Isolde leads Siiquent, a company that sells consumables such as biological and chemical compounds, test kits, and other supplies, targeting hospitals and large diagnostic labs. On the other hand, Emanuel leads Teomik, which focuses on high-margin, sophisticated research equipment for research labs and universities. Their business models align well with their markets: as mentioned in the reading, Siiquent follows the consumable “blade model” where the recurring demand for consumables provides consistent revenue. By offering these products below reimbursement rates, Siiquent also acts as a revenue generator for hospitals. On the other hand, Teomik caters to research institutions and universities, which have the financial resources and time to invest in and learn how to use complex, high-cost, patent-protected equipment—unlike the often budget-constrained hospitals as shown by the example of the German hospital.
A single revenue model would offer advantages like streamlined operations and consolidation within the company which could lead to cost savings from cutting redundant back office functions. Also, the structural consistency could improve efficiency and create a clearer strategy for the executive team. However, it risks sacrificing the flexibility both companies have relied on for years to be nimble and adapt to customer needs and the competition. Allowing the company to continue with its flexible approach gives Isolde and Emanuel autonomy over their respective units, enabling them to maintain the versatility they’ve had and continue to serve their long-standing customers. The downside, however, includes the potential for further internal competition, external confusion with customers as mentioned, and the added overhead of maintaining extra staff that wouldn’t be necessary under a single revenue model.
As the PM tasked with this merger, I would take a data-driven and transparent approach. Alongside a team with no skin in the game, I’d analyze each unit’s financials models, study the competitive landscape, and speak with customers to understand if their needs are being met. I’d also want to have open and honest discussions with Isolde and Emanuel to see how their revenue models could complement one another, so we could potentially create a model that builds on each other’s strengths. After doing this, I’d present my findings to all stakeholders involved and make it a democratic process on how to proceed. In short, I believe these steps would help with making the transition to a single model smoother for all involved.
