Isolde and Emanuel target distinct markets, each aligned with unique business and revenue models. Isolde’s unit, Siiquent, serves hospitals and diagnostic labs, employing a razor-blade revenue model: selling machines at cost and earning profits from consumables like test kits and reagents. This approach appeals to cost-conscious customers operating within tight budgets, emphasizing affordability and regulatory compliance support. Emanuel’s unit, Teomik, focuses on research labs and universities, where high-margin, patent-protected equipment drives revenue, and consumables are secondary. This market values innovation, allowing Teomik to charge at a premium pricepoint.
The debate over a single revenue model versus flexibility presents significant trade-offs. Imposing a single model could streamline operations, unify branding, and eliminate internal competition. However, it risks alienating customers accustomed to tailored services and reducing adaptability in a competitive, dynamic market. Conversely, maintaining flexibility allows for responsiveness to diverse customer needs and competitive pressures but could lead to inefficiencies, conflicting priorities, and diluted strategic focus.
To mediate a fair merging process between the divisions, I would scaffold the discussion in three structured phases:
- Explore Each Perspective
- Convene Isolde, Emanuel, and their key stakeholders in a collaborative workshop.
- Begin with each leader presenting their unit’s revenue model, market dynamics, and key customer insights.
- Encourage participants to articulate concerns about merging and aspirations for the new entity.
- Identify Overlapping Strengths and Focuses
- Facilitate a brainstorming session to identify shared values, complementary strengths, and opportunities for synergy. For example, both units excel in customer service.
- Map areas where their markets and revenue models overlap or diverge, using visual aids like Venn diagrams or customer journey maps to ensure clarity.
- Develop Evaluation Criteria
- Guide the group in defining criteria for the merged division’s success, balancing efficiency, customer satisfaction, and profitability.
- Establish guiding principles for decision-making, such as preserving customer trust, minimizing disruptions, and fostering innovation.
Throughout this process, my role would include ensuring equitable participation, mediating disagreements, and maintaining focus on shared goals. By prioritizing open communication, data-driven decision-making, and respect for both units’ legacies, this approach would create a foundation for a well-integrated solution.
