Partnerships have become a key element of modern business models. Companies can create varying levels of partnership to optimize their business models, reduce risks and costs and accelerate speed to market. While partnering can provide cost reductions, there could be future competitive or quality exposure by outsourcing a capability or element of your value chain. As economies become more global, the ecosystem effect provided by selective and cautious partnerships will become even more important.
Partnerships are often formed on a transaction-by-transaction basis. This approach, while cost-efficient, can limit real opportunities for expansion and growth. Business model optimization, risk reduction and new capabilities may require a more strategic approach to partnerships. Revisit your strategic partnerships by considering the following questions:
- Who are your key partners? Key suppliers? What role do they play in your value chain or the buyer experience?
- Can you form strategic alliances with non-competitors?
- Can you form joint ventures to share risks and costs?
- Can you convert suppliers into partners?
- Can you optimize your value chain with partners?
- How well do you utilize your relationships with suppliers, partners and allies
- Can you strategically partner to align your corporate values and quality assurance commitments to your customer’s?
image credit: growthstrategy.com
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Wayne Simmons is an accomplished executive, innovator, value creator, and entrepreneur and co-author of GrowthThinking: Building the New Growth Enterprise. As CEO and Co-Founder of The Growth Strategy Company, Wayne leads the vision, strategy and growth of the company. He has worked for global advisory firms Ernst & Young, Deloitte Consulting, and has been a trusted advisor to C-level executives at Fortune 500 corporations, venture capital firms, and small and midsized companies. Wayne was trained in airborne reconnaissance for US Army Intelligence; and is an alumnus and Fellow of The Wharton School of the University of Pennsylvania.
Keary Crawford is a results-driven executive leader with extensive experience in operations, M&A and finance for start-up, entrepreneurial and middle-market companies. As co-founder and COO of The Growth Strategy Company, she manages the strategic growth and vision, and day-to-day operations; and is co-author of GrowthThinking: Building the New Growth Enterprise. Keary was trained in Behavioral and Social Sciences and is a Fellow and alumna of the Executive Development Program at the Wharton School of the University of Pennsylvania.