Value and alliances, many people talk about creating a win-win. Anoop Nathwani and Peter Simoons believe that it should be a win-win-win. Without the third win it is useless to team up in alliances or partnerships. In this Alliance Fireside chat we talk about value and alliances and highlight the value iceberg, the value triangle and why it is essential to have a three way win in alliances and partnerships.
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Value and Alliances – Video transcript:
Peter: Hi Anoop, good afternoon. We’re back for our next fireside chat.
Anoop: Absolutely. Peter, good afternoon to you, how are you?
Peter: Good. Last week when we were not on the record button or recording a fireside chat you coined the term value iceberg to me. What do you mean by that?
Anoop: Good question, Peter. So, when we talk about measuring value, I typically depict that in terms of a value in terms of the value iceberg so you have the tip of the iceberg, which typically, you can see. And the tip of the iceberg will be tangible values, you can measure things like profitable sales revenues, or increase market share all the stuff that people can touch and feel and see etc. However, below the water is the bigger part of the iceberg as we all know, this is the dangerous part of the iceberg, which not a lot of people think about, not a lot of people measure and that’s what I call the intangibles. The hard to quantify but extremely high impact on your alliances. So some examples are new organizational capabilities. It’s kind of hard to quantify, or reduction or neutralize competitive threats or increase band recognition. Right so if you’re associated with another partner you have a lot of increase brand recognition etc it’s it’s the intangible pieces below the iceberg and it’s very, very important that that the bottom part of the iceberg is measured and brought into account because otherwise it’s like it’s like driving a titanic through an iceberg because you’re gonna sink yourself, right. So that’s, that’s, that’s my thinking around it. Now Peter, we we talk about value in terms of what we do, etc. So tell me a bit more about the triangles we use. We’re talking about an iceberg being kind of triangular, etc. Talk to me about the value triangle, the value proposition That that we talked about from our perspective?
Peter: Yes. Well, before we look at the value triangle, let’s have a look at the value proposition indeed. Because the value proposition is really very simple. It’s about the promise of a measurable benefit resulting from an alliance. Now that sounds simple, doesn’t it? It does. However, there are three ways to look at that value that we call a win, win win; the three way win. So you need to be creating an alliance with your partner, you’re not just creating a win win with value for you and me. But more importantly, you also create value for the joint customer. Now, when you from that perspective, look at the triangle, then the biggest part seems to be us in the bottom of the triangle, but the most important part is on top of the triangle, that’s the customer. If we don’t generate value for the customer, then why collaborate, spend our time and money on something else because without the value for the customer, it makes no sense to team up in an alliance. So that’s more or less about the value proposition and about the value triangle.
Anoop: Absolutely correct, Peter. And in fact, when we talk about the customer, we also talk about, it could be the patient if we talk about medication and stuff like that. Yeah. It the people are the recipients of the products and services could be the patient’s right,
Peter: It could also be a party in between. So if we jointly generate or create something that we don’t bring to the market ourselves, but a distributor brings to the market and perhaps combines it with another product. We need to create value for a distributor.
Anoop: Correct? Absolutely correct. So that’s that is the right way of looking at it. Yeah. With a triple win, the triple win.
Peter: If there is no win for the next party. Don’t do it.
Anoop: Correct. Absolutely. Correct. Good. Thank you. There’s a there’s a lot more we can talk about value Peter and lots more we do talk about value.
Peter: Not today in this short fireside chat.
Anoop: Absolutely correct. Thank you. Thanks, Peter.