In an era where globalization is the mantra for national economies, logistics & economies of scale are considered holy writ; being better than your competition and out-maneuvering & outpacing them are perhaps too highly valued. Over the recent past, many management thinkers and companies have been taking a revised view of this, rethinking their approaches and making tactical changes, realizing that this will benefit them in the long run. Outspending, allocation resources to stave off competition – involves heavy and often unceasing deployment of resources – monetary, human, tech, logistic and others. In this dog-eat-dog scenario, possibly, no one wins every time. And it’s never sustained, with everyone wanting to be king. Result? Chaos, the heavy drain of resources and huge amounts of time & energies tied up in the process. Impacting the organization, it’s real mission – good quality products & services, customers and often a huge asset – reputation.
More and more companies are coming to realize the huge benefits of aligning their interests with others, enabling them to focus on things that really matter. Meaningful partnerships like the one at LegalWiz.in partners platform is offering Instamojo special discount and laying the foundations for success, bringing synergy to the fore. Cooperation is the new name of the game. Continuous improvements can be made, and processes can be honed to newer levels of efficiency. Capabilities and resources can be directed towards where they will have the most impact as synergy develops and gets mainstreamed. Creating sustainable competitive advantage results from focussing the firm’s resources on what you do best – other’s resources should be tapped for the rest. For deciding on why, when and how to partner with others for other resources, try and compare the costs saved that might result from doing non-core-focus tasks against the investment required to stay fully abreast over time.
Here, a look at the 80-20 principle will prove useful to get a perspective. This rule says that 80% of results come from 20% of the effort. For achieving more with less, firms need to be selective, not exhaustive. For every single core function, analyze where 20% effort can yield 80% results. Rather than a good performance in many, firms should focus on excellence in a few crucial key areas. It is the era of the new knowledge economy, and strategies of business are being transformed. Success now comes from connectivity and intangibles rather than physical assets and scale. Thus, to succeed, businesses need to ideate, develop and then create whole ecosystems around themselves. To correctly select strategic partners with whom they can collaborate is becoming a vital issue for firms. As Mark Stevens says, for generations, companies built moats between themselves and competitors. Now the most successful companies build bridges, and this is only the beginning”.
There are some distinct advantages to driving business by Partnerships and Synergies:
Giving tailored solutions & services:
Imagine if you are a larger firm that is given a customized solution to your requirements. Would that not be wonderful? Mostly every supplier gives a unique combination of features and capabilities, and the only companies that offer everything are financially out of reach for many business customers. Many analysts have advocated replacing mismatched solutions and instead, replacing these. But they can prove costly. With strategic partnerships, your customers can create tailored solutions without replacing expensive systems. Not only does this make the business more agile and nimble, but it also serves to builds a robust customer relationship.
Tap new segments in untapped niches & undeveloped verticals:
There are many potential viable markets out there – the untapped niches and underserved segments become avenues of opportunities with the partnerships helping to access these. Firms can learn to innovatively search out, review and target these ripe prospects – from the view of the possible outcomes they seek with the combined partner forces. With the combined expertise and various ways to improve your business with technology, firms can reshape the customer and market experience, giving newer insights on how the business should be governed. The sheer space and uncrowded territory of the new markets can help to develop and hone the user experience & the firm’s own way to develop the business, serving customers.
Giving new experiences:
In Partnerships, there is a pooling of combined experiences, insights, and learnings – you can do more by leveraging other experts’ skills & resources. This results in enabling new experiences that would otherwise not have resulted because you have teamed up with the other expert’s talents, experiences & insights. Newer viewpoints, newer tools help to evolve newer methods, newer products – that could not have arrived alone.
Conclusion:
As economies change, data becomes the new oil and technology grows, companies with the foresight and vision to collaborate with others will survive. Companies who junk old beliefs and norms, embracing new insights to adapt to the new 24×7 world, will survive and thrive. Firms that are agile by mindset and open to change will lead the way forward, with collaboration and synergy becoming the norm rather than the exception. Because finally, it bridges that will help access the other shore, not moats.