In the current scenario, businesses are collaborating with one another to effectively deal with the hurdles of resource availability, magnified by increasing global population and growing middle class. Meeting the exponentially increasing demand for food and products doesn’t seem possible through conventional business methods. We need to change our thought process and work collectively towards it.
To increase their efficiency, smart companies keep a check on three factors to ensure the future viability of their business – productivity, efficiency, and elimination of waste. Although they are absolutely essential, yet they are not sufficient by themselves. Alternatively, IT or web development companies are learning that they can often accomplish more when they collaborate, particularly on a global scale.
According to Katharine Schafli, Business Director at TrinityP3 Hong Kong, collaboration within a firm is important, but the outside the firm is also significant. Outside collaboration takes 2 forms: Vertical and Horizontal collaboration. Vertical collaboration is done with suppliers from whom we are procuring stuff. Horizontal collaboration is done with complementors who provide complimentary things that help you to sell your products more effectively.
Let’s understand the concept of collaboration with an example of an Apple iPhone. More than 90% of iPhone features are made by somebody besides Apple. This is a form of vertical collaboration. Additionally, Apple has a loose collaboration with millions of applications on its App Store. Such applications have to be approved by Apple. Apple captures 30% of the revenue from every application downloaded. This scenario can be viewed as a horizontal collaboration.
Collaborations are driven by cost and efficacy. Top IT Company is collaborating with complementors to provide other missing pieces so as to provide a total solution for their customers. These days, collaborations between a variety of sectors and markets from tea to tuna are being observed. But keeping the size and scope of the IT industry’s impact in the business world, imagine what can be accomplished with their collaboration or developing alliances between would-be competitors.
Let’s discuss a few points to understand the significance of collaboration for the growth of your business:
Collaborating delineates what you can bring to the table by enforcing you to elucidate your competencies and challenging you to introspect and filter what you are great at, and what you do poorly. Being cognizant of your strengths and weaknesses will push you to ask for help when necessary and be upfront about how you can help others.
The more the merrier
The old saying, "two heads are better than one" has been around for a long time for a reason. The fusion of talent, experience, finances, and infrastructure from two resources will undoubtedly lead to better problem-solving. Sharing and leveraging those resources would lead to increased market penetration and gives fresh vitality to the connection you have with established customers.
The first thought that comes to our mind when we think of friction is negativity, but in its simplest form, friction is also a kind of energy. So why not leverage the diversity of opinions of people working with you. Creating an environment of diversity where contrasting approaches challenge each other to deduce more efficiency has proven to be significant for stimulating innovation. It will urge people to continuously assess their approach and decision-making.
Look at the bigger picture
There are times when collaborations are unsuccessful, irrespective of all the efforts you put in, how hard you try, the amount of patience you project and how you acknowledge others. But that doesn’t mean that you should give up. Rather, think about the bigger picture and understand that with every failure you learn something. A project may not have been a success, but the partnership may well be salvageable.
Whenever you collaborate with other organizations, you stretch the limits of your co-workers and associates to enhance their capabilities by pushing them beyond their comfort zone, and simultaneously, extend the boundaries of your organization. This gives your organization a reputation of a learning organization, which is very popular and trending these days. It gives a positive image to your organization as a supportive organization that enables its workers and associates to learn through safety nets for failure and propels the growth of an employee in all aspects of his/her life.
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Conclusively, it’s high time we realize that Auxesis Infotech is in the relationship business and collaborating with other complementary organizations is one of the best ways to serve clients in an efficient manner and also get our organization in a better position to innovate.