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Tuesday, December 20, 2016

Why We Share and Collaborate for Business Profit

As a human species we have learned that it is beneficial to share ideas and resources in order to get more of what we need out of life. Our survival rate increased and our lifestyle increased compared to our ancestors and this may be due in part to collaboration. Business also can improve their health through sharing and collaborating. Hedging resources can be a good thing when both companies can succeed together.

If collaboration is in our blood as a species why don't all businesses collaborate? In many cases this occurs because these businesses compete with each other. Sharing information and resources can lead to advantages that may help one business over another.

The other option is to collaborate on businesses that are not in the same markets. For example, a technology company and auto supplier can provide updated smart products that are more efficient than what is currently on the market. They are not natural competitors and can gain more then they lose.

Two businesses working together typically is on beta test through the use of a collaborative team with supportive resources. The team focuses on specific projects and works to achieve some objective such as a new product line or solution to a long-standing problem. If the project is successful they can work on more complex tasks.

To be innovative companies should explore the possibilities of hedging current competencies and resources in order to develop new products and services. Collaboration can lead to a win-win outcome for both businesses if a trusting relationships arises. Industry knowledge is an additive process and the more we put into it the more it returns.

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