Networks of relationships among firms are key to synchronisation – they range from intense collaborations (where two or more firms co-develop products) to arm’s length alliances (involving less interaction e.g. a joint sales and marketing agreement). These networks determine how companies influence one another to speed up or slow down their product development activities.
But not all synchronised partnerships produce the desired outcomes, and the implementation costs can vary significantly. Control is a major factor that influences the coordination of critical activities for successful synchronisation. Another is how to forge the initial partnership:
Identify and assess opportunities: seek out links between your products and those of other firms to be used in conjunction with your own. Identify opportunities to build mutually on these links through product development innovation and marketing.
Select projects: Priorities opportunities and assess the impact of synchronisation on your culture, resources, and operations management.
Identify potential partners: Determine similarities between your own firm and others for synchronising, and how formal the relationship should be.
Initiate dialogue with key players: Define mutual interests and the scope and terms of collaboration. Signal project intent to those that might decide to synchronise with your firm.
Mutually develop project plans: Align project schedules and required resources. Create an agreement that addresses obstacles and contingencies.
Action Point
When beginning a synchronised collaboration, signal your intent to companies within your network, for example through formalised press releases and partner-to-partner communications. This allows potential partners to adjust product development and manufacturing schedules to the needs of the other companies in the network.
Source: Davis, J. P. (2013) Capturing the Value of Synchronized Innovation, SMR, June; Mothe, J. and Link, A. (2002) Networks, Alliances and Partnerships, US.