Strategy Insight II

When 50/50 business relationships is a bad idea

In an age where change is the only constant, the acceleration of tech advancement is rapid, the sophistication of models is growing, and the customer's expectations for immediacy and intuitive experiences are heightened. These factors have spawned the need to build an ecosystem of partnerships between corporations. 

While this can be an amazing way to speed product enhancement, achieve market and channel growth, improve operational efficiency and allow participation in new business models. The result is that most partnerships never meet the expectations.

Tech business partnerships fail when the homework on how an ideal partner looks like, isn't done beforehand. They are chosen very opportunistically without a thorough examination of the prospective partner, the expectations, and the requirements. And instead, the focus becomes on who gets what piece of the pie rather than what is possible together.

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