A New Era of Collaboration

Innovation is always believed to be product based or centered on the delivery of a product driven solution set.  However, as a new era of globalization dawns and in the process redrawing conventional economic roadmaps, there is an architectonic shift that is quietly manifesting itself.  The impacts and truisms surrounding alliances, B-to-B interactions, and channel collaboration are all being rewritten in the face of huge headwinds created by decaying businesses.  Yet, from the decay underfoot, there are material opportunities for those intuitive enough and bold enough to act.

As we clearly recognize from the numerous market shortcomings, the ability of any organization to adapt to market opportunities resides within a cultural desire to orchestrate operational collaboration.  More to the point, the overt deployment of compartmentalization and virtualization to create new teams, client offerings, and adaptable business models is no longer the realm for software developers or startups.  There is strong evidence to support this fundamental shift resulting in groups of experienced individuals seeking out organizations that can collectively leverage their combined IC and skill sets. 

Unlike the alliances, partnerships, or prior business models, these social or matrixed arrangements seek to bring “best-of-class” solutions without the long-term challenges associated with dogmatic interoperability agreements.  The new B-to-B orchestration structured interactions ensure that as markets quickly change and adapt to global pressures, the services to the end customer (e.g., banks, lenders, servicers) is anticipated and delivered as needed – not after the challenge has passed.

The resulting collaboration in turn benefits the involved businesses by creating very important and profitable “wins” that are used to invest in their future products and services, while validating and improving their existing offerings.  There is a parallelism of change taking place between the old and the new principles – the old trying to find relevancy, while the new seeks to leverage innovation. 

Analogous to the rapid adoption of software as a service (SaaS), Web 2.x/3.x solutions, and the ubiquitous nature of multi-faceted communications (to name just a few), the collaboration and orchestration activities between firms have yet to internalize new methods of delivery – they still resemble linear, waterfall approaches with centralized governance.  As a result, arrangements are cumbersome, difficult to value, and often yield far less than the management teams expected.  Dissolution leads to inaction, inaction to remorse, or worse still, the deal never gets accomplished because of the excessive and dogmatic oversight structures demanded.

So what can be done and how would a new model of collaborative orchestration work?

1. The participating organizations need to recognize that each has much to offer the other within a loosely-coupled arrangement.  However, rather than strategically preplan this structured arrangement for years to come, approach it more pragmatically and tactically.  For example, being a conductor of a symphony is exactly that – sections change, new scores are introduced, and it all requires varied skill levels in the “chairs” to deliver the desired notes.  However, the old arrangements are more like elaborate weddings as each side seeks out prenuptials and guarantees.  Meanwhile, the customer (which is why you need this collaborative orchestration to begin with) is left wondering what is going on and which organization will “show up today.”  Bottom line, you don’t want a wedding when all you need is a date.  An interesting reflection point -- is this not a similar principle to the investment and ideals surrounding SaaS?
2. Collaborative business orchestration is also not about building huge staffs on either side of the partnerships.  Today’s environments are dynamic and innovative requiring nimble structures and personnel.  With a global recession now engulfing even the emerging economies, the use of these arrangements will be highly sought after and secured.  Why, like the auto industry, should we carry huge overhead and fixed costs when multi-faceted sourcing information is the key of the future?  Knowledge and profits are driven by the information and it is all done via people and the catalysts of process and technology.  Bottom line, it will be far more profitable to assemble lean, JIT teams focused on the customer as compared to the wedding planner partnership approaches of the old-school, big-market past.
3. With forced M&A actions over toned by widespread job losses, the base of available “partners” will be severely reduced and those that remain will not be eager to expand old school alliances or relationships.  This mindset will be extended throughout the entire supply chain – both forward and reverse.  To prosper from this “flat or curved world” coupled with global wealth rebalancing, organizations need to seek out nimble and flexible collaboration partners to assist stressed out customer operations.  We’re avoiding the “shotgun” wedding and moving into “flexible living” arrangements.

The use of collaborative and sometimes transitory partnerships for the new era is perfectly suited for recessionary economics and hiring uncertainties.  There are many other reasons I could state above depending upon your unique goals and situation specifics.  Suffice it to say that there is tremendous opportunity being made available – but not in the traditional models of our storied past. 

So, as the gatekeepers fight over legislation and their intended and unintended consequences, the new world road is being paved in unique, transitory arrangements.  Measurements and monitoring will be required, but the supply chains and operating collaboration demanded will introduce an unconventional set of new criteria and conformance parameters.  Governance and compliance -- both within regulatory pressures as well as outside of them – will force the market and its vendors to rapidly adjust or “go bust.”

Those that fail to recognize and internalize these sweeping collaboration and alliance changes will be sealing their own fate.  Those that use leveraged innovation from a proven delivery model (e.g., social network integration, SaaS principles for alliance integration, etc.) stand in the best position to ensure profitability and customer relevance.  They will be the ones that survive in the face of great uncertainty and lasting economic upheaval. 

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