Penetrative Decision Conceptualization

SERVICE OFFERING : COMPETITIVE COLLABORATION

Competition is imperative in the business world and the pressure is felt even more so in the tech industry where technology seems to be evolving at the speed of lightning.

The Information and Communications Technology sector is fast growing and so is the competition to stay abreast of industry trends and ahead of its competitors. At KBS, we have proposed a solution that not only saves entities money but keeps them abreast of new market entrants by creating a synergy with same industry entities. We have termed this “COMPETITIVE COLLABORATION” as it seeks to bring together a synergy between two previously competing companies in capitalizing on their unique service offerings.

Contemporary Enterprise – Data

USP – UNIQUE SELLING PROPOSITION

  • Focus on the products and services unique to each organization
  • Bring together each other’s expertise in sales and client relationships
  • Message focus that the other does not focus on

With a strategic alliance between two entities competing on the same platform, both companies canbe strengthened against outsiders. Leveraging on each other’s unique offerings saves each entity time & resources that could be spent to develop new products as well as penetrate new markets. Instead, the two could offer their clients the products unique to their collaborative colleagues and translate it into revenue that is otherwise overlooked.

Key benefits of competitive collaboration:
  • Financial advantages – cut costs by not developing new products that the industry colleague has already refined but rather offering the product or service to an existing client base at a profit for both entities.
  • Intellectual capital – tap into each other’s capabilities, skills and expertise.
  • Marketing – with a collaborative effort, both organizations have double the customer base to maximize marketing compared to just one. Both companies are at an advantage where targetmarkets that may have been previously challenging to sell to are reached.
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DEALING WITH ANTI TRUST ISSUES

Legal paperwork has been put in place to protect this collaboration. The aim is to enhance each company’s internal skills and technologies, however, the unfortunate reality is that some entities turn to be ambitious partners and in turn transfer competitive advantages in an unfavorable manner. KBS’s legal has structured documents to make sure that both organizations are guarded in the collaboration.

  • Sidestepping trust concerns- KBS comes in as the gatekeeper that ensures that the agreed information, products and services shared between the companies bypasses only through them first.
  • Risk and control – monitor through agreed structures and control access to agreed technologies, services and products shared.

QUESTION TO THE PARTNERS IN THE STRATEGIC ALLIANCE:
  • How can we work together to maximize and expand our reach?
  • Which resources are the companies willing to offer each other?
  • How much revenue would the company like to see out of this alliance?

KBS will set up teams from both companies to manage & work on the competitive collaboration.
As mentioned above, for smooth running and as a measure to put controls in place to guideline the strategic alliance, KBS will be the gatekeeper & the channel of transacting to keep accountability, transparency & fairness to both organizations.
The most important point to note in the collaboration is that either party can leave at any time that they choose to should they feel that the alliance is not working…

How to ensure we protect each other’s intellectual property rights?

  1. Form a legal agreement in writing setting clear expectations from both parties with the following;
    1. Define roles - when collaborating, clearly define each team member’s role in clear and concise writing, and anticipate clearly as to what each team member will create or contribute. Should the situation for some reason change, legal agreement will be updated.
    2. Protect Intellectual Property through Trademarks, Copyright, Patents and Trade Secrets.

How will profits/revenues be shared amongst both parties?

There are 3 different collaborative business models that companies can implement to ensure that revenue is shared according amongst each entity, they are the following:

  1. The Sharing Model: creates value by combining similar capabilities to reach a greater scale or network effect. These alliances are horizontal in that they operate on the same stage in the value chain. The value of working together tends to be predictable because economic of scale are often easy to identify.
    1. In the sharing model partners use pre-agreed split to capture value (50/ 50 or others).
    2. With the Sharing Model, partners coordinate similar capabilities simultaneously in order to achieve alliance goals.
  2. The Specialization model: In the specialization model each partner Carries own revenue/ cost.
    1. Specialization alliances, on the other hand do require partner to contribute dissimilar resources that can be developed separately but that when combined aggregate to complete customer solutions
    2. This pooled interdependence can be managed by a low level of integration because each partner can focus on its own specialization.
  3. Allocation model : value is created by allocating roles and responsibilities In the connection to risk between partners in an optimal way.
    1. This model is applicable when partners over lapping capabilities but one of the partners is more adept at a specific activity.
    2. In allocating activities to the partner best suited to manage the risk associated with that activity,partners create combined value, lowering the overall risk profile of the alliances.
    3. In the allocation model incentives or targets are tied to how well partners manage risk.

In practice all three of these models are easy to recognize most alliances through research shows that most entities. Use the specialization model with most 45% of alliances work according to this model. The Allocation and Sharing model are almost equally popular with 22% respectively.

Who and how are the decisions on taking lead role on projects going to be made?

Each party will appoint a partnership Lead role, which will be responsible for decision making. By doing so, we are ensuring that both parties’ interests are considered.

What value will Kukaya Business Solutions bring to the parties?

  • KBS offer substantial benefits by differentiation from the competition through incorporating a new digital service by internalizing novel information on one of our integrative platforms.

  • KBS will assist both entities by increasing innovation and financial performance within their competitive industries with our cutting edge block chain application which eradicates fraud, assist in reducing risk , while operating in optimum transparency.

  • KBS will foster the development of fair, ethical and meritocratic local entrepreneurship and promote ethical behavior in the relationships between the competitive collaboration parties.

  • KBS will help diversify and fulfil both parties customers’ needs better. Create new value for both parties customers.

  • KBS will synergistic partnerships provide both brands with expanded opportunities and more importantly make the customer journey more fluid and immersive.

Speed, security & operability made better

Case studies with successful Collaborative Competition

Case study 1: Apple Pay and Mastercard

Apple pay collaborate with master Card.

When Apple released the Apple Pay system for contactless transactions, it was poised to change the way people used their credit cards forever.

But first, Apple needed credit card companies to partner with them and support the technology. MasterCard was the first company to do so. So when Apple Pay launched, only MasterCard customers could pair their card with an iPhone and make payments without actually having their physical card with them. By forming a strategic alliance with Apple early on, MasterCard connected itself with a company known to be on the cutting edge. This successful strategic alliance example also paid off later, when Apple partnered with MasterCard again in the launch of their Apple Card credit card.

Case study 2: Microsoft and SAS Systems

SAS' AI and analytics more tightly integrate with Microsoft Azure; Microsoft to bring cloud-based SAS industry solutions to its customers.

When Apple released the Apple Pay system for contactless transactions, it was poised to change the way people used their credit cards forever.

Microsoft Corp. and SAS today announced an extensive technology and go-to-market strategic partnership. The two companies will enable customers to easily run their SAS® workloads in the cloud, expanding their business solutions and unlocking critical value from their digital transformation initiatives. As part of the partnership, the companies will migrate SAS' analytical products and industry solutions onto Microsoft Azure as the preferred cloud provider for the SAS Cloud. SAS' industry solutions and expertise will also bring added value to Microsoft's customers across health care, financial services and many other industries. This partnership builds on SAS integrations across Microsoft cloud solutions for Azure, Dynamics 365, Microsoft 365 and Power Platform and supports the companies' shared vision to further democratize AI and analytics. "Through this partnership, Microsoft and SAS will help our customers accelerate growth and find new ways to drive innovation with a broad set of SAS Analytics offerings on Microsoft Azure," said Scott Guthrie, Microsoft Executive Vice President of Cloud and AI. "SAS, with its recognized expertise in analytics, data science and machine learning, is a strategic partner for Microsoft, and together we will help customers across dozens of industries and horizontals address their most critical and complex analytical challenges."

Organizations around the world are moving to the cloud to innovate and move faster toward their business goals. As part of this transition, many customers, like St. Louis-based health system Mercy, are migrating their SAS analytic workloads to Azure to improve performance and cost-efficiency.

Case Study 3: IBM and Siebel Systems

IBM Collaborates with Siebel Systems.

BM and Siebel Systems have announced a global strategic alliance to integrate Siebel Systems` multi-channel CRM software applications with IBM`s e-business capabilities. The scope of the alliance includes world-wide joint marketing, collaborative selling, software integration and extensive joint development.

"The alliance will quickly generate financial returns and competitive advantage for our joint customers. IBM`s global reach, industry knowledge, and strength in hardware, software, and services, combined with Siebel Systems` CRM market leadership, will deliver compelling value for customers seeking improved customer retention and loyalty," said Thomas M. Siebel Chairman and CEO, Siebel Systems, Inc.

The integration gives customers a powerful platform, dramatically reducing cost and risk, accelerating deployment, and improving return on investment.

Together Siebel and IBM can provide an end-to-end capability to customers that no other competitor can match," said Bill Etherington, Senior Vice President & Group Executive, IBM Sales & Distribution.

Dedicated engineering, product marketing and quality assurance teams will manage the integration and optimisation of the entire integrated e-business solution. The two organizations will jointly market and sell Siebel CRM applications, which fully support IBM`s DB2 Universal Database and are optimised for IBM`s S/390, RS/6000, NUMA-Q, AS/400 and Netfinity servers.

The Siebel CRM solutions will also fully support the IBM Application Framework for e-business and embrace IBM`s enabling middleware and component-based technologies, including MQ Series, WebSphere, net.commerce and IBM`s Computer Telephony Integration products. And in addition, the two companies will initially focus on customers in the finance, insurance, communications and consumer packaged goods industries. They have agreed to integrate the functionality of Visual Banker and Siebel Finance to deliver more robust industry-specific CRM.