Yes, Tectono
Business Review is aware that chief
executive officers across many business sectors are of the opinion that
strategic partnerships are essential for any company aspiring to compete on a global scale and that new
ideas and innovation are the lifeblood of today’s business world. It is very
unfortunate that despite the increasing need to develop partner relationships,
most enterprises lack the knowledge, connections and management capabilities to
realise the full potential of partnering. Many companies lack the formal
strategies and expertise to identify and nurture the most beneficial
relationships. As a result, almost all are seeking new and better ways.
Tectono Business Review discovered
that 42 per cent of companies are not satisfied with how well they leverage
their partnership and alliance potential. While 85 per cent of companies view
partnerships and alliances as essential or important to their businesses, only
33 per cent have formal partnering strategies, and almost half report failure
rates of 60 per cent or higher.
These are
the two most important benefits of strategic business partnership, according to
Tectono
Business Review:
Increased
revenue, innovation and customer base
Acquiring
customers and increasing revenues are seen as the primary benefits of
partnering. Smart companies see partnerships as a way to acquire customers,
drive revenue and enter new markets. The companies also rely on partners for
new ideas, insights and expertise that can impact business performance, market
understanding and product innovation. It also revealed that 40 per cent of
businesses seek partnerships to reach new geographical markets or expand their
online presence rather than focus on customers in their existing markets.
It
facilitates business growth
Prominent
chief executive officers have always cited strategic partnerships as their
number-one growth strategy. Big companies today are making strategic
partnerships a centerpiece of corporate strategy, committing more than 20 per
cent of their assets to developing and managing partnerships. However, small to
medium-sized firms are at a disadvantage because they do not have the domain
expertise, business networks or management bandwidth to support the arduous and
time-consuming process of identifying, cultivating and making the right partner
connections – regardless of whether this is for revenue gain, new market
access, product line extension, geographic expansion, customer access, domain
knowledge, IP licensing or capital sourcing.
Most
companies, including the 230 million that make up the global business market,
do not have an effective, trusted online platform to automate business
partnering, alliance building, and organic and inorganic growth. They continue
to work within inefficient, tedious and expensive processes for research and
outreach, along with hiring outside bankers and brokers to fulfill their
expansion goals.
The
next question now is how companies achieve partnerships. You will be amazed to
know that only about 10
per cent of management feel they were extremely good at identifying, qualifying
and securing partnership introductions. Some 60 per cent are focused on
developing a strategy and targeted approach for sourcing alliance opportunities
and building out contact networks.
The marketplace
is evolving rapidly and companies need to look closely at their offerings and
ask themselves if they are in the right business, if they are going to market
in the right way and if they are doing that as effectively as they need in
order to support and grow their client base. Companies are constantly changing
in today’s marketplace. To be nimble and able to adapt to the market, you need
to have a highly executable vision. And to achieve that vision, you need the
right strategic alliances with a framework approach that supports it.
Improving
relationship with partners
As a result
of the high rate of failure discovered in most partnership, the role and value
of strategic partnerships and alliances in contributing to corporate growth and
development should not be ignored. The capacity to identify, qualify and secure
the right introductions to relevant and valued partners and business
opportunities is important. Challenges and complexities associated with
selecting, closing and nurturing the right partnerships should be identified.
So, reasons for partnership failure and how to manage and maintain
relationships should be paid attention to.
Incidence of
formal partnership strategies and how these are implemented, staffed and
funded; intentions and plans to improve networking, partnering and sourcing of
growth opportunities worldwide; channels, networks or resources that are being
evaluated or used to advance business networking and relationship building. Variations
in business partnership capability across industry sectors, cultures and
company size; and internal systems or outsourced services that are helping to
automate and optimise business partnerships and customer acquisition are areas
of exploration and discovery.
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