We spoke to EY’s Pippa Dussuyer about how tech companies can scaleup by leveraging strategic partnerships.
Q: Thanks very much for joining us today Pippa. Today we’re going to talk to us about partnerships and growth, so, on that note, how is technology shaping the number and nature of partnerships in the TMT sector?
Partnerships in the TMT sector are far from new. They have been there since the inception and traditionally TMT companies have used partners as channel partners to take their products to consumers. This is a symbiotic relationship in which both organisations take a share of the end consumer value chain and that’s been a very accepted way of going to market.
Now you’ve got shifting consumer perceptions and a fundamental shift in the way consumers are both perceiving providers and purchasing. Technology changes, which give companies a direct route to those customers through e-commerce and platform business models, are also taking place. This means there are different types and numbers of partnerships that are available to TMT organisations.
In the one sense we are seeing a shift away from traditional channel partners. We are also starting to see competitors coming together within platform business models to market their products and services to end consumers – that’s the main shift we are seeing.
Q: What challenges are companies in the space facing and how can they collaboratively work together to overcome these?
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The main challenge is how do you access new forms of growth and how do you tap into new technology.
If you take the example of customer data, this is proliferating and its across multiple touch points. There’s an opportunity for organisations which have access to different types of that data to partner together to offer an enhanced proposition to the customer.
We are seeing mobile network operators and credit card providers being able to stitch together the purchasing behaviours and the geolocation of customers to provide a richer picture of behaviours and therefore provide enhance products to those end consumers.
Q: On that note, what should these businesses look to get out of a partnership?
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The main thing is really focusing on that word; ‘partnership’.
There needs to be that symbiosis and there needs to be a shared goal.
If you take companies that are starting out, a partnership is a wonderful way to tap into a different type of skill set and experts in the market without actually inuring costs so ecosystem partners.
What we advise companies to do is to seek genuine partnerships in a way that there is a shared goal and there’s a common value system, but also to seek partnerships that offer a brand perception that enhances the genuine nature of those.
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Be quite careful about who your partner with and who you choose to do business with.
Thank you very much for your time, Pippa.
Thanks for having me.