In previous posts, we discovered that with open innovation we can co-create value in new partnerships. Many companies are still not open to sharing their IP and other strategic assets, however they must adopt transparency and trust to receive any value. Once past the threshold, there needs to be a dedicated team that evolves into developing and managing these new partnerships.

If internal teams and management aren’t familiar with creating and driving these relationships, then there is a high chance that the process will fail. Let’s look at the “Why and the What” of strategic partnerships first. The following is a snapshot of the value creation and transfer process- the Why of the methodology.

Coming into the Business Innovation Lab environment, we would workshop the model to ensure that both (or more) parties see that the internal and external processes line up to co-create value. In the business model innovation exercise, the Joint Value Proposition is what the parties agree to be the Go To Market (GTM) with.

Simple linear multipliers, like adding a distribution partner into a sales and marketing problem/ opportunity matrix does little to provide sustainable growth drivers. It’s easy to overlook the value and the workshop helps all parties get prepared to move forward into a longer term strategic partnership.

Strategic Partnerships can take on several business arrangements which can be designed to “spin off” the new joint proposition. It could be as simple as an MOU and GTM plan, however it becomes fairly easy to fail due to lack of proper strategic commitment. (looks more like a one sided distribution model)

The other model would be Joint Ventures, where all parties commit to IP development and design a new focus with Business Plans and committed resources. Everyone from startups to technology partner venture groups can benefit and funding becomes inherent from the process. These can take shape as new companies or”New Cos” where capitalization sheets are developed and IP ownership properly accounted for.