longer than the SBU can afford in the highly competitive world of PC’s, the consultant recommends the necessary heresy of replacing the legacy code with 3rd party code more attuned to the SBU’s needs.

Unfortunately, the offshore SBU is unfamiliar with contacting potential partners and negotiating OEM deals in the USA. The consultant helps identify and sift various candidate suppliers. Once identified, the consultant helps draft and work out the detailed terms & conditions of the agreements, to assure win-win arrangements.


The SBU’s products are quickly retrofitted and taken to market with a far richer selection of platform and operating system choices, and with rapid shrink-wrapped updates and enhancements demanded by customers. The SBU’s direct revenues grow and the new customers thus penetrated become excellent candidates for purchase of larger legacy products and services from the parent company.

A serendipitous benefit occurs, as a new and powerful worldwide partner for the SBU is uncovered in the process of searching for 3rd parties. The consultant helps structure a relationship where the SBU technology is embedded into the partner’s soup-to-nuts solution software suite, creating a strong indirect royalty stream for the SBU.


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