Can One Business Unit Have Two Revenue Models?

The Markets

Isolde and Emanuel target the markets of diagnostic labs and research universities respectively. Isolde targets the market of what the “machines used” by offering equipment. Emanuel targets the market of the actual “machines” itself, with his company, Siiquent, being a “DNA-sequencing start-up” (121). It’s also mentioned that Isolde targets hospitals, “positioning itself as a revenue generator for the hospitals” (122). Meanwhile, Emanuel targets the “research market” (122), and aims to provide researchers with the necessary equipment.

Pros/Cons of Single Revenue Model and Flexibility

The pros of imposing the structure of a single revenue model vs letting the company continue in its flexible way are that it’s unconventional, and thus, it’s unsure if this strategy would actually work or not. Furthermore, having no strategy means that there’s no real plan – that is, there’s no real set delineations on what rules should be followed, which could be risky.  The perils are that, as Isolde mentions, continuing in a more flexible manner means that the company is able to better respond to new strategies and tactics as situations change (123), and that flexibility may be lost in a single, strictly imposed revenue model.

Scaffolding the Discussion

I would scaffold the discussion for merging the divisions together by creating outlines and frameworks to organize thought, and then, with those frameworks, hopefully come to an agreement with the two individuals. I would want to organize thoughts into a pros/cons list to properly structure thinking and to ensure both sides are aware of what may work and what may not work. I would then ensure that I hear both sides out, and give both sides time to speak on their own perspectives and disagreements. Ultimately, finding a compromise would involve both sides having the chance to make their arguments and the relative persuasiveness of said arguments.  It seems that Emmanuel and Isolde already have strong consensus on a flexible business model – this means that there’s already one strong point of agreement. I would be inclined to follow this model, potentially for a shorter duration of time so that we can make changes if needed.

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