Understanding this article by (Marco Bertini and Nader Tavassoli) has actually taken from me a decent amount of research to understand what a revenue model is in the first place. And, according to Wikipedia, a revenue model is a framework for generating financial income. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value, and it is a key component of a company’s business model. With that in mind, I was able to better understand the challenges faced by each company and Peter Noll’s investigation of both. Isolde Kraft is leading Siiquent, which targets hospitals and big diagnostic labs as its main clients. On the other hand, Emanuel Geiger, head of Teomik, was targeting a market composed mostly of research labs and universities. Both of their business models focus a lot on their clients and their needs, trying to provide as much support as possible. The main benefit to merging the two companies in one revenue model would be consolidating the reduction of operation costs and uniting them as one instead on seeing each other as internal competitors. On the perils of it, however, the strict structure eliminates the flexibility that Siiquent and Teomilk have been working with for the longest time. The flexibility allows them to respond to customer needs and respond to competitors, constantly creative with their methods in a non-static changing market.
I think that in the tense case where the CEO actually decide to merge both companies anyway, I would try to mediate between the two division heads during their discussions of plans for the merged future awaiting them. For that, it would be important to allow then to give negative feedback in a respectful way, with the possibility of agreeing to disagree without being too confrontational, while implementing trust and productive communication between the two.
