I copied the blog post title from an article by Bob Saada, a partner with PwC US based in New York and Benjamin Gomes-Casseres, a professor of business strategy at Brandeis University and author of Remix Strategy: The Three Laws of Business Combinations. It was published at www.strategy-business.com in December 2018.
In a very interesting article they state that alliances and joint ventures are on the rise worldwide.
Few companies can afford to follow their previous deal blueprints if they want to respond to the disruptions and risks in today’s markets. More important, the traditional lines between industries are blurring, with consumers increasingly expecting goods and services to be interconnected, and businesses seeking to make their supply chains more efficient and effective.
Further evidence of the rise in popularity of alliances and JVs comes directly from company leaders. In PwC’s most recent global CEO Survey, 49 percent of executives said they were planning a new strategic alliance or JV in the next year to help drive corporate growth or profitability. That was more than were planning new M&A activity (42 percent), outsourcing (21 percent), or a business sale or market exit (16 percent).
Read the complete article here
At Eurostep we have developed software (ShareAspace) and services that simplify the implementation and operations of Partnerships and Joint Ventures. One of the big hurdles in a M&A process is to agree on the IT systems that will continue to be used and the ones that will be phased out. In a Partnership and Joint Venture you plan to keep all systems and internally keep your processes. But you still need to excel in the collaboration by easy and secure sharing of common data, for manufacturing industry this typically means data from systems PLM, ERP, MRO etc.